Organizational Culture Of Lincoln Electric Company

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Organizational culture is defined as a system of shared assumptions, values, and beliefs that show people what is appropriate and inappropriate behavior. It is closely linked to a concept of organizational design. The Principles of management textbook states that “the organizing function involves creating and implementing organizational design decisions”, for example, the textbook stated “A culture that empowers employee decisions could prove extremely resistant to a centralized organizational design, hampering the manager to enact such a design, but a culture that supports the organizational structure [and an organizational structure that supports a culture] can be very powerful”. This means, if a company allows its employees to be part of …show more content…
As revealed by the Harvard case study’s research, Lincoln Electric Company is categorized as a People-oriented culture. A People-Oriented culture is defined as “a culture that values fairness, supportiveness, and respectfulness of individual rights”. As a result, the company involved with this culture benefits from a lower turnover rate than tindustry average. The Lincoln Electric Company is considered as a People-Oriented Company, based on the OCP, because of its management style, its performance appraisal system and its continuing influence of its founders—James F. Lincoln and John C. …show more content…
At the center of the company are the assumptions. On p. 4 of the case study, Sharplin expressed that to Lincoln what was credited to the success of the company was “the greatest fear of the worker, which is the same as the greatest fear of the industrialist in operating a company, is the lack of income…He [The Industrialist] is completely oblivious, evidently, of the fact that the worker has the same need”. At the middle are the values. Lincoln valued his customers so much that he made one of his company’s goals “to build a better and better product at a lower and lower price”, in accordance to “as the raison d’etre for every company”. Furthermore, at the surface were his artifacts such as employee pensions, health benefits, education benefits, an open door policy and so much more, in order, for him to establish a corporation that “must and should cooperate fully and

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