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
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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…
It was very fundamental to the company’s success over the years. According to the study, one of his earliest actions as manager of the company was to ask the employees to “elect representatives to a committee that would advise him on company operations”. Lincoln allowed for the employees to make a decision, increasing their respect for him. Since then, the Advisory Board was created to meet with Lincoln twice monthly to discuss worker conditions. The management style might seem non-authoritarian, but it is quite the opposite. “We’re very authoritarian around here...management in all successful departments of industry must have complete power” stated a Mr. Willis in the article. Richard Sabo, the manager of Public Relations, stated that “the most important participative technique that we use is giving more responsibility to employees”. This kind of trust lets the workers know that they are not being dictated and controlled by someone doing things they have no knowledge
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…
It was very fundamental to the company’s success over the years. According to the study, one of his earliest actions as manager of the company was to ask the employees to “elect representatives to a committee that would advise him on company operations”. Lincoln allowed for the employees to make a decision, increasing their respect for him. Since then, the Advisory Board was created to meet with Lincoln twice monthly to discuss worker conditions. The management style might seem non-authoritarian, but it is quite the opposite. “We’re very authoritarian around here...management in all successful departments of industry must have complete power” stated a Mr. Willis in the article. Richard Sabo, the manager of Public Relations, stated that “the most important participative technique that we use is giving more responsibility to employees”. This kind of trust lets the workers know that they are not being dictated and controlled by someone doing things they have no knowledge