P-O-L-Co Case Study Of Lincoln Electric Company
Lincoln Electric Company is a well-known and successful manufacturing company. According to Arthur Sharplin. (1989) - "The Lincoln Electric Company is the world 's largest manufacturer of welding machines and electrodes. Lincoln employs 2,400 workers in two U.S. factories near …show more content…
He wrote "all money usually needed for expansion is supplied by the customer in retained earnings. It is obvious that the customer 's interests, not the stockholder 's, should come first”.
Lincoln Electric Company objectives is to retain customer satisfaction to its maximum levels and create culture of customer loyalty. James Lincoln said "Care should be taken ... not to rivet attention on profit. Between 'How much do I get? ' and 'How do I make this better, cheaper, more useful?”. Along customer satisfaction Lincoln Electric Company strongly focused on productivity by providing employees better work environment, better wages, incentives, trainings and job security, which promotes a strong organizational culture.
In order to get the maximum productivity and precision in quality, they introduce a strategy to develop loyalty and give their employee mental satisfaction in terms of higher wages, job security, incentives, bonuses and medical facility. They train their employees and give more responsibility to build confidence than any other company of same nature of …show more content…
(1989) - "John Lincoln, while he remained president of the company for some years, became more involved in other business ventures and in his work as an inventor.” In order to know more about their employee 's needs and problems they developed a system based on communication, by getting elected one person within the employees who can communicate on behalf of the employees as mentioned by Arthur Sharplin. (1989) - James Lincoln 's early actions as head of the firm was to ask the employees to elect representatives to a committee that would advise him on company operations. The Advisory Board has met with the chief executive officer twice monthly since that time”. Company also introduced rewards and incentives for employee 's