Lincoln Electric Company: Standing Out Of The Crowd

Improved Essays
The Lincoln Electric Company is considered as one of the top best managed manufacturing companies on Earth. Out of all companies, what makes Lincoln Electric stand out of the crowd? The answer lies within the paragraphs of Arthur Sharplin’s, Lincoln Electric Company Harvard Case Study. He shares his knowledge of the company’s pay, bonuses, and management policies and ideals. This allows the audience to understand what makes a company great.

To begin with, Lincoln Electric has approximately three thousand employees in the United States and three other foreign countries. Also, when the founder of the company, James F. Lincoln passed, the people worried for the future of the company. However, despite the expected downfall, Lincoln Electric has had higher profits and bonuses since 1965.

James’ first call while establishing the company was to “ask the employees to elect representatives to a committees that would advice him on company operations”. This ideal is known as The Advisory Board which meets twice every month with the chief executive officer. The representatives work hard to bring new ideas to the table and to discuss how operations are improving and/or how they may be improved. This “tradition” of meeting on a monthly basis has been operating since 1914.

On The
…show more content…
Just like stated before, The Advisory Board is made up of representatives that the employees select to represent them at the bi-monthly meetings. Formal authority is very important at Lincoln Electric however. Despite the belief that because employees have power in their job they can act and do as they please, that is not the case at this company. The sense of authority at the company reminds the employees that they have a mission to do; And that is to share an amazing product to the

Related Documents

  • Improved Essays

    The current board members are Natalie Hall, R.N-President, Holly Presley, L.P.N- Secretary, Cecelia Smith, R.N, Lynda Narwold, R.N, Anne Ogle- Consumer Member, Kim Cooper, R.N- Vice President, Marcia Laux, R.N, Constance McIntosh, R.N., and Ed. D The four major activities of ISBN are to protect the health and safety of the citizens of Indiana in its receipt of nursing services, to examine, license, and renew licenses of qualified applicants, to determine appropriate discipline when there is an allegation that an Indiana-licensed nurse has failed to comply with the requirements for licensure, and to accredit and monitor Indiana nursing education programs. How does a school of nursing maintain their accreditation?…

    • 703 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    However, much of the company’s success and organizational culture can be attributed to his younger brother, James F. Lincoln. James took the reins of the company in 1914.…

    • 883 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Under the weak mayor system, voters elect council members and a mayor with limitations on his or her powers. The mayor presides over council meetings, but council members oversee various municipal departments such as public safety, planning, finance and parks. In some cities, the mayor has sought more power by asking voters to allow him or her to do more than be the presiding council member. This could lead the way to a strong mayor-council system, but actually strong mayor was seen as a panacea for municipal corruption at the end of the 1890s. This means the voters elected council members with certain powers a strong mayor is elected who can prepare budgets, veto council votes and have a great deal of influence over various municipal departments.…

    • 343 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Wooten’s Electric Utility Company About the Company Wooten’s Electric Utility Company is a company that was created to serve over 580 homes and farms. Today Wooten’s Electric Utility Company is one of the largest electric companies in the United States of America with nearly 15,000 miles of lines that serve more than 65,000 meters.…

    • 762 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The board members have 3 to 5 year terms and also can be appointed for another 3 to five years after their first term. There is also almost 70 staff members that assist the board members. ). FAF has charged FASB with the responsibility of looking for financial inconsistencies on behalf of the Securities and Exchange Commission (SEC) that has the authority to formulate and report financial guidelines for businesses across the United States. SEC’s dependency on the private sector led to the establishment of the seven-member board that regulates the financial matters of many businesses (Mead et al., 1990). FASB bears the responsibility of appointing the seven members who serve the board for a term of five years.…

    • 1619 Words
    • 7 Pages
    Improved Essays
  • Decent Essays

    Australian Unity Board is responsible for Group governance: approval of strategies, operating plans, budgets; setting and monitoring Group risk management framework; control and accountability policies/systems. Committees include: • Audit and Compliance: approves annual internal audit plan; main objective is to oversee the credibility and objectivity of financial reporting and the compliance with obligations; oversees and appraises the quality of audits conducted by both internal/external auditors (e.g. EY financial auditors); determines adequacy of controls and evaluates adherence. • Risk: oversees risk management framework for identifying, assessing, mitigating and monitoring material risks arising from the business activities; promotes…

    • 221 Words
    • 1 Pages
    Decent Essays
  • Brilliant Essays

    Thomas Alva Edison is undoubtedly the most influential American from the 20th century. Edison was born in Milan, Ohio in 1847 (Hart 222-225). When he first began school, “Edison’s teacher thought he was addled” (Allaby and Gjertsen 13), and his mother soon pulled him out. As a homeschooled child, Edison became an avid entrepreneur at a young age (Allaby and Gjertsen 14-23). He sold newspapers on a train as well as candy and fruit to supplement his earnings.…

    • 1895 Words
    • 8 Pages
    Brilliant Essays
  • Superior Essays

    Case Study: NJ Transit

    • 1401 Words
    • 6 Pages

    In addition to, 7 voting members, 4 are from the general public and three state officials. To encourage diversity, one non-voting member of the board is recommended by the labor of organization. The agency Select an executive director to manage the entire agency, plus a chief operating officer to coordinate daily operations. Moreover, the organization utilizes an active representation by acting on behalf of the public to make final decisions; as well as a passive representation by allowing two transitory advisory committees to provide input from the public. Both, the North Jersey advisory committee and the South Jersey committee constitutes fourteen unsalaried members each, where the North Jersey committee members serve a four year terms and the South Jersey committee serves a three year terms.…

    • 1401 Words
    • 6 Pages
    Superior Essays
  • Superior Essays

    A. Legal Rules Conflict of Interest A long-time member of the board and the largest donor, John Woods, reached out to the Executive Director of Children’s Assistance Services (CAS) to contact Marvin Jones to start on the repair project. John Woods’ wife’s brother owns 20% of Marvin Jones’ business. Since Woods is a member of the board and holds leverage due to being the largest donor, this situation is deemed as a conflict of interest (Statues p.1019, Article III, Para 2). Moreover, there was no disclosing of potential conflict of interest to other board members, neither orally nor in writing, as it was happening (Statues p. 1020, Article IV, § 1).…

    • 1520 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    The company allows employees to have a voice in the company in matters related to its success. A committee of representatives is selected from peers, and this committee meets with the CEO bi-monthly (Arthur Sharplin, McNeese State University, Lake Charles, LA., 1989). In 1919, the company developed the Lincoln Electric Employees’ Association, which gave employees an outlet for social activities and gave health benefits. Other perks were established and provided to employees, as well. Staff…

    • 905 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Executive Compensation: The Board of Directors, specifically the independent directors that compose the Management and Development and Compensation Committee, design executive compensation packages at General Electric. When these independent directors meet, they do so with the purpose of incentivizing the executive team, who has a significant impact on strategy, decision-making, and creation of value for the company. The Management Development and Compensation Committee is tasked with creating and establishing compensation packages for the CEO and other senior executives. There are several elements to compensation at General Electric.…

    • 510 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    When Jack Welch entered the world of General Electric as CEO in 1981, he entered head first, ready to enhance the company from where it currently stood. He entered the company alongside with a strong vision for the future as he stated that “A decade from now, I would like General Electric to be perceived as a unique, high-spirited, entrepreneurial enterprise . . . the most profitable, highly diversified company on earth, with world quality leadership in every one of its product lines” (Bartlett and Wozny, 2005, p. 2). With such a strong vision and devotion that was seen as Welch took action to implement changes, the company was in for a surprise. Under chapter 10 of the textbook it was noted that a “compelling vision can pull people together,”…

    • 1421 Words
    • 6 Pages
    Improved Essays
  • Great Essays

    This plays a key role in Lincoln’s overall decision-making process. People: The employees at Lincoln Electric are another success factor. Lincoln employs and attracts driven individuals that are willing to work hard, enjoy autonomy and are willing to compete every day to achieve greater financial success. Most of the employees join at entry-level positions, grow within the organization and maintain long tenure.…

    • 1408 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Lincoln Electric Case

    • 872 Words
    • 4 Pages

    1) Define the Issues or Future Challenges facing the Firm The main challenge for the firm is whether they should enter the Indian market, and if so, what should be their mode of entry into the country. Providing that entry into India is necessary to meet the company’s financial goals and appealing enough to sustain long-term growth in the country, the firm faces challenges related to how they should enter the market. The choices of market entry the firm faces are between i) Acquisition; or ii) Joint Venture; or iii) Greenfield Investment. Lincoln Electric needs to carefully take into consideration the impact of cultural and geographic distance between their home country, America, and the host country, India, when deciding on their preferred…

    • 872 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The philosophy that was initially grounding the company’s mission kept strong, in spite of abandoning the religious branch. It could be said that one of the values supported by Lincoln is the People-Oriented Culture, since fairness is valued towards and among employees. Lincoln Electric Company’s culture is known for being flexible, as explained before this characteristic favors innovativeness and adaptability, which are both good assets for high tech industries. As the world 's largest manufacturer of welding machines and electrodes, it is clear that this kind of attitude works in their favor.…

    • 821 Words
    • 4 Pages
    Improved Essays