In this analysis I will be discussing the continuing influence of the founders of the company. The analysis will also include the performance appraisal system, the bonus plan, and the management style that the Lincoln Electric Company has in place. I will also discuss how the people within the company communicate with each other.
The founder of the Lincoln Electric Company John C. Lincoln implemented many fundamentals that continue to influence the company to this day. One of the first actions was appointing his younger brother James as General Manager and Vice President. James Lincoln had a plan of having the employees choose representatives to form an advisory board committee to advise him on company operations. Since the committees …show more content…
Lincoln had a business philosophy that was driven by his christian beliefs. Putting the customer first always, and considering all of their needs to understand the best product to suit their needs. Also by improving product quality and improving production and distribution they can keep a competitive advantage. Lincoln has always felt that you should always take care of the customers first, the employees second, and the stockholders last.
The incentive management plan of Lincoln Electric pays based on the employee 's accomplishments. Employees are paid a piece rate and bonuses based on their productivity. This system has proven highly effective as productivity by Lincoln Electric surpasses all other competitors …show more content…
Individual bonuses are based on the score from their merit rating. A score of 80 would mean only 80% of the base bonus would be granted to the individual and a score of 100 would mean 100% of the bonus would be granted.
The management style for Lincoln Electric is participative. They believe that when you give an employee more responsibilities they feel more important. Management has total control over over the operations of the company, but the employees are mainly working unsupervised most of the time. The production manager has many employees and usually has a lot of other duties to fulfill so it limits the direct interactions with the employees.
In conclusion the Lincoln Electric Corporation is an industry leader in the manufacturing of welding machines and supplies. By continuing the legacy that the founder of the company influenced they remain more productive and cost efficient than competitors. The productivity is raised be the exceptional benefits, bonuses, and piece rate pay that keeps the employees more engaged and interested in doing a good
The founder of the Lincoln Electric Company John C. Lincoln implemented many fundamentals that continue to influence the company to this day. One of the first actions was appointing his younger brother James as General Manager and Vice President. James Lincoln had a plan of having the employees choose representatives to form an advisory board committee to advise him on company operations. Since the committees …show more content…
Lincoln had a business philosophy that was driven by his christian beliefs. Putting the customer first always, and considering all of their needs to understand the best product to suit their needs. Also by improving product quality and improving production and distribution they can keep a competitive advantage. Lincoln has always felt that you should always take care of the customers first, the employees second, and the stockholders last.
The incentive management plan of Lincoln Electric pays based on the employee 's accomplishments. Employees are paid a piece rate and bonuses based on their productivity. This system has proven highly effective as productivity by Lincoln Electric surpasses all other competitors …show more content…
Individual bonuses are based on the score from their merit rating. A score of 80 would mean only 80% of the base bonus would be granted to the individual and a score of 100 would mean 100% of the bonus would be granted.
The management style for Lincoln Electric is participative. They believe that when you give an employee more responsibilities they feel more important. Management has total control over over the operations of the company, but the employees are mainly working unsupervised most of the time. The production manager has many employees and usually has a lot of other duties to fulfill so it limits the direct interactions with the employees.
In conclusion the Lincoln Electric Corporation is an industry leader in the manufacturing of welding machines and supplies. By continuing the legacy that the founder of the company influenced they remain more productive and cost efficient than competitors. The productivity is raised be the exceptional benefits, bonuses, and piece rate pay that keeps the employees more engaged and interested in doing a good