In this paper, I will give a case analysis that summarizes your understanding of the culture of the Lincoln Electric Company. The Lincoln Electric company is a company that supplies welding related equipment and services to a global business economy Lincoln Electric Company has been regularly featured as a way that rewards hard work and efforts of its employees and serves as a strategic model that if was in place in other companies organizational structure would greatly improve worker satisfaction and worker loyalty.
The incentive management plan that Lincoln has I feel is a strongly determining factor as to why this company has employees that stay employed with this company until the retire. Lincoln employees that benefit from the incentive-based employee perks can earn upwards of equal to their base salary in bonuses, and stock options and other perks that can and continue to this day encourage an employee to produce and increase sale and production thereby helping the company has a …show more content…
The average bonus for 1980 was about $17,500. Individual bonuses are exactly proportional to merit-rating scores. For example, a person with a score of 110 would receive 110 percent of the standard bonus as applied to his regular earnings.
The management style at Lincoln can be best describe as incentive management. Formal authority is quite strong. "We 're very authoritarian around here," says Mr. Willis. James F. Lincoln placed a good deal of stress on protecting management 's authority."Management in all successful departments of industry must have complete power," he said "...Management is the coach who must be obeyed. While they do have formal authority work environment it helps the Lincoln employees know exactly how crucial they are to the success of the Lincoln
The incentive management plan that Lincoln has I feel is a strongly determining factor as to why this company has employees that stay employed with this company until the retire. Lincoln employees that benefit from the incentive-based employee perks can earn upwards of equal to their base salary in bonuses, and stock options and other perks that can and continue to this day encourage an employee to produce and increase sale and production thereby helping the company has a …show more content…
The average bonus for 1980 was about $17,500. Individual bonuses are exactly proportional to merit-rating scores. For example, a person with a score of 110 would receive 110 percent of the standard bonus as applied to his regular earnings.
The management style at Lincoln can be best describe as incentive management. Formal authority is quite strong. "We 're very authoritarian around here," says Mr. Willis. James F. Lincoln placed a good deal of stress on protecting management 's authority."Management in all successful departments of industry must have complete power," he said "...Management is the coach who must be obeyed. While they do have formal authority work environment it helps the Lincoln employees know exactly how crucial they are to the success of the Lincoln