The Lincoln Electric Company : Organizational Culture Essay

796 Words Sep 22nd, 2016 4 Pages
Lincoln Electric Company
Organizational culture is a more powerful way to influence employee behaviour.
The Lincoln Electric Company is described as the world’s largest manufacturer of welding machines and electrodes. The company employs 2 400 workers in two U.S factories near Cleveland and approximately 600 more workers in three factories located in other countries. The company has been praised for years as a model for achieving high worker productivity. Since 1965 the company has been having higher profits and bonuses.
James Lincoln set up his early action as head of the firm and asked the employees to elect representatives to a committee that would advise him on company operations. In the first year, the Advisory board took care of the employee needs by reducing employee working hours from 55 per week to standard 50 hours per week. And then in 1915, the company gave each employee a paid life insurance policy. A welding school, which continues even today, was begun in 1917. In 1919 the company formed the Employee Association to provide health benefit and social activities. In 1923, employees were awarded with two week paid vacations each year and and wages were adjusted for changes in the Consumer Price Index. A stock purchase plan was begun in 1925 therefore almost 30% of Lincoln 's stock was set aside for key employees in 1914 when James F. Lincoln became General Manager. A bonus plan was proposed by the Advisory board and it was accepted by James Lincoln in 1934, there…

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