“Analyzing the Lincoln Electric Company to Determine its Organizational Culture”
This essay uses the framework from chapter eight of the textbook to analyze the Lincoln Electric Company in determine its organizational culture. The first feature to be analyzed is the influence of the founders on the company from when it started until now. The second group of features to be analyzed at the Lincoln Electric Company includes its incentive management plan, its performance appraisal system, its communication system, its merit pay and bonus plans, and its management style. These features point to the Lincoln Electric Company having various aspects of an innovative, outcome-oriented, and team-oriented organizational culture.
The influence of the founders …show more content…
Willis. While customer’s interests were the company 's first focus for Sharplin, stakeholders were the last focus for him. Lincoln’s attitude toward stockholders still rings true today according to Mr. Willis, who pointed out the groups the company serves "in the order of priority as (1) customers, (2) employees, and (3) stockholders" (Sharplin, 1986, p. 11). While stakeholders were last, employees were and still are second in terms of organizational priority. Lincoln placed employees as the company’s second priority because he believed that the best way to achieve the company’s first priority - to meet the customer 's needs in the best way possible - was to ensure its employees were high-performing and productive. Lincoln believed to that to ensure a high caliber of workers, their fears of receiving inadequate earnings and being laid off had to reduced or eliminated altogether. Thus, the Lincoln Electric Company addressed these fears through performance bonuses and other reward systems. When the company first started and even today, performance bonuses and other rewards systems, such as end-of-year bonuses, have been put in place to ensure workers are receiving adequate pay for their performance. Also, to ensure job security, the company guaranteed each employee that …show more content…
Willis because the founder, James F. Sharplin, "placed a good deal of stress on protecting management 's authority" (Sharplin, 1986, p. 9). However, the company also encourages employee participation and open communication, which points to a team-oriented and innovative organizational culture. Although complete power rests with management, the Lincoln Electric Company is team-oriented in that employee participation is encouraged in the company’s decision-making processes and because employees are measured and rewarded on how well they actually participate, collaborate, and cooperate as a team. Furthermore, the way participation and communication is encouraged in the company indicates the company’s innovative culture. Participation enables the company to experiment with new ideas, and communication is flexible at the Lincoln Electric Company. Whenever employees have any difficulty, they are encouraged to seek help from a more knowledgeable and experience colleague (Sharplin, 1986). Also, the Lincoln Electric Company has no formal organizational chart, and titles are downplayed at the company like many other organizations with innovative organizational cultures (Sharplin, 1986).
In conclusion, in analyzing different aspects of the Lincoln Electric Company, one can clearly identify some aspects of its organizational culture based on the framework in chapter eight of the textbook. Analyzing the influence of the
This essay uses the framework from chapter eight of the textbook to analyze the Lincoln Electric Company in determine its organizational culture. The first feature to be analyzed is the influence of the founders on the company from when it started until now. The second group of features to be analyzed at the Lincoln Electric Company includes its incentive management plan, its performance appraisal system, its communication system, its merit pay and bonus plans, and its management style. These features point to the Lincoln Electric Company having various aspects of an innovative, outcome-oriented, and team-oriented organizational culture.
The influence of the founders …show more content…
Willis. While customer’s interests were the company 's first focus for Sharplin, stakeholders were the last focus for him. Lincoln’s attitude toward stockholders still rings true today according to Mr. Willis, who pointed out the groups the company serves "in the order of priority as (1) customers, (2) employees, and (3) stockholders" (Sharplin, 1986, p. 11). While stakeholders were last, employees were and still are second in terms of organizational priority. Lincoln placed employees as the company’s second priority because he believed that the best way to achieve the company’s first priority - to meet the customer 's needs in the best way possible - was to ensure its employees were high-performing and productive. Lincoln believed to that to ensure a high caliber of workers, their fears of receiving inadequate earnings and being laid off had to reduced or eliminated altogether. Thus, the Lincoln Electric Company addressed these fears through performance bonuses and other reward systems. When the company first started and even today, performance bonuses and other rewards systems, such as end-of-year bonuses, have been put in place to ensure workers are receiving adequate pay for their performance. Also, to ensure job security, the company guaranteed each employee that …show more content…
Willis because the founder, James F. Sharplin, "placed a good deal of stress on protecting management 's authority" (Sharplin, 1986, p. 9). However, the company also encourages employee participation and open communication, which points to a team-oriented and innovative organizational culture. Although complete power rests with management, the Lincoln Electric Company is team-oriented in that employee participation is encouraged in the company’s decision-making processes and because employees are measured and rewarded on how well they actually participate, collaborate, and cooperate as a team. Furthermore, the way participation and communication is encouraged in the company indicates the company’s innovative culture. Participation enables the company to experiment with new ideas, and communication is flexible at the Lincoln Electric Company. Whenever employees have any difficulty, they are encouraged to seek help from a more knowledgeable and experience colleague (Sharplin, 1986). Also, the Lincoln Electric Company has no formal organizational chart, and titles are downplayed at the company like many other organizations with innovative organizational cultures (Sharplin, 1986).
In conclusion, in analyzing different aspects of the Lincoln Electric Company, one can clearly identify some aspects of its organizational culture based on the framework in chapter eight of the textbook. Analyzing the influence of the