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To achieve higher worker productivity, they implemented the incentive management plan, which Sharplin says is still the model college textbooks use to talk about powerful incentive plans. The performance appraisal system happens twice a year, and employees get scores out of 100 in different categories. According to Sharplin, the average score is an 80 for all employees, showing a high level of performance in the workplace. The bonus plan is another important way for the Lincoln Electric company to stand by their golden rule, since they give back to their employees when they do well. According to Sharplin, this bonus included about 20% of the workers’ annual wages, along with extra bonuses during strong years. The pension plan for retired people also helps former employees, showing that Lincoln Electric cares about the long-term welfare of its
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I will address each of the seven values, and explain whether it fits Lincoln Electric. First, innovative culture. Since Lincoln Electric has a rigid hierarchy, it does not fit this specific definition of an innovative culture. Lincoln Electric does have an aggressive culture, because they have a huge market share and dominate their competitors. However, the company does not fall short in corporate social responsibility, because they still highly value employees. The company has an outcome-oriented culture, because there is bonus pay based on good performance and assessments twice a year to see how employees perform. The culture is stable, because there are defined levels of hierarchy, but there is still room to adjust to change. Lincoln Electric is people-oriented, because it provides employees with good wages, training, and job security. There was not much in the report about teamwork, so I am going to guess that the culture is not team-oriented, otherwise Sharplin would have mentioned it. Finally, Lincoln Electric is detail-oriented: they produce high-quality welding machines and electrodes, which require strong attention to detail in order to create a safe product. Without paying close attention to this production, the company would not be as famous as it is
I will address each of the seven values, and explain whether it fits Lincoln Electric. First, innovative culture. Since Lincoln Electric has a rigid hierarchy, it does not fit this specific definition of an innovative culture. Lincoln Electric does have an aggressive culture, because they have a huge market share and dominate their competitors. However, the company does not fall short in corporate social responsibility, because they still highly value employees. The company has an outcome-oriented culture, because there is bonus pay based on good performance and assessments twice a year to see how employees perform. The culture is stable, because there are defined levels of hierarchy, but there is still room to adjust to change. Lincoln Electric is people-oriented, because it provides employees with good wages, training, and job security. There was not much in the report about teamwork, so I am going to guess that the culture is not team-oriented, otherwise Sharplin would have mentioned it. Finally, Lincoln Electric is detail-oriented: they produce high-quality welding machines and electrodes, which require strong attention to detail in order to create a safe product. Without paying close attention to this production, the company would not be as famous as it is