Lincoln Electric Company: Harvard Case Study Essay

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As we learn from the case study, the Lincoln Electric Company is the largest global manufacturer of machines for welding, which are used in all kinds of construction projects. This means that the company has a large global presence and many employees, so its culture affects thousands of its workers. Even though it is now 2014, the company still has a large market share and very satisfied employees, so clearly the culture leaves employees satisfied and motivates them to work hard for the company.

One of the biggest influences of the founders of Lincoln Electric is from James Lincoln, who created a board of advisors from the pool of employees to advise him (Sharplin, 1989). The board met every two weeks when it was
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The founders also had a “Christian ethic” (Sharplin, page 3), but they did not preach to their employees. Instead, they chose to live by example. They did not use deceptive advertising, and they also used an “open door policy” (Sharplin, page 7) with higher management-level employees. This meant that workers could go into offices and talk to their supervisors, showing a level of equality that is not present in all workplaces.

The company also used an incentive management plan, merit pay plan, and bonus plan to reward its employees. 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 workers.

People communicate in different ways in the

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