Lincoln Electric Company: Harvard Case Study Essay
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 …show more content…
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