mLincoln Electric Case Analysis
1. Lincoln's approach
The success of Lincoln’s approach lies in their human resources management, trust and culture they built and ownership they granted to every participant.
Human resources: The base pay fails to earn employees the poverty level income, thus they require bonus to make a decent salary. Wisely, the potential high bonus increases productivity and employee loyalty. Also the continuous employment has costs of hiring and firing nearly eliminated; Employees willingly increase hours when need arises and work overtime when there is need for increased production.
Trust and culture: Lincoln utilizes trust to maintain compliance of employees. Regular meetings with workers convened every “two to five weeks” with a purpose of company improvement. Though employees do not play a role in making final decisions, they are able to broach any issues related to work or worker grievance. A culture of open communication and trust is thus built to support the operation of the unique of management system.
Ownership: The employee participation makes them play a indispensable role in goal setting and policy establishing, thus they work much harder in more efficient ways. Also employees share stocks to signify the their own investment in the company, thus to better serve their own interests via increasing productivity and efficiency.
Engeers to to problem soloving , not gerenrating new ideas (norrow scope)
Computer system (they would hire outside of the organition )
2. Role of this approach? Other factors been more important? Continued success(Please refer to answers to Q3)?
A large portion of LE’s success could be attributed to this unique and effective management style, which ultimately leads to a competitive advantage. This management style is focused on individuals and plays an effective role in motivating employees. It is further fostered through a combination of structural, strategic, and cultural norms within LE...