Brittney Cammack HRSM 4000: Fall 2014 Dr. Arnold Exam 3 By studying The Lincoln Electric Company managers can learn a lot about compensation and human resource management that should enable them to manage their organizations more effectively. Lincoln Electric, founded in 1895, has been extremely successful over the years. This success is mainly due to its compensation system, company culture, and its leadership style of management. Lincoln Electric provides lifelong employment to its employees who meet their production goals and they use a merit pay system. The company also pays an annual bonus averaging 60% of its worker’s salaries.
Later on Marvin Bower (MBA graduated from Harward university) determined his new vision for the firm concentrated by importance of top level management based on highest standard of integrity, professional ethics, technical issues capable to extend and absorb the new generation of qualified individuals and committed to sustainability of developing power and influence of the company. after ten years he started upgrading the size and quality of clients. Rather than above mentioned issues he believed the in spite of financial incomes some other intangible factors like prestige experience ,play an important role. According to the passage the firm had competitive advantage on human resource and managerial source. Because they recruited outstanding and valuable managers and consultant which increased the effectiveness of the firm with high performance.
This had urged the company to find new avenues for growth. The success of J&J over the years has been based on relative autonomy and independence that it has accorded its various business units. Any collaboration must not threaten the strong entrepreneurial spirit that has been fostered through the firm’s reliance on this type of organization. Fostering Entrepreneurship J&J has relied heavily on acquisition. The firm has spent nearly $50 billion on 70 different purchases and in 2008, the company move into the area of wellness and protection by focusing on creating systems to foster and monitor healthy behavior among employees.
The leadership and management style looks to be quite good for this kind of business. The business owner realizes that there are many specialties in this area and plans to make it a joint discussion for all, rather than making all decisions by himself. The business owner has a detailed organizational structure and culture formatted. They have enough capital in reserve to sustain themselves for six plus months, during the building of their business. Opportunities The
This latest work by Annette’s team is proof that office lean works. Furthermore, Esterline should utilize the employees responsible for this success by having them train others throughout the company on the tools they used and showcase the results they gained. The second hurdle that the management team is struggling with is the question of whether or not the plants need an MRP package for operating the facility. We believe that Esterline should move forward with a flexible MRP package:
In a recent news article of CNN (CNN, 2014), Ford said it will pay an average of $8,800 to about 47,000 hourly U.S. workers, up about $500 from last year. They are going to pay record profit sharing checks to United Auto Workers members after posting record profits in North America (Isidore, C., 2014). Ford also took a very innovative approach for motivating employees, which is ‘ONE Ford Approach’. While they have many types of employees and work arrangements, all of their employees together create a skilled and motivated team aligned around their overall ONE Ford objectives. Their ONE Ford plan aligns our efforts toward a common definition of success: having ONE Team, ONE Plan and ONE Goal for an exciting, viable Ford that delivers profitable growth for all (Ford Corporate, 2013).
It can be seen how Aubrey fostered immediate trust with their customers and from the conversation Stan with Carmen at Circle K about she get everything furniture from Coe’s services.. Coe does also have strength in systems of service. Being always emphasized ownership make their different from the other competitors in the same industry such as Mr. Rental. Coe's offered a monthly payment schedule and a shorter contract period (12 months versus four or five years), which meant higher fees each month but a lower cost of the eventual purchase. More than half of its customers became owners by the end of their leases compared with 25% for Mr.
Their clients have been very impressed when they worked with the company to help them through transitions or when they assisted in helping an employer recruit potential employees for various positions. One of the cardinal rules of business is to keep your customers happy; it is far cheaper to keep an existing customer than it is to find new ones. This is why J.L Nick takes the time to ensure their clients are satisfied and will come back in the future. Considering 90% of their
To ensure the quality of the products being produced at Lincoln, employees were only compensated on products that were not defective and employees had to repair the products on their own time in order to receive payment for them (p.132). The piecework payment system was a process that was received favorably by employees and gave employees the impression that they were their own boss and had complete control over their job. Year end bonuses, another process of Lincoln’s incentive system, relates directly to the piecework payment system. The total year end bonuses were determined by the performance of the company and these bonuses were generally increased as a result of lower production costs. On average, the bonuses
It is world renowned for its outstanding customer service and no-hassle philosophy. Current CEO of Zappos, Tony Hsieh, originally joined the Zappos team as an advisor and investor. He helped Zappos grow from minimal sales to over $1 billion in sales earning Zappos a place in Fortune Magazine’s The Best Companies to Work For List, (Levering, R. and Moskowitz, M., 2014). Zappos maintains a culture that is driven by the vision of its leaders and is the core of it employees, as a family. Examine the culture of the organization.