Lincoln Electric Culture Analysis

909 Words4 Pages
Lincoln Electric an Organizational Culture Review Lincoln electric was a company with a strong and outcome oriented organizational structure respectful towards employee contribution to the bottom line. With low incidences of subcultures, an absolute commitment to role modeling company values, and a rewards system based on output, Lincoln had a consistent employee culture that permeated from top to bottom. Employees shared assumptions about work, values and motivation and had a trust in each other’s commitment to them. This culture was an evolution of the culture implanted by the founders of the company, and was strong enough to last with very little change to the basic values from the company’s founding until the review in 1989 (Sharplin,…show more content…
Very early in the company’s history the founder James Lincoln stated, “that the customer's interests should be the first goal of industry." (Sharplin, A., 1989 p.3) This illustrates that the customer was the highest valued stakeholder. The fact was reinforced in later years as Lincoln maintained its position as having the highest quality welding product while still reducing pricing on many of its products. The second highest rated stakeholder is shown in this statement by Lincoln, “...the program must provide that what is paid to the worker is what he has earned... Status is of great importance in all human relationships…There must be complete honesty and understanding between the hourly worker and management if high efficiency is to be obtained.” (Sharplin, A., 1989 p.4) This attitude, a flat company hierarchy and approachable management served to reinforce that the employee’s value was only second to the customer’s. By valuing those that buy and those that produce above all the leadership of Lincoln communicated outcomes orientation through leadership (Carpenter et al,…show more content…
Normal employee earnings were tied to output, with most jobs paid at or based on per piece rates by the time of the case study (Sharplin, A., 1989). Employees were also evaluated twice yearly by their supervisors based not only output and quality of the product, but also on dependability, ideas and cooperation, and a bonus was paid based on their evaluation that could amount to as much or more that the annual salary (Sharplin, A., 1989). These two systems tied rewards to the outcomes of product, systems and interactions quality and creation. Overall this case study seems to show a company that did all the right things to produce and maintain a strong and outcome oriented culture. After the initial creation of values by the company’s founders, leadership role modeled and mirrored their values in customer outcomes in their environments. They also managed with reward systems that reinforces these same values. By choosing to increase tenure through good pay, respect, and hiring only entry level positions from the outside, the company strengthened this culture (Carpenter et al,
Show More
Related

  • Lincoln Electric Case Study

    1035 Words  | 5 Pages

    my analysis of a Harvard Case Study prepared in 1981 of Lincoln Electric Company by Arthur Sharplin. While there are many citations throughout this essay, it is important to note that the ideas presented herein are that of Arthur D. Sharplin and James F. Lincoln. Lincoln Electric Company presents a unique, prime example of a wildly successful American manufacturing company. Starting with a basic philosophy of an honest day’s pay for an honest day’s work, treating employees as the Lincolns would

    Read More

More about Lincoln Electric Culture Analysis

Open Document