FinalPaper LincolnElectric
Lincoln Electric Case Study
Final Project
Group 14
Section-0001(8:30am)
Bianxiao Chen-0025951233 Wenchang Hou-0025443321
Brenden Mudd-0025539761
Mitchell Stevenson-0025451739
Liangwei Zhao-0025938306
Diagnosis:
Lincoln Electric is an American, manufacturing company founded in Cleveland by the entrepreneurial John C. Lincoln in 1895. Lincoln Electric achieved great success throughout its history due mostly in part to John Lincoln’s management and employee compensation strategies. Lincoln Electric’s strategy succeeded domestically but failed internationally due to cultural differences and self-inflicted company errors. Lincoln Electric’s current CEO, Anthony Massaro, has designated Michael Gillespie, President of Asia Region, to evaluate Lincoln’s capacity to effectively enter a new international market: Indonesia. When evaluating Lincoln Electric’s past failures in international expansion, Gillespie would have noticed many organizational behavior problems that caused the fiascos in Lincoln’s international markets.
The organizational behavior issues Gillespie faced included: new plant managers and older executives had little international experience, some new foreign markets had economic or political instability, company beliefs towards compensation programs worked domestically but not internationally, cultural differences in management styles existed, and a lack of an adequate understanding of native cultures. When evaluating these issues, you can categorize them into the organizational areas associated with diversity, cultural values, job satisfaction, team composition, organizational commitment, leadership styles, and job performance (Colquitt, 2011). Specifically, political instability is an organizational behavior issue because it is a safety concern for employees’ well-being and organizational politics can cause counterproductive behaviors which detract from the organization’s mission. Lincoln Electric’s lack of international experience
Final Project
Group 14
Section-0001(8:30am)
Bianxiao Chen-0025951233 Wenchang Hou-0025443321
Brenden Mudd-0025539761
Mitchell Stevenson-0025451739
Liangwei Zhao-0025938306
Diagnosis:
Lincoln Electric is an American, manufacturing company founded in Cleveland by the entrepreneurial John C. Lincoln in 1895. Lincoln Electric achieved great success throughout its history due mostly in part to John Lincoln’s management and employee compensation strategies. Lincoln Electric’s strategy succeeded domestically but failed internationally due to cultural differences and self-inflicted company errors. Lincoln Electric’s current CEO, Anthony Massaro, has designated Michael Gillespie, President of Asia Region, to evaluate Lincoln’s capacity to effectively enter a new international market: Indonesia. When evaluating Lincoln Electric’s past failures in international expansion, Gillespie would have noticed many organizational behavior problems that caused the fiascos in Lincoln’s international markets.
The organizational behavior issues Gillespie faced included: new plant managers and older executives had little international experience, some new foreign markets had economic or political instability, company beliefs towards compensation programs worked domestically but not internationally, cultural differences in management styles existed, and a lack of an adequate understanding of native cultures. When evaluating these issues, you can categorize them into the organizational areas associated with diversity, cultural values, job satisfaction, team composition, organizational commitment, leadership styles, and job performance (Colquitt, 2011). Specifically, political instability is an organizational behavior issue because it is a safety concern for employees’ well-being and organizational politics can cause counterproductive behaviors which detract from the organization’s mission. Lincoln Electric’s lack of international experience
References: Hiio, Aiivar. "How to Manage Indonesian Employees." Indosight. N.p., n.d. Web. 11 Nov. 2014. Rowohlt-Taschenbuch-Verl., 2004. Business Blog Writer. Executive Orientation Services