Lincoln Electric Case Study

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Lincoln Electric
Case Study

Table of Contents
Introduction……………………………………………………………….….…3 Vision, Mission and Value statement………………………………….……….3 Attitude towards Customer……………………………………………………..3 Attitude towards Stockholders……………………………………..…….….….4 Attitude towards Unionism………………………………………………..……4 Beliefs and Assumptions about Employees………………………..……..….…4 Management incentive and Employee Bonus Plans……………..…….….…....4 Human Resources Practices……………………………………………...….….5 Strategic Issues……………………………………………………………….…7 Reference...................................................................................................,,,,…...9

Lincoln Electric
The Lincoln Electric was founded in 1895, and is the world leader in the design, development and manufacture of arc welding products, robotic welding systems, plasma and oxyfuel cutting equipment. Lincoln Electric's vision is to be the international leader in quality welding and cutting products as measured by innovative technology for new products and services, global sales volume, and shareholder value. The mission of The Lincoln Electric Company is to earn and retain global leadership as a total quality supplier of superior products and services. As a responsible and successful company in partnership with our customers, distributors, employees, shareholders, suppliers and our host communities, Lincoln Electric pledges itself to conduct its business in accordance with these core values: * Respond to our customers’ needs and expectations with quality, integrity, and value. * Recognize people as our most valuable asset. * Maintain and expand the Lincoln Incentive Management philosophy. * Practice prudent and responsible financial management. * Strive continually to be environmentally responsible. * Support communities where we operate and industries in which we participate.

Attitude toward the Customer
It is obvious that the customer’s interests, not the stockholder’s, should come first. Lincoln’s goal, often stated, is “to build a better and better product at a lower and lower price.” It is obvious that the customer’s interests should be the first goal of industry.

Attitude toward Stockholders
Stockholders are given last priority at Lincoln. The last group to be considered is the stockholders who own stock because they think it will be more profitable than investing money in any other way.

Attitude toward Unionism
Selfishly attempting to better its position at the expense of the people it must serve. Labor and management are properly not warring camps; they are parts of one organization in which they must, and should, cooperate fully and happily.

Beliefs and Assumptions about Employees
If fulfilling customer needs is the desired goal of business, then employee performance and productivity are the means by which this goal can best be achieved. It is the Lincoln attitude toward employees, reflected in the following comments by James Lincoln, which is credited by many with creating the success the company has experienced: Employee annual bonuses on performance evaluations

These evaluations include the topics of quality, dependability, ideas & cooperation, and output. The employees are evaluated on these criteria by their supervisors, which are then converted to a numerical score. These numerical scores are then computed into the percentage of employees’ salary that becomes their year-end bonus. This is good for the company because it keeps their employees satisfied and productive, which makes business run smooth. Incentive Management Plan

Lincoln Electric is famous for its Lincoln Incentive Management Philosophy that recognizes dynamic teamwork and incentive as the most profitable and cost-effective way of achieving their goals. Some goals of...
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