Lincoln Electric Case Study

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Lincoln Electric case study

Opening statement:

Lincoln Electric is one of the leading manufacturers of welding products, welding equipment, and electric motors. Lincoln Electric has a very successful management system, Lincoln’s system worked so well in the US that management decided to extend it overseas. Unfortunately this system didn’t do as good their.

1. Does Lincoln follow a hierarchical or decentralized approach to management? Explain your answer and give examples?

Lincoln follows a hierarchical approach that was flatten because LE has fostered an "open-door" policy between production workers and executives as well as created an Advisory Board that has representatives of the workers who meet with executives twice a month. This hierarchical system at Lincoln did influence employee behavior through rewards.

2. What make Lincoln system successful in the US?

Most emphasis must be placed on the employees because they are the one that can be creative, motivated, skilled, efficient, and responsive. The proper function of the Lincoln system management is to draw out these characteristics and encourage their growth in a productive setting. Lincoln success can be attributed to this unique and effective management style and its motivated employees.

3. What is the problem with transporting Lincoln’s control system to other national cultures? What suggestion would you make to Lincoln’s managers to make future international manufacturing plant more successful?

The problem resulted because the cultural values of the production worker are different. The problem was that overseas annual bonuses did little to increase individual production efficiency. To have a more successful plant, management should use salespeople because they highlight the cost-savings and benefits of Lincoln Electric's products, an also draw in new customers via LE's name recognition and reputation for high quality. Also I think Lincoln management should be more...
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