Lincoln Papaer

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

According to the hierarchy at Lincoln electric, it appears like using a decentralized approach to management. Asper (Draft,
2010), “Decentralization relies on cultural values, traditions, shared beliefs, trust and an egalitarian spirit to foster compliance with organizational goals” (p. 548-549). To be more detailed,

At Lincoln there is an open door policy for every employee at every level,

• Since

been

•Face

to face communication among the entire workforce is highly
practiced at Lincoln


Fair

trade and labor practices are deployed at Lincoln and the
best illustration is that the employees are encouraged to question management regarding unfair policies on compensation rates and practices.

The incentive reward system which is wholly based on organizational core values of trustworthiness, openness, self-management, loyalty and above all, it was all monetary rewards.



1951 there ha been no layoffs no matter how the economy has

2. Based on what you have just read, what do you think makes Lincoln System so successful in the United States?

One key element of Lincoln Electric’s success is their investment in Human Capital. They train, empower the workforce at every level and utilize them at full stretch. According to Draft, even the cross functional teams are enough trained and responsible to take decisions for planning, developmental and marketing issues. The Organization also shares its financial performances and operations with its employees. All these is part of lincoln’s management culture and because of its motivated human

capital. According to Draft, The entire motivational system is based on the “strict performance goals to achieve pay, precisely defined task and a powerful incentive control program which is based on a piece-rate bases and merit-pay which is based on performance”(p.562). Some of the...
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