January 29, 2011
The Lincoln Company follows a decentralized approach to management. The decentralized approach is when employees participate in setting goals, determining standards of performance, governing quality, and designing control systems. The decision making is not confined to top executives but throughout the organization. The lowest level managers and employees are empowered to make decisions. The employees have added responsibility and they are involved in decision making which results in increased job satisfaction. The responsibility and the authority that goes with it make the job more interesting and provide greater incentive for people to put out their best efforts. The employees of Lincoln Electric Company tasks are precisely defined, and individual employees must exceed strict performance goals to achieve top pay. The Lincoln employee’s organization culture is based on trust, shared control, and an egalitarian spirit. The Lincoln Company has an open door policy. The company has cross functional teams and they are empowered to make decisions, take responsibility for product planning, developing, and marketing. The company openly shares information with the workers throughout the organization about the company’s operations and finances. The Lincoln system was so successful in the United States mainly because of a diverse control approach. Within this company the organizational culture is based on openness, trust, and shared control. As opposed to the hierarchical approach which involves monitoring and influencing employee behavior through extensive use of rules, policies, and written documentation, and the employees communicate with their immediate superior and with their immediate subordinates. The Lincoln Company use of this system gained trust with the workers. The employees can purchase stock, and they owned more than 60% of the stock. The incentive and...