Texas A&M University - Commerce
The Potential and Limitation of Teamwork Ethics as a Success Factor in the Business World
Lincoln Electric, one of the most successful companies, is the world leading manufacturer of arc welding products. It is also one of the leading producers of industrial electric motors. This success is mainly driven by the ethical practices of the company. The Lincoln Electric’s main stakeholders are its customers, its employees, and its stockholders, and it has historically valued customer and employee interests over the stockholder one which helped it to be very successful. In other words, the outstanding success is due the importance given to the human factor. That is, the development of a unique internal culture and organizational structure that recognizes people as the company’s most important asset. Moreover, the implementation of an effective incentive management system that contributes to the enhancement of the employee teamwork, collaboration and individual productivity. Finally, developing employee expertise in costs reduction techniques and ensuring high quality practices to provide customers with the best quality products at lower prices, which foster the development of a positive relationship with customers and employees based on trust and fairness.
Lincoln Electric Company has an open-door policy for all top executives, middle managers, and production workers, and regular face-to-face communication is encouraged even with the CEO. However, although managers respect the expertise of production workers and value their contributions to many aspects of the business, the authority of managers is firmly drawn. In other words, employees are encouraged to participate in the decision making process but the worker task assignments and the final decisions are made by the management.
The Lincoln management approach...