Case of Lincoln Electric Company

Topics: Management, Strategic management, Reward system Pages: 8 (2741 words) Published: October 15, 2006
we know that Lincoln Electric Company is a famous company and it has high profit for it has some unusual system and rule. However, according to today business, we could know that the Lincoln Electric Company will meet some problems for its old system and rule. Thus, I will point out some problems in Lincoln Electric Company and also give my recommend in order to solve those problems. Problems:

1.The Lincoln Electric Company uses it old point of view to make their strategy without environment changing. According to case, we know the company always has its own company value and rule to face its business environment. However, the business environment is always changed and company will meet the some problem in its business environment. ¡§Organizational excellence is about change. We would not have made this comment in the 1970s or 1980s, and perhaps not even in the 1990s. But today, it goes almost without saying: Most organizations simply cannot sustain performance excellence unless they respond to shifting environmental demands. And as the rate of change continues to accelerate, the premium on organizations' ability to change is likely to become even more important.¡¨(Edward,Christopher, 2006) and ¡¨ Customers' values often shift imperceptibly, but a clever firm looking for growth can sometimes speed this process along to its own advantage. Consider the newly emerging consumer value of taking charge of one's own health. This value showed up in the form of vitamin therapy, herbal and mineral supplements, massage, yoga and acupuncture markets, as well as in traffic on medical websites.¡¨(Al, 2005) Thus, environment is always changed included customers or manager, every company need to change its company strategy and some rule without using the old company value. 2.The Lincoln Electric Company does not have the official organization construction. In fact, we know in the Lincoln Electric company does not have the official organization because their company value focus on flexible structure and employee decision making. However, I think that is depend on good employee can use this rule and it also brings the problem for its employee because they will have some confuse in its organization construction. Thus I think company needs to consider changing its organization construction for flexible environment. ¡§New forms of organizations, combining open space for improvisation and organic evolution with actively managed traditional structures, will likely emerge as valid ways to deal with the dichotomy of continuous change and effective ongoing operations. The results will likely be people with more connections to others, learning more things about business and worldly interests, and contributing to an organization better prepared to adapt. The key seems to be building in the flexibility component - while preserving the sense of "we-ness" in a world calling for multiple adaptations.¡¨ and ¡§All companies go through evolution, typically creating structures around things that work for efficiency and effectiveness, and tearing them down during performance crises. Allowing some level of unstructured and uncontrolled activity within an organization is not new¡¨(Charles, Peter. 2002) In addition, in the employee decision making, I think the it should consider about the employee level to give them what kinds power. ¡§Making sound decisions sounds simple on the surface, but not everyone is skilled in this area. Sometimes managers slow down the workflow through indecisiveness. At the other extreme, they may make snap decisions and develop a reputation for being arbitrary or impetuous¡¨ (Max. 2006) 3.The Lincoln Electric Company does not have a good education system. . At first, I think that Lincoln Electric Company does not support its employee to get new education and it also does not give its employee the education. ¡§By investing in your employees' growth, you will show that you care about their potential, which can boost...

References: Edward E Lawler III, Christopher G Worley (2006)¡¨ Winning support for organizational change: Designing employee reward systems that keep on working¡¨ Ivey Business Journal Online. London: pg. 1, 5 pgs
Al Magrath
Mary Anne L. Leach (2001) ¡§Knowledge Building: Developing Employees Through Education¡¨, International Journal of Value-Based Management; 14, 2; pg. 147
A K Aggarwal.
Richard L Bunning (2004) ¡§Pay in the organic organization¡¨ The Journal of Management Development Bradford: Vol.23, Iss.7/8;pg.648
Jane Strickler
Charles S Englehardt, Peter R Simmons. (2002) ¡§Organizational flexibility for a changing world¡¨ Leadership & Organization Development Journal Bradford: Vol.23, Iss. 3/4; pg. 113, 9 pgs
Heike Bruch, Peter Gerber, Victoria Maier
Marlys Hanson, Arthur F Miller Jr. (2002) ¡§The productive use of strengths: A shared responsibility¡¨ Industrial and Commercial Training Guilsborough, Vol.34, Iss3; pg. 95, 6 pgs
John Child, Rita Gunther McGrath
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