CASE STUDY PRESENTATION
CASE STUDY
PRESENTATION
LINCON ELECTRIC CASE
THEORITALICAL TOPIC – CONTROLING
INTRODUCTION
WHAT IS LINCOLN ELEIC
COMPANY
A Leading manufacturer of welding products, welding equipment and electric motors.
$ 1 billion in sales , 6000 workers worldwide
Public traded company . Members of the
Lincoln family owned more than 60% of the stock. WHAT IS LINCOLN ELEIC
COMPANY
A well worked company in USA
Other businesses benchmark Lincoln system. Plan to run the plant out of USA
Purchased 11 plants Japan , South America and Europe
The results were abysmal and nearly sunk the company.
QUESTION 01
Does Lincoln follow a hierarchical or decentralized approach to management?
Explain the answer with examples .
Both Decentralization and Hierarchical approaches are used on Lincoln management. DECENTRALIZATION
APPROCHES
Distribute administrative powers or functions over a less connected area.
Respect the expertise of production workers
Value workers contribution of aspects of the business. Open door policy of all employees.
Face to face communication.
Workers are encouraged to challenge the management on unfair compensation rates.
HIERARCHICAL APPROACH
Systematically retaining power and authority in higher management.
Diverse Control Approach.
Tasks are precisely defined.
Individual employees must exceed strict performance goals to achieve top pay.
Customer focus is backed up by the attention to the production process through the use of strict accountability standards and performance.
WHY LINCOLN SYSTEM SO
SUCCESSFUL IN USA
In USA they knew their own working culture.
E.g. Face to face communication,
Transparency
Workers are hired out of school and trained.
Employees are staid with the company for a long time that they have a family lick interaction. Cross functional Teams empowered to make decision , take responsibility in production planning,
WHY LINCOLN SYSTEM SO
SUCCESSFUL IN USA
Company shares financial performance
PRESENTATION
LINCON ELECTRIC CASE
THEORITALICAL TOPIC – CONTROLING
INTRODUCTION
WHAT IS LINCOLN ELEIC
COMPANY
A Leading manufacturer of welding products, welding equipment and electric motors.
$ 1 billion in sales , 6000 workers worldwide
Public traded company . Members of the
Lincoln family owned more than 60% of the stock. WHAT IS LINCOLN ELEIC
COMPANY
A well worked company in USA
Other businesses benchmark Lincoln system. Plan to run the plant out of USA
Purchased 11 plants Japan , South America and Europe
The results were abysmal and nearly sunk the company.
QUESTION 01
Does Lincoln follow a hierarchical or decentralized approach to management?
Explain the answer with examples .
Both Decentralization and Hierarchical approaches are used on Lincoln management. DECENTRALIZATION
APPROCHES
Distribute administrative powers or functions over a less connected area.
Respect the expertise of production workers
Value workers contribution of aspects of the business. Open door policy of all employees.
Face to face communication.
Workers are encouraged to challenge the management on unfair compensation rates.
HIERARCHICAL APPROACH
Systematically retaining power and authority in higher management.
Diverse Control Approach.
Tasks are precisely defined.
Individual employees must exceed strict performance goals to achieve top pay.
Customer focus is backed up by the attention to the production process through the use of strict accountability standards and performance.
WHY LINCOLN SYSTEM SO
SUCCESSFUL IN USA
In USA they knew their own working culture.
E.g. Face to face communication,
Transparency
Workers are hired out of school and trained.
Employees are staid with the company for a long time that they have a family lick interaction. Cross functional Teams empowered to make decision , take responsibility in production planning,
WHY LINCOLN SYSTEM SO
SUCCESSFUL IN USA
Company shares financial performance