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Lincoln Electric Case Study

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Lincoln Electric Case Study








Lincoln Electric Case Study
LDR – 620 Leading As a General Manager
December 20, 2010

Lincoln Electric Case Study
Lincoln Electric these days is the world’s leading manufacturer of arc welding products, and also is one of the leading producers of electric motors, which was their very earliest product.   John C. Lincoln is the founder of Lincoln Electric, which opened in 1895.   He previously had been working for the Elliot-Lincoln Company who was a producer of Lincoln’s electric motors, but during the depression the company had lost so much he was forced to depart.   Using the $200 he earned from restoring an engine for Herbert Henry Dow, John opened his new company, with electric motors of his own design as the core product (Buller/Schuler, 2006).
Lincoln follows a decentralized approach to management. There are numerous reasons for this approach. First off, the firm has a culture that is based on trust and being openness.   Lincoln has a democratic approach which means decentralization.   In the case of hierarchy, the control is reserved by the managers and the executives but in this case, Lincoln control is shared with the employees.   Another example in which a hierarchical organization exercises control is to lay the employees off when they do not perform their job well.   Lincoln has no layoff policy.
There are other facts to support the contention that Lincoln has a decentralized approach to management.   Lincoln has an open door policy for its top executives, managers, and production workers. There is evidence of decentralized approach that employees are expected to confront management if they sense practices or compensation rates are unfair.
One of the strongest reasons why Lincoln’s system is so successful in the United States is that there is a multi-divided control system.   Tasks are defined and individual employees must go above strict performance goals to get the most pay.   Production workers also get...

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