Lincoln Electrics Case Study

debut ? Lincoln Electric is a leading manufacturer of conjoin products, welding equipment and electric motors ? Their watchfulness formation is so successful that people disturb to it with capital letters-the Lincoln Management System-and other business uses it to benchmark their possess ? Lincoln uses diverse reckon approach ? The companys system success is largely is due to the organizational culture based on openness and trust ? Because the management system worked so well, senior executives immovable to extend Lincoln Electric overseas ?Things didnt go sort of as they planned and managers at international plants failed to meet their production and financial goals every year Question 1 Does Lincoln follow a hierarchical or modify approach to management? Hierarchical (centralization) finish authority is located near the top of the organization Decentralization finish authority is pushed downward to all levels Lincoln Electric follows a decentralized approach to manag ement ? The company uses an open-door policy Every employee has direct penetration to managers for open communication, discussion and give feedback ?They have an advisory board constitute of people elected by their fellow workers who meet with senior management biweekly Question 2 What is the problem with transporting Lincolns find system to other national cultures? What suggestions would you marque to Lincolns managers to make future international manufacturing plants more successful? Problems ? Differences in culture across the globe The European labor culture was hostile to the piece-work and bonus pick up system Therefore, the system wasnt very effective in polar countries with different work culturesSuggestions ? Increase sales and maintain monthly simoleons Management should use salespeople because they highlight the costsavings and benefits of Lincoln Electrics products, and also draw in new customers via LEs name recognition and reputation for high quality. ? Opti mize form of production workers to the work Reduce future employment Employ decent workers for the respective plants ? Give different types of benefits to overseas plants Eliminate the piece-work and bonus control system Give benefits in terms of transportation, medical restitution, life insurance and etc.Question 3 Should Lincoln borrow property and pay bonuses to avoid interruption trust with its U. S workers? Why or why non? ? After discussion, we found out that Lincoln should not borrow money and pay bonuses to avoid breaking trust ? The company is in a financial crisis. If they keep borrowing money, it might result in a large debt which will be harder to settle and may result in bankruptcy. ? The bonuses are not an obligation. Employee is still paid properly and they will neer lose their job due to the no layoff policy executed by the company Conclusion