Lincoln Electrics Case Study

Introduction ? Lincoln Electric is a leading manufacturer of welding products, welding equipment and electric motors ? Their circumspection carcass is so successful that state refer to it with capital letters-the Lincoln Management System-and former(a) business uses it to benchmark their own ? Lincoln uses diverse reign over approach ? The companys system success is largely is collect to the organizational culture based on openness and trust ? Because the management system worked so well, senior executives decided to extend Lincoln Electric overseas ?Things didnt go quite as they planned and managers at international plants failed to play their production and financial goals every year Question 1 Does Lincoln follow a hierarchical or alter approach to management? class-conscious (centralization) decision authority is located near the top of the organization Decentralization decision authority is pushed downward to all levels Lincoln Electric follows a decentralized approach to management ? The company uses an open-door policy Every employee has direct access to managers for open communication, discussion and give feedback ?They have an advisory board composed of people elected by their fellow workers who meet with senior management biweekly Question 2 What is the problem with transporting Lincolns control system to other national cultures? What suggestions would you make to Lincolns managers to make future international manufacturing plants more successful? Problems ? Differences in culture across the globe The European jab culture was hostile to the piece-work and bonus control system Therefore, the system wasnt very effective in different countries with different work culturesSuggestions ? Increase gross revenue and maintain monthly profit Management should use salespeople because they steeplight the costsavings and benefits of Lincoln Electrics products, and also draw in new customers via LEs name recognition and reputation for high quality. ? Optimize number of production workers to the work Reduce future employment Employ enough 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 insurance, life insurance and etc.Question 3 Should Lincoln borrow money and compensation bonuses to avoid rupture trust with its U. S workers? Why or why not? ? 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 get out be harder to settle and may result in bankruptcy. ? The bonuses are not an obligation. Employee is still paid properly and they will never lose their job due to the no layoff policy executed by the company Conclusion