Lincoln Electric Company Incentive Case Study

Incentive. The word incentive only appears sixteen times in the reading although it is the single word I would use to describe the company's workforce and business ethic. From the beginning incorporation of the company in 1906 to present, Lincoln Electric Company has shown a powerful and effective business relationship with its employees. An employee does not stay with a company if that individual is working hard, putting in the time and effort and not being acknowledged in any way shape or form. Lincoln Electric Company takes the time to build relationships with their employees. John C. Lincoln started the company, and his younger brother James F. Lincoln joined the company later becoming General Manager and Vice-President. Soon

"By 1944, Lincoln employees enjoyed a pension plan, a policy of promotion from within, and continuous employment” As an employee of the company the quote stated, is a big deal. Pension plans secure the employee financially for their elder years. A policy of promotion from within is important to an employee because if one works very hard and contributes a lot towards the company, he/she would most likely want to move up in the company as far as their job title. It would be greatly discouraging towards employees if an individual 'off the street' was hired to a higher position as them. On the contrary, knowledge is key as well and some companies prefer to hire an outside employee with expertise in that field. Although, Lincoln Electric feels that their knowledge and education comes from within the company along with their experience they obtain year after year. The company will only hire outside of their employee base for entry-level positions only. Lincoln Electric has proved that they are solely concerned about their business and knowledge gained within it, they do not even require a high school diploma to be hired for most

Herbuck quotes, in retort to the ongoing innovations of the company and their worth ethics with employees, "They were expressions of mutual respect for each person's importance to the job to be done” In this quote Charles sums up exactly what Lincoln Electric Company accomplishes within their employment base and the respect that is between employee and employer. Respect, communication and trust are essential in relationships, whether it be business or personal. In the aspect of business relationships, respect is high priority within the company. Lincoln Electric Company's motto is "The actual is limited, the possible is immense.” This motto speaks volumes. Their motto makes one feel like they can reach for the stars because anything is possible no matter how limited they are. The company started with goals and risks, although they overcame obstacles and built an organized ongoing culture of dedicated employees. Lincoln Electric Company has rules and policies in place that benefit the company and the employee equally in the end. The company has a job security policy which entitles an individual to guaranteed employment after one year of employment. They also guarantee that employee thirty hours per week. Though, the employee may be fired for misconduct, which since 1949 not a single employee has been terminated. The strength of this company's culture is enormous. The employees of Lincoln Electric Company share a high value of workmanship amongst each