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The Four Methods in Lincoln Electric - Case Study Example

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This essay describes which of the four methods stated in the textbook did Lincoln Electric use to gain a competitive advantage over its competitors, and how and why did they use these methods to gain an edge over their rivals. This permeates right through the organization…
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The Four Methods in Lincoln Electric
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The Four Methods in Lincoln Electric

Download file to see previous pages... Secondly, it was the R&D efforts of its founders and its proactive stance that made it a success over its competitors, even though it had shared technology during the Second World War for the benefit of the USA. The company setup was planned and organized with very few levels of management. Workers had a right to voice their opinions and thoughts and these were listened to, with the consequence that there was no need for unionization. There was an open door policy and every complaint was looked into. The vision for the company was to expand and prosper through a system of high productivity and rewards like year-end bonus and guaranteed employment. The company also promoted from within and many of the top management had progressed from the lower ranks up the organization. The company was successful in extending this culture and philosophy developed at Cleveland to some regions but met with opposition from others. To some degree, culture and education have been responsible for this. Discuss Lincoln’s approach to the organization and motivation of their employees as it corresponds to the behavioral viewpoint of management, specifically as it relates to early behaviorism pioneered by Hugo Munsterberg, Mary Parker Follett and Elton Mayo’s Hawthorne Effect. The behavioral viewpoint of management seeks to motivate workers through a reward and punishment system aims to elicit a certain type of behavior from its employees. It is usually based on a system that is fair and equitable for everyone. Hugo Munsterberg proposed that employee skills match job requirements and devising management strategies that made employees follow management’s best interests. Mary Parker Follett preferred that organizations work like communities with joint efforts and collaboration between workers and management to deal positively with problems that might emerge.  ...Download file to see next pagesRead More
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