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The company used two major tactics to make this possible. Firstly it developed its own technologies or customized the ones that it…
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Download file to see previous pages The pursuit of innovation and efficiency led to operational excellence which was its competitive edge over rival companies.
2- Lincoln Electric’s vision was to be the world’s leading manufacturing company. The plan therefore was to produce high quality products at the lowest cost possible in order to transfer more value to its customer in terms of savings and to itself through increased sales volumes. The organization therefore adopted a flat structure to encourage communication and build trust between staff and other workers as well as guaranteeing job security in order for staff to be less resistant to change as need be. As a form of control the company used merit rating systems that analyzed individuals of four factors: dependability, quality, output, and ideas and cooperation.
3- James Lincoln believed that through competition and incentive every person could develop to his or her full potential (Fast and Berg 4). This assertion resembles the optimistic and positive view of workers advanced by McGregor’s Theory Y. Lincoln therefore believed that he had put in place the right environment (and cultural paradigm) that enabled workers be responsible, self-direct and be creative. Other policies that Lincoln instituted such as guaranteeing employment for workers and year-end bonuses pegged on merit ratings point towards Maslow’s theory. Guaranteeing employment allows workers to satisfy physiological needs and to some extent safety needs. The bonus incentives on the other hand allow workers to reach towards greater goals or to afford higher needs such as new car, home etc. which are esteem needs.
4- Belief in workers’ ability to self-manage; be creative; and institution of reward schemes that are not capped directly contributed to Lincoln’s dominating performance over its competitors for two reasons. Firstly, it kept staff motivated. Motivated staff increases productivity which increases returns. Secondly, employees stick around ...Download file to see next pagesRead More
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