Lincoln Electric Management
Lincoln Electric management essentially implements an independent working model in its management style. The independent working model enables Lincoln Electric’s employees to gain two benefits: ‘Work more to earn more’ and ‘Focus on product quality to enjoy permanent employment at Lincoln Electric’.
Lincoln Electric’s independent working model allows its employees to keep a track of their own performance. Independent working style makes the management of employee tasks easier and efficient. Lincoln Electric is also able to save expenditure that is usually done by manufacturers on hiring supervisors to monitor and enhance productivity. The saved expenditure can be then used for employee training and employee bonuses which consequently enhance many factors required for employability of workers Chilton.
These employability factors are job satisfaction, employee retention in normal and recession period, employee growth, boosting of entrepreneurial spirit and company profitability. We can observe that one factor gives birth to another beneficial factor. Lincoln Electric management model sustained in the long-term because there were always multiple factors responsible for improvement in employee performance and job satisfaction. We can observe the Lincoln Electric Management sophistication in business models for industries such as Information Technology and the Financial Services sector. However, implementing the same dynamism in the manufacturing industry made Lincoln Electric one of the most outstanding strategic thinkers of the century.
The successful operability of this management style also proves employee performance criteria factors such as: People are motivated to work if they are paid well and given adequate responsibility. Responsibility is equivalent to freedom because it is the workers who decide to make optimum utilization of their time. This style of working also avoids wastage of resources and employee unproductivity.
Lincoln’s management style consequently also refuses to employ workers who produce low quality work and still expect a salary for it. By not offering a fixed salary and only paying for each manufactured unit, Lincoln management creates a system which automatically filters unproductive workers, while retaining the most productive labor in the industry. It can also be concluded that Lincoln Electric has invented a business without any operational weaknesses. This kind of innovation enabled Lincoln Electric Company to grow both nationally and internationally. Lincoln Electric’s global strategy could successfully merge with most labor markets across the world to create operational excellence at a low cost. Lincoln Electric has certainly set an unsurpassable benchmark in two ways: 1) By achieving great employee performance at a low cost and 2) By delegation of responsibility to achieve the best results without the implementation of organizational control Maciariello.