The Lincoln Approach
1. How would you describe Lincoln's approach to the organization and motivation of their employees?
a. I would describe Lincoln’s approach is one of empowerment. The combination of profit-sharing, piecework pay, guaranteed jobs and yearly bonuses balances competition with cooperation. The Lincoln model has aligned the interest of its employees’ with the interest of the organization. Lincoln Electric has successfully managed to get the employees to ‘buy-in’ to the company goals. The employees only benefit if they produce.
2. What role do you think this approach has played in Lincoln's performance over the last 40 years?
b. I believe the Lincoln approach played a significant role in Lincoln’s performance over the last 40 years. The company was able to attract and retain quality employees. The employees had a vested interest in the organization and produced quality products resulting in market share. It’s self determination at its finest. The employees are responsible for how much they make and the performance of the company as well.
3. What factors will be critical to Lincoln's continued success?
c. In my opinion, the critical factors to the continued success of the Lincoln approach are the ability to maintain the pay structure and ability to continue to lower cost while still paying higher than average salaries. Another challenge is attracting newer employees to replace the retiring employees. Also, attempting to address the arbitrary nature of the merit system.
4. Why do not more companies operate like Lincoln?
d. More companies do not operate like Lincoln because they may have other interests. For example, a public company must maintain the interests of stockholders to increase value. A private company generally looks to satisfy the interests of their owners and maybe a select few loyal employees.
5. Is Lincoln Electric ahead of or behind current "good management...