Lincoln Electric is a leading manufacturer of welding products, welding equipment, and electric motors,
with more than US$1 billion in sales and 6,000 workers worldwide. Although now publicly traded, members of the Lincoln family
still own more than 60 percent of the stock.
The Lincoln Management System
Lincoln Electric has a very successful management system that other businesses benchmark their own
systems by it. For years, other companies have tried to figure out how management coaxes maximum productivity and quality
from its workers, even during difficult financial times.
Lincoln's Control Approach
1. Tasks are precisely defined.
2. Individual employees must exceed strict performance goals in order to achieve top pay.
The Lincoln system succeeds largely because of an organizational culture based on openness and trust, shared control,
and an egalitarian spirit. Although the line between managers and workers is firmly drawn, managers respect the expertise
of production workers and value their contributions to many aspects of the business. The company has an open-door policy for
all top executives, middle managers, and production workers, and regular face-to-face communication is encouraged.