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Lincoln Electric

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Submitted By eckhardtemily
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Lincoln Electric
1. How would you describe Lincoln's approach to the organization and motivation of their employee? I would describe Lincoln's approach to the organization and motivation of their employees as organized, work oriented, and frugal with their money. Lincoln expects a lot from their employees but in return is willing to pay them very well. I think his piecework compensation is a very good idea. There is no reason to waste money paying an employee that isn't willing to work as hard as Lincoln needs them to. Employees are motivated with bonuses, piecework compensation, and promotions. By only hiring from within, employees are motivated to work harder because they know that have a good chance of being promoted if they show they have a good work ethic. Overall I really like Lincoln's approach. Money is not spent on useless things and the employees seem to be happy working at Lincoln Electric.
3. What are some of the key financial metrics that demonstrate the success of Lincoln? Lincoln Electric hires fewer employees and expects more from them in order to save Lincoln money. They also give great incentives such as bonuses, piecework compensation, and guaranteed employment after two years in order to keep employees happy and avoid having a high turnover rate. When Lincoln orders new machines they tend to buy them in pieces and put them together themselves in order to save money and so that they can make the machines work quicker and more efficiently. Lincoln focuses on making items at the highest quality for the lowest price. By doing this they have much lower prices than the competition which in turn increases their sales.
4. What is the applicability of Lincoln's approach to motivation to other companies and situations? I don't think Lincoln's approach will work at all companies because many managers and owners are not willing to give so much...

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