The Lincoln Electric Company

Headquartered in Euclid, Ohio, a suburb of Cleveland, The Lincoln electric automobile bon ton is a world leader in join and cutting products, as hale as a premier manufacturer of galvanising motors. The company is well known for its apply, talented workforce and its superior technology. Lincoln Electric association gives its customers total solutions along with a commitment to quality. Lincoln Electric Company is also well known for its inducing management system. many companies strive to duplicate the success that Lincoln has enjoyed over the years.John C. Lincoln founded Lincoln Electric Company in 1895 with a capital investment of $200. At first he only(prenominal) designed electric motors, but in 1909, he began to build welding machines. In 1814, he hired his brother jam to be the VP and manager of his company.In 1934, the famous Lincoln bonus plan was instated as employees enjoyed bonuses of 25% of their lascivious pay. By 1940, Lincoln employees enjoyed two times the average pay and productivity of similar Cleveland workers.Lincoln has construct a very profitable company. This by way of treating all of its stakeholders with the utmost importance. Lincoln always unplowed its wrongs very fair, if not too fair for the customers. In many cases, the price of an item or answer provided by Lincoln had gone down over the years. At the same time, employees salaries actually went up. This is conscionable one example why Lincoln has flourished.Why are the employees at Lincoln Electric Company so pleased as well as so productive? Why were Lincoln employees voluntary to work overtime during an August vacation time in 1994? The following benefits are some of the primary(prenominal) reasons why Lincoln employees will do almost anything to help its employeran employee stock purchase plancompany-paid animation insurancepiece rates adjusted for inflationa practice of lifetime employmentSince its ancestry in 1895, Lincoln Electric Company was privately ow ned. This allowed for the protection of the processes that has kept Lincoln in the lead. However, aft(prenominal) two years of losses in 1992 and 1993 due to a harsh foreign market, Lincoln Electric Company had to go public.With multi-million dollar, domestic updates and acquisitions in such countries as Italy, China, and Indonesia, Lincoln Electric Company supernumerary no time by dwelling on its first losses in Lincolns history. Lincoln is back on track as the world leader in arc welding, after(prenominal) faltering for only two years. Lincoln is committed to providing substantial value to all of its stakeholders.Very satisfied, dedicated and talented employeesIncentive performance systemCustomers interests were held as more important than the shareownersLow prices kept customers pleasedExceptional quality (one Lincoln distributor said he sold hundreds of Lincoln welders without even one returnGood relationships with unionsLincoln would guarantee a price quote in writingHaving to go public after nearly 100 yearsThe incentive pay scheme needs some updatesTry to regain the its long-time standing as a privately owned companyStockholders could threaten with the need for a traditional pay scheme and this could interfere with the slender relationship that Lincoln Electric has with its employeesThere is really nothing that Lincoln Electric Company cease do that has not already been done. Lincoln Electric Company never had a loss until its over sea operations began to suffer in 1992. During the global organization, Lincolns employees voluntarily postponed their vacations in order to meet customer demand. Sales records have been set for every quarter since mid 1993. The only area that I see that could be changed is the way that the employees are compensated.