Lincoln Electric Case Assignment Mehak Verma 45647186

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Macquarie University *

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Management

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May 6, 2024

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Lincoln Electric Case Assignment Mehak Verma 45647186 (a) How would you characterize Lincoln Electric’s strategy? In this context, what is the nature of Lincoln’s business and upon what bases does this company compete? [20%] Lincoln Electric’s (LE) strategy appears to be the corporate level strategy of being a single industry firm. LE is primarily engaged in the manufacture and sale of arc-welding products such electric welding machines and metal electrodes. This is the business’s main focus. The company competes on the basis of having a strong management and employee relationship. The business has a strong policy or motto on who it will target to achieve success. For example, the business puts customers first, employees second and stockholders last. There is a large focus on its employees, there are given many benefits, yet they are also disciplined. The company thus competes on its ability to manage its employees well so that its customers and stockholders are happy. (b) What are the most important elements of Lincoln’s overall approach to organization and control that help explain why this company is so successful? How well do Lincoln’s organization and control mechanisms fit the company’s strategic requirements? [30%] LE is successful because it has a strong focus on how to achieve success. For example, it places it customers first, employees second and stockholders last. LE recognises that its employees are the main backbone of the business. It provides its employees with autonomy, so that they can work more efficiently, and they feel like they have a strong responsibility towards the firm. Even supervisors do not monitor employees’ behaviour whilst working which goes to show that the workplace is more facilitative than controlling. In terms of
management control, it appears that LE has results control in place. This is because results controls offers employees monetary compensation, job security, promotions, autonomy, recognition. All of these factors are present in LE. Due to this LE is so successful as results controls are more effective than action and personnel controls. However, LE has still supplemented results controls with personnel controls. For example, personnel control ensures that any actions that managers take to make it more likely that their employees will perform the desired tasks satisfactorily on their own because they are experienced, honest, and hard working. This is the case with LE, as there is a focus on job design and provision necessary resources. Employees at LE are given allowed to be motivated and qualified by being free from staff interruption. LE’s organisation and control mechanisms fit the company’s strategic requirements well. This is because the business is able to have its employees work autonomously which leads to large profits. The business was able to provide profits during the recession years in 1982 and 1983. During World War II, LE prospered like no other company with it being the world’s largest manufacture of arc-welding products. Its sales were about $4 million in 1934 which then grew to $24 million by 1941. Productivity per employee also more than doubled during the same period. The controls in place thus fit the company’s strategic requirement. (c) What is the corporate culture like at Lincoln Electric? What type of employees would be happy working at Lincoln Electric? [10%] The corporate culture at Lincoln Electric is very inclusive and disciplined. The employees are given benefits through personnel policies like internal job hiring/promotion from within, guaranteed continuous employment policy, bonuses, vacations, training and education, stock
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