Background Lincoln Electronic company is one of the leading company in cost-competitive market for arc welding equipment. The main focus of the company is to reduce the cost without declining quality. James Lincoln who had strong respect for individual ability, adopted merits rating, treated every employees equally. He practice open door policy breaking the barrier of communication. In order to increase the productivity he used piece rate wage payment system and so as to maintain quality, inspection was done & employees were assigned for that work. Reward system was introduced which made employees hardworking, innovative & boost the productivity. He has also used various other technique to motivate employee.
Motivation Techniques of Lincoln Electronic Motivation is a process of creating willingness of employees to work. Motivation technique of Lincoln electric are: Financial Incentives : Money is the best technique to motivate employee. Lincoln electric has used incentive system. They provides bonuses to employee which is sometime S double their base Pay. Any productivity gains were shared in the form of pay also workers earned 50% more than other in the area. Thus, employee highly motivated to work. Quality of work Life : OWL indication relationship between employees & total working environment. Lincoln adopted open door policy and egalitarian which ensures healthy relation among the workers. The employees were initiated to generate innovation & creativity, they were provided pay per their effort & bonuses as well. As a result employees were motivated to work.
Participation : Participation refers to the Involvement of employees in decision making. It motivates employees to accomplish the task. There is two way communication systems through which employees are allowed to suggest their views to their superior. Similarly in this electric employees are given responsible to decide the quality of their product. Delegation of authority : It is concerned to feeling of dedication towards work among Subordinates. Here; Employees are delegated the power for the production & inspection of products and made responsible in case of defects spotted. The motivation technique used by been Lincolns electric has been successfully able to motivate the Employees. However, the employees might be more motivated if they were provided job security. Also, not everyone is motivated to work because of Financial incentives. Therefore techniques like Job rotation, Job enlargement Job enrichment can be added to make the work challenging and increase employee skills.
Consequences of Incentive pay System Incentive pay can be defined as type of compensation i.e. awarded to employee when they complete Specific set of performance. Here, workers are paid on the basis of no. Of units produced them. Possible unintended consequences are: In intensive pay system, employees are paid accounting to the pieces they produced so, as to get more pay faster, employee focus on producing more & more ignoring the quality of the product. Also, employees might push themselves hard in thr hope of receiving more, pay, they might put themselves at risk. There is increased competition among the employees which may lead to conflict & resentment. Employees focus on earning more and run to produce more which may result in low interaction with the member.
Incentive system works the best with repetition of task. Due to the repetative work, the employees will have less chance for personal growth, also they can be lazy & feel monotony. This might get employee loose their effectiveness. Employees are paid as per the number of units produced, the employee who produces relatively low compared to those producing higher quantity which gives raise to jealousy & conflict among members.
Here, Lincoln has used various techniques to counter these problems. so is to meet the standard He has introduced quality inspection. so, as to reduce the focus of employees on quantity only. He also made the employee responsible if defects are spotted. He adopted merit-rating, reward system to make the employee innovative and creative. As it focuses on individual skills. Open door policy was used to ensure communication & cooperation among the employees. Every employees were treated equally which reduced conflict among the member.
Issues on leadership and culture of Lincoln Electronic Following democratic leadership styles using egalitarian and two way communication etc. The company is able to achieve it’s goal however it has some issues, they are:- No Base Salary : Lincoln has provided salary to the employees on the basis of unit produced. Stress and conflict among the employees : He has focused on individual effort ignoring group effort. No training for the employees : He has not provided training to boost the employees skill.
Issues on culture Meritocracy: Every employees are rewarded or paid as their performance Open-Door policy: It encourages open communication, feedback about any concern employees have. Egalitarian: Lincoln has believed everyone to be equal and has exercised equal treatment for all. There is no any special treatment for manager.
As to my view every aspect has its own pros and cons. The best part is worker are disciplined and has used egalitarian culture, mistreating system providing opportunity for all workers. Insufficient or improvement part is , employees should be provided with base pay. They should be provided Training to increase theiri efficency. so, that employee with low performance cando better next time. The employees so far force themselves to get more pay so management should fix time of work and show concerns on employee health and safety. And last the must important- must focus on quality of work and methods to increase the sales
Does Lincoln’s control system match the strategy of enterprise? Somehow the Lincoln company has set it’s Standard and for that the control system is quite impressive and match it’s strategy. The Consumer of Lincoln’s are price -sensitive. The main objective of the company is to produce more with full utilization of resources & minimize the cast. So, in that prospect it has achieved its objectives & goal, for more production than of its compensation. Along that the factory workers are happy and are able to earn good base pay with extra bonuses. Production worker are been awarded semi-annually as per ratings. So, conclusion is: Lincoln has a manpower with high production is productive employees & satisfaction in business.
Conclusions In the above case of Lincoln there is strong organizational culture and has implemented various suitable system to satisfy the employee and boost their productivity performance. Hence Lincoln was able to minimize its cost and also was able to satisfy its consumers.