The Lincoln Electric Company (Case study)

Lincoln Electric Company was founded in 1895 by John C Lincoln. They are leading company in manufacturing electric motors and arc welding equipment. Growth of Lincoln Electric Company had been achieved only with internally generated financial resources. “The employee ownership and incentive management system has allowed Lincoln Electric to be extremely successful over its 100 year history. Although difficult to manage, their system works, as evidenced by the fact that Lincoln Electric employees are among the most highly compensated, productive, and skilled work forces in the world.“
The management system used in Lincoln is as unique as sensitive to changes. Since the company works in production, the main concern of the directorship is to keep the manual workers fully satisfied and productive. From the known results it is clear that the management is so far successful in doing so.

Lincoln Electric is one of the biggest company in the welding industry operating on the U.S. market. Though it is currently facing no major problem, its inflexibility to adapt to changes may be a great disadvantage for the near future. Therefore we see the issues below not as problems but rather affairs which need further attention to ensure the future competitiveness of the company:
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