Integrative Case: The Lincoln Electric Company
“We are a global manufacturer and the market leader of the highest quality welding, cutting and joining products. Our enduring passion for the development and application of our technologies allows us to create complete solutions that make our customers more productive and successful. We will distinguish ourselves through an unwavering commitment to our employees and a relentless drive to maximize shareholder value” (http://www.lincolnelectric.com/en-us/company/Pages/vision-statement.aspx). This is the vision of James Lincoln, founder of Lincoln Electric Company. I will look at this vision and apply it towards the question being asked.
Integrative Case: The Lincoln Electric Company
Projects to Extend Your Learning:
Integration and Application. P. 30
Identify the stakeholders of the company you chose (Lincoln Electric or Southwest Airlines) and discuss the relative importance of each stakeholder to the company. The Lincoln Electric Company has three main stakeholders. First, James Lincoln was totally committed to its customers. The buyers are the most essential people for any business. The consumers are the source upon which the accomplishment of the corporation rests on. When contemplating about the significance of patrons it is valuable to recall the following ideas: Repeat dealing is the pillar of vending. “It helps to provide revenue and certainty for the business” (“Marketing theory,” n.d., para.
1). Corporations are reliant on upon their customers. If they do not improve purchaser allegiance and contentment, the businesses might drop them. Lacking customers the business would not survive.
The reason of the business is to satisfy the wishes of the customers. The customer makes it likely to attain corporate goals.
Secondly, none than others enjoyed prosperity than its own employees. “Not the least of their benefits, of course, are the year-end bonuses, which effectively double an already average compensation level” (Jackson, Schuler, & Werner, 2011, p. 572). Finally, the last stakeholders in the Lincoln Electric Company are the stockholders. James Lincoln regulated them to secondary status. However, the stockholders of Lincoln Electric have done well over the years. Integration and Application. P. 67
a. Describe the relevance of the environmental forces for Lincoln Electric’s approach to managing human resources. Economic globalization.
Nobody cannot stop globalization. Lincoln Electric realized this concept. They used the same philosophy here as they do on foreign land. Lincoln Electric found out how customs and laws affected them as far as business. The worldwide business environment remains to be a main developmental prospect for Lincoln Electric as far as global manufacture and trades from the United States (Jackson et al., 2011). The country culture of the United States.
Lincoln Electric has been on top in relating to the country’s culture of the United States. James Lincoln realized that treating people fair and realized their needs will sustain the company for the long haul. For an example, in 2008 when the United States was in recession, many major corporations laid of its employees. The feeling of discontent was high in the United States. However, Lincoln Electric did not lay off one person. Instead, the company lower their hours until the recession is over. Not only this method saved the employees’ jobs and it also sustain their morals and spirits. The competitive strategy of Lincoln Electric.
Lincoln’s HRM approach is centered on a “best fit” method intended to accomplish an ideal straight up fit with the complete commercial policy with a robust association concerning the aggressive calculated purposes of “employee productivity and product quality on the company’s domestic American market” (Marchington, 2000, p. 1124). Lincoln Electric Company is hugely prosperous on the U.S. market because it complements HR tactics to business, economical and practical balanced approach to attain a maintainable competitive advantage. Integration and Application. P. 104
Review the cases of Southwest Airlines and Lincoln Electric and answer the follow questions regarding the company you chose: a. What evidence exists to demonstrate that each company manages employees fairly and legally?
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Obviously, the employees at Lincoln are happy because they have a low turnover rate. With the incentive plans intact, employees enjoy their working relationship with the managers. The Lincoln Employees Association was formed in the early 1900 to provide health benefits and social activities. The pay rate is competitive and adjusted according to Consumer Price Index. They get two weeks vacation every year. Employees can buy stocks in their company.
b. Are there company practices at Lincoln Electric that you would consider to be unfair? If so, which ones? Why? Lincoln Electric’s method to employee compensation continues to be contentious, maybe partly because of a lack of grasping of what it involves, partly to labels created by organized labor, and to some extent to shocking reports from nations such as India and China where piece-rate generates a new sense to the exploitation of labors.
Another misconception perceived by the public is the Lincoln Electric’s guaranteed employment policy began in 1958. This type of contract surely clarifies the responsibilities of employees and supervisors and the consequences when these duties are not satisfied.
Jackson, S. E., Schuler, R. S., & Werner, S. (2011). Managing human resources (11th ed.). [CourseSmart]. http://dx.doi.org/ISBN-13 9991133185727 Marchington, G. (2000, December).
Best practice Human Resource Management: Perfect opportunity or dangerous illusion. International Journal of Human Resource, 11(6), 1104-1124.
Why customers are important. (n.d.). Retrieved from http://businesscasestudies.co.uk/business-theory/marketing/why-customers-are-important.html#axzz2jKUo9sUW