DISCUSSION QUESTIONS:
1. Is Lincoln Electric a healthy company to work for?
For me, yes, it is a really healthy company to work for. The point here is to
explain why it is and how this company works, and how they do to have their
people so glad in there. After regarding all the points provided in the summary, I
will pick out some of the aspects that, in my opinion, are the key of success of
this company, and these are some "extra value" incentives used at the
company: wages adjusted to CPI, a point based bonus increase, a welding
school, advanced and efficient human resource management, tradition, easy
communication.
•
In terms of HRM it’s easy to see that they have an enormous comparative
advantage, and, because of this, productivity goes up and revenues increased
as well, having this way an advantage on the competence.
These are words of Betty Stewart, a 52 years old graduate who had been with
Lincoln 13 years:
"I do like working here. I am better off being pushed mentally. In another
company if you pushed too hard you would feel a little bit of pressure, and
someone might say, "Hey, slow down, don't try so hard." But here you are
encouraged, not discouraged"
Lincoln employees are clearly pleased with their jobs, they all think they will
never form a union.
In other words, being a worker at Lincoln Electric provides a healthy
environment. If it is in your interest to seek job improvements, good conditions,
wages linked to performance and to stay with a serious and caring company, a
place where people will have interest on you and on your work. Lincoln Electric
is an example of an outstanding company
2. How important is the incentive plan to their strategy?
Incentive programs can improve performance anywhere from 25-44%, as well
as decrease turnover, increase customer satisfaction and enhance the public’s
awareness of your brand. There is a huge selection of promotional items that
can be used as non-cash incentives and still have a high perceived value to
employees. In the case of Lincoln Electric theire incentive plan is basic on theire
strategy, mostly because they believe in theire employees and the employees
believe in Lincoln.
3. Why does it work?
The strategy works because people feel comfortable with the company plan and
motivated, for example:
•Employee Participation in Decision Making.
Guillem Vallès Creixell
