Lincoln Electric
Why the Lincoln Electric Company is the World’s Best Managed Company
The Lincoln Electric company was started by John C. Lincoln with this proprietary design of electric motors in 1895. However, the company we know today, with their extraordinary compassion for their employees, was the brainchild of his younger brother James F. Lincoln and his ability to show that the company cares about people.
In the establishing years of James F.’s reign starting in the early 1900’s, he instituted a life insurance policy for all of the company’s employees, something that was unheard of at the time, and created an Employee Advisory Board and the Lincoln Electric Employees’ Association; James F. also created a system to incorporate vacation pay and even rationed out company stock. He believed that this was not a form of coercion or even a direct incentive to the employee, rather he thought that by having by having his employees respect the job, it was only natural that he respect them in return; this was his way of showing his appreciation of his employees.
In addition to understanding his employees, the foundation of his company, he also understood what the customer needed from his services. He rightly believed that, since the purpose of the business was to …show more content…
However, at Lincoln Electric a type of circular logic is used for much of its stock. Whilst the company employees are already well taken care of with their higher than average pay, their bonuses, their health and life plans; they are also strongly encouraged to purchase stock in the company. This method allows the employees to attain a small grasp on the direction of the company even more, but more importantly from the perspective of James F., it will entice the employees to actualizing their commitment to the company and its
The Lincoln Electric company was started by John C. Lincoln with this proprietary design of electric motors in 1895. However, the company we know today, with their extraordinary compassion for their employees, was the brainchild of his younger brother James F. Lincoln and his ability to show that the company cares about people.
In the establishing years of James F.’s reign starting in the early 1900’s, he instituted a life insurance policy for all of the company’s employees, something that was unheard of at the time, and created an Employee Advisory Board and the Lincoln Electric Employees’ Association; James F. also created a system to incorporate vacation pay and even rationed out company stock. He believed that this was not a form of coercion or even a direct incentive to the employee, rather he thought that by having by having his employees respect the job, it was only natural that he respect them in return; this was his way of showing his appreciation of his employees.
In addition to understanding his employees, the foundation of his company, he also understood what the customer needed from his services. He rightly believed that, since the purpose of the business was to …show more content…
However, at Lincoln Electric a type of circular logic is used for much of its stock. Whilst the company employees are already well taken care of with their higher than average pay, their bonuses, their health and life plans; they are also strongly encouraged to purchase stock in the company. This method allows the employees to attain a small grasp on the direction of the company even more, but more importantly from the perspective of James F., it will entice the employees to actualizing their commitment to the company and its