How would you describe Lincoln's approach to the organization and motivation of their employee? I believe their motivation and organization is very one sided. I feel like their motivation is solely monetary based. Their compensation policy motivates workers by paying them based on output but also fosters complacency as they are guaranteed employment. They provide personal feedback based on a merit score but only positive high ranking numbers are rewarded, there are no consequences for a bad score. The company is very individualistic and those with higher scores tend to stay together and those with lower scores tend to stay together.
The organization aims to build quality products at prices lower than their competitors. With monetary compensation the costs are already higher to produce the product and also output is variable as there aren’t set quotas. The variability changes the amount Lincoln Electric can charge. The company aimed to reduce barriers between workers by eliminating special parking lots and executive dining rooms; they aimed to make a family like environment for everyone. What role do you think this approach has played in Lincoln's performance over the last 25 years?
Have any other factors been more important? (Required) The roles haven’t really helped like they ideally would. For example eliminated work barriers gave lower ranking employees a false sense of hope. An open forum would be conducted to try to eliminate any issues employees had. Management would review the problem but the resolution would be what management thought was right, with the worker hardly in mind. The case study states that the main issues brought up have remained the same in the previous years. The family-like environment hasn’t really done much good for the company.
The workers are more concerned with making money to support themselves and their families. What factors will be critical to Lincoln's continued success? If Lincoln can continually foster the family oriented structure they have they will be successful. They need to continue to compensate workers for what they’re doing, acknowledge those that have been there a long time and help create a sense of unity along with eliminating power barriers. Providing feedback often helps employees fix what is wrong and continue doing what is right. What recommendations would you make to Mr. Willis? I would tell Mr.
Willis to follow through with what he is trying to do. If he continues to do what I have stated in the question above then Lincoln Electric will strive. A minor issue would be the appearance of the building itself. One’s work environment can play a slight role on the way one perceives their job. If updates were made to the interior with an emphasis on technology efficiency will increase and more money will be saved and made. I would also recommend that Mr. Willis adapt to the worker’s attitudes. Towards the end of the case Mr. Willis says himself that the company runs the same since when Mr.
Lincoln was president but the workers have become more outspoken and able to question authority. What is the applicability of Lincoln's approach to motivation to other companies and situations? (Required) Many other companies attempt to reduce barriers among staff in order to create a family oriented work environment. Bonuses and other forms of compensation are also duplicated by other companies and working situations as a means of motivation. Hiring from within is also very common in the working world as one’s employees are often multifaceted and able to fix a problem within a company.
