Question: how would you reply to this post? Lincoln Electric created a culture of service, respect, and loyalty, therefore, becoming an institutional leader in American business.
how would you reply to this post?
Lincoln Electric created a culture of service, respect, and loyalty, therefore, becoming an institutional leader in American business. The multifaceted culture is innovative, outcome-oriented, people-oriented, and team-oriented (Bartleby, 2016). Lincoln Electric is a world-renowned manufacturer of welding equipment. The companys success can be explained by effective strategies employed. Lincoln Electric was able to create functional methods that were both effective and efficient. Employee stock ownership, merit-based bonuses, piecework pay, and other tactics are examples of these strategies. Employee motivation grew as a result of these incentives, and the quality of the items delivered improved as well.
A challenge for Lincoln is the fact that the tip managers get bigger reward that the employees. In 2011, then CEO Stropki earned more than $6.1 million in total compensation, much of which came from incentive plan compensation. He and other top executives have seen massive pay increases as the company recovered from the financial crisis (Caplinger, 2013). It has also been reported that dividends are paid to employees add customers as well as investors. The unique compensation system crated a competitive advantage in human capital , Lincolns research and development efforts continue to produce high quality products and to continually lower prices. (Dyer, p. C-155). I would suggest decreasing or eliminate customer dividends as a cost cutting strategy because it can become counterproductive.
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