Essay About Incentive Plan And South America

Lincoln Electric Case Study
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QUESTIONS – CASE STUDY “LICOLN ELECTRIC” :People are our most valuable asset. They must feel secure, important, challenged, in control of their destiny, confident in their leadership, be responsive to common goals, believe they are being treated fairly, have easy access to authority and open lines of communication in all possible directions. Perhaps the most important task Lincoln employees face today is that of establishing an example for others in the Lincoln organization in other parts of the world. We need to maximize the benefits of cooperation and teamwork, fusing high technology with human talent, so that we here in the USA and all of our subsidiary and joint venture operations will be in a position to realize our full potential. Is Lincoln Electric a healthy company to work for? Yes, because the environment is very attractive to workers, because it uses a management technic that motivates workers, consisting on four key areas: factory jobs based on output, a year end bonus than can equal or exceed the annual salary, guaranteed employment and limited benefitsHow important is the incentive plan to their strategy?In the US, the incentive plan has created motivation and loyalty twards the employees, improving their productivity and effectiveness.Why does it work?Because this incentive technique, provided Lincoln Electric with a competitive advantage over its domestic competitors. At the same time, these incentives, provide the company with loyalty brand, and make the workers more productive and motivated.This incentive management, works in the US, because workers are used to work Should the “Lincoln Way” be implemented in China?  Or in South America?Why or why not?The model should be implemented in countries were legal, cultural and political differences are similar to the united states, or else adapt to other countries providing new measures to guarantee effectiveness. Prior internationalization of the company has proved lack of success, due to its inexperience and the lack of different rewards and incentives tailored to the different cultures.