Case Of Lincoln Electric Company
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we know that Lincoln Electric Company is a famous company and it has high profit for it has some unusual system and rule. However, according to today business, we could know that the Lincoln Electric Company will meet some problems for its old system and rule. Thus, I will point out some problems in Lincoln Electric Company and also give my recommend in order to solve those problems.
Problems:
The Lincoln Electric Company uses it old point of view to make their strategy without environment changing.
According to case, we know the company always has its own company value and rule to face its business environment. However, the business environment is always changed and company will meet the some problem in its business environment. ÐŽ§Organizational excellence is about change. We would not have made this comment in the 1970s or 1980s, and perhaps not even in the 1990s. But today, it goes almost without saying: Most organizations simply cannot sustain performance excellence unless they respond to shifting environmental demands. And as the rate of change continues to accelerate, the premium on organizations ability to change is likely to become even more important.ÐŽÐ(Edward,Christopher, 2006) and ÐŽÐ Customers values often shift imperceptibly, but a clever firm looking for growth can sometimes speed this process along to its own advantage. Consider the newly emerging consumer value of taking charge of ones own health. This value showed up in the form of vitamin therapy, herbal and mineral supplements, massage, yoga and acupuncture markets, as well as in traffic on medical websites.ÐŽÐ(Al, 2005) Thus, environment is always changed included customers or manager, every company need to change its company strategy and some rule without using the old company value.
The Lincoln Electric Company does not have the official organization construction.
In fact, we know in the Lincoln Electric company does not have the official organization because their company value focus on flexible structure and employee decision making. However, I think that is depend on good employee can use this rule and it also brings the problem for its employee because they will have some confuse in its organization construction. Thus I think company needs to consider changing its organization construction for flexible environment. ÐŽ§New forms of organizations, combining open space for improvisation and organic evolution with actively managed traditional structures, will likely emerge as valid ways to deal with the dichotomy of continuous change and effective ongoing operations. The results will likely be people with more connections to others, learning more things about business and worldly interests, and contributing to an organization better prepared to adapt. The key seems to be building in the flexibility component – while preserving the sense of “we-ness” in a world calling for multiple adaptations.ÐŽÐ and ÐŽ§All companies go through evolution, typically creating structures around things that work for efficiency and effectiveness, and tearing them down during performance crises. Allowing some level of unstructured and uncontrolled activity within an organization is not newÐŽÐ(Charles, Peter. 2002) In addition, in the employee decision making, I think the it should consider about the employee level to give them what kinds power. ÐŽ§Making sound decisions sounds simple on the surface, but not everyone is skilled in this area. Sometimes managers slow down the workflow through indecisiveness. At the other extreme, they may make snap decisions and develop a reputation for being arbitrary or impetuousÐŽÐ (Max. 2006)
The Lincoln Electric Company does not have a good education system. .
At first, I think that Lincoln Electric Company does not support its employee to get new education and it also does not give its employee the education. ÐŽ§By investing in your employees growth, you will show that you care about their potential, which can boost morale and retention. At the same time, you will create a team with the expertise to support short- and long-term department goals.ÐŽÐ (Max , 2006), ÐŽ§Businesses must invest in their employees. Internetalization of employees is becoming a necessity. Employee retention will require on-going employee education. Continuous learning will become part of every employees job. To foster continuous learning and critical thinking, it is important that education focus on the “total” needs of the individuals and evolve with the individuals. This will be a win-win situation for both employees and employers.ÐŽÐ (A K. 2002) and ÐŽ§Corporations that foster learning and education allow employees the opportunity to grow; to increase their knowledge; and to learn and grow will become better performers, decision makes and better understand the goals and objectives of the organization.ÐŽÐ(Mary, 2001) Thus, we know the employee education is very important so I think Lincoln Electric Company without employee education will affect its operating and earning.
The Lincoln Electric Company always uses the money to be motivating tools in its reward system.
According to case, the Lincoln Electric Company always uses the money to motivate its employees like its wage rule and bonus rule. However, I think the money is not the best tool to motivate. ÐŽ§Many of our current pay systems and, more importantly, our thinking about the whole field of compensation are based on this “job size” method of pay. However, in todays highly networked, ever-changing organization, jobs are also constantly changing, necessitating a reconsideration of our traditional practices of pay and compensation.ÐŽÐ(Richard. 2004) ÐŽ§Internal competition, including sales contests and competition for limited resources, promotions, and budget, is a widely accepted motivational strategy.ÐŽÐÐŽÐ In fact, the last several decades have spawned a plethora of behaviorist programs for motivating people, including bonus programs, merit pay plans, balanced scorecard, annual performance reviews, 360ÑžX feedback programs, and many others.ÐŽÐ(Jane. 2006) Thus, we know money might be a good motivation tool but its not very perfectly and it needs more other motivating strategy.
The Lincoln Electric Company does not support any change by its company value
Last problem, we know because Lincoln Electric Company has its owe company value like evolutionary rather than revolutionary. Thus, Lincoln Electric Company does not consider about changing even environment changing. ÐŽ§The need for organizational