Lincoln Electric

Detail Lincoln Electric’s Management Control System In order to evaluate the Lincoln Electrics Management Control system, I will draw inferences from the Flamholtz conceptual model. In particular I will start off with a description of the firm, moving on to the macro control system where I will critically depict the sub components of 1) the core control system (inner section) 2) the organizational structure (middle section) and 3) the organizational culture (outer section). Using this outward schematic framework of visualizing the control system will ensure an accurate and detailed assessment of the firm’s management control system. Description of the Firm The Lincoln Electric Company is the world’s largest manufacturer of arc welding products and a leading producer of industrial electric motors. The company is famous for its successful management incentive plan that causes its 2600 employees to have substantially high productivity levels in comparison to workers within same industry at competing firms. The firm strictly believes in using retained earnings for the purpose of expanding and also places a large emphasis on its customer’s interests with stakeholder interest being secondary in the management’s perspective. As a result of the effective management incentive plan and attainment of organizational goals, the firm has been able to achieve a US market share of over 40% in the arc welding products industry. Core Control System Under this aspect of the macro control system, I will depict the organizational processes of planning, operations, measurement, and evaluation/rewards that Lincoln has in place to channel human behavior towards the attainment of organizational objectives.

Recruitment and Selection: Lincoln’s recruiting policies were quite simple. Essentially recruiting would begin internally were current employees could apply to the postings on the bulletin boards. This allowed for growth opportunities for employees within the firm and also the...