Case“Lincoln Electric in China”

Assignment

Course: | Organization Behavior & Processes (OP) |

Homework: | Case“Lincoln Electric in China” |

Name: | Porunga |

There are several elements in Lincoln Electric’s success case:

Operating environment:

1. Wages on a piecework basis. Lincoln company almost all the workers is no basic wages or hour wage direct piece rates, each product has a price system.

2. A year-end bonus. Production employees are rated on 4 criteria: output, quality, dependability, ideas and cooperation.

3. (ESOP) Employee Stock Ownership Plan.

4. Perfect training and exchange programs, especially for the sales engineer.

5. Workers’ payment and promotion depend on their contributions to the company by direct ratio.

6. Lifetime employment.

Strategy:

1. High quality and competitively price products. A good example is the customized cost-reduction program.

2. Process and product innovations.

3. Skilled and productive workforce.

4. Continue investments in advanced technologies.

5. A mutually dependent and perfect operation of the whole system.

The nature of their work:

1. An open-door policy.

2. Promoting from within.

3. Flat organizational structure.

4. Advisory boards are made up of employees.

Yes.

1. The policies are very transparent and business environment is good now.

2. China has a lot of high quality graduates and industrial workers who have learning ability, working hard and easy to manage.

3. China is one of biggest market in the world also in the welding industry.

4. China has the first-class welding technology. They can keep the company leading the welding industry within the scope of the technology innovation in the world.

5. China also is the most suitable country for investment and the manufacturing center in the world, where one of the world's standard productions can be produced with high quality and competitively price.

6. Chinese employees’ compensation required relatively low, but...