Lincoln Electric S Incentive Management System

The program details the company s pay for performance and merit rating system and other components of the lincoln electric culture.

Lincoln electric s incentive management system.

They recognize employees for good work and pay them for it 1. For two decades the lincoln electric company the nation s largest maker of arc welders and welding supplies has been studied by harvard business school students as a model of how to motivate. The lincoln electric incentive management program is the company s unique compensation program which is the subject of a harvard business school case history and studied at colleges and universities around the world. The lincoln electric company form 10 k for y e 12 31 85.

Lincoln designed lincoln electric s renowned incentive management system to align stakeholders interests around a performance based system that encourages employees to maximize their personal potential rewards operational efficiency and excellence and generates superior value for shareholders. Most months the company sponsors a four hour. Lincoln electric company condensed comparative statement of financial condition. Lincoln s incentive system requires the workers to be highly skilled independent and money motivated in order to earn good pay chilton 1994.

Moreover lincoln electric s green initiative program includes training systems that avoid unnecessary waste of welding gas and other power sources as well as a commitment to reduced emissions. It is a rather complicated system of management with an incentive program that has taken the company a long time to develop to the point that new employees will trust it. Revolutionary management from the 1900 s case study for mgt 591 presented by richard cohen and clay lein january 21 1989 pp. They give employees responsibility 2.

What makes lincoln electric s approach stand apart is that its system survived the many challenges of the past hundred years largely intact. Since 1983 the lincoln electric co. Various cost and ratio analysis material. The lincoln electric is using incentive management system which means paying for performance.

The company system is based on two key elements. In the case of giving worker responsibility the attendance is important.