Lincoln Electric Essay Example | Topics and Well Written Essays - 500 words

Lincoln electric car - Essay ExampleLincoln Electric follows a hierarchical management governing body. In a hierarchical system, there is a strict distinction between the different levels of management within the organization, with severally level or hierarchy concerned with the functioning of that level barely (Armstrong, 2006). The power and responsibilities associated with the management of the organization converge from the workers upward toward the president or executives of the gild (Armstrong, 2006), so that the workers are at the lowest stratum and the president or the managing executives at the highest stratum (Lincoln Electric, 2010). This holds true for the Lincoln Electric as well, since it is clearly mentioned in their company description that there is a well defined distinction between the managers and workers (Lincoln Electric, 2010), and although open communication and socializing is encouraged, the fine hierarchical line is non traversed (Lincoln Electric, 2010 ). The company has workers, sales representatives, supervisors, middle managers, and top executives, with each level functioning within its own boundaries (Lincoln Electric, 2010). The management of the company provides a lot of incentives to its workers which encourages them to work grave and with sincerity towards producing high quality products and increasing the yield and profits of the company (Lincoln Electric, 2010). Since the total profit is shared among the workers based on their performance and merit (Lincoln Electric, 2010), it is only in the interest of the workers to work hard and with honesty to increase the profits. The rewards that the workers get are substantial (Lincoln Electric, 2010). The job descriptions and requirements are clearly and precisely defined (Lincoln Electric, 2010), and attached the capitalist form of business environment in the United Sates (Armstrong, 2006) as opposed to the labor intensive form practiced in Europe (Lincoln Electric, 2010), thi s system has proven to work very well in the United States.