Lincoln electric

Lincoln Electric case study
Q1:
Lincoln Electric follows a hierarchical management system. In a hierarchical system, there is a strict distinction between the different levels of management within the organization, with each level or hierarchy concerned with the functioning of that level only (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 company (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 not 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).
Q2:
The management of the company provides a lot of incentives to its workers which encourages them to work hard 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 given 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), this system has proven to work very well in the United States.
Q3:
The management should be aware that the business and cultural environments differ at different geographical locations around the world, and it is impractical to try to implement a uniform system of operations in all the international installations and plants (Armstrong, 2006). The management systems should be devised according to the needs and cultural setting of the place in which the company is operating (Armstrong, 2006); only then would the company be able to reap the maximum profits. It is not binding that a system that has worked well at home would be equally beneficial across the borders as well (Armstrong, 2006).
Q4:
The company should strive to maintain its atmosphere of trust among its workers at home, since their main operations are based at home, and the operations abroad are only just beginning, and depend heavily on the sound and productive functioning of the company operations in the United States (Lincoln Electric, 2010). If the company feels the need to borrow in order to provide bonuses and incentives to its workers, then it should. It is very important not to break the chain of sound standing that the company has so painstakingly developed over the years (Lincoln Electric, 2010).
References
Armstrong, Michael. (2006). A handbook of management techniques: a
comprehensive guide to achieving managerial excellence and improved decision making. U. S.: Kogan Page Publishers.
Lincoln Electric Case (Daft, 2010, p. 562). Provided.