1,209
19
Essay, 2 pages (400 words)

Lincoln electric argumentative essay

Discussion questions: 1. Which ten features of Lincoln Electric’s human resources and compensation policy do you find most noteworthy? I. Piecework has a fixed price and cannot be changed unless a new method of producing the item is established. II. Separate ‘ Time Study’ department that sets the price awarded for piecework and the ability for employees to appeal prices etc. III. Additional yearly bonus system comprising of a bonus pool that is distributed amongst employees, with a separate budget for those with particularly outstanding ratings.

IV. Guaranteed lifetime employment. V. No real vacation/sick leave policies in place, as it is 100% piecework based. VI. Only entry-level positions for external candidates at a very low rate vs. the market. VII. Promotion is almost entirely form within. VIII. Limited training programs or further educational support programs IX. Flat structure of the organization X. Lack of team-based incentives. 2. What are the advantages and disadvantages of Lincoln Electric’s piece rate system and the way it is implemented? Advantages * Like all pay for performance models employees will create more output until the workers costs exceed the workers benefits, those more price sensitive will work harder. * Self -selection – people who don’t work that hard will leave as they would get paid more elsewhere for lower productivity so likely to attract better talent. * Autonomy * Clear job demarcation * Rewarded directly for own output * Disadvantages Does not take into account other factors that may reduce productivity – such as materials issues * Very individual focused – no team incentives which leads to little camaraderie * No pay increases – only achieved by increased output as a result of increased efficiency through experience. * No pay for sick days or vacation. * Quality may be sacrificed as this is only assessed a one of the 4 factors that an annual bonus is determined on. 3. What are the advantages and disadvantages of Lincoln Electric’s guaranteed employment policy? * Advantages Costs of hiring/firing are eliminated * For the employee there is job security especially during recessions * Retain culture * Retain benefits of on-the-job learning/training * Increased loyalty * Disadvantages * For Lincoln this means you can’t fire people and although they are being paid on piecework you can’t remove people who may be having a bad influence on others from a cultural perspective. * Costly during downturns * As part of the lifetime employment – promotions are from within and this hinders lessons that could be learnt from people who have experience at other companies etc.

Thank's for Your Vote!
Lincoln electric argumentative essay. Page 1
Lincoln electric argumentative essay. Page 2
Lincoln electric argumentative essay. Page 3

This work, titled "Lincoln electric argumentative essay" was written and willingly shared by a fellow student. This sample can be utilized as a research and reference resource to aid in the writing of your own work. Any use of the work that does not include an appropriate citation is banned.

If you are the owner of this work and don’t want it to be published on AssignBuster, request its removal.

Request Removal
Cite this Essay

References

AssignBuster. (2021) 'Lincoln electric argumentative essay'. 18 December.

Reference

AssignBuster. (2021, December 18). Lincoln electric argumentative essay. Retrieved from https://assignbuster.com/lincoln-electric-argumentative-essay/

References

AssignBuster. 2021. "Lincoln electric argumentative essay." December 18, 2021. https://assignbuster.com/lincoln-electric-argumentative-essay/.

1. AssignBuster. "Lincoln electric argumentative essay." December 18, 2021. https://assignbuster.com/lincoln-electric-argumentative-essay/.


Bibliography


AssignBuster. "Lincoln electric argumentative essay." December 18, 2021. https://assignbuster.com/lincoln-electric-argumentative-essay/.

Work Cited

"Lincoln electric argumentative essay." AssignBuster, 18 Dec. 2021, assignbuster.com/lincoln-electric-argumentative-essay/.

Get in Touch

Please, let us know if you have any ideas on improving Lincoln electric argumentative essay, or our service. We will be happy to hear what you think: [email protected]