LEUTRICAL COMPONENTS any saw ur- be SITUATION ncoln Electric has had an unusual
ID: 331793 • Letter: L
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LEUTRICAL COMPONENTS any saw ur- be SITUATION ncoln Electric has had an unusual relationship with its employees since it as founded by John C. Lincoln in 1895 The company has been on the ting edge of worker-friendly efforts. In 1923, it was among the first firms to offer company-paid vacation; in 1925, it was among the first to offer employee stock ownership plans; the first employee suggestion program was imple- mented in 1929, and Lincoln employees received incentive bonuses beginning in 1934. Perhaps the most controversial of its programs, however, is its guaranteed employment plan: after three years of continuous employment with Lincoln Electric, workers are guaranteed their jobs. In the early 1980s, however, the company experienced tremendous hardship. As a result of inflation, higher energy costs, and a recession in the United States, Lincoln sales plummeted 40 percent. Company managers didn't know if they would be able to keep their promise of guaranteed employment. HOW THE COMPANY HANDLED IT The company was severely tested. However, not one Lincoln employee was laid off for lack of work. The company's loyalty to its employees was returned in 1993, when Lincoln urged its employees to attain record levels of sales and production. Employees voluntarily postponed 614 weeks of vacation in order to meet customer demands. Even after the financial crisis in 2008 and 2009 Lincoln seemed to be able to spread the pain across survive the horrible economic conditions. Although austerity measures were needed, Lincoln still did not lay off anyone, and hasn't since 1948. In fact, here are some impressive facts from author Frank Koller, who wrote a book about Lincoln called Spark: How Old-Fashioned Values Drive a Twenty-First Century Corporation all ranks in an effort to 2011 is the 78th straight year that Lincoln has made a profit. The total bonus pool distributed to employees in 2011 equaled 32 percent of pre-tax profit of $84 million The average employee bonus was more than $30,000. The average total compensation of a Lincoln Electric employee was $79,000.93 RESULTS Incentive management is a cornerstone of Lincoln's culture. Having devel- oped one of the first pay-for-performance systems in the country, this companyExplanation / Answer
The case is about the Lincoln Electric company which is providing incentives to the employees and still generating profit. They actually follow the policy of absolute integrity. Their employees trust the company so as the company too. The company doesn’t lay off the employees. If the employee worked for the 3 years they would be permanent employee of the company. The company looks for the satisfaction of the employee and their benefits. So, the employees of the company cooperate too.
If I am the CEO of the company, I would like to take to restore my company's reputation if it's been sullied by sticking to the specific concentrate steps such are as follows:
These steps are important for the business because the employee has power to integrate the company or to destroy if they are not satisfied. So, when their needs are fulfilled they works for the betterment of the company. They collaborate, cooperate and do the team work for the assigned work so they organizes the company very well than me also.
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