Presentation On Case Study "Lincoln Electric Company"
Presentation On Case Study "Lincoln Electric Company"
Presentation On Case Study "Lincoln Electric Company"
CASE STUDY
PRESENTED BY:
SONAM KHOSLA(43)
DIPIKA TIWARI(46)
VINAY SINGH(47)
KANHUCHARAN SAHU(48)
FLOW OF THE PRESENTATION
Synopsis
About the company
A historical sketch
Company philosophy
Lincoln’s business
Products
Manufacturing Process
Organization structure
Personnel policies
Financial policies
Conclusion
SYNOPSIS……
The case is about the company Lincoln Electric
Company which is known for its best Incentive
management plan.
Construction Industry.
NEWSROOM
MANUFACTURING PROCESSES
• Materials used on each workstation were stored as close as possible to
the workstation.
• Administrative offices, near the center of the factory.
• Fortune magazine declared one of America’s 10 best managed factories.
• Series of assembly lines.
• Outsiders were not given access to the details of processes.
Less Formalization
Span of control
3. Compensation
Basic wage levels were determined by a wage
survey in the Cleveland area
Wage rates were translated into piece rates
Annual bonuses
PERSONNEL POLICIES
4. Vacations
The company was shutdown for 2 weeks in
August and 2 weeks during Christmas season
PERSONNEL POLICIES
5. Work Assignment
Management had authority to transfer workers
and to switch between over-time and short-time
as required
PERSONNEL POLICIES
6. Employee Participation in Decision Making
The Advisory Board, elected by the workers, met
with the Chairman and President every 2weeks
The Advisory Board only recommended actions
PERSONNEL POLICIES
7. Training & Education
On-the job training were given for a short period
to both production workers and sales executives
PERSONNEL POLICIES
8. Fringe Benefits & Executives Perquisites
A medical plan and a company paid retirement
program
A plant cafeteria served meals at about 60% of usual
costs
The employee stock ownership plan resulted in
employee ownership of about 50% of the common
stock
Crowded offices, no executive lunch rooms and no
reserved parking spaces
FINANCIAL POLICIES
Financing should be arranged from internal
sources - cash investment by founders, retention
of earnings & through stock purchase(Sales).
Ownership of stock by employees(ESOP) will
help to
a) Strengthened team spirit.