The Lincoln Electric Company A-Team

How are labor standards used to establish an incentive system such as this?

Labour StandardsLincoln Electric minimum wage after working for the firm for 2 years, employees begin to participate in the year- end bonus plan guaranteed-employment policy in place since 1958 low cost of high wages working time job security employees agree to work transfers, even to lower-paid jobs employees agree to reduce work periods minimum of 30 hours of work per week recordkeeping each employee inspects his or her own parts must correct any imperfect work records are maintained to show who worked on each piece of equipment health and safety / child labour / anti-discrimination

How and why does Lincoln’s approach to motivating people work?

How ? At the beggining:At the beggining: better productivity = bigger profit for the company = bigger wages for employees Nowadays:Nowadays: Each employee is responsible for the quality of his or her own work. Records are maintained to show who worked on each piece of equipment. If work is not property the worker’s merit rating, bonus, and pay are lowered. Why ? it appears to be good for productivityit appears to be good for productivity

What problems does this system create for management and the employees?

Some employees feel the system can cause some unfriendly competition. Because a certain number of merit points is allotted to each department, an exceptionally high rating for one person may mean a lower rating for another Some employees feel the system can cause some unfriendly competition. Because a certain number of merit points is allotted to each department, an exceptionally high rating for one person may mean a lower rating for another.

What types of employees would be happy working at Lincoln?

competitivecompetitive hard workinghard working self-containedself-contained able to work in group and individuallyable to work in group and individually with high level of self-qality controlwith high level of self-qality control

The end