By pursuing innovation and efficiency the company inherently ensured that product quality was kept high.
2) Under planning, Lincoln Electric’s management’s long-term goal is expressed through its vision statement that stated the company was aiming to be the world’s leading manufacturing company (Fast and Berg 1) To achieve this plan, management structured all its operations with manufacturing as the core. New staff had to spend some time in the factory before they moved to their relevant departments. Secondly, the company also implemented a flat structure and promoted an open and direct communication policy so as to build trust and enhance communication between managers and employees. Management provided leadership in many ways such as applying the same philosophy and procedures regarding incentives across the organization, treating all equally, and working similar long hours. Finally management controlling was demonstrated by the merit rating system that evaluated workers’ performance in four key areas. This ensured that employees did not remain single-dimensional at work.
3) Munsterberg stated that managers needed to identify the psychological conditions under which workers did their best work after which they should devise strategies to influence employees to follow management’s interests. Lincoln identified that a competitive environment and a fair reward system would do just that. On the other hand, Follett stated that work processes be placed under control of workers with relevant knowledge which was what Lincoln Electric did with its internal job promotions. Finally, Lincoln interacted with all workers a sign that he cared about them. This made them more committed to their jobs and work harder as the Hawthorne effect states.
4) Lincoln’s approaches to employee motivation created a strong sense of ownership and commitment to the organization. These translate as increased worker productivity. Other factors that Lincoln used includes being confident in workers’ ability to self-manage.