Lincoln Electric Has a Human Case Study

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In response, the employees have largely been focused on achieving the same results that managers want to achieve, knowing that they will be rewarded if they succeed. The result is a longstanding culture of excellence and one of cooperation between management and the workers.

These human resources practices compare favorably with others in the industry, and seem to form a competitive advantage for Lincoln. The policies create a positive work atmosphere and strong motivation for the employees to contribute to the generation of corporate profits. Workers are highly skilled and there is low turnover, so there is a considerable amount of expertise in the company. In general, Lincoln's HR practices are excellent and contribute to the company's long-term track record of success. Certainly the view that employees come before customers is a positive view for Lincoln, because the quality of employees that they are able to attract, retain and subsequently motivate results in employees capable and motivated to deliver on customers' expectations -- by providing for employees Lincoln is effectively providing for customers.

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That said, there are some disadvantages to Lincoln's HR policies. While the company does emphasize hiring from within, the lack of turnover creates limited opportunities to do so. This can reduce motivation for some employees, when they are in a position where advancement is years away and they know this. In addition, there is a high level of expectation among employees with respect to the bonuses. The bonuses are high, and if the company wants to retain some earnings it causes discord among employees. These are minor disadvantages, however, and in general Lincoln's HR policies have contributed significantly to the company's success......

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