Philosophy of Control Assessment

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Lincoln Electric

Philosophy of Control Case

Case Overview

Lincoln Electric uses a diverse approach to management. It is committed to a very egalitarian culture that is the product of a strong commitment to its employees. One example of this can be provided to its "no layoff policy" which has been in effect since the 1950s and no employee at Lincoln has been laid off since that time. Furthermore, the company has an open door policy in which employees at any level can talk to anyone else at any level -- and are actually encouraged to do so. Most of the employees start work with the company right out of high school and often stay with the company for their entire career. The Lincoln values include honesty, trustworthiness, openness, self-management, loyalty, accountability, and cooperativeness and these values are heavily embedded into the organizations culture and the management team rewards the employees that best exemplify these values.

All of the employees have a great deal of self-control and the organization's structure is incredibly flat. Some of the supervisors will have about one hundred employees that they are responsible for. The culture includes a pride of workmanship and empowerment that allows for many intrinsic rewards to the employees.

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The cross-functional teams are particularly empowered and can develop most of entire range of operations that the organization is engaged in. The sales representatives, as well as the rest of the organization, are taught to be customer focus and be responsive to their needs. The management team and the organization was so successful in their home territory that it decided to expand internationally; however the management team was unable to create the same level of success in international locations such as Japan, South America, and Europe.

Discussion

The nature of organization is a complex and has evolved over the years as societies needs have increased in complexity as well. Cooperative action necessarily involves interdependence between individuals; this interdependence calls for a transaction or exchange in which each individual gives something of value (for example, labor) and receives something of value (for example, money) in return (Ouchi, 1980). Although such a simple framework may necessary to explain the exchanges that take place in organizations, it fails to account for many of the intangible aspects of culture that can make one organization successful while others fail. For example, in the domestic U.S., Lincoln Electric's management team was….....

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