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Member You - A Case Study of Lincoln Electric
Recently a gentlemen emailed me to tell me that among other things outsourcing was destroying America and that Bill Gates was the devil. It is interesting that someone of this inability to understand reality is not really worthy of arguing with, yet his persistence in such bogus notions is fascinating indeed.In the last few years before my retirement even before unemployment peaked at an all-time historic national low; I could not find workers willing to work hard or diligently for any amount of pay. Too many were on drugs or had lackadaisical attitudes towards work, show up when they felt like it, do half ass work and then demand more and more. As an employer, it was obvious to me that these people do not care to work, have a job or participate in anyway in the productivity of the company. You see it is all about them and not the team. So, remind me why I should keep jobs in the country and beat my head against the wall with all this name-calling? Hmm?The fact is that Jason represents a growing number of Americans who are disenchanted with the available work. Although are unwilling to realize what caused it in the first place. Even worse is folks like Jason are of weak minds and are merely repeating what they heard on the TV set as their basis for an argument. It is silly to bother with such things really although I thought you should know. Do not be so gullible like Jason is, it will serve no one any good. Consider this in 2
Secondly, there is increased personal performance. This performance boost is the result of a sort of quiet competition within each work group. A specific bonus pool dollar amount is allotted to each work group, and the bonuses are then distributed to the members of that group according to their quantified relative performance on the semi-annual Merit Rating. Now the Merit Rating’s function is to counteract some of the pitfalls of a strategy based on speed and efficiency. Generally the result of an emphasis on speed is the sacrifice of quality and safety. Each tenet of
It was not very long ago that the only place that thought about kids were the big fast food chains, and even then limited by offering a small toy with the purchase of a hamburger. These days if you don’t create an amazing experience for the twelve and under demographic you will lose their vote!!! So let’s look at a few ideas to get them on side:6. Design a survey especially for themYou already want to get some good feedback to evaluate how satisfied your customers are with your food and service, so the kids will feel special if you do one especially for them. They love an opportunity to tell you what they think and you will get virtually 100% response. The thing that will surprise you most though is the value and the quality of the ideas and suggestions that they will present to you.7. Ask them what they wantDon’t ask the parents…ask the kids themselves. The parents can still step in if necessary and it will avoid the older kids feeling slighted because you overlooked them as though they are disabled. Once you gat an answer from them just look at the parents for their approval. But be careful when it comes to dessert! Do not ask the child until there is a clear indication that there is an interest in ordering one. Otherwise you could cause a problem for the parents and some embarrassment for the restaurant which no one will be pleased about.8. Small versions of adult main courses for childrenWe all
Value in the Individual
An organization at its core is made up of individuals and equipment. Now which of these has the most influence over the success of that organization? Most emphasis must be placed on the individual because he is the one that can be creative, motivated, skilled, efficient, and responsive. The proper function of management is to draw out these characteristics and encourage their growth in a productive setting. A large portion of Lincoln Electric’s (LE) success can be attributed to this unique and effective management style which ultimately leads to a competitive advantage. No matter the economies of scale a huge corporation such as GE can offer, the increased productivity level of a properly motivated individual production worker can easily compensate for it. This management style is further fostered through a combination of structural, strategic, and cultural norms within LE.
Structurally, Lincoln Electric aims to flatten the hierarchical structure and eliminate nonfunctional middle management positions. To do this, LE has fostered an “open-door” policy between production workers and executives as well as created an Advisory Board that has representatives of the workers who meet with executives twice a month. Strategically, LE pushes for an integrated approach of maximizing output and reducing costs. Though this seems straightforward and simple, the effectiveness is in the details. Cost reduction will be explored at a later time, but to maximize output, Lincoln Electric draws from its motivated employees. However, these employees are not naturally motivated. This is the role of James Lincoln’s Incentive Management System. This system provides a tool to motivate all employees through bonuses that redistribute a large portion of the corporation’s yearly profits. Two main results stem from this redistribution. First, there is a heightened sense of ownership in the company from top to bottom because if the company as a whole does well, everyone is compensated for it respectively.
Secondly, there is increased personal performance. This performance boost is the result of a sort of quiet competition within each work group. A specific bonus pool dollar amount is allotted to each work group, and the bonuses are then distributed to the members of that group according to their quantified relative performance on the semi-annual Merit Rating. Now the Merit Rating’s function is to counteract some of the pitfalls of a strategy based on speed and efficiency. Generally the result of an emphasis on speed is the sacrifice of quality and safety. Each tenet of t
Planning on visiting or doing business with an Arab company? Here are few tips about Arab business and culture for visitors, exporters, and international traders to understand the culture, business culture, and how to do business with Saudi Arabia, Kuwait, UAE, Qatar, Bahrain, Oman, Yemen, and other Middle East countries.Conservative behavior: In public, Arabs behave conservatively. Display of affection between spouses is nonexistent. It is a private society and display of one’s feelings is kept private. You will also notice that laughter and joking in public is toned down, which is not the case in private gatherings. Arguments between spouses, friends, and people in general are also kept private or conducted in a way that guarantees no one else is aware of it.Invitations: If you are invited to dinner or lunch, you are not expected to bring food, drinks, or gifts. Upon entering the house notice the guest room you are taken to. If shoes and sandals were left at the door by other guests, then take off your shoes. It is customary when entering guest's room or office to greet everyone there by saying Alsalamo-Alikom, which means "peace be with you". The reply to this greeting is "Wa'alikom Alsalam". Once inside, everyone will stand up to greet you and shake your hand. Start with the person standing on your right side or the one who is approaching you. Notice that in both modern and traditional Arab guest rooms, atten
An organization at its core is made up of individuals and equipment. Now which of these has the most influence over the success of that organization? Most emphasis must be placed on the individual because he is the one that can be creative, motivated, skilled, efficient, and responsive. The proper function of management is to draw out these characteristics and encourage their growth in a productive setting. A large portion of Lincoln Electric’s (LE) success can be attributed to this unique and effective management style which ultimately leads to a competitive advantage. No matter the economies of scale a huge corporation such as GE can offer, the increased productivity level of a properly motivated individual production worker can easily compensate for it. This management style is further fostered through a combination of structural, strategic, and cultural norms within LE.
Structurally, Lincoln Electric aims to flatten the hierarchical structure and eliminate nonfunctional middle management positions. To do this, LE has fostered an “open-door” policy between production workers and executives as well as created an Advisory Board that has representatives of the workers who meet with executives twice a month. Strategically, LE pushes for an integrated approach of maximizing output and reducing costs. Though this seems straightforward and simple, the effectiveness is in the details. Cost reduction will be explored at a later time, but to maximize output, Lincoln Electric draws from its motivated employees. However, these employees are not naturally motivated. This is the role of James Lincoln’s Incentive Management System. This system provides a tool to motivate all employees through bonuses that redistribute a large portion of the corporation’s yearly profits. Two main results stem from this redistribution. First, there is a heightened sense of ownership in the company from top to bottom because if the company as a whole does well, everyone is compensated for it respectively.
Secondly, there is increased personal performance. This performance boost is the result of a sort of quiet competition within each work group. A specific bonus pool dollar amount is allotted to each work group, and the bonuses are then distributed to the members of that group according to their quantified relative performance on the semi-annual Merit Rating. Now the Merit Rating’s function is to counteract some of the pitfalls of a strategy based on speed and efficiency. Generally the result of an emphasis on speed is the sacrifice of quality and safety. Each tenet of
One of the lessons that are learned from the leaders in customer service is that employees who are empowered to make decisions on behalf of their customers provide the best service. This is reflected repeatedly by the companies with reputations for the best in service, but still practiced by too few.The companies that have a “mystique” around their customer service reputations have empowered their employees to think “outside the box” when it comes to taking care of their customers. They combine a belief with their commitment to customer service with trust in the employees’ judgment and the results are quicker customer resolutions to problems. There are numerous reasons that empowered employees lead to better customer service. Here are a few.1) Problems are solved quicker. Take an example of a non-empowered employee handling a customer complaint in person. If the customer asks for something which is non-standard, something as basic as a refund without a receipt, the employee typically gets a supervisor. The problem is usually explained again by the customer resulting in a possible request to a manager to get the issue resolved. Time is wasted that could be spent on other customers. Take the same instance with an employee empowered to make a decision. The customer is handled quickly, the manager never needs to be involved, and the customer is happy. Additionally, the happy customer probably tells a few people about th
Structurally, Lincoln Electric aims to flatten the hierarchical structure and eliminate nonfunctional middle management positions. To do this, LE has fostered an “open-door” policy between production workers and executives as well as created an Advisory Board that has representatives of the workers who meet with executives twice a month. Strategically, LE pushes for an integrated approach of maximizing output and reducing costs. Though this seems straightforward and simple, the effectiveness is in the details. Cost reduction will be explored at a later time, but to maximize output, Lincoln Electric draws from its motivated employees. However, these employees are not naturally motivated. This is the role of James Lincoln’s Incentive Management System. This system provides a tool to motivate all employees through bonuses that redistribute a large portion of the corporation’s yearly profits. Two main results stem from this redistribution. First, there is a heightened sense of ownership in the company from top to bottom because if the company as a whole does well, everyone is compensated for it respectively.
Secondly, there is increased personal performance. This performance boost is the result of a sort of quiet competition within each work group. A specific bonus pool dollar amount is allotted to each work group, and the bonuses are then distributed to the members of that group according to their quantified relative performance on the semi-annual Merit Rating. Now the Merit Rating’s function is to counteract some of the pitfalls of a strategy based on speed and efficiency. Generally the result of an emphasis on speed is the sacrifice of quality and safety. Each tenet of
The pressure placed on UK law graduates to succeed in the marketplace is at a high point in this new century. Law graduates, after all, fill important positions in local, regional, and national offices that influence the lives of millions. The pressure that the public applies to judicial professionals, however, is no match to the pressures applied on graduates as they enter the workplace. Thousands of law graduates leave UK universities every spring, with hundreds of applicants vying for the same positions. The standards applied to law graduates applying for entry level clerk positions are high considering the amount of work they do. Law graduates may not be able to control the amount of pressure placed on them but choosing the best graduate job in the UK market means that they can have great success in the future.Law graduates who want to build a record of socially conscious representation should consider working with non-profit organizations. There are many non-profits that use programs of pro - bono representation for lower income families and prisoners appealing their sentences. As well, environmental organizations and lobbying groups are often on the lookout for talented law graduates. These positions feature low pay initially and long hours but law clerks and other legal graduates often find the work more rewarding than employment at a larger firm.Graduates who want a more stable position in law should consider employmen
Secondly, there is increased personal performance. This performance boost is the result of a sort of quiet competition within each work group. A specific bonus pool dollar amount is allotted to each work group, and the bonuses are then distributed to the members of that group according to their quantified relative performance on the semi-annual Merit Rating. Now the Merit Rating’s function is to counteract some of the pitfalls of a strategy based on speed and efficiency. Generally the result of an emphasis on speed is the sacrifice of quality and safety. Each tenet of
A resume is the single-most important document a job seeker can have. It's the key professional passport that's required for entry into a new position and sometimes a new career.However, resumes by themselves are lifeless without the accompaniment of a well-crafted cover letter. An apt term, cover letter, because it's designed to do more than physically cover the resume in mailed form; it's to cover those aspects of a job seeker's background that the resume will detail.The cover letter is most effective when it introduces the job seeker to the reader. Like a sort of written handshake, the cover letter introduces the person, his credentials and desired direction for the future.By presenting the person, the cover letter includes factual personal information such as name, address (usually home), business, cell and home telephone numbers and a personal email address (sometimes a business email address is listed).I recommend a personal or home email address because they generally change less frequently than the business address. Also, by providing a home email address, the job seeker is giving the headhunter or potential employer a way to contact him privately and sometimes at a later date.Conveys personality A good cover letter will also reveal a snippet of information regarding the personality and possibly character of the writer. Depending on the writing style chosen by the candidate - formal, cookie-cutter, info
Secondly, there is increased personal performance. This performance boost is the result of a sort of quiet competition within each work group. A specific bonus pool dollar amount is allotted to each work group, and the bonuses are then distributed to the members of that group according to their quantified relative performance on the semi-annual Merit Rating. Now the Merit Rating’s function is to counteract some of the pitfalls of a strategy based on speed and efficiency. Generally the result of an emphasis on speed is the sacrifice of quality and safety. Each tenet of the Merit Rating (including Dependability, Quality, Output, and Ideas/Cooperation) is a reaction to the common shortcomings of a traditional production worker. By being rewarded for attendance, work quality, and contribution of ideas on top of their piecework output leads to a well-rounded final product that is produced at the proper specifications in record time.
To further the speed of production, LE places a strong emphasis on idea generation and worker input. This allows for creative ideas and suggestions on the production process to be spread over the whole corporation. As a result, there is a strong and steady increase in LE’s productivity per worker. The Merit system also serves to increase coordination by rewarding teamwork while at the same time introducing an element that is historically known to be one of the greatest efficiency drivers of all time: competition. Though this seems like teamwork and competition would be in conflict, they are not. Since there are only a certain number of possible Merit Points available, competition over these points between members of the work group exists. However the total payoff at the end of the year is split up based on the profit of the corporation as a whole; therefore encouraging teamwork and idea sharing. This comprehensive Incentive Management System unifies the direction of the workforce and leads to a balanced and efficient set of goals that yields a strong competitive advantage over rival companies. In a commodity industry it is the process, not the product, that must prevail and be differentiated. Lincoln Electric has found the perfect process, but is it a universal process that can apply overseas?
Cost Reduction and Market Expansion
The blind pursuit of profit can easily lead to poor decision-making. That is why the means to creating income is vital. The question is how does a company increase margins? Two simple choices exist: Reduce costs, or increase output through expansion and efficiency. Lincoln Electric has identified this dynamic duo and integrated it into the general business strategy. To reduce costs, LE uses a variety of strong business tactics. There are three shifts on equipment, so it is constantly rotated and allows for no downtime on equipment. This prevents having excess capacity which leads to unnecessary overhead costs. Also, LE has aimed to flatten the structure of the company and eliminate levels of the organization that detract from the established open communication environment between workers and management. This reduces salary expenses and ultimately increases profit marg
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