Could anyone please help me do this assignment Read the Lincoln Electric case 1.
ID: 363055 • Letter: C
Question
Could anyone please help me do this assignment
Read the Lincoln Electric case
1. Summarize the case and your understanding of it
2. How do you think Lincoln Electric would have to adjust its system if they opened a plant in China?
3. Would the result of Lincoln Electric`s efforts been different if it had tried to introduce its system in a poor domain, such as the Sudan, rather than in a relatively wealthy nation, such as Mexico?
4. Why do you think more firms have not tried to copy a system like Lincoln Electric`s?
Please write atleast 2 paragraph of each question in your own words.
Thank you so much
202 LINCOLN ELECTRIC IN MEXICO Employees in countries outside of insurance for employees, stock owner North America may have different ship plans for employees, annual an those of employees within bonuses based on output for the year The lack of flexibility was one reason why our [motivation and reward sys tem] approach would not work in merica. U.S. manufacturer and a strong no-layoff commitment Lincoln Electric is well known for its All of these human resources The Lincoln Electric employee sys piece- today additional incentives are included term worked very well with the cult , rate for for minimizing defects and teamwork, of the U.S. But in Mexico the cultural on ker is paid a fixed tive for manufayeteclargely on their own in figuring out how and less commitment to production plant in Mexico was unionized and but Lincoln Electric employees are factors, such as lower individual to produce as much as possible. For did not fit well with Lincoln Electric used in China and in high-production example, Lincoln Electric allows individ piece-rate pay system. In addition, the tions in East Asia. It is normally ual employees leeway in organizing combined with a (low) base salary.their workspaces and scheduling their there was a predisposition against ditferent amounts work hours, and the annual bonus for workers earning ar to a salesperson's low base and commissions. In many of the each employee can average over tem in Mexico, Lincoln Electric decided world's more developed economies, $24,000 per year Although Lincoln Electric has been to introduce it gradually. Lincoln El ions. Yet Lincoln very successful in the United States, it tric allowed a few select workers to opt very disci has had trouble implementing this sys into the system, and as they began to unc workers and their uni Electric has maintained a plined do well, other workers requested to be tem overseas. As the former CEO, founding in the nineteenthDon Hastings, observed a few years allowed into the piecework systerm tant in suggesting what motivation sys oln's] incentive system is trans tem would work, Lincoln Electric wa and effective piecework system sinc ied, at least in part, by many firms century-a system that has been cop-ago in the Harvard Business Review: Although cultural values were im Lincoln Electric was founded i 1895 to make electric motors. The ferable to some countries- in countries setled by immigrants, drances. It effectively used a where hard work and upward leading manufacturer of welding equipment. Lincoln Electr history of human resources innova- tion. The firm introduced piecework system nearly a century ago, in which mobi of social learning to gradually influ ity are ingrained parts of the culture. ence all the workers to understand ic has a long But in many other places, it won't how the system benefited them. And easily take root. t is especially difficult benefit them it did. After about two its piecework to install it in a factory that has differ years, all 175 workers in the plant had opted into the incentive system Workers make more money than and traditions. For tory workers are highly skilled, and in before and Lincoln Electric has its pro uct I, solid workers, they do not important in determining what compa- tem that has worked well and contin- nearly as hard or as long as nies can do, but sometimes it is poss the people in our Cleveland factory. ble to get something done in spite of In Germany, the average workweek local culture and traditions, though a s 35 hours. In contrast, the average system may h factory workweek in Lincoln's U.S. carefully, as Lincoln Electric did in same time, the firm also introduced employee advisory committees. EachI department in the firm created groups two plants is between 43 and 58 Mexico. weeks. The creation of such labor groups was a radical innovation at the time. The firm later introduced other radical innovations, such as life hours, and the company can ask people to work longer hours on Hastings, D. (1999). Lincoln Electric's short notice-a flexibility that issin Harvard Business Review 7713. essential for the system to work. 162-178 Alderfer's ERG Theory The ERG theory was developed by psychologist Clayton Alderfer to overco problems associated with Maslow's hierarchy of needs theory.vil The ERC the groups human needs into three broad c ype of work in which a worker is paid a fixed "piece rate" for each unit or ategories: existence, relatedness, aExplanation / Answer
1) Summary of the case :
Culture is an important factor for a growing firm across the globe. It might be associated with the corporate philosophy or values inherited with the local customs and traditions. A company like Lincoln Electric should do many innovative implementations to achieve the same success as in the domestic market.
Cultural differences and people’s acceptance of a current pay structure, policy etc. might be depending on the efforts made by the corporation. The need and aspirations of people differ with changing the area of operations, so policies and structural efforts must be initiated by the management of the organization for getting a higher level of success.
2) Expanding the business in an overseas market has many pros as well as cons. A small mistakes can ruined the whole gamut of business when a company thinks to operate in another country. If, Lincoln Electric will open its business operations in china then it has to change its employment system as well as policy towards employees due to the many social, psychological, economical, technical, environmental and legal factors associated with Chinese marketplace.
It must adopt the local prevailing payment as well as employment rules. It will have to change its way of employee’s engagements and reward policies. Work schedules must be revised. It will have to understand the Chinese customs and civilizations so as incentivize its managers and employees.
3) Off course, the policy of a firm must be varying as per the economic and social conditions of a country. The policy adopted in a poorer country must be adopted in a very lenient way so as to support and motivate people of that country. It will also come under the part of corporate philanthropy. If, Lincoln electric will provides more jobs opportunities to Sudan’s youth then its global image will be increased.
I think, many other countries under the same domain might be offering healthy investment relations from Lincoln Corporation. It will increase the scope of business for this American company. It will have different policy in a country like Mexico, just because of higher GDP growth rate, economic conditions, the lifestyles of the Mexican people etc.
4) I think the style of people’s management and organizational communication must be varying as per the nature and scope of that particular company. It will also depend on the market forces where a firm will try to establish its name and new product offerings. I will suggest that corporations must try to develop their own approach, policy, system to interact with their stakeholders as per their aspirations and corporate philosophy.
Lincoln has developed its own managerial system over the successful year s of operations then it will not be good for a company to just copy that system for its different customer as well as different products, philosophies etc.