Lincoln Electric S Incentive Management System

The company system is based on two key elements.

Lincoln electric s incentive management system.

Lincoln designed lincoln electric s renowned incentive management system to align stakeholders interests around a performance based system that encourages employees to maximize their personal potential rewards operational efficiency and excellence and generates superior value for shareholders. For two decades the lincoln electric company the nation s largest maker of arc welders and welding supplies has been studied by harvard business school students as a model of how to motivate. Lincoln lincoln electric system s sustainable energy program is returning in 2020 with 1 75 million in incentive funds. The program details the company s pay for performance and merit rating system and other components of the lincoln electric culture.

These incentives are offered to les customers to encourage upgrading to the most energy efficient equipment. Various cost and ratio analysis material. What makes lincoln electric s approach stand apart is that its system survived the many challenges of the past hundred years largely intact. They recognize employees for good work and pay them for it 1.

Moreover lincoln electric s green initiative program includes training systems that avoid unnecessary waste of welding gas and other power sources as well as a commitment to reduced emissions. In the case of giving worker responsibility the attendance is important. Lincoln s incentive system requires the workers to be highly skilled independent and money motivated in order to earn good pay chilton 1994. They give employees responsibility 2.

It is a rather complicated system of management with an incentive program that has taken the company a long time to develop to the point that new employees will trust it. The lincoln electric company form 10 k for y e 12 31 85. The lincoln electric is using incentive management system which means paying for performance. The lincoln electric incentive management program is the company s unique compensation program which is the subject of a harvard business school case history and studied at colleges and universities around the world.

Since 1983 the lincoln electric co. Has been sharing the inner workings of its incentive management system with managers from all over the world.