successful strategy based on manufacturing productivity in arc welding products, and superior human resources management. In a very few instances prior to 1981, did employees gain ownership/control of a firm. By 1981, the employees at Lincoln Electric had held effective ownership/control of the company for 42 years (Graham Moore and Ross, 1984, p. 112). In its 52nd year of employee ownership/control in 1991, 44.2 percent of the outstanding shares of the company's common stock were owned by Lincoln electric employees, through the company's employee stock ownership plan (Standard & Poor's, 1991, p. 4216).
When employees own sufficient equity in their firm to control it, they can exercise control over how they share in profits, and, thus, tend to have more to lose, in the event of losses. At Lincoln electric, employee ownership/control is associated with high levels of employee motivation and organizational productivity. Both the company's operating profit ratio, and its net income ratio place Lincoln Electric among the top five percent of the firms comp
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