orate culture at Lincoln Electric derive from the philosophy of the company's founder James Lincoln. These tenets are that employees (1) want, need, and deserve income stability, (2) are a part of the company team, with status equal to that of mana gerial personnel, and (3) deserve honest and open communica tions with management.
Technologically, Lincoln Electric functions in a rela tively stable sector of American industry. Technological innovation in welding equipment has been deliberate, as opposed to dramatic, and this sort of enviroment is compatible with the company's philosophy.
Lincoln Electric holds a premier position in those product areas in which it competes. Insistence by the company on restricting its activities to a relatively narrow product line deprives it of the chance to exploit opportunities which
develop from time to time in a dynamic economy. While this approach is contrary to the growth at any cost objective which drives most American companies, it has permitted Lincoln Elec tric to solidify its position within its selected product areas. The major threat to the company of this approach is that substitute processes for users of welding equipment will be developed, and that Lincoln Electric will one day be the purveyor of the best biplane in existence in a market where 99 percent of the customers are demanding jets.
Lincoln Electric has, for years, pursued a successful strategy based on manufacturing productivity in arc welding products, and superior human resources management. In a very few instances prior to 1985, did employees gain ownership/ control of a firm. By 1985, however, the employees at Lincoln Electric had held effective ownership/control of the company for 46 years.
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 Electr...