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1、AssignmentFormCourse:OrganizationalBehaviorInstructor:Homework:LincolnElectricCo.caseName:StellaStudentIDNo.:Class:STUDENTDECLARATIONIdeclarethatthisassignmentismyownwork,whichallsourcesofreferenceareacknowledgedinfullandithasnotbeensubmittedforanyothercourse.Signature:…
2、…………………Date:…………4CaseStudy:LincolnElectricCo.LincolnElectricCo.,whichwasestablishedin1895byJohnLincoln,hasbeenoneoftheleadingcompanieswhichproducearcweldingproducts,anditcompeteswithMillerElectricManufacturingfortheNO.1positioninweldingmachines.ThemothercompanyinUScontri
3、butedmostlyforthesuccession.However,duringtheglobalexpansion,someareaexperiencedfailure.Forexample,GermanoperationlostUS$1millioneverytwoweeksin1992.Afterrestructuringofinternationaloperators,Lincolnisstillaprofitablecompany.Whatspecificfactorsleadtothesuccess?Whatleadto
4、thesuccessionofLincoln?Twomainfactorsmustbeconcerned.Firstoneisthestrategyofhighquality.ThehighqualitymadesomegiantssuchasGeneralelectricandWestinghouseexitedtheindustry.Secondoneistherewardstructure,whichsupportsthecompany’sstrategy.“HighQualityStrategy”reliesonqualityc
5、ontrolling,skilledworkforce,advancetechnologiesandhighworkethic,etc.Here,Iamgoingtoanalyzehowtherewardstructureworked.RewardStructureFirstly,Lincolnsetuppieceworksystemin1914.Therearetwomainissuesforthissystem.Firstoneisthepieceworkstandards.Ifthestandardisunfair,workers
6、willhavelowworkethicandthecompanycannotmakesufficientgoodqualityproducts.Inordertosolvethisissue,Lincolnestablishedtime-studydepartmentandemployeescan4challengethepieceworkstandards.Secondoneishowtokeepthehighqualityoftheproducts.Underthepieceworksystem,employeesaremoret
7、endtoproducequickly.Inordertosolvethisissue,Lincolnsetupatrackingsystemthatcantrackbacktoindividuals,andworkersmustreworkfaultypiecesintheirowntime.Asaresult,thepieceworksystemnotonlycanincreasetheproductivity,butalsokeephighqualityoftheproducts.Secondly,Lincolnintroduce
8、dyear-endbonusin1934andhasastockpurchaseplan.Inordertoencourageworkerstoproducehighqualityproducts,oneo
