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1、AssignmentFormCourse:OrganizationalBehaviorInstructor:Homework:LincolnElectricCo.caseName:StellaStudentIDNo.:Class:STUDENTDECLARATIONIdeclarethatthisassignmentismyownwork,whichallsourcesofreferenceareacknowledgedinfullandithasnotbeensubmittedforanyothercourse.Signatu
2、re:……………………Date:…………4CaseStudy:LincolnElectricCo.LincolnElectricCo.,whichwasestablishedin1895byJohnLincoln,hasbeenoneoftheleadingcompanieswhichproducearcweldingproducts,anditcompeteswithMillerElectricManufacturingfortheNO.1positioninweldingmachines.Themothercompanyin
3、UScontributedmostlyforthesuccession.However,duringtheglobalexpansion,someareaexperiencedfailure.Forexample,GermanoperationlostUS$1millioneverytwoweeksin1992.Afterrestructuringofinternationaloperators,Lincolnisstillaprofitablecompany.Whatspecificfactorsleadtothesucces
4、s?WhatleadtothesuccessionofLincoln?Twomainfactorsmustbeconcerned.Firstoneisthestrategyofhighquality.ThehighqualitymadesomegiantssuchasGeneralelectricandWestinghouseexitedtheindustry.Secondoneistherewardstructure,whichsupportsthecompany’sstrategy.“HighQualityStrategy”
5、reliesonqualitycontrolling,skilledworkforce,advancetechnologiesandhighworkethic,etc.Here,Iamgoingtoanalyzehowtherewardstructureworked.RewardStructureFirstly,Lincolnsetuppieceworksystemin1914.Therearetwomainissuesforthissystem.Firstoneisthepieceworkstandards.Ifthestan
6、dardisunfair,workerswillhavelowworkethicandthecompanycannotmakesufficientgoodqualityproducts.Inordertosolvethisissue,Lincolnestablishedtime-studydepartmentandemployeescan4challengethepieceworkstandards.Secondoneishowtokeepthehighqualityoftheproducts.Underthepiecework
7、system,employeesaremoretendtoproducequickly.Inordertosolvethisissue,Lincolnsetupatrackingsystemthatcantrackbacktoindividuals,andworkersmustreworkfaultypiecesintheirowntime.Asaresult,thepieceworksystemnotonlycanincreasetheproductivity,butalsokeephighqualityoftheproduc
8、ts.Secondly,Lincolnintroducedyear-endbonusin1934andhasastockpurchaseplan.Inordertoencourageworkerstoproducehighqualityproducts,oneo
