How has Cleveland-based Lincoln Electric managed to hold its position, over many decades, as the world's largest manufacturer of electric arc welding machinery and products while so many U.S. industrial manufacturers have been unable to stay competitive?
The company achieves exceptional levels of productivity thanks to a couple of policies that were radical when they were introduced 60 or 70 years ago, and remain so today. First, there's what they call guaranteed employment -- no permanent employee in Cleveland who has met the firm's performance standards has ever been laid off due to lack of work. Second, Lincoln Electric pays out an annual profit-sharing bonus, in good times and bad, at a rate that's almost always over 60% of each employee's earnings, and has sometimes exceeded 100%.
In this execuBook, author Frank Koller looks at how these policies work, and connects them to Lincoln Electric's indisputable long-term business success.
This summary is about an unusual company with an unusual approach to employee relations. It will be of interest to business leaders, human resources professionals and others with an interest in motivation.
If you want to read the full summary please log into your execuBooks account at http://www.aheadspace.com/login.cfm. Don't have an account? Visit Click U to get one.
