Abstract
The Lincoln Electric Company is a monument in its own right; the company started in 1895 and currently holds 40 percent of the U.S. welding market. Brothers John and James were Partners throughout most of the company's history. John designed and engineered while James managed operations. Lincoln is based in the industrial heavy area of greater Cleveland, Ohio and sells to customer's world wide. The company dominates one type of welding in particular. Arc-welding is commonly found in many industries, from the farms of the Midwest to the shipyards on the coasts. Also used in on a smaller scale in artistes studios, and garages everywhere.
Employee compensation sets Lincoln apart form their competition. Developed by James Lincoln shortly after joining the business, the payment scheme is compromised of piece rate pay and bonus pay. At the end of each year, a bonus is issued to each employee, the amount is determined upon company profits and the workers performance. In years passed an individuals bonus may have approached their annual salary. The connotation of the bonuses and generous benefits package is not to motivate, but rather to express respect for every employee's dedication. As a result turnover is at an industry minimum and productivity is twice that of competing companies.
