Lincoln Electric's Approach to Motivating EmployeesThe company motivates employees by providing "reward" and "commitment." The reward consists of correctly evaluating employees and giving them a reasonable salary, and is divided into three parts: - Salaries based on actual piecework - End of year bonus linked to the profits made by the company - Employment guaranteed We can see that piecework is a direct indicator of employee performance. In addition, the end-of-year bonus is linked to the profit made by the company. Guaranteed employment provides employees with the foundation for their lives, so they do not have to worry about being fired or looking for another job, making them more focused on their work. Through the combination of these three elements, employees can have confidence in their work and understand that their performance will be measured correctly. Engagement is also important for employees. The company informs all employees of board meetings. This increases employees’ feeling of information and engagement. Employees can even challenge the current unit wage for manufactured parts. This is an open discussion, so we can see that employees are treated as if they are partners. The Effect of Lincoln's Approach on Company Performance The company's approach to motivating employees worked positively. Employees are happy with the family style of the community and productivity has also increased. The company's way of treating employees as valued partners has also seen success at other manufacturing companies. For example, when Honda opened its first factory in the United States, the CEO and employees shared the same cafeteria, just like Lincoln. There were several...... middle of paper ...... World War II in In an effort to maximize American mechanical production and help win the war, Lincoln leaked proprietary information to companies competitors. This cost the company a competitive advantage, and therefore profits, for several years after the war, but based on their skills and adaptability, they managed to outperform the competition soon after. We're also told that Lincoln Electric will not lay off any employees, allowing workers to embrace change and progress, even if it means they will experience a short-term drop in productivity. After some further reading, we were able to see that Lincoln Electric fell on hard times in the 1980s and lost 40% of its sales. Even during these difficult times, they kept their promise not to lay off an employee, and today they have regained all lost ground and are extremely profitable and productive..