The Lincoln Electric Company is a welding manufacturing company that has been run by two brothers who led the company to success. John was more apt in the technical aspect and brought the best skills on the production side, whereas James was a people’s person who worked directly with employee incentives. The Lincoln Electric company experienced difficulties during the depression, but during WWII, the company gained a reputation as the best welding equipment supplier with the highest quality and lowest prices. Welding equipment was produced in a continuous flow with high flexibility and low worker idling time. The high production and quality was possible because of their piecework pay system, ...view middle of the document...
Even though similar companies who paid their employees an hourly rate had better benefits, such as paid sick time, employees seemed to prefer the opportunity to make more money at Lincoln.
Employee benefits package
Another negative factor to take into consideration is the limited benefits, as in Betty Steward’s case, a 52 year old woman working at Lincoln for 13 years. Betty did not get paid sick time when taking time off for her back surgery and more than likely had to force herself to get back to work as soon as possible to continue earning her wages. I believe Lincoln should set higher standards for work benefits, including paid sick leave, and allow employees to take their vacation at a time of their choosing instead of when the plant is closed. They should also implement a more controlled environment in production by setting a maximum amount of pieces to be produced so employees do not overwork, neglecting themselves just to make the extra pay. In a work environment where monetary compensation is theoretically limitless, if boundaries are not set, the risk of work related injuries is higher and quality of the time spent with their families is dramatically decreased.
Payment system choice
The earning opportunity for workers at Lincoln is another negative factor which should be closely examined. Joe Trahan, a 58- year-old working at the company for 39 years should have the opportunity to work at a pace appropriate for his age and not have to constantly face the challenges of competing in a piecework pay system. I believe the company should implement rules to allow workers after a certain age to still make a decent living without having to work as hard as when they first started at Lincoln. A possible solution would be to enable workers to choose between the piecework pay system and a comprehensive hourly pay system. Furthermore, management should also work on different incentives besides monetary compensation. In Joe’s case, special and appreciative awards that commend him for a job well done instead of rewarding him only monetarily can go a long way to show Joe a sense of appreciation.
Employee career advancement
The company should also promote advancement in career to managerial positions for senior workers. In most interviews, workers were only concerned about the immediate visible result, which was earning...