Using the Five-Part Model Described Above, What Are the Key Elements of Lincoln's McS?

Using the five-part model described above, what are the key elements of Lincoln's MCS? The challenge is whether you can see in practice an example of each of the five parts within Lincoln's MCS?

     Lincoln Electric Company is a manufacturing company and has held the record for being the largest manufacturer of arc welding products in the world for about 30 years. Their prime strategy was to manufacture quality goods at lower prices than their competitors. They actively focused on cutting production costs and their effective implementation of strategy drove some competitor out of business or seeking other fields. Another vital factor that contributed to the company’s success was their incentive system that triggered productivity. This is how LEC kept an effective Formal Control Processes in their company.

     LEC had a very effective incentives approach under which the workers were paid a standard price for each piece of product they produced, instead of being paid by the hour. Along with guaranteed employment for all workers that instilled a sense of job-security, they also had the opportunity to earn incentives that surpassed their annual income. It must be mentioned that they had a merit rating system put into effect twice a year to determine an individual’s standing in terms of dependability, quality, output, ideas and cooperation. This shows that LEC had a strong Rewards system in place.

     The company strived for equal treatment for both management and workers and fostered open communication between the two and it is attributed as an important factor for their success. Having elected employee representatives in the company’s Advisory Board proves to be prudent decision in establishing this. The Advisory month had bi-monthly forums for employees to bring up issues and suggestions. This ensured that issues were resolved and suggestions to improve the company were taken into consideration. These measures speak volumes about the company’s Coordination and Integration.