 Founded in 1895 by John C.

Lincoln
 Originally produced and sold electric motors
 One of the leading producers and manufacturers of Arc Welding Products and Electric Motors
 Now welding is the primary business
 Products marketed and sold in 85+ countries
 In 1995, sales hit $1 billion and they get listed on NASDAQ
 In 2004, John M. Stropki takes over as Chairman and CEO
 Major competitors globally are ITW, ESAB, Air Liquide etc.

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 HUMAN RESOURCE INNOVATIONS AT LINCOLN

Use of employee stock ownership

Incentive bonuses by merit rating

Employee advisory board

Employee suggestion system

Piecework pay

Annuities for retired employees

Group life insurance

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 JOHN C LINCOLN
 He formed, Lincoln Electric company
in 1895
 He used to do research and
experiment with electrical devices
 The main product Electric motors,
was of his own design
James F Lincoln
 In1907, joined company as senior
manager
 He was responsible for the HR Policies and
management practices
 “Incentive System” rewarded workers
according to their productive capacity
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 JOHN M STROPKI
 In 2004, became the CEO of Lincoln
Electric
 He transformed operations, oversaw
numerous acquisitions and product
innovations
 Expanded Lincoln Electric’s global
footprint, with focus on china market
ANTHONY MASSARO
 He has extensive experience in
international operations
 He was responsible for restructuring
the international operations
 In 1996,he was promoted to position
of president and CEO
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Presence of more than 100 years in the welding and consumer durables
industry

After its increasing success in China, they are now looking to expand into
India

Can be done through acquisition, joint venture or by building a new plant on

its own

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7
 Lincoln Electric’s success in the US

• Skilled personnel
• Training practices
• Reward system
• Motivational system – Piece Rate Pay, Bonus System, Lifetime
employment, Empowerment
• Employees are motivated
• Consistent HRM Policies to instill trust
• Operates on a system of equality, corporation and need

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 Problems
Mentality –
• Overconfidence in domestic success, then believe LE can success anywhere
• The firm believed that it can automatically dominate the market because of its lowest cost
and highest-quality manufacturing operation
• Lincoln’s employees are resources, not liabilities

Wrong timing for acquisitions –

• A number of acquisitions were made at the peak of market cycles

Lack of International knowledge –

• Neglect cultural differences
• Rely too much on foreign distributors
• No testing before execution

Ignored the employees’ concerns to widely expansion

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 New product line/ special
Careful about foreign acquisitions promotion

Change at the top – New expertise

on the board and in top
management who are with strong
international and financial
experience

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Thank you

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