Discussion Groups

Discussion Groups HP : Joyce, Jessica and George TI : Bea and Jeffrey Stewart Box: Lisa and David USPO: Amy and Darnell ABB: Elvira and Van

Human Resource SeminarPresented by Lincoln Electric HR Department Kensuke Ono Yasuyuki Kaji

Agenda • Company Background • Human Resource Policy • Recommendation • Discussion

Company Background • Profile • Founded in 1895 by John C. Lincoln • 2,400 factory workers, 200 sales forces • Sales of $582 millions in 1989 • No debt until 1980 • Products • Arc-welding products (91%) • Others (9%)

Company Characteristics • Market Share Leader • Never ended a year with overall loss • Best Quality Products with Low Cost • High Productivity • Strong Authority of Management • Employee Loyalty

Lincoln’s Sales History

Lincoln’s Attitude Customers Employees Stockholder 1 2 3

Human Resource Policies • Recruitment and Selection • External Hiring: Only from entry level • Promotion within the organization • Job Security • No layoffs since the WWⅡ

Compensation Package • Base pay: Market survey and Piece rates • Gain share program: EveryDec. (Average; $21,258 in 1988) Lincoln’s bonus plan was accepted in 1934

Performance Evaluation Twice a year, based upon; 1) Quality 2) Dependability 3) Ideas and cooperation 4) Output

Benefits Medical Plan Retirement Program Stock Ownership Vacation Employee association provides; Disability Insurance, social activities

Lincoln’s Desirable Cycle Compensation Profit Motivation Productivity

Recommendation Implement Lincoln’s Personnel Policies to Your Company

Discussion Questions • Would your company follow LE? Why?

Want to work for Lincoln?

Discussion Groups