Questions and Answers to Lincoln Electric case study by Harvard Business School.

What features of LECO account for its unyielding-term success in the US? there be several factors that have contributed to the long-term success of capital of Nebraska Electric in the US. Most notably, the productivity of the labor force play and the efficiency of operations have generated a competitive wages over the market. Existing and potential competitors are not fit to produce at the same low costs and afterward are not able to offer competitive prices to the market, and so increasing LECOs market share. The high levels of productivity common to LECO employees tail end be attributed to motivation and job satisfaction:

*Guaranteed employment: no lay offs since 1948, instead LECO rotates through co. (skill vicissitude).

*Equity: employees earn comparable, sometimes higher, wages than other manufacturing companies. In addition, there are footling power distances between laborers and managers (common cafeteria, no reserved parking, managers work long shifts, etc.) As a result, employees feel that they are being inured fairly.

*Expectancy: wages based on piecework and an annual allowance gives the average worker the possibility to increase total compensation. harmonise to expectancy theory, employees are motivated by the belief that they washbasin expect to achieve certain desired rewards by operative hard to attain them.

*Instrumentality: Rewards are explicitly relate to a measurable performance.

*Positive Valence: employees value the rewards that are offered to them for desirable behaviors.

Why did the internationalization thrust fail? There were umteen factors that contributed to LECOs failed attempt at internationalization. It is evident that Willis ignored a variety of cultural and macroeconomic effects related to his plan. Specific to piece behavior, LECO neglected the transferability of the incentive system to other countries and the utilization of management controls to monitor it.

*External: It was unreasonable to expect, considering the extensive experience with the US labor markets and the period of...

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