The History of Lincoln Electric Co. and Its Incentive Plan

By Wiley, Carolyn | Personnel Journal, August 1993 | Go to article overview

The History of Lincoln Electric Co. and Its Incentive Plan


Wiley, Carolyn, Personnel Journal


Engineer John C. Lincoln established Cleveland-based Lincoln Electric Co. in 1895. In 1907, his son, James F. Lincoln, began working for the company for $50 a month, plus a 2% sales commission. Right away, James began developing new technologies. He saw a need for employee commitment to be able to implement his ideas. Therefore, he asked the employees to elect representatives (one representative for every 100 employees) from each department to serve on an advisory board and advise him on the company's operations.

Before World War 1 began, Lincoln's staple product was the battery charger. When the war caused a temporary end of the electric vehicle, however, Lincoln's battery-charger business came to an abrupt halt. In its place, the war brought to the forefront the potential of arc welding. Lincoln Electric had started experimenting with arc welding in 1902 and produced its first welding machinery in 1912. Arc welding became the company's mainstay.

The company's long-range goal was eventually to specialize in the welding process. With this vision, Lincoln saw the need to train his people in the use of welders. Therefore, in 1917, the company created the Lincoln Electric School, from which more than 70,000 welders have graduated during the last seven decades. The school continues to enroll new students on a regular basis.

In 1915, the company gave each employee a paid life-insurance policy. Four years later, the employees organized an association for health benefits and social activities. By 1923, the company also was giving employees two-week paid vacations. By this time as well, the shop was operating with a piecework plan that enabled workers to make more money for more effort. In 1929, the advisory board devised a suggestion system.

In 1928, James F. Lincoln became president of Lincoln Electric. Being in the beginning of the Great Depression, the company devised a technique that resulted in 50% price reductions. However, the Depression still took its toll, creating shorter work hours for employees and scarce sales for the company.

By 1934, work hours again increased. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The History of Lincoln Electric Co. and Its Incentive Plan
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.