Motivation
1- Describe the practices that Lincoln Electric uses to motivate employees. What are
some of the consequences of these practices for employees and the company?
Lincoln pratictices are essentialy based on the
income. They are ready to pay more their
employees
if
they
work
better.
For exemple, everyone can earn up twice is
regular income if the profits of the company are
good and the worker involved on his work.
Moreover the company doesn’t make a lot for
the employees (no perks) but they give a lot of
money
2- Discuss the motivational system at Lincoln Electric, using each of the need theories
of motivation. What does each theory say about the motivational practices at Lincoln
Electric and which theory works best for explaining employees’ motivation?
• With Lincoln, we are located between the belongingness and the self
esteem need of the pyramid. In fact, we have to notice that Lincoln's
strategy is to provide his employee the best wage possible. They expect
on the other hand the employee to be involved on the production
process.
• Regarding Alderfer's ERG theory we are located on the relatedness step :
by giving more money to its employees, Lincoln expect a better
relationship between the managers and the followers and a kind of
feeling to belong to the company.
• To finish, regarding Herzberg's theory, Lincoln expect to grow the
motivation and satisfaction by putting wages (HYGIENE OR
MAINTENANCE factor) at the top of the pyramid. This tool help the
company developping the motivation factors
3- Consider the motivational system at Lincoln Electric in terms of the process theories
of motivation. What does each theory say about the company’s motivational
practices? In other words, can we understand the system and its effectiveness in terms
of expectancy theory, equity theory, and goal setting theory?
There are 3 main theories of motivation. Let us study the motivational
strategy of lincoln in each.
- Expectancy theory: Knowing that he will be rewarded on merit,
Lincoln's employee has every interest to change his behavior to
become very productive. Lincoln offers a good retribution and
change your behavior to reach it is a good motivation, it follows the
expectancy theory.
- Equity theory: Lincoln's strategy does not forward the equity. Each
employee must give his best to be rewarded consequently.
Obviously, the better workers earn more.
- Goal setting theory: Give the best of oneself can be considered as a
goal, but in terms of numbers, it's hard to establish in a business
like Lincoln. Set a goal is not compatible with a results-dependant
income job, because you always need to be maximally effective.
4- Some have said that the methods of motivation used at Lincoln Electric should be
used by all organizations to motivate their employees. Do you believe this to be true?
Explain your reasoning.
Of course, this motivational system can't be applied to all
companies. In fact, we can note that different there are 3
main criterias for the non-adaptibility of this motivational
practice in others companies:
• Culture: Some countries have culture that considers being
paid based on performance is considered immoral.
However, some types of job are concerne (eg: doorstep
selling)
• Legal environment: In other countries, laws do simply not
allow this aggressive motivational strategy.
• Sector: wages based on results can't be applied in some
working areas where it is difficult to measure the employee
performance.
5- Comment on the cross-cultural limitations of Lincoln Electric’s motivational system. How do the
theories of work motivation help us to understand why the company’s incentive program did not
work in Germany but does work in North America and Australia? What does this tell us about the
cross-cultural limitations of the theories of motivation?
•
According to American way of life, American dream and all this typical culture
based on meritocracy it is not astonish that Lincoln’s model work in North America
and also Australia
•
Nevertheless, this way of thinking is kind of the opposite of German culture above
all in the business; Germany have one of the most important trade union rate in
the world. Moreover, quality of life matters more than money in Germany
•
Based on this experience we can make a link with Hofstede studies which
determine 5 limitations in cross cultural management:
–
–
–
–
–
•
Power distance index
Individualism
Uncertainty
Masculinity
Time orientation
Indeed Hofstede show how difficult it is to work in cross cultural team due to
difference of perception by each culture related to this previous points.
6- What can other organizations learn about motivation from Lincoln Electric? What
do you recommend that organizations do to motivate employees based on your
knowledge of the Lincoln Electric motivational system and on your understanding of
motivation?
• Organizations can learn about Lincoln’s model in a way
that motivate worker does not depend only of
advantages offer or degree of insurance supply but
over all is about supply them what they need in
accordance with your main objectives.
• For instance, to arouse motivation in a technological
company try to supply a innovative workplace focus on
employees happiness, because it leads to creativity and
creativity is your main Key Success Factor