Global Business STrategy (MBA)

Lincoln was able to grow and proper for so long because of the innovative management style and culture and the incentive system . This had a highly positive effect on employee motivation and thus their productivity . As a result , productivity at the company was increasing at twice the rate of benchmark manufacturing companies . The innovative management style and culture was based in erasing hierarchical distinctions and building an approachable management style . This created trust between the employees and the management . As a result , the employees were opposed to the process of unionization and

br organization-wide cooperation was maximized . Open communication was regarded as essential and everyone in the management from the CEO down worked in direct association with the employees . Because of the effective communications structure , the employees were able to link their work to the strategic focus of the company

Another important aspect of Lincoln 's success was the incentive system which consisted of four components : piecework , annual bonus , guaranteed employment and limited benefits . The management offered limited benefits and in this manner generated savings that could be diverted to boosting bonuses and worker compensation . Because the employees were in charge of maximizing their own earnings potential , they took the responsibility to maximize their own productivity . The company also maintained a flexible organizational structure in to facilitate guaranteed employment As a result , during economic downturns , the production workers would be retrained and shifted to other work processes . In this manner , the management was able to avoid the possibility of layoffs...