Organisational Behaviour

An efficient and effective organizational structure leads to a sustainable competitive advantage . This relationship is illustrated in the case of Lincoln Electric . Lincoln Electric is the manufacturer of welding equipment and consumables . The company was founded in 1895 in Cleveland by John C . Lincoln and had been family-held till 1995 when a new share issue put 40 of the equity in the hands of the general public . Through this time company continued to grow and prosper even as competition such as General Electric and Westinghouse rose and faded (cited in Fred , 2006 p

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 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...