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Lincoln Electric In China A Case Solution

Solution Id Length Case Author Case Publisher
2206 720 Words (4 Pages) Ingmar Bjarkman, D. Charles Galunic, Joanna Lockard INSEAD : IN1256
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The piecework rate and yearly bonus system worked quite effectively in the United States. It is important to consider the five factor model, considering the context of this case study. The five-factor framework can developed in the context of the HR issued discussed in the case. Those factors were external environment, workforce, organization’s culture, organizational strategy, and technology of production and organization of work.

Case Study Questions Answers

The external environment in United States favored the operational framework of the organization, as the country has a favorable eco-political environment that encouraged organization to perform to its potential. As far as the workforce was concerned, it was diverse, and often provided innovative ideas. There were limited number of supervisors in the organization, as there was heavy reliance on the employee at lower level. This shows that the company was able to find highly favorable group of people, who adhered by the policy of the company, and valued the profit sharing opportunities provided by the company (Zhang, 2020). 

The culture was competitive in the organization that kept employees on toes, and perform to their optimal potential. It also allowed employees to share their ideas for the progress of the organization that demonstrated the openness of the organizational culture. The strategy of the organization revolved around relying on production of innovative products and services, in order to adjust to the challenging external market environment in the country. In order to achieve this, they offered a lucrative incentive system for their employees that kept them motivated for achievement of broader organizational goals and objectives. The company also invested a lot in its technological infrastructure that facilitated the production of innovative products and services. The human resource factors were quite closely aligned with the five-factor framework, and this led to good organizational performance on part of the company (Ahammad, 2020).

2. It is important to consider the cross-cultural leadership lessons, in order to ascertain the nature of the Chinese society. The country has a high-performance culture. Furthermore, the country also has high institutional orientation, and high in-group collectivism. Considering the culture of China, it is also important to develop work schedules that keep in mind the family commitments of employees. Considering the work culture of Lincoln electric, it is very competitive, and requires great commitment from employees.

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