Lincoln Electric, a 100-year old manufacturer of welding equipment and supplies based in Cleveland, Ohio, USA motivates its employees through a culture of cooperation between employers and workers and unusual system of compensation based on piecework, and a big bonus based on individual contribution to the company. Despite the opening of several international sales and production company in Canada, Australia, France, Lincoln continues to focus on production in the United States until 1988. At that time, the new CEO of increased production through the acquisition of new fields and 11 new countries in an attempt to convey its unique management philosophy for everyone. However, Lincoln was unable to repeat his highly productive system abroad. Operational problems have led to a major restructuring in the early 1990s under the leadership of Anthony Massaro, a newcomer to the company. In 1996, Massaro was named CEO and began to expand the production base of the company by the new strategy. The point is in Asia, where regional president of Lincoln is trying to decide whether and how to establish a manufacturing presence in Indonesia, and in particular to try to capture the unique incentive management Lincoln managed system. "Hide
by Christopher A. Bartlett, Jamie O'Connell Source: HBS Premier Case Collection 22 pages. Publication Date: January 14, 1998. Prod. #: 398095-PDF-ENG