Lincoln Electric in Mexico
Added on 2023-03-30
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International Management
LINCOLN ELECTRIC IN MEXICO
LINCOLN ELECTRIC IN MEXICO
L I N C O L N E L E C T R I C I N M E X I C O P a g e | 1
Lincoln Electric in Mexico
How do you think Lincoln Electric would have to adjust its system if they opened a plant
in China?
Lincoln Electric is founded in the year 1985 with a purpose to make electric motors. According
to me, If Lincoln Electric planned to open plant in China, it would have to adjust its entire
system because of the different work practices, customs and traditions. The people living there
and their needs and requirements are different as compared to people living in other countries.
In addition to this, employees and the workers living in North America have different
requirement than that of employees living outside North America. Since, Lincoln is widely
known for operative motivation and incentive system based on piece work. Piecework is
commonly the rate when an employee is paid for a single unit generated or action taken place.
However, according to the given case study, I can conclude that the system of piecework is
quite effective in China which can be an advantage for the company if it plans to start its
business in china. This method is also commonly used in East Asia for high production operation
activities. Generally, it is shared with a base rate salary, which is quite similar to an individual
low base pay and commissions (Cuervo-Cazurra et al., 2007). Being a company which was
established years back, Lincoln used this piecework method which is widely followed by many
countries these days for the effective and efficient work that needs to be carried out in any
company.
Despite of facing some tradition and different culture issues, the company will gain a huge
amount of profit if planned to open its plant in China. On the contrary, the employees working
in China might be highly skilled but they might not focus more on working more hours which
can create an obstacle for the company if opened in China. The employees living there might
not wish to work for long hours which will then ultimately reduce the production according to
the piecework method. Similarly, there can be a problem of cross-cultural differences. Cross
cultural communication is well-defined as the communication which arises between persons
who differs in working style, age, race, nationality, ethnicity and gender. There are many
Lincoln Electric in Mexico
How do you think Lincoln Electric would have to adjust its system if they opened a plant
in China?
Lincoln Electric is founded in the year 1985 with a purpose to make electric motors. According
to me, If Lincoln Electric planned to open plant in China, it would have to adjust its entire
system because of the different work practices, customs and traditions. The people living there
and their needs and requirements are different as compared to people living in other countries.
In addition to this, employees and the workers living in North America have different
requirement than that of employees living outside North America. Since, Lincoln is widely
known for operative motivation and incentive system based on piece work. Piecework is
commonly the rate when an employee is paid for a single unit generated or action taken place.
However, according to the given case study, I can conclude that the system of piecework is
quite effective in China which can be an advantage for the company if it plans to start its
business in china. This method is also commonly used in East Asia for high production operation
activities. Generally, it is shared with a base rate salary, which is quite similar to an individual
low base pay and commissions (Cuervo-Cazurra et al., 2007). Being a company which was
established years back, Lincoln used this piecework method which is widely followed by many
countries these days for the effective and efficient work that needs to be carried out in any
company.
Despite of facing some tradition and different culture issues, the company will gain a huge
amount of profit if planned to open its plant in China. On the contrary, the employees working
in China might be highly skilled but they might not focus more on working more hours which
can create an obstacle for the company if opened in China. The employees living there might
not wish to work for long hours which will then ultimately reduce the production according to
the piecework method. Similarly, there can be a problem of cross-cultural differences. Cross
cultural communication is well-defined as the communication which arises between persons
who differs in working style, age, race, nationality, ethnicity and gender. There are many
L I N C O L N E L E C T R I C I N M E X I C O P a g e | 2
companies having diverse workforce and such companies are also a part of global economy.
These companies get highly involved in cross cultural communication. As per my understanding,
it is very important for the employees and the company to measure and know all the factors
which might take part in a nominal and mixed workforce. Overall, it can be concluded that
there are some advantages for the company along with few cons if planned to open a plant in
China. Taking all the points under consideration, the company might get benefit because China
is a developed country and the employees working there are highly skilled. The company might
run successfully despite of China’s culture and tradition (Parpart, Jane and Sharon, 2016)
Would the result of Lincoln’s Electric efforts have been different it had tried to introduce
its system in a desperately poor domain, such as Sudan, rather than in a relatively
wealthy nation, such as Mexico?
According to the given case study, I think it can be stated that the result of Lincoln’s Electric
would be totally different if it had started its business in Sudan rather than starting business in
Mexico. Since, there is a huge difference between the country Mexico and Sudan. Mexico is a
wealthy domain country while Sudan is poor domain country. Starting business in Mexico has
many obstacles and it took nearly two years for the company to establish its name and make
employees understand the system gradually. While, working in Mexico, the company at very
initial stage, permitted only few chosen workers to opt into the system and then later, when
they started performing good, other remaining workers were allowed to opt the same system
i.e. piecework system. The system proposed by Lincoln successfully overcame through all the
obstacles and motivated all the employees to work and produce more in terms of quantity. The
system taught the employees how there were benefitted and it also influenced them. After few
years, they started producing more units of products and earn more amount of incentive which
also created a self-satisfaction among employees. They were motivated to earn more and work
more (Hastings, 1999).
Furthermore, these were the cases and the problems faced by the company while working in
Mexico. Now, if the company had planned to start its business in Sudan, which is considered to
be a poor domain country, the company might not have faced issues related to long working
companies having diverse workforce and such companies are also a part of global economy.
These companies get highly involved in cross cultural communication. As per my understanding,
it is very important for the employees and the company to measure and know all the factors
which might take part in a nominal and mixed workforce. Overall, it can be concluded that
there are some advantages for the company along with few cons if planned to open a plant in
China. Taking all the points under consideration, the company might get benefit because China
is a developed country and the employees working there are highly skilled. The company might
run successfully despite of China’s culture and tradition (Parpart, Jane and Sharon, 2016)
Would the result of Lincoln’s Electric efforts have been different it had tried to introduce
its system in a desperately poor domain, such as Sudan, rather than in a relatively
wealthy nation, such as Mexico?
According to the given case study, I think it can be stated that the result of Lincoln’s Electric
would be totally different if it had started its business in Sudan rather than starting business in
Mexico. Since, there is a huge difference between the country Mexico and Sudan. Mexico is a
wealthy domain country while Sudan is poor domain country. Starting business in Mexico has
many obstacles and it took nearly two years for the company to establish its name and make
employees understand the system gradually. While, working in Mexico, the company at very
initial stage, permitted only few chosen workers to opt into the system and then later, when
they started performing good, other remaining workers were allowed to opt the same system
i.e. piecework system. The system proposed by Lincoln successfully overcame through all the
obstacles and motivated all the employees to work and produce more in terms of quantity. The
system taught the employees how there were benefitted and it also influenced them. After few
years, they started producing more units of products and earn more amount of incentive which
also created a self-satisfaction among employees. They were motivated to earn more and work
more (Hastings, 1999).
Furthermore, these were the cases and the problems faced by the company while working in
Mexico. Now, if the company had planned to start its business in Sudan, which is considered to
be a poor domain country, the company might not have faced issues related to long working
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