1. All three types of control—feedforward, concurrent, and feedback—are used at Lincoln Electric. In terms of the feedforward control, employees demonstrate this through self-control. Concurrent control is conducted through regular inspections of the production process. Finally, feedback control is displayed through company reviews, annual bonuses, and the financial statistics. Lincoln Electric largely adopts a decentralized system. This is because the relationship between employees and management is based on trust more than authority. Also, this is shown by allowing employees to challenge management if they feel that something is not right.
  2. The reason why Lincoln Electric is so successful in the United States is because the local culture embraces its management policies. However, this does not work so well overseas because other cultures may require respect of authority figures rather than confronting them. In the United States, face-to-face communication is highly encouraged, whereas other cultures may communicate through a third party instead.
  3. The reason why the Lincoln Management System works in the United States is because of its open door policy for top executives, middle managers, and production workers. Other countries rely more on discretion and privacy, which are in complete contrast to Lincoln’s organizational culture. To help counter this problem, Lincoln executives must adapt their system to fit with the local culture. The system does not need to be dismissed entirely, but needs to be tweaked to reflect the local culture.
  4. Because Lincoln is open and honest with its employees over its financial situation, the company should tell workers that bonuses will not be paid out. The employees should understand that bonuses are solely linked to the performance of the company. So, if the company performs poorly over a given time period, then its workers must respect and understand the reasons why they will not receive bonuses.