M otivation

1. Motivation

2. 1- Describe the practices that Lincoln Electric uses to motivate employees. What are some of the consequences of these practices for employees and the company? Lincoln pratictices are essentialybased on the income. They are ready to pay more theiremployees if theyworkbetter. For exemple, everyonecanearn up twiceisregularincome if the profits of the company are good and the workerinvolved on hiswork. Moreover the companydoesn’tmake a lot for the employees (no perks) but theygive a lot of money

3. 2- Discuss the motivational system at Lincoln Electric, using each of the need theories of motivation. What does each theory say about the motivational practices at Lincoln Electric and which theory works best for explaining employees’ motivation? • With Lincoln, we are locatedbetween the belongingness and the self esteemneed of the pyramid. In fact, we have to notice thatLincoln'sstrategyis to providehisemployee the best wage possible. Theyexpect on the other hand the employee to beinvolved on the production process. • RegardingAlderfer's ERG theorywe are located on the relatednessstep : by giving more money to itsemployees, Lincoln expect a betterrelationshipbetween the managers and the followers and a kind of feeling to belong to the company. • To finish, regardingHerzberg'stheory, Lincoln expect to grow the motivation and satisfaction by putting wages (HYGIENE OR MAINTENANCE factor) at the top of the pyramid. This tool help the companydevelopping the motivation factors

4. 3- Consider the motivational system at Lincoln Electric in terms of the process theories of motivation. What does each theory say about the company’s motivational practices? In other words, can we understand the system and its effectiveness in terms of expectancy theory, equity theory, and goal setting theory? There are 3 main theories of motivation. Let us study the motivationalstrategy of lincoln in each. • Expectancytheory: Knowingthathewillberewarded on merit, Lincoln'semployee has everyinterest to change hisbehavior to becomevery productive. Lincoln offers a good retribution and change yourbehavior to reachitis a good motivation, itfollows the expectancytheory. • Equitytheory: Lincoln'sstrategydoes not forward the equity. Eachemployee must givehis best to berewardedconsequently. Obviously, the betterworkersearn more. • Goal setting theory: Give the best of oneselfcanbeconsidered as a goal, but in terms of numbers, it's hard to establish in a business like Lincoln. Set a goal is not compatible with a results-dependantincome job, becauseyoualwaysneed to bemaximally effective.

5. 4- Some have said that the methods of motivation used at Lincoln Electric should be used by all organizations to motivate their employees. Do you believe this to be true? Explain your reasoning. Of course, thismotivational system can'tbeapplied to all companies. In fact, wecan note thatdifferentthere are 3 main criterias for the non-adaptibility of thismotivational practice in otherscompanies: • Culture: Some countries have culture thatconsidersbeingpaidbased on performance isconsidered immoral. However, some types of job are concerne (eg: doorstepselling) • Legalenvironment: In other countries, laws do simply not allowthisaggressivemotivationalstrategy. • Sector: wagesbased on resultscan'tbeapplied in someworking areas whereitisdifficult to measure the employee performance.

6. 5- Comment on the cross-cultural limitations of Lincoln Electric’s motivational system. How do the theories of work motivation help us to understand why the company’s incentive program did not work in Germany but does work in North America and Australia? What does this tell us about the cross-cultural limitations of the theories of motivation? • According to American way of life, American dream and all this typical culture based on meritocracy it is not astonish that Lincoln’s model work in North America and also Australia • Nevertheless, this way of thinking is kind of the opposite of German culture above all in the business; Germany have one of the most important trade union rate in the world. Moreover, quality of life matters more than money in Germany • Based on this experience we can make a link with Hofstede studies which determine 5 limitations in cross cultural management: • Power distance index • Individualism • Uncertainty • Masculinity • Time orientation • Indeed Hofstede show how difficult it is to work in cross cultural team due to difference of perception by each culture related to this previous points.

7. 6- What can other organizations learn about motivation from Lincoln Electric? What do you recommend that organizations do to motivate employees based on your knowledge of the Lincoln Electric motivational system and on your understanding of motivation? • Organizations can learn about Lincoln’s model in a way that motivate worker does not depend only of advantages offer or degree of insurance supply but over all is about supply them what they need in accordance with your main objectives. • For instance, to arouse motivation in a technological company try to supply a innovative workplace focus on employees happiness, because it leads to creativity and creativity is your main Key Success Factor