Does Lincoln follow a hierarchical or decentralized approach to management? Explain your answer and give examples. Lincoln follows a decentralized approach to management. The company han an open-door policy for all top executives, middle managers, and production workers, and regular face-to-face communication is encourage workers are expected to challege management if they believe practices or compensation rates are unfair. According to Daft, 2010 open-book management is used in decentralized organizations to share the financial condition of a company with all employees. Open-book management encourage active participation in achieving organization and allows employees to see the interdependence and importance of each business function (Daft, p.560).Cased on what you’ve just read, what do you think makes the Lincoln System so successful in the United States?
Most emphasis must be placed on the employees because they are the one that can be creative, motivated, skilled, efficient, and responsive. The proper function of the Lincoln system management is to draw out these characteristics and encourage their growth in a productive setting. Lincoln success can be attributed to this unique and effective management style and its motivated employee. -Lincoln uses a diverse control approach. Tasks precisely defined, and individual employees must exceed strict performance goals to achieve top pay. The incentive and control system in powerful. Production workers are paid on a piece-rate basis, plus merit pay based on performance. Employees are also eligible for annual bonuser, which fluctuate according to the company’s profits, and they participate in stock purchase plans. A worker’s bonus is based on four factors; work productivity, work quality, dependability, and coorperation with others. Some factory workers at Lincoln have earned more than $100,000 a year. -one key af Lincoln’s success is their investment in Human Capital. They train, empower the workforce at every level and utilize them at full strecth. According to Daft, even the cross functional team are enough trained and responsible to take dicisions for planning, developmental and marketing issues. The organization also shares its financial performances anf operating with its employees. All these is part of Lincoln’s management culture and because of its motivated human capital.
