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Organizational Behavior: Success of Different Practices

GE prides itself on continually raising the performance bar by annually letting go of employees who perform in the lowest 10 percent. In contrast, Cleveland-based Lincoln Electric Co. prides itself on its no-layoff policy. Lincoln Electric has provided its employees with guaranteed-employment since 1958. How can two successful companies have such different approaches to employment security? How can they both work? What implications can you derive from the success of these different practices?

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How can two successful companies have such different approaches to employment security?

The different approaches to employment security are part of overall strategy of the concerned Company. It starts from their Vision and Mission statements and these are aligned with objectives and strategies and vice-versa. That is strategy and objectives are changed accordingly Vision and Mission are changed. Then the implementation of strategy takes place, it consists of Programs, Budgets and Procedures. Last step is monitoring and control, it also starts process of taking corrective action.

Through the above it ...

Solution Summary

This solution provides explanations for various questions regarding layoffs and managing employees.

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