Question:
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?