*Guaranteed employment: no lay offs since 1948, instead LECO rotates through co. (skill variety).
*Equity: employees earn comparable, sometimes higher, wages than other manufacturing companies. In addition, there are short power distances between laborers and managers (common cafeteria, no reserved parking, managers work long shifts, etc.) As a result, employees feel that they are being treated fairly.
*Expectancy: wages based on piecework and an annual bonus gives the average worker the possibility to increase total compensation. According to expectancy theory, employees are motivated by the belief that they can expect to achieve certain desired rewards by working hard to attain them.
*Instrumentality: Rewards are explicitly linked to a measurable performance.
*Positive Valence: employees value the rewards that are offered to them for desirable behaviors.
Why did the internationalization thrust fail? There were many factors that contributed to LECO 's failed attempt at internationalization. It is evident that Willis ignored a variety of cultural and macroeconomic effects related to his plan. Specific to human behavior, LECO neglected the transferability of the incentive system to other countries and the utilization of management controls to monitor it.
*External: It was unreasonable to expect, considering the extensive experience with the US labor markets