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Initially.uk/business/2003/apr/27/theobserver.uk/worldservice/learningenglish/handy/semler.co. author of two books “Maverick” & “ Seven Day Weekend”. This is when he started attacking what he believed was “Corporate Oppression”. a series run by BBC has also recognised Semco as one of the top 5 successful management structures across the globe (http://www.pdf) Study Approach (inc aim) Author’s approach in this assignment is to read numerous articles and journals related to Semco to explore the new style of organizational structure. Semco style of running business is today recognised as one of the most effective method of management. their salary etc.bbc. Ricardo Semler was born in the year 1959 Sao Paolo. it had a very autocratic style of management.co. managing the organization and Ricardo Semler’s leadership style in Semco. an HR departments or receptionist and secretaries (Interview with Ricardo Semler. pg. CEO of Semco. by Simon Caulkin. Background to Semco Antonio’s father wanted him to be a good physician but Antonio after graduating in engineering from Vienna had some other plans (Maverick. Ricardo Semler. 2007: http://www. It is one company where people unanimously decide who their bosses will be. He started running the organization in a very controlled and disciplinary manner. chief manager has surely shown the world a new style of management. a rulebook or written policies. Founded in the year 1953 by Antonio Curt Semler. Semco as argued by many management articles is an epitome of Management incorrectness. neither a organization chart. they are: 1.bbc. This could be seen in the way the organization is run by its employees and not Ricardo Semler. Chief Executive at Semco. Ricardo continued with the conventional way of working.uk). Devolution is when the .observerbusiness7) Semco Org Design There are basically three main organization designs. Semco surely had a unique system of industrial democracy. It doesn’t have a written statement of purpose. Soon the stress work and the Semler’s sickness forced him to rethink on his way of running the business. where there are no time clocks. Brazil. very few have actually tried to reproduce his management style. (http://downloads. father of Ricardo Semler. 9). security check and receptionists. Centralization and Devolution: In an organization where the structure is Centralized. job titles. The aim is to critically evaluate the effectiveness of the organization structure at Semco. Before Ricardo taking over the business his dad ran. Though many managers admire him.Introduction Semco is one of the most interesting companies of the modern century. all the responsibility for carrying out the operations and developing strategies are take care off by the centre. “Reengineering the business process”.co. Semco does not have anything that most of the organizations in the 21st century think is very important for an organization to compete. Semco’s organization structure was very much similar to any other organization with very rigid hierarchy and a rule or policy for every small thing.guardian.
In Semco. Brazil’s economy and political stability adds to the stress of the organization. Meetings are voluntary and there are two seats reserved at board meetings for those employees that turn up for the meeting. who their bosses will be and how and where they want to work. maximum they plan out is for Six months.peterbe. the style is the give employees the freedom to make decisions about their work timings. 2004). property. no organisational chart and no fixed bosses (Ricardo Semler. Organizational Configurations.co. This is so much different from the conventional style of managing an organization. They do not have any long term plans for their companies. (Managing Structure. you create boundaries not only for your organization but for your thoughts. I’d have to admit I have no idea what business Semco is in”. 418 . 2. Similarities and Differences with Conventional Theory Difference between Semco’s organization design and conventional theory: Semler once asked about what business is Semco in. employees choose their managers.observerbusiness7) Ricardo mentioned one common thing in both of his book “He who is given responsibility takes responsibility” (http://www. Ricardo says the structure at Semco is so that he would readily invest all his savings in Semco than any other blue chip company with a more rigid style of working and with long term planning and control (Interview with Ricardo Semler.guardian. salary. Its current portfolio of products is machinery. He quoted “If you ask me to describe it in conventional business terms. by Simon Caulkin. Semco organization design is truly interesting. In spite of such a working environment. Portfolio. Every six months the units plan out how many employees they need for the next six months and accordingly hire or fire people. dress code etc. Resource allocation and control process: In such a structure. decide their salary and their work timings. it doesn’t have any concrete strategies on which business to enter and which to not.uk/business/2003/apr/27/theobserver. "The Seven Day Weekend: Changing the Way Work Works". they go ahead with trial. They are not pressed on time clocks. On top of all the chaotic way of working. 2007: http://www. Semco needed to relocate a factory. Ricardo’s way of giving freedom to employees resulted in an organization which resisted conventional structure. delegation of work & responsibility and other team issues like time flexibility etc reinforces team –based evolution (Tozer 1997). At Semco. professional services and fledging hi-tech spin-offs. employees are put under a supervision wherein they are given various authorities to achieve the expected results. so they shut down the firm . ideas and most important employees. Similarly. 3. security checks.com/plog/blogitem20030814-0138). Semco is one of the most successful and recognised organization in Brazil.centre of the organization delegates responsibility and authority to the lowest line of hierarchy. pg. Ricardo further adds that once you start defining your organization. error and argument basis.432) Due to reduced organizational layers.
Semco was also selected by CIO magazine as the most successfully re-engineered companies in the world. After this there were many more such ideas that were brought into the organization which looked very risky for any mangers to implement but Ricardo Semler built the trust within the organization he turned the culture of the organization from one of fear to one of cooperation.icmrindia. Semco’s unique system is 100% effective in managing staff for long term and in result staffs are managing the organizations and its projects.org/casestudies/catalogue/Human%20Resource%20and %20Organization%20Behavior/Semco-Maverick%20Organization-Human %20Resource%20Management-Case%20Studies. Semler also introduced what he called “Factory Committees” to run the plants. organization design with no organization chart and least layers. Semco’s way of working was slowly but finally accepted as a very effective and efficient method of business management. Programme 11 – Ricardo Semler. if we see that our question to evaluate how effective is Semco’s Unique Industrial democracy system in holding staff for long term and being loyal to the organization is resolved.co.uk/worldservice/learningenglish/handy/semler. BBC Learning English: http://downloads. succession planning.htm) To what extent does the Semco system differ from traditional approaches to strategic human resource planning? Make reference to either. Hence. To reduce his workload and involve more people in taking decisions. This proves how effective is Ricardo Semler’s management style. As noted earlier. The Handy guide to the gurus of management. he removed eleven layers that were inherited to him by his father. earlier the involvement from the employees was slow as they feared losing job.pdf).took all the employees in buses to visit three sites and then came back and decided the location by taking vote. Fortune magazines referred to Semco as a Lab for creative management (http://www. Hence. or systems of appraisal in your answer . Perceived Effectiveness More than choosing a good team leader. But Ricardo guaranteed everyone that no one would be fired for their involvement in factory committee while serving or for at least a year afterwards. In today’s modern working world no organization involves employees so much into management decision. In such a case company gets one more product to sell and employees do not have quit their job to try new ideas (Charles Handy. Today. there is only one front line lathe operator which is just one step away from the general manager’s position. But this becomes a risky affair in case of failure they will lose all their savings and a secured job. products and profits. In most of the organization. if employees come up with new ideas they leave the organization and then start up a new venture. it is more important have an effective leadership program (Turner 2000). Ricardo came up with the idea of letting employees work within organization on their new ideas and sell the product from the organization.bbc. recruitment and retention. BBC during its series of Reengineering the Business included Semco as most successful reengineered business process.
American Psychologists Association Inc. initially the HR manager was just sharing the role of looking after people.. Reviewed on July 2002). employees and units plan their aims and goal every Six months (Susan E. R. He believes that having a strategic planning and a vision often acts as barrier to companies’ growth. 223. Semco does not have a HR department only. 45 No. Human Resource Planning Challenges for Industrial/Organizational Psychologists. after which the employee is sent ahead for further rounds.D. This is not the case today. Human Resource Planning Challenges for Industrial/Organizational Psychologists. American Psychologists Association Inc. Earlier HR training & development was limited to new employees only. we understand the employee in a better way and try motivate him using different styles like fair pay. Jackson and Randall S. Ph. He have challenged the much remained concept of companies making profit are successful. wages linked to profit sharing. Ph. Ricardo’s answer was very clear. He believed in giving responsibility and not having unnecessary pyramidal hierarchy. He does not believe in numbers as they do not speak for the likes of the end user or the people that produce it. Schuler (1990). 2.D. Similarly at Semco. Conventional HR approach was to fix the employees by giving training or asking for discipline. Jackson and Randall S. Similarities and Differences with Semco There is one similarity noted between Semco and traditional human resource planning process is that due to relative environmental stability and certainty.239). Maresco. in case of poor performance. Vol. Vol. IMPROVING EMPLOYEE PERFORMANCE: MOVING BEYOND TRADITIONAL HRM RESPONSES. Differences between Semco and traditional HRM approach: Well.. and recruitment was conducted by the top management only. 2. employees were questioned and made responsible for it. Managing Without Managers. bonuses. .239). So the first and major difference between Semco and other all companies is very clear. pp. 223. Now days. HR personel is the first to take the interview.Human resource planning has traditionally been seen by organizations as getting the right person at the right position at the right time (Susan E. Schuler (1990). (1989). focus was majorly on short term goals and objectives. In response to strategic human resource planning. Semco has created organizational change by empowering its employee’s leadership (Christopher C. perks. Harvard Business Review September-October 1989). (Semler. This is one example of the conventional HRM approaches. comfortable surroundings to please employees etc (Mann 1994). dress code. holidays etc (David Ripley. 3. pp. 45 No.1 Explanation and Critique of Traditional HRM Approaches Earlier when there was a low performance in the organization. Ricardo Semler: Creating Organizational Change through Employee Empowered Leadership). SPHR (1999). Ricardo started initially attacking the traditional concepts of standard set salaries. York & Peter A.
it will create confusion about reporting. the unique system at Semco is very much applicable to companies like Semco only not to big MNC’s. make them involve and participate and give their opinions (Ricardo. Change management brought by Ricardo Semler after taking over the company from his father was welcomed and accepted positively by all the employees (Atkinson 1990). organization culture. access to information. 1994). 4. Because leaders often come with visions and goal which restrict their thinking. and projects and most importantly and surprisingly. Semco employees are responsible for their own education and development (Semler. Perceived Effectiveness at Semco Ricardo Semler’s basic idea was to bring all employees together. Semco has surely made that initial start and that to which has shown positive success. Conclusion Throughout the assignment and author’s reading of articles related to Semco and other managerial subjects involved with this assignment such as team management. 1994). salary. Employees are given the authority to choose their work patterns. Semler wanted to bring the idea of responsibility and openness and transparency in the organization. working as a group/team. If any Multinational Company applies such a unique democratic system in their organization. employees choose their bosses. Managing Without Managers. Harvard Business Review September-October 1989). responsibility and competition. (1989). no formal training and development exists.1 Key Findings Fortune magazines referred to Semco as a Lab for creative management. employees will believe themselves to be the Boss and may result in loss of goodwill and profit etc. From capitalising he took the ideas of freedom. Semler started with an eclectic style of leadership. Author sees this as a face of other reliable less risky systems coming in the near future. he copied control greed and power and transparency. design. For flexibility he used a Japanese model. employees selected their own salary and then it was publicized. R. profit sharing. At Semco. 1994). Though the author is not completely opposing the innovative way of working at Semco. transformational leadership style and change management. . Semler created an environment of friendliness by reducing the hierarchical layers (Morgan & Zohar 1999). (Semler. Author’s understanding after a critical analysis of the literature is that. work times. Hence. The company operates on the basis of three key principles: work force democracy. From socialising. and free access to information (Semler. Any body had access to any sort of information related to the company (Morgan & Zohar 1999).
imaginiz. 1990. Available from URL: http://www. ‘As Market Changes. A. 20. (1993). the way they want to work and when they want to work (Work force democracy and free access to information). & Zohar.com/provocative/change//semco. Maverick !. The last point might also be seen as negative point by others. G. Lastly. Maverick: The Success Behind The World’s Most Unusual Workplace. I prefer it should be taken positively and employees should work towards their goal to make themselves deserving at work. there is always the need to prove you. issue 18. as it also creates the sense of fear of losing job in six months. [Online]. author feels Semco is a place where you use your ideas.html. The reason is. R. Available from URL: http://ehostweb1. p. 8. I would put it this way “I would take the risk of working at a company like Semco”. For the first six months. . skills. A. R. 1994. BBC included it into top 5 most successful companies across the Globe in its “Reengineering Business Process” Series. F. few employees are given the authority to choose the project they want to work. 15. Hence. Business Journal: Serving Jacksonville & Northeast Florida. London. 1994. vol. References Morgan. 2000. Arrow Business Books. L. Turner. New York: Warner Books.asp Semler. Other than bringing the responsibility within employees it also earns points on Sense of belongingness to the company – like a second home.html Semler. 1999. Personal Evaluation How would you feel about working for a company like Semco? Personally. CMA Magazine. and potential 100 percent or in the six month period you are out of the company. pp. [Online]. 64 (3). Ricardo Semler’s Transformation at Semco. Mann.com/essays/maverick. Another reason noted was there is no receptionist. Atkinson. employees are given the liberty to work in each area of the company and decide which area suits for them best and vice versa. you make your coffee yourself. [Online].epnet.com/fulltext. Good Leaders Must Be Good Learners’. Available from URL: http://dpsinfo. talent. Everyday is challenging at Semco. The Promise of Employee Involvement. Maverick: The Success Story Behind The World’s Most Unusual Workplace. February. you send your own fax and you attend your own customers.