SEMCO CASE STUDY OMAR ALALI 2004 [Identify concepts of leadership in the SEMCO case study and evaluation

the effectiveness of Selmer's significant dictions] Introduction: Leadership is the person who has the ability to lead others or the way into effect on other people in order to realize definite goals. Nowadays, leadership is one of the most important subjects around the world. This in fact not just because the succeed in any company depends on the level's of its leader and his talent in leading the employees, but also because people need a leadership in their life everywhere and at any time, for instance, people in any country need a leader, any family need a leader, any successful sport team require a good leader, also any gang require a leader, and so on. 'Leadership is the process of motivating other people to act in particular ways in order to achieve specific goals' (Hannagan, T 2002 pg.37). Now, from this definition we can remark that the term of leadership consists of three main elements; first, a group of people working or living in specific place. Second, a person from the group has the quality of personality which giving him the ability to lead the group. Third, a specific target which the group strive to achieve it. There are many theories which aim to recognize the leadership and the most important elements which affect it. The following are some examples of leadership styles: The coercive, the authoritative, the affiliative, the democratic, the pacesetting and the coaching (1). In fact, we are not able to decide which of these kinds or other kinds are the best and convenient for the benefit of the work. This in fact because each company whether private or public has different people (employees, suppliers and customers) environments, culture, social, economic and political conditions which effects on the policy of the company as well as the style of leadership. The next case study will explain the importance of leadership and its role toward carrying out the organization goals. Semco Company is the case study so, what is Semco? Who is the leader of Semco? Semco Company Semco, a successful Brazilian industry in Sao Paolo which specialises in marine and food-service equipment. This company was established in 1952 by Antonio Curt Semler. In 1980 Ricardo semler took over the company and since that year Semco considered one of the most successful firms around the world. In 1980 Semco was ripe for change so what happened or what changed? First, treating and dealing with employees as responsible adults. Ricardo semler believe that the situation in companies is not similar to the situation in schools. His opinion based on the idea of self-control and small hierarchies in the company. For example he removed the security checks and the rules of dress as a ................................................ (1) For more information see; Hannagan, T (2002) Management: Concepts and Practices pp60-

According to the World Economic Forum in Switzerland (1998). there are six counsellors in the company who attempting to advice and guide the employees. However. Ricardo thinks that employees should receive a share of the net profits of the company. there is other changing but these last variations were the most important. and thus all workers should take part in making the vast majority of company decisions. regular meeting. Second. not the company . but also because he combining more than one style simultaneously..but on taking over from my father. we will never know what they are really capable of and they will just follow our boarding school rules'. this not just because his style is unusual. One of the most important principles in Semco is that information is available to all people who work for Semco.. Semco has six month budget. Until we learn that.. He has become one of the most significant and effective business advisers around the world.. Now. profit sharing. That was about the company. in the light of the . money and effort.. In addition. Ricardo Semler believes that Semco is a big family for every worker. democratic decision. Ricardo Semler believes that system is very significant not only because it save the time. open information system. instead of the annual budget which most of the firms around the world following it.because an annual budget tempts managers to postpone unpleasant decision to the third and fourth quarters' (Ibid). I did try to reconstruct the company so that Semco could govern itself. Fifth. In addition.we have no control whatsoever' (Ricardo semler 2004). Furthermore. it also not compulsory. but none of us has learned to go to the movies on Monday afternoon. 'I do not govern Semco . he believes that less hours work with good final results is better than so many hours without any useful result for the company. 'Here at Semco we are doing something else. His style in managing and leading is magnificent and very effective. now what about its leadership? Ricardo Semler Known around the world because of his created and innovated in management leadership. 'As I tell our people constantly: we have learned to answer email on Sundays. In the interview with Ricardo Semler in CNN (Jun 2004) he said: ' the point is that if we do not let people do things they way they want to do them. This in fact will motivate the managers of Semco to work earnestly as well as makes them on continual contact. there is a big room in the company where everyone from the firm has a place for discussion and to exhibit his opinion to solve any problem as well as to put the new plans.I own the capital. we are saying everyone is a responsible adult. Yes. we are email slaves harnessed to the wicked ways of the profit and loss master' (Ricardo semler 1993). Fourth. in fact his idea in management based on establishing a strong and clear relationships between workers and managers in the company. Ricardo Semler considered one of the global leaders of tomorrow. but it also teaches the employee the responsibility and how to use and to keep it. Certainly.. According to Ricardo semler (1994). what kind of leadership Ricardo Semler following? The answer without any doubt is not easy. and these meetings are open which means that any one of Semco employee's can take a part in. In Semco all subordinates participating in the decision-making process. For that all employees in Semco do their best to realize the decision and its objectives. consequence of self control. '. Weekly meetings are started. First of all. and thus the employees have the choice to attend it or not.' (Ricardo semler 1994).62. Third. This will impel them as well as encourage them to work earnestly for the benefit of Semco. it is a grave situation.

(2002) Management: Concepts and Practices. In addition. but in all cases Semco is one of the most successful companies around the world. he said: 'The people who get responsibility are the people who seek it out and meet it' (Ibid). in both 1992 and 1990 Semco was elected business leader of the year in Brazil. On the other hand the quality of product is excellent. Ricardo's book (Maverick) which published in 1993. this style of leadership aims to build a work team to realize the objectives of organization. According to CNN (2004). and thus they believe in their employees and their acceptance of the work responsibility. the employee's loyalty for the company is strong and the profits are high. J. However. Lastly.36-68 2. In fact. for instance. obedience. Reference 1. trust.Potter. This with out any doubt because of Ricardo's significant dictions. we need to teach it at universities. and as we saw Ricardo does this. Therefore. confidence. In addition. they will show high levels of loyalty. There are many evidences indicate that. pp. I admire this person (Ricardo Semler) not only because of his unusual style in leadership. Personally. Second. when employees feel that their company's decision-making processes are just. My point of view is that style is significant. Semco Company has grown from 35 million dollar to 160 million dollar in the past six years. self workers. At the same time. So. the succeed of Semco Company started from the leader. also they believe that their employees work for the benefit of the work. Theory Y managers are very optimistic. he always says (we) when he speaks about the company. and this admittedly shows the efficiency and importance of his style in leadership. T.Goleman research (2000) we can notice that Ricardo's style approaches from the afflictive style. it is very difficult to evaluate Ricardo's style in leadership. Ricardo Semler for about 25 years has let Semco employees to control their work in all things. pp. part-time worker. their office equipment and so on.54-58 . but also because of his modesty. This style of leadership works hard to merge with the employees and considers the participation and communication between the administration and staff in the company is the magic key for successfulness. wages. As we noted all these components happened in the Semco case study. 'We are all one big happy family' (Ricardo Semler 1993).Hannagan. on the one hand his style lead to save three important elements in the world of business which are. Furthermore. Moreover. this situation reminds us with business ethics which in a few words means applying the moral rules in work and business. first full-time worker. there are three types of employee work for Semco Company. has been translated for more than 16 languages and sold over one million copies. freedom in working and creation are very important elements in this the style. time and effort. Conclusion: To sum up. In general. work hours. money. (2001) Creating a passion for change . These kinds of workers had worked in the company then they retired and now they work like suppliers for Semco. we need to persuade business people to take it as much as they can. In fact. according to Velasquez (1998). In addition. honesty.the art of intelligent leadership. through a quick look at the Douglas McGregor theories X and Y in the leadership we will find that Ricardo's style represents the second theory (Y). Third. respect and they will do the work earnestly for the benefit of their company.

The Next Century of Work.html 7.Velasquez. pp.cnn. Prentice Hall.Book Review: Maverick by Ricardo Semler (2002).transcript/ 6.semlar.35-43 4.com/blog/2002/04/book_review_mav.co. http://www. M.typepad. (1998) Business Ethics.3.Episode 11: Ricardo Semler (BBC). http://www.asp?speaker_id=186 5.uk/worldservice/learningenglish/work/handy/semler. http://owt.shtml .bbc.Interview with Ricardo Semler (CNN 2004).com/lbw/speaker_full.com/2004/BUSINESS/05/19/go. New Jersey. http://leighbureau.

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