SEMCO Industries Analysis - Case Study Example

Download file to see previous pages... From this research it is clear that At SEMCO Semler has embraced three extremely valuable fundamental principles that help it develop. From the article, we learn that Semler took over the company from his father; it had just one hundred thoroughly under-depressed employees. The author clearly states that were it not for hard work and considerable luck, the company could have gone under then. The country was in a particularly unpleasant state of economic inflation, and Semler had to work for loans that had an exceptionally high interest rate from banks. Organizations should avoid all possible instances that may suppress their progress; this is because SEMCO’s performance dropped as a result of poor management skills. Several articles published by newspapers state that the company was going under. Semler did not give in but rather looked at a different approach for a better output. He got licenses to manufacture other companies’ goods, and he decided to take a different approach in running the company. The main problem he noticed was that most of the employees felt left out and unmotivated. The employees were unmotivated for the lack of family ties with the company. His job was to make them feel part of the whole company and give them a sense of belonging, so he came up with an employee-centered work design. Managers should have the ability for abrupt decision making. He merged this with his belief that one’s job should bring about pleasure and not rebellion and stress. He introduced three alternative values that fueled the hard work and courteous luck. The goal of these values was to make the employees give better services, and improve their determination while still having fun in the company and their jobs. They were: democracy, free flow of information and equal profit sharing. Omitting one of these principles will deter the intended interpretation. These are the three principles that the company has embraced over the twenty two years he has been in charge. Many companies prefer using formal authority in organization and management, Semler discards the principles of setting up certain rules to guide the workers under the supervision as cumbersome, frustrating and having no drive at all. He claims that in management, the employees do not care about the company’s growth or profits. They just come to work and get their salaries and promotions; communication, though available, is not effective at all. There is fear of victimization; hence, some highly critical problems fail to be addressed, and this prevents the output quality of the company (Morgan, 2007, p. 26). In big companies, the workers feel insignificant and unappreciated in the participatory form of management. This is observed because of the presence of managers who downgrade other workers. Semler, therefore, decided that the positions of leadership in his company had to be dissolved. He came up with executive positions just to hold up the hierarchy, but all workers had a freedom to do whatever they wanted, he practiced informal authority. The workers get to do the work which suits them best ...Download file to see next pagesRead More