SEMCO Industries Analysis - Case Study Example

? SEMCO Industries Analysis Background This is a family business that runs in a unique way. It tends to support the fact that true labor has the best outcome. For over 22 years, the company has been running with no apparent plan or goal in both the short and long run. Since Ricardo Semler took over as a young man fresh from the music world, he introduced this mode of operation. Apparently, the results are spectacular with the company growing progressively. The general overview is that all workers have a right to proceed with their task identities in their own leisure, in reference to the job description. There are no specific working hours, and the job design is not stipulated. The company encourages its workers to do all they can in order to develop them and develop the company at the same time. The article “Managing Without Managers” helped publicize Semler’s views and his way of management (Stacey, 2008, p. 34). Study At SEMCO, it is evident that 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 (Morgan, 2007, p. 26). 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 and at any office within the companies’ premises. They work at their own leisure and time, and Semler believes that they work overtime. The company believes in its employees, and as far as the scheduled work gets done in time, there are no further rules. Companies use a complex governing system, but some use simpler methods. Semler believed that in order to make all employees feel at ease, simplicity had to be observed, and the company’s offices are a magnificent example of this. They are wood paneled with glass barricades which enhance communication. There are several meeting rooms for those willing to discuss any issues. The information on the company’s books is accessible to the workers at all times. The freedom in this company creates an efficient business environment, thus, ensuring reliable communication, and skill assignment. From the blink of collapsing to a cash cow in South America, SEMCO has proven that Semler’s principles are effective. Though, for any company wanting to take after them, there is no outline on how to do it, it is effective as well. Semler in his article states that due to this method of running the company, there is no need for advertising for vacancies. Everyone wants to get opportunities in such a company, and the vacancies which are available get filled quickly (Stacey, 2008, p. 54). Presently, most companies fail to give their employees equality in job enrichment and the payment. Drucker taught that management was the problem for the operation of a business and dedicated employees were the key to convincing product output. SEMCO manages to capture both of these situations in its mode of operation. The employee factor is simply making the employees develop personal intuition for somewhere bigger where their hard work is the key to their success. They have the power to give their opinions which the company takes into consideration in decision making. The simplicity of their place of work helps them feel at ease with each other and the job scope. Working at one’s leisure gives one the comfort of balancing fun and work. As Semler said, the right amount of work alongside leisure is more effective. Semler had to build a sense of belonging in order to gain a strong relationship with his employees. The openness of the company’s documents ensures that each employee knows exactly what he or she ought to do, hence, holding the company together. There are no people with higher ranks out than others and the few that have to be there are just to help out. Semler’s way of leading has caused a progressive growth for fourteen years; such a growth has been never observed during the years of Semler’s father reign. He, however, clearly stipulates that this was as a result of effort and considerable luck. He took a risk giving his employees their freedom at work. In other cases, however, this mode of operation could backfire on the business. If the workers failed to utilize this freedom wisely, this mode of operation would make a company collapse (Ricardo, 2005, p. 23). Some and apparently most people work best under the supervision and pressure. If a change from this to freedom occurred abruptly and managerial positions and fixed working hours were eliminated, the company would most probably collapse. In his article, Semler clearly states that his company does not offer a blueprint example. However, if the one in charge of the company has total trust in the workers and employees, he or she should do just like Semler. This should be done slowly with no sudden, critical changes that could majorly affect the business (Ricardo, 2005, p. 18). This ensures that if anything goes wrong, the problem is easy to pinpoint and to correct quickly. If it is impossible to adopt the SEMCO model, then some aspects in the model that are not radical should be taken and applied. The managerial positions should be utilized correctly, and everyone within the company should be given a right to participate and be noticed. Most companies use these models for the study purposes only. This is because they give a clear picture on how they help the businesses. They are easy to understand and follow but complicated to carry out since most companies view them to be too risky and not many people want to take significant risks (Ricardo, 2005, p. 23). Conclusion This case study clearly shows us what should be done to workers and a company in order to develop. The key thing, according to Semler, is to be persistent and believe in your judgment and let others believe in your personality. Know how to make your employees feel at home and ensure they get a sense of belonging so they can do everything to develop. Ensure there is free flow and exchange of ideas among them as well and be supportive of their decisions as their leader. References Ricardo. S. (2005). Managing without managers. New York: Harvard printing press. Morgan, G. (2007). Imaginization: The art of creative management. Newbury Park: Sage Publications. Stacey, R. (2008). Managing the unknowable. San Francisco: Jossey-Bass Publishers. Read More