The Motivational Techniques That Semco Uses - Case Study Example

A company that combines teamwork and motivation enjoys increased employee productivity that accrues from employee job satisfaction. Profit-sharing is one of the motivational techniques that Semco uses. Semco gives one-quarter of the profits of its individual divisions to its employees. Also, Semco uses worker participation as an important element of employee motivation. Semco’s employees are involved in the processes of planning, decision-making, and implementation of business plans and ideas.

Semco’s employee participation is captured in its policy manual that says, “Our philosophy is built on participation and involvement. Do not settle down. Give opinions, seek opportunities and advancement, always say what you think. Doesn’t be just one more person in the company” (Killian & Perez 1998). Semco’s use of shared profits and bonuses as a motivation technique is similar to that of SAP. SAP’s other monetary benefits to its employees are in terms of life assurance and pensions and Semco extends bonuses to its employees in terms of house allowances.

The freedom allowed Semco’s employees to resemble closely the freedom allowed SAP’s employees (BBC 2012). In both companies, there is flexibility in terms of working hours, and employees are accorded the discretion to modify work to suit their convenience. A striking similarity between the two companies is the structure of their management. Their managements are not hierarchical and managers are not feared like in other organizations. A notable difference between Semco and SAP is that SAP extends its employee monetary benefits to their families.

This way, SAP combines employees’ personal life and their work-life (BBC 2012). On the other hand, Semco separates the two and any benefits that reach employees’ families are not purposively channeled. Semler believes that mixing employees’ work life with their family life is not good for business. Semler's belief that combining the two can affect an organization’s performance is not entirely true. It boosts the morale and esteem of employees when they know that their families affirm what they do.

Teamwork fosters responsibility and accountability among Semco’s employees. It increases the profitability of Semco and profits and losses are shared between the organization and its employees. Coupled with democracy, teamwork promotes responsible leadership in Semco because leaders have to deliver lest they be fired through voting. Teamwork eases Semco’s decision-making and implementation of ideas and plans. One major attribute that marks Semco’s shift from the old ways to the new ones is the 75% reduction of its corporate staff (Killian & Perez 1998).

Teamwork has many benefits to an organization, especially when combined with the organization’s employee motivation techniques. Semco exhibits exemplary organizational arrangement that works to its benefit and that of its employees. Corporate leaders have a lot they can borrow from Semco.