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Comparison of Management Practices of Two Companies - Case Study Example

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The leadership style of management of two different companies is analyzed in the "Comparison of Management Practices of Two Companies" paper. Insights on theories and concepts used in their management will give light in the operation of both organizations…
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Comparison of Management Practices of Two Companies
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Download file to see previous pages An engineering company in Brazil led by its charismatic CEO, Ricardo Semler. His unique style of leadership gave the company a continuous profitable growth for 20 years and made others curious on how he did it. Semler believes in corporate democracy, participative management and “the company as village”. It is possible that he got the idea of democratic values from his studies in the US, as these are predominant in Western societies, and such institutions as schools, labour unions, and churches that instil these values in politics, economic and social affairs. (McFarland, D. p. 493).

Semler is a democratic leader who operates his company differently. He creates a climate in the company wherein he says “Democracy is the cornerstone of the Semco System”. A democratic leader is someone who leads by persuasion and example, not by force, fear, status or power. (Fisher, L.) Semler, as a leader, recognized the feelings and opinions of his employees, make them feel important, and attempt to put group and individual group above his own objectives He had encouraged participation in decision making, which is one of the concepts of participative management.

Semler puts his trust to his employees and this method has been proven to work for the company. This follows the theory of McGregor, one of the founders of the field of organization who said that organizations become successful if they trust the employees to be creative and apply ingenuity in doing their work for the company. (Stoner, 1980) McGregor and several other authors believe participative management is a motivation to performance. Accordingly, these theorists believe on teamwork. In the example of the Semco, teamwork was advocated such that the closely knit group recognizes their responsibility, awareness and dedication towards accomplishing the goals of Semco. The trust of Semler motivated the employees to do their work accordingly. ...Download file to see next pagesRead More
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