StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Analysis of Semco Company - Assignment Example

Cite this document
Summary
"Analysis of Semco Company" focuses on Semco which was one of the hardest-hit companies. Its core business had been severely affected and it threatened the existence of the company. It was aggravated by the hyperinflation in the Brazilian economy due to the advent of globalization in the1990s…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
Analysis of Semco Company
Read Text Preview

Extract of sample "Analysis of Semco Company"

SEMCO When globalization set in Brazil, Semco was one of the hardest hist company. Its core business had been severely affected that it threatened existence of the company. It was aggravated by the hyperinflation in the Brazilian economy due to the advent of globalization in the1990s worsened by Brazilian President Collor’s decision to restrict access to liquidity. As a result, a severe recession ensued during which many companies in Brazil were forced to file bankruptcy. Semco also almost filed for bankruptcy during these difficult times. Instead of folding up with the crisis, Semco underwent a cultural change. The cultural change that was introduced in the company turned around its near bankruptcy position with the assumption of Ricardo Semler, Antonio Semler’s son, a Harvard educated man. He implemented drastic change upon assumption as the new CEO of Semler. Upon assumption as the new CEO, Ricardo Semler fired two-thirds of the top management of Semler & Company and that included many close friends of his father. This would not have been possible under his father because Antonio Semler did not separate work from his personal relationships. The new set-up of the company was also a socially responsible to do to save the company and to introduce a new kind of company culture which is a total departure of the old autocratic style of leadership of the company. The young Semler felt that the old autocratic leadership thwarted people’s motivation and creativity. Thus, he decided that the authority to make decisions at Semco to be more evenly distributed to be more responsive and competitive in a globalized economy. In the process, he dismantled the rigid bureaucracy and structure of the company to make it more flexible based on the new three values of the company – employee participation, profit sharing and free flow of information. And to emphasize the change, even the name of the company was changed from Semler & Company to Semco. There were a lot of changes that can be considered drastic if it will be compared to the old leadership. Strategy wise, among them product was product diversification and the creation of Nucleus of Technological Innovation (NTI). Leadership and ethical perspective was also changed to democratic and participatory to the point that employees can already direct themselves- set their own budget, even their own salaries and even the hiring and firing decision of both employees and managers and above all to make the company a professional and ethical business organization. During the time of Ricardo Semler’s father, senior positions in the company were occupied by Antonio Semler. The basis of selection and promotion was based on nepotism and not on competence and qualifications. This translated to company’s poor performance and non-competitiveness with globalization as most of the officers of the company were cronies of the old Semler. This translated to autocratic and transactional leadership that is not only unethical as it was autocratic but also thwarted innovation, creativity and growth. The change at Semco to become a more professional, ethical and democratic organization however proved to be good for the company. As Ricardo Semler put it, they have transformed the company from a moribund to a very productive, highly profitable and highly preferred employer company. Due to the professionalism instituted in the company, changes were made that had direct impact to their bottom lines. Some changes that Ricardo Semler implemented to cut cost and make Semler a profitable company was the removal of secretarial positions. They were removed not only as a part of the companys transformation but also to save on cost so that profitability will increase. The change at Semco made everybody obsessed with increasing their productivity and ultimately their profit because employees are accountable to the profit of their own business unit where they could also share the profit. The company made the employees literally socially responsible for the company by giving the employee the responsibility, authority as well as the accountability to get things done by themselves. As a result, Semler unleashed thr creativity and potential of its employees that increased their productivity at record levels. The employees became so effective that they assume leadership in many aspect of the company that Ricardo Semler does not have to sign checks anymore nor approve contracts or projects because the employees did it themselves. To balance the democracy and responsibility given to employees, Semco reminds its employees that corporate democracy can only be carried for as long as it is not destructive to the company’s bottom line. Ricardo Semler himself called this the freedom that was wrought by taking care of the bottom line. Such, for as long as the company become productive and profitable due to corporate democracy, it should be continued. For Semco, it has been carried far enough to the point that Ricardo Semler no longer owns the company but just the capital. He does not sign any check nor approve anything because it is already the employees who are doing it for themselves. And this has been good for everybody in the company. This practice of corporate social responsibility within the company however is not without caveat. Although Semler practiced corporate democracy, the company was unforgiving about mistakes especially with mistakes that affect the bottom line negatively. For him, it is the positive bottom line that gives them the freedom or license to do the things the way they want it to be. If they make a mistake in how things are done, then that freedom will be revoked. As a result of this transformation in ethical perspective and practicing social responsibility within the company, many notable changes happened in the company that made it one of the most competitive businesses in a globalized economy and preferred place of employment. The unethical practice of nepotism that nurtured an autocratic leadership that made the company a moribund was transformed into an empowering leadership that is not only ethical but is also socially responsible. In fact, Semco became Brazil’s flagship of business competitiveness in a globalized environment that it now transformed into SEMCO Partners (www.semco.com, nd) that would partner other companies who would want to venture into Brazil having the competency and professionalism to ensure success in the Brazilian marketplace. Reference Semco Partners. (n.d.). Semco Partners. Retrieved June 29, 2014, from http://www.semco.com.br/en/ Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Week 5 assignment Example | Topics and Well Written Essays - 1000 words”, n.d.)
Week 5 assignment Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/social-science/1651132-week-5-assignment
(Week 5 Assignment Example | Topics and Well Written Essays - 1000 Words)
Week 5 Assignment Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/social-science/1651132-week-5-assignment.
“Week 5 Assignment Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/social-science/1651132-week-5-assignment.
  • Cited: 0 times

CHECK THESE SAMPLES OF Analysis of Semco Company

Organisational Culture

This paper is an attempt to explore the concept of organisational culture, more importantly, with the practical example of semco, a Brazilian success story.... The paper will briefly attempt to apply a few models and theories of organisational culture on the company allowing having a better understanding of semco's organisational culture.... This paper is an attempt to explore the concept of organisational culture, more importantly, with the practical example of semco, a Brazilian success story....
14 Pages (3500 words) Essay

SEMCO Industries Analysis

The company has been running with no apparent plan or goal in both the short and long run.... This case study clearly shows us what should be done to workers and a company in order to 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....
6 Pages (1500 words) Case Study

Comparison of SEMCO with Classical Organisation Approach to Industrial Relations

The paper "Comparison of semco with Classical Organisation Approach to Industrial Relations" highlights that the ideas of semco on industrial relations will ensure Interserve plc employees participate in decision making and enhance their motivation and productivity.... SEMCO have policies that ensure openness of the financial statements that enable low-level employees such as secretaries, receptionists and factory workers to understand the financial performance of the company....
9 Pages (2250 words) Essay

Retention and Motivation Plan for Utilitiscan Company

The analysis of an employee's performance involves its recent accomplishment in the organization, its deficiency, strengths, and weakness to determine whether the employee is suited for promotion or needs to be retrained.... This assignment "Retention and Motivation Plan for Utilitiscan company" presents employees to prevent the escalation of attrition rate that undermines the company's competitiveness not to mention that it costs the company in terms of training, learning curve, and opportunity cost....
5 Pages (1250 words) Assignment

Managing Organisational Change

12 Pages (3000 words) Essay

Human Resources Management - Semco Company

The paper "Human Resources Management - semco company" discusses that generally speaking, one of the most important characteristics of the firm's human resources management is the freedom related to the participation of employees in organizational projects.... It is for this reason that the firm's manager claims that 'what we're now engaged in might be called a radical experiment in unsupervised, in-house, company-supported satellite production of goods and services for sale to Semco itself and to other manufacturers' (case study, p....
12 Pages (3000 words) Essay

Comparing between 3 companies ( semco , google , apple )

Experts like Lashinsky describe the company to be aggressive but generous in handling the market challenges.... Although the company does not believe in discriminating its lower rank executives and technicians; it has a perfectionist approach, which was inducted by Steve Jobs.... The company is more interested in ushering meritocracy than workforce democracy.... Hence, the company does not depend on an entirely follower centric leadership model....
2 Pages (500 words) Essay

Analysis of Air Transport Industry

The paper "analysis of Air Transport Industry" is a perfect example of a research proposal on management.... The paper "analysis of Air Transport Industry" is a perfect example of a research proposal on management.... The paper "analysis of Air Transport Industry" is a perfect example of a research proposal on management....
8 Pages (2000 words) Research Proposal
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us