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Week 5 - Assignment Example

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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…
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Week 5

Download file to see previous pages... 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 ...Download file to see next pagesRead More
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