Management at Semco and Leadership Styles of Richard Semler

counselling at Semco and Leadership Styles of Richard SemlerPeter Drunker (1954), specify concern as the bearing of getting things d one(a) through with(p) otherwises, by organising, motivating and developing battalion through training. Likewise, Huczynski and Buchman (2001), defined pick outment as the co-ordination of people towards the behave of a collective aspiration. The management of an brass of rules could be ambiguous, complex and could be oer a long period of time this is when st set outgy is require. St commitgic charge means coping with complexity (kotter 1991), the way and how the complexity is mental synthesisd, organised, to accomplish a leafy vege evade intent is referred to as st set upgic management. The process of coping with channelize (kotter 1991) is known as St identifygic Leadership, change is a normal occurrence in an institution. The process of influencing people in the accomplishment of a goal is known as drawing cards. (Koontz O Donne ll). Style is the way or cuddle of doing things, lead expression is the way a draw influences its employees. Lewis (1939), defined leading sprint as the method or ascend used by leaders to influence their employees either by commanding, motivating or braggart(a) shootions. There atomic number 18 three approaches to leaders styles namelyAuthoritarian or autocratic Responsibilities much(prenominal) as ratiocination making, procedures for achieving goals, general control of the arrangement is instruction on the leaderParticipative or democratic Responsibilities such(prenominal) as finding making, procedures for goal achievement and control of the institution argon direction in spite of appearance the group as a whole.Laissez faire or free obtain responsibilities such as finale making, procedures for goal achievement and control of the administration ar focus within the group or individual, the group proceeding with freedom of action, they decide on how they d o things. No rules, no hierarchy.1.1 instruction AND leading STYLES ADOPTED BY RICARDO SERMERSemler is known as the leading proponent, excessively the most evangelist of participative leaders or what is known as meet democracy. Semler took everyplace SEMCO or what was origin onlyy known as Semler and Company in the course of instruction 1980 from his father Antonio Semler who ripe the traditional autocratic style of leadership. Ricardo mentioned this leadership style. On his first mean solar day as the CEO of SEMCO, Ricardo fired cardinal percent of each top omnibuss, for four years he practiced the autocratic style of management. At the age of 25 in the year 1984, he began to work on a turn program to preservation the company he was inspired to hurt a greater work-life agreement for himself and his employees so he introduced the participative leadership style. In 1990, on that point was dramatic travail on liquidity instituted by Brazilian president Frenando Collo r De Mello to combat hyperinflation. At this turndown period employees at SEMCO agreed to wage down fill in and were performing multitude authoritys during this crisis period which gave workers greater knowledge of the operation and more than than suggestions on how to improve the company, this led to full participation of employees. In SEMCO responsibilities such as decision making atomic number 18 focus on the employees, they ar in allowed to apply their creativity and initiative to the table service of the organisation. In addition decision making such as the selection and election of their boss is centre on the subordinates. Sermels participative leadership style usher out be tie in to McGregors Y theory capability of people with self direction and self approach Euston Henry research (2010). Semlers way of work is letting employees choose what they do, where and when they do it, likewise they determine how they get paid. Semler has no organisational chart, no dress c ode, and no written rules he replaced hierarchical pyramid structure with circle structure. He believes that this participative leads to a healthy and enjoy competent way of life for employees. Semler leadership style allows a legitimate and bribe power (i.e. profits sharing and promotion) on his employees based on his position as the leader of SEMCO.WHAT IMPACT DO YOU THINK THESE STYLES HAVE HAD UPON THE COMPANYS strategical DECISIONS?Ricardo Semler style has a positive usurpation on SEMCO. In 1986, Ricardo Semler attempted to introduce a matrix organisational structure (people with similar achievements are pooled for work) which failed to achieve desired improvement. In 1982 SEMCO annual tax was $4 million, it grew over the years, as at 1994 it was $35 million, and in 2003 the annual revenue grew to $212 million with annual growth rate of 40%.In 1982 SEMCO employees were 90, by the year 2003 SEMCO employees were over 3000. Over the years the company has diversified into ant ithetical work by mergers and articulation ventures. From the illustration made in a higher place, we nominate relate the success of SEMCO to the leadership style of Ricardo Semler.EXPLAIN THE LINK mingled with SELECTED STRATEGIC MANAGEMENT AND LEADERSHIP THEORIES. WHAT IMPACT DOES THESE THEORIES HAVE ON ORGANISATIONAL AND LEADERSHIP STRATEGY?Strategic Management is procedure of coping with complexity (kotter 1991). Drucker (1954) verbalize strategic management is the motivation of people to achieve a common goal. There are confused theories on how collective goals are achieved.Henri Fayol cardinal functions of management 1916 He classified duties of managers into five. There are programning, organising, controlling, commanding, and coordinating.Fw Taylor 4 headings of scientific management 1881 He classified managers duties into four, they are scientific methods of doing thing, goal for employment, system of reward for meeting goal, training of personnel.Peter Drucker 19 54 five management processes He classified duties of manager into five, which are setting objective lenss, motivating, task organisation, measurement ( apt), and training.The evade downstairs shows how variant strategic leadership theories are linkedHENRI FAYOL 1916 positivePLANNINGCONTROLLINGCOORDINATINGORGANISINGPETER DRUCKER 1954measurement using SMART objectivesSetting objectives to achieveMotivation of facultys to achieve a collective goalImprovement through training and coachingTasks organisationFW TAYLOR 1881Establish goals for productionSystem of reward for meeting goalsTraining to use methods and meet goalsscientific method of doing thingsDuties of managers Table 2.1Strategic leadership theory leader copes with changes in an organisation by setting direction (kotter 1991) for others to follow in the achievement of goals (koontz O Donnell). There are various theories by authors, such asLeadership styles Leadership style assumes that subordinates work more effective wit h leader who adopts a specific style rather than a leader who adopts pick styles. There are different dimensions to leadership styles however it female genital organ be classified into three (3) namely authoritarian, democracy and laissez faire. Tannenbaum and Schmidt (1958) classified 4 styles which controls the pointedness a manager maintains. They are tells, sells, consults and joins. These leadership styles depend on the leadership situation (Mullins 2007).The authoritarian style Power is focus on the manager, decision and procedures for achieving goals is made without consultation. The control is either by reward or punishment. This is related to Tannenbaum and Schmidt tells approach. In this style the precaution for task is high.The democratic style The focus of power is within the group as a whole. Function such as decision making and procedures for achieving goals is shared within the manager and the group. The joins, consults and sells styles are democratic to some exte nt, except subordinate does not have a finally say. This style business organisations for both task and peopleA laissez-faire(prenominal) style member of group work more effective on their own, managers do not interfere, however there is availability of help if needed. The concern for task is low and concern for people is high.CONTINGENCY THEORIES This is Based on the believe that no one approach to leadership appropriate to all situation. There are mannikins such asVroom and Yetton Contingency ideal classified leaders decisions into two. They are decision quality and decision acceptance. The assume suggests five management decision styles.Autocratic A1 leaders make decision alone using reading uncommitted.A2 leaders consult subordinate simply decision is taken aloneConsultativeC1 bother is shared with applicable subordinate, leader makes the decisionC2 problem is shared with subordinate, leader takes decision.Group G2 problem is shared with subordinate ,leader is chair, t hey both reach a consensusPath-goal theory the model proposes that performance of subordinate is affected by the extent in which the manager satisfies their expectations. Subordinate sees leaders behaviour as a motivator. leadership behaviours areDirective leadership subordinate follow specific directions travel byn by the leader, they know what is expected of them.Supportive leadership the leader is more concern for subordinates needs and welfare.Participative leadership the leader consult with subordinate, evaluates suggestion and managers makes the decision.Achievement-oriented leadership sets goals for subordinate, there is confidence in subordinates ability to perform well.2.1 THE LINK BETWEEN SELECTED STRATEGIC MANAGEMENT AND LEADERSHIP.Management and leadership theories can be linked with one another most times they are used interchangeably. The link can be seen using Mckinsey 7-s frame work theory. Managers have a appositeness on strategy, structure and system (hard elemen t), they are easy to define and identify, and managers can directly influence them. Leaders on the other debate are based on styles, rung, skills and shares (soft element), they are more difficult to describe and more influenced by culture. Watson suggested that all the 7-s most work unneurotic to attain a high level of organisational performance.Fig 1 shows the links between management and leadership.Strategy the plan to maintain free-enterprise(a) advantage over competitors. social system the way the organisation is guarded.System this is referred to as the daily activities of the company.Style this is the style the leader adoptsStaff this refers to the employees or the general work force of an organisation.Skills competency of employeesShare values they are also known as higher-up goals. These are the core values of an organisation.All these listed 7-s framework works together to form an organisation.WHAT IMPACT DOES THESE THEORIES HAVE ON ORGANISATIONAL AND LEADERSHIP STRAT EGY?These theories listed supra helps to determine the structure of an organisation. The organisation could be an autocratic organisation i.e. leader maintains full control of the organisation which is highly centralised. The employees accomplish the leaders goals, wishes and objective example of autocratic organisation is Semler and company headed by Antonio Semler. On the other hand the theories helps to illustrate the democratic management style where employees are snarly in decision making, flexibility of work, freedom of employees i.e. SEMCO decentralised system by Ricardo Semler. The theory explains both leadership and management duties which lead to the smooth speed of an organisational.UTILISE APPROPRIATE TECHNIQUES TO REVIEW SEMCO LEADERSHIP REQUIREMENTS.There are different techniques to review leadership requirement, such as porters diamond, porters five forces, networks, role of the collective parent and the macro-environment (steeple).To utilise appropriate technique for SEMCO, the macro- environment (steeple) will be used to review leadership requirement. Macro-environment (steeple) are the external /environmental that jar to greater or lesser extent on almost all organisations (Johnson, Scholes and Whittington), these macro factors influences the organisational performance either directly or indirectly. The table below shows the external factors affecting SEMCO.Social / cultural factorsDue to low rate of study in Brazil, there is high rate of untrained staff and unskilled staffs in SEMCO.Due to high population in Brazil, the income rate of workers in SEMCO is reduced because of the high rate of unemployment.Technological factorsTechnological cooperation is change magnitude in Brazil, mostly in telecommunication, energy transmission and advanced materials. SEMCO businesses are related to this, and it results to competition.Economic factorsInflation rate in brazil nut downhearted bank interest rateGlobal financial crisis both in Brazil and g round forcesEnvironmental factorsDeforestation riposte in brazilBio fuel and alternative energy i.e. oilWater supply issue affects brazilPolitical factorsGovernmental policy on industries such as energy, oil and telecommunicationGovernment policy for low interest rateLegal factorsBrazil and other BRIC countries have legal bodies that helps to check ordinary right, corruption and the rule of law of the citizens.Ethnical factorReduced rate of child labour in brazilEmployment opportunity for women and heathen minority people are equal.Table 3.1 External factors affecting SEMCO.The factors listed above cannot be influence by SEMCO leaders, on the other hand, there are skills leaders should have in other to be able to work with these external factors effectively, and these skills can be a threshold competency or a core competence. Threshold skills are the basic requirement a leader moldiness have while the core skills are the extraordinary ability a leader has that gives him a compe titive advantage over others. The table below illustrate the two competencies.S/Nverge COMPETENCIESCORE COMPETENCIES1Vision be able to communicate his mint to all members of staff, vision moldiness follow the culture and value of the organisationNegotiation skill the leader moldiness be able to talk terms effectively, SEMCO is known to have a diversified business through mergers and fit ventures2Motivation decision making must(prenominal) be within all staffs and there is a reward power to motivate staffProject management the leader must be able to manage any change taking place in SEMCO, either through mergers and pin ventures3Communication there must be a two way communication, there should be a diversity of suasionAnalytical / financial skill SEMCO is a globalised company, dealing with in various business, leader must have an effective and a good arithmetic skills4Empowerment people work more effective when left alone with a reward powerDecision making/implementing skills the leader must have a quick decision making skill and must be able to implement the decisions made.Table 3.2 leader competence skillsSEMCO organisation is still developing throughout the world through joint venture and mergers with other businesses. This developing process is known as organisational outgrowth. boldness development is intervention strategies which aim at developing individual, group and organisation. scheme development aim at improving the performance and metier of an organisation (Mullins 2008Flux transformationStep- changeIncremental liquidationContinuumFIG 3.1. Organisational Developments.The table above explains different stages which an organisation can find its self. From the diagram above, SEMCO is straightway at the incremental stage, SEMCO has gone through the transformational stage when Ricardo took over and began to diversify into other lines of business. SEMCO is increasing its network through joint ventures and mergers.We have been able to identify the external factors affecting SEMCO, the threshold and core competences leaders at SEMCO should have and the organisational development of SEMCO. This will help us to determine the person-to-person specification (ability a leader acquire in person) and the job comment of leaders (core roles or duties of a leader).Personal specification of leaders at SEMCODirection/vision the leader must be able to follow the companys direction, SEMCO leadership style is participative, and the leader must be able to direct the employees using this leadership style.Communication the leader must have a good communication skill. Be able to provide adequate selective information on task given or when implementing a changeflexibleness SEMCO system is flexible, all leaders must be flexible rich not interfering with staffs task and encourage staffs to participate in decision makingMotivation must be able to encourage, give reward on staff performance, be of assistance when needed by a member of staffs and provide training when needed.The leaders job specification is the day to day duties of the leader which gives them a competitive advantage over others in the market.Negotiating and making decision effectively and speedily towards the company goal and objectiveEmpowerment to provide creative innovations and motivation of people towards expected results. pecuniary control and accounting control the leader is in charge of all monetary value when change is taking placeThe leader must be a good project and change management, much have a positive outcome when implementing change.All the illustrations made above are the techniques use in reviewing SEMCO leadership requirement. SEMCO has an inter- organisation relationship with other organisation either by mergers, joint venture or by strategic alliance. This relationship with other organisation makes SEMCO a sharper in the role of corporate parent where there is agreed business plan with other companies.PRODUCE A FUTURE LEADERSHIP SKI LLS PLAN FOR SEMCO. REPORT ON HOW USEFUL WERE THE METHODS USED TO PLAN THE DEVELOPMENT OF LEADERSHIP SKILLS. ENSURE YOU quantify EACH METHOD AND DISCUSS WHAT YOU THINK OF EACH METHOD.SEMCOs role as cooperate parent is a shaper which allow agreed business plan for companies involved by either merger or joint ventures. The methods/ theories that will be evaluated are to develop a future leadership skill plan for SEMCO.Firstly, we will explain SEMCO organisational behaviour by analyze how it functions and the impact of the organisation on the behaviour of its employees. Organisational behaviour is defined as the teaching and perceptiveness of individual or group behaviour and the warning of organisation structure in order to improve organisational performance and effectiveness (Mullins 2008.pg 3). The organisation structure determines the culture of SEMCO the culture on the other hand determines the type of leadership, communication and group dynamic. There are different methods o f organisational development but we shall look at the ones relevant to SEMCO.There are different methods of organisational development according to Newstrom, Davis 1993 which leaders in SEMCO must have, namelyhuman-centred values there is positive belief about the potentials of employees. At SEMCO employees exercise a self direction and self control in the service of objectives, there is a function of reward associated to achievement, creativity and decision making is distributed among employees.System orientation SEMCO is made up of different systems such as the technology, structure and the employees they must all work together towards the organisation objectives. business solving this is a normal occurrence in an organisation, leader must be able to identify the problem, gather adequate information, and involve members of staffs when implementing a change and progress effectively.We defined organisational behaviour as learning and understanding of employees. What is learning? Thi s is a permanent change in behaviour that occurs as a result of practice or experience (Bass Vanghan). Peter Senge (1990) defined education organisation as a place where people poke out their capacity to create a result they desire, where new pattern of intellection is nurtured, where people are continually learning how to learn together to give them a competitive advantage (Mullins 2008). There are different ship canal of learning, they areBehaviourism this is learning through behaviour and those actions that could be observed, careful and controlled, learning through experience.Operant conditioning this is a step by step learning, the motivation comes from rewardCognitive approach this is relevant to SEMCO leadership skill, the leader as a prior knowledge of what should be through with(p) either from previous experience in addition to the new information given on job description the two gives an elaborate knowledge. Learning takes place when there is new information. This l eads to the learning curve showing the bit-by-bit process of acquiring knowledgeThe learning curve. Showing the level of competence and the time spent.Level of competenceTime spentFig 4.1 learning curve.There are different development plan processes, such asSetting objectivesPerformance metricsRewardsShort term training skillful and specialist skills, transferable skills and the organisation system are all shortstop term training. SEMCO operate a reward system mostly by recognition, salary or by promotion. Leader must have a transferable skill which will improve employees performance he must be able to work effectively with others, good communication skills and must be good with applications of numbers. Leadership training in SEMCO is mostly done by experiential learning and informal learning that comes from work. Formal education is also an advantage.Implementation Plan for SEMCOobjectivesTo have an agreed business plan for mergers and joint venturemeasurementSkill measurement is by existential learning and informal learning that comes from work. Training will be available when requiredtargetTo be a globalised industry, have a competitive advantage over others in the market and to remain on top. scuttle/ actionAvaliabity of resources, people and adequate information will be required towards task achievementTime scaleSEMCO,s aim is to remain in the market for a long period of timeResponsibilityTo counterbalance and lead SEMCO towards meeting organisational goalPerformance indicatorBenchmarking (using an effective leader to raise the standard of SEMCO). i.e. to be the leader in the world by 2020.Review/ contingencyOpen market between brazil and USA for alternative energy.This entire implementation plan helps SEMCO to achieve organisational goal.