Management at Semco and Leadership Styles of Richard Semler

Man get alongment at Semco and drawship Styles of Richard SemlerPeter Drunker (1954), defined parcel outment as the authority of getting things d one through others, by organising, motivating and exploitation people through training. Likewise, Huczynski and Buchman (2001), defined management as the co-ordination of people towards the consummation of a collective end. The management of an disposal could be ambiguous, complex and could be over a long period of time this is when strategy is required. Strategic way means coping with complexity (kotter 1991), the management and how the complexity is bodily structured, organised, to accomplish a customary goal is referred to as strategic management. The mould of coping with change (kotter 1991) is make outn as Strategic Leadership, change is a normal occurrence in an fundamental law. The ferment of influencing people in the accomplishment of a goal is cognize as attractorship. (Koontz O Donnell). Style is the way or app roach of doing things, loss drawship trend is the way a leader influences its employees. Lewis (1939), defined leadership style as the method or approach used by leaders to influence their employees either by commanding, motivating or giving directions. there be three approaches to leadership styles namelyAuthoritarian or autocratic Responsibilities much(prenominal) as finis do, procedures for achieving goals, world-wide control of the validation is focus on the leaderParticipative or democratic Responsibilities such as decision making, procedures for goal achievement and control of the establishment ar focus within the group as a whole.Laissez faire or free reign responsibilities such as decision making, procedures for goal achievement and control of the agreement ar focus within the group or individual, the group works with emancipation of action, they decide on how they do things. No rules, no hierarchy.1.1 MANAGEMENT AND lead STYLES ADOPTED BY RICARDO SERMERSem ler is known as the leading proponent, likewise the most evangelist of participative leadership or what is known as cooperate democracy. Semler took over SEMCO or what was origin exclusivelyy known as Semler and Company in the year 1980 from his father Antonio Semler who practiced the traditional autocratic style of leadership. Ricardo followed this leadership style. On his first daytime as the CEO of SEMCO, Ricardo fired sixty percent of all top managing directors, 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 diversified program to rescue the company he was inspired to have a greater work-life balance for himself and his employees so he introduced the participative leadership style. In 1990, there was dramatic restriction on liquidity instituted by Brazilian president Frenando Collor De Mello to scrap hyperinflation. At this turndown period employees at SEMCO agreed to wage down cut and were performing m ultitude roles during this crisis period which gave workers greater knowledge of the operation and to a greater extent suggestions on how to improve the company, this led to full participation of employees. In SEMCO responsibilities such as decision making ar focus on the employees, they are allowed to adjudge their creativity and initiative to the service of the organisation. In addition decision making such as the selection and election of their boss is focused on the subordinates. Sermels participative leadership style can be related 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 code, and no written rules he replaced hierarchical profit structure with circle structure. He believes that this participative leads to a healthy and enjoyable wa y of life for employees. Semler leadership style allows a legitimate and vantage power (i.e. wampum 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 STRATEGIC DECISIONS?Ricardo Semler style has a dogmatic impact on SEMCO. In 1986, Ricardo Semler attempted to introduce a matrix organisational structure (people with similar skills are pooled for work) which failed to achieve desired improvement. In 1982 SEMCO annual gross 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 different business by mergers and joint ventures. From the illustration made above, we can relate the victor of SEMCO to the leadership style of Ricardo Semler.EXPLAIN THE LINK BETWEEN 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) said strategic management is the motivation of people to achieve a common goal. there are various theories on how collective goals are achieved.Henri Fayol five functions of management 1916 He classified duties of managers into five. There are planning, organising, controlling, commanding, and coordinating.Fw Taylor 4 objectives of scientific management 1881 He classified managers duties into four, they are scientific methods of doing thing, goal for production, system of reward for meeting goal, training of personnel.Peter Drucker 1954 five management processes He classified duties of manager into five, which are setting objectives, motivating, task organisation, beat ( wise(p)), and training.The table below shows how different strategic leadership theories a re linkedHENRI FAYOL 1916COMMANDINGPLANNINGCONTROLLINGCOORDINATINGORGANISINGPETER DRUCKER 1954measurement using SMART objectivesSetting objectives to achieveMotivation of staffs to achieve a collective goalImprovement through training and coachingTasks organisationFW TAYLOR 1881Establish goals for production ashes 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 with leader who adopts a specific style rather than a leader who adopts alternative styles. There are different dimensions to leadership styles however it can be classified into three (3) namely authoritarian, democracy and laissez faire. Tannenbaum and Schmidt (1958) classified 4 styles which controls the degree a manager maintains. They are tells, sells, meditates and joins. These leadership styles consider 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 concern 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 extent, except subordinate does non have a in the long run say. This style concerns for both task and peopleA laissez-faire style member of group work more effective on their own, managers do not interfere, however there is availability of help if needed. The concer n 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 models such asVroom and Yetton Contingency Model classified leaders decisions into both. They are decision quality and decision acceptance. The model suggests five management decision styles.Autocratic A1 leaders make decision alone using entropy available.A2 leaders consult subordinate but decision is taken aloneConsultativeC1 problem is shared with pertinent subordinate, leader makes the decisionC2 problem is shared with subordinate, leader takes decision. root G2 problem is shared with subordinate ,leader is chair, they 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 specifi c directions given 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 quantify they are used interchangeably. The link can be seen using Mckinsey 7-s frame work theory. Managers have a propensity on strategy, structure and system (hard element), they are easy to define and happen upon, and managers can directly influence them. Leaders on the other hand are based on styles, staff, skills and shares (soft element), they are more strong to describe and more influenced by culture. Watson suggested that all the 7-s most work together to a ttain a high level of organisational performance.Fig 1 shows the links mingled with management and leadership.Strategy the plan to maintain competitive good over competitors.Structure 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 competence of employeesShare values they are also known as superordinate goals. These are the snapper 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 STRATEGY?These theories listed above 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 autocrati c 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 involved 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 running 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 corporate parent and the macro-environment (steeple).To utilise appropriate technique for SEMCO, the macro- environment (steeple) pass on be used to review leadership requirement. Macro-environment (steeple) are the external /environmental that impact to greater or lesser extent on almost all organisations (Johnson, Scholes and Whittington), these macro factors influences the organisationa l performance either directly or indirectly. The table below shows the external factors affecting SEMCO.Social / cultural factorsDue to low rate of teaching 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 trim back because of the high rate of unemployment.Technological factorsTechnological cooperation is increasing in Brazil, mostly in telecommunication, energy transmission and advanced materials. SEMCO businesses are related to this, and it results to competition.Economic factors pretentiousness rate in brazilLow bank interest rateGlobal financial crisis both in Brazil and USAEnvironmental factorsdisforestation issue 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 le gal bodies that helps to lozenge public right, corruption and the rule of law of the citizens.Ethnical factorReduced rate of child labour in brazilEmployment opportunity for women and ethnic 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 competence or a core competence. Threshold skills are the basic requirement a leader must have while the core skills are the unique ability a leader has that gives him a competitive advantage over others. The table below illustrate the two competencies.S/NTHRESHOLD COMPETENCIESCORE COMPETENCIES1Vision be able to communicate his vision to all members of staff, vision must follow the culture and value of the organisationNegotiation skill the leader must be able to negotiate effectively, SEMCO is known to h ave a diversified business through mergers and joint ventures2Motivation decision making must 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 joint ventures3Communication there must be a two way communication, there should be a diversity of opinionAnalytical / financial skill SEMCO is a globalised company, dealing with in various business, leader must have an effective and a ripe arithmetic skills4Empowerment people work more effective when left alone with a reward powerDecision making/ go throughing 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 development. Organisation development is interven tion strategies which aim at developing individual, group and organisation. Organisation development aim at improving the performance and specialty 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 presently 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 personal specification (ability a leader acquire in person) and the job description of leaders (core roles or duties of a leader).Personal specification of le aders 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 unassailable communication skill. Be able to provide adequate information on task given or when implementing a changeFlexibility SEMCO system is flexible, all leaders must be flexible enough 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 securities industry.Negotiating and making decision effectively and speedily towards the company goal and objectiveEmpowerment to provide creative innovations and motivation of people t owards expected results.Financial control and method of 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 distinct in the role of corporate parent where there is agreed business plan with other companies.PRODUCE A FUTURE LEADERSHIP SKILLS PLAN FOR SEMCO. typography ON HOW USEFUL WERE THE METHODS USED TO PLAN THE DEVELOPMENT OF LEADERSHIP SKILLS. ENSURE YOU EVALUATE 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 studying how it functions and the impact of the organisation on the behaviour of its employees. Organisational behaviour is defined as the tuition and understanding of individual or group behaviour and the pattern 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 of 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, namelyHumanistic values there is positive belief about the potentials of employees. At SEMCO employees exercise a self d irection 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.Problem 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? This is a permanent change in behaviour that occurs as a result of practice or experience (Bass Vanghan). Peter Senge (1990) defined Learning organisation as a place where people expand their capacity to create a result they desire, where new pattern of thinking is nurtured, where people are continually learning how to learn tog ether to give them a competitive advantage (Mullins 2008). There are different ways of learning, they areBehaviourism this is learning through behaviour and those actions that could be observed, measured 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 done 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 leads to the learning curve showing the gradual 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 trainingTechnical and specialist skills, trans ferable skills and the organisation system are all short 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. positive education is also an advantage.Implementation Plan for SEMCOobjectivesTo have an agreed business plan for mergers and joint venturemeasurementSkill measurement is by experiential 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.Initiative/ 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 represent 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.