Economics Essay examples

626 Words Jan 27th, 2015 3 Pages
Enter Semler
In 1980, at the age of 21, Semler took over as the CEO of Semco. Semler's views on running the company were completely different from those of his father. He felt that the company in its existing form was too rigid. He wanted to replace the old way of doing business and planning with a participatory style of management. But the old guard at Semco was not open to this, with the result that Semler fired two thirds of the top management. Semler started out with a functional organizational structure at Semco. Under this structure, decision-making took a long time and each department took independent decisions that sometimes were not in the interests of other departments. Then, the company shifted to a matrix structure. But,
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The organization was bound together by the three interdependent core values: Employee Participation, Profit Sharing and Free Flow of Information. These three values stemmed from the belief that participation in design and implementation of work procedures would give employees control over their work; profit sharing would bring in a sense of ownership; and the availability of information as and when needed would help the employees understand to improve their work practices continuously...

Leadership and Change Management
Semler can be credited with sustaining the radical changes at Semco. He nurtured changes that might have been viewed as taking away his power and authority. He created an empowered environment where employees could innovate continuously. An idea he generated would later permeate to the whole work force. For example, after seeing a company order file cabinets worth $50,000, which were meant only to keep documents which were hardly ever referred to, Semler said that every person in the company should clear his own file cabinets of documents which were never referred to and keep only those that were necessary. This soon became a biannual exercise at Semco...

Values of SEMCO:
The key values that propeeled the uniwue culture of Semco can be summarised as follows:

Making News
The Semco way of running an organization is slowly but steadily being accepted as a very effective method of business management. The BBC series

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