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Developing Management Skills WHILE USING Semco Circumstance Study

Purpose of the survey:

The reason for this survey is to understand the partnership between Strategic Management and Authority. The different Control styles used for figuring out organisations's strategic decisions, the impact of the leadership theories on the organisatiton and the methods of developing management skills using the SEMCO research study.


In 1982, Ricardo Semler required control of Semler & Company, a business

founded and, until then, handled by his father, Antonio Curt Semler. At that time, the business's organizational composition, was so of dealing with employees in a fatherly manner, especially by providing for their needs without providing them with rights or responsibilities. A pyramidal hierarchy led by an autocratic head. Then, Ricardo overran the relatively small processing company from his father. And by renaming the business as SEMCO, eradicated all clerical positions, and integrated an insistent product diversification policy. Most observers predicted that these actions would wipe out the company.

Leadership Styles:

Leadership style can be an way of implementing programs, providing directions, and motivating people working towards the organisation. A leaders must have the ability to acquire certain strategies and must follow a certain style of leadership which suits the problem of the company. The following are the leadership style accompanied by Ricardo Semler and their proof :

Authoritarian Management (Autocratic):

Authoritarian leaders, also known as autocratic head, provide clear prospect for what needs to be done, how it should be done, and when it ought to be done. These kinds of market leaders take their decision independently with little or no help using their company subordinates or followers. Gleam clear distribution between your leader and the followers. The analysts discovered that decision making was less creative under authoritarian leadership. Authoritarian leadership is most beneficial put on situations where there is little time for group decision making for a possible result or where in fact the head is the most proficient person in the group. (Lewin et. al, 1939).

While Ricardo Semler was in law college, in 1980s, his dad Antonio Curt Semler made a decision to make Ricardo the president and then shortly kept him for an extended Europe vacation, declaring only, "Do what you need to do. " When the senior professionals of SEMCO insisted on longing out the declining transport industry, Ricardo decided to fire 60% of the very best managers in a single afternoon. The departing professionals wanted to come back and while the frightened customers demanded their return, but Ricardo was determined and remained strong. Ricardo could not afford liquidation taking place in the business.

Participative Authority (Democratic):

The democratic management style or participative command is a very open and its characterized style with power and expert that is given similarly among colleague of running a team. Ideas move readily and are mentioned openly among the group. And dialogue is relatively free-flowing. (Lewin et. al, 1939).

SEMCO seeks the best by trusting their employees and to inspire them to apply their creativity operating of the whole enterprise. Also to make some important decision related to the move of work, which also contains the choice and election of the bosses. Employees are given a chance to express their feelings regarding the decision making process. Income sharing also performs an important role in the organisation, which causes very low staff turnover, and energetic involvement of all employees. Employees receive an opportunity to select their professionals which brings into good working condition in the company.

Delegative Leadership (Laissez-Faire):

In this authority style the leader offers little if any assistance to the member of his team and leaves the decision making process on the team members, but the innovator is accountable for the decisions made by his sub-ordinates. The first choice allows the employees to adopt decisions if they can evaluate the condition and relies how the challenge could be fixed. (Lewin et. al, 1939).

SEMCO encourages its employees to choose what, when and where they would like to do it complete flexibility is directed at the employees for the duty performance. About 3000 SEMCO employees establish their own working time and their wages. Their supervisors are hired and reviwed by the subordinates. If the employees had put in Saturday afternoon in the office then they should spent their Monday morning at the beach. There is absolutely no organisational chart so in the organisation, no corporate value statement, no 5 year plan is carried out as almost all of the organisation will. The employees are not necessary to follow any dress code. You can find no written rules or policy claims, as SEMCO is quite versatile.

Impact of Leadership Styles:

As Ricardo Semler adopted all these leadership styles, listed below are the impacts of these style on SEMCO's proper decisions:

The company has become more steady and accountable.

The turnover of the business had opted from $4million to $160million. Which is also considered as a highest development.

The gross annual sales got increased upto 24%.

In 1982, there have been just 90 employees employed in the company, and by the year 2003 it gone upto 3000 employees doing work for SEMCO.

The overall staff durability has increased anticipated to that your company's profit has increased.

SEMCO has diversified into different business unit.

The company has made balance between short-term and long-term goals.

The products can be found at reasonable prices.

Customers are given by variety of products and with a differentiated service styles.

It had brought innovation and imagination.

As it stimulates every employees involvement and the decisions are imposed from top-down management, good benefits are brought scheduled to enthusiastic employees.

2. Strategic Management and Authority Theories:

Strategic management is used to establish a mission, worth, vision, goals, goals, roles and duties of any organisation. There are many theories to recognize and to formulate the above mentioned items for an organisation:

Henry Fayol


Peter Drucker


Functions of Management

Scienticfic Management Techniques

Five forces



Establishing Goals

Setting Objectives

Informarion seeker, maintain inter personel contacts

Forward information to others



Optimum use of resourses for assembly goals

Organising the task

Motivates and direct the employees

Maintain informational links.


Reward system for assembly goals

Motivating employees

New tasks are initiated, figuring out business developing areas

Decisions are used along during crisis

Resources allocator who determines who gets the timetable, budget and priorities.

Negotiator who signifies department during discussions with unions and suppliers.


Measurement of good oblectives


Developing skills giving training

Trait Ideas:

In Trait ideas people become heir to certain qualities and traits making them better suited for leadership. Trait theories often categorize soem behavioral characteristics shared by market leaders.

Contingency Ideas:

According to the contingency theory no command is best suited for all your situation. It depends on the variables that are related to the surroundings the determines what particular command suits the problem.

Situational Ideas:

In Situational ideas the leaders pick the best possible action based mostly upon various situations i. e. depending after the types of situation. There could be different command styles suited for different decision making.

Behavioural Ideas:

In Behavioural authority theory the actions of the market leaders are not

Focussed on what they are from their mental characteristics or internal claims as the market leaders aren't made nonetheless they are born market leaders.

Participative Theories:

In this kind of authority all the employees are encouraged to contribute their source as a part of your choice making team for an company. The first choice also keeps the to allow inputs of others.

' Great Man' Theories:

As great leaders are born rather than made, this theory portray thar great leaders are mythic, heroic and who are always made to bring up control when needed.

Management theories(Transactional):

Transactional theories are based after the system of rewards or punishments. For example when the employees associated with an organisation are successful these are rewarded, and on the other had if the employees of the company fail, they are punished at the same time.

Relationship Ideas(Transformational):

Transformational theories concentrate after inter personal relationship between the leaders and followers. These types of leaders help the group customers to be encouraged and have them know the importance. These leaders are centered on group performance, but at exactly the same time these leaders also expect that all employees should fulfil their own potential.

2. 1 Hyperlink between Leadership Ideas:

The Strategic Management and Control ideas can be linked by using Mckinsey's 7-s Framework work. The McKinsey 7-s framework work model requires 7 interrelated factors which are further grouped as "hard aspect" and "soft element". Hard elements are easy to identify or specify the managements as it is related to the 'Professionals' which includes Strategy, Framework and System. Whereas Gentle elements can be recognized or thought as they are related to the 'Leaders' which include Shared prices, Skills, Style and Staff.

Strategy: It is an idea of action or a popular intend to help build a competitive advantages which also includes the way of preserving this benefit.

Structure: It is a basic hierarchy associated with an organisation which helps to understand who's responsible for what and who's suppose to answer to whom.

Systems:It includes the day to day activities and techniques of the employees who are given for job performance in the organisation.

Shared Values: These prices are considered as the center values of the organisational, mostly ethical worth.

Style: These will be the style adopted by a leader within an organisation.

Staff: These will be the customers of the organisation who are classified according with their features.

Skills: This helps in identifying the essential skills each employees own in the company for doing different tasks.

2. 2 Impact of Leadership Ideas on Organisational and Leadership Strategy:

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