Semco’s approach to management.
Semco’s approach of management is pretty unique and is guided by three important values and concepts: employee participation, profit sharing and transparency. There is no formal organizational chart and there is only four official title and three management layers in this system. The corporate layer also called counselors is composed of five managers who apply a supervisory leadership system where all company’s strategic information is shared to employees and important decisions voted with the entire workforce. All the employees are autonomous in their work and are treated as responsible adults who would always do their best for the company as they are sharing decisions but also profits.
Employees set their own salary based on what they can bring to the system and how hard it ...view middle of the document...
Thus, every six months, employees have an opportunity to take new challenges or match their work positions with their professional or private life expectations. Best specialists are easily recognized and talented workers or new leaders would emerge by themselves. Finally, this system shows a “Total Quality Management” approach that would naturally help attracting the best talents from other companies.
Another interesting aspect of this lightly regulated management approach is the excellent work life balance provided to all employees. There are no company’s internal rules and employees can set, for instance, their working hours and vacations. Flexibility is almost unlimited for workers as soon as their work objectives are reached. The company considers that it does not worth regulating and fixing rules for the few of employees who would abuse the system. These unattractive employees would naturally change their behavior to match with the best practice of other workers or in some rare case leave the company “by themselves”.
Another very important aspect of this management approach is the absence of corporate vision. Semco’s is constantly changing adapting the short-term (6 months) strategy and goals by considering any new opportunities initiated and developed by the employees themselves. They promote internal creativity by asking anyone within the structure to analyze and propose new ideas of business developments. All the employees or the represents quickly evaluate these new concepts or businesses and if profitable a new “cell” or venture is created. Then, the initiators and other volunteered employees will run this new business in autonomous and prove within six months that this new activity is profitable. This management approach promotes creativity and innovation within the company. It also helps keeping a high level motivation for high potential workers who would always find an opportunity to explore and develop their talent.