Ricardo Semler

In: Business and Management

Submitted By humera2503
Words 576
Pages 3
Ricardo Semler and Semco

'When I took over Semco from my father, it was a traditional company in every respect with a pyramid structure and a rule for every contingency. Today our factory workers sometimes set their own production quotas and even come in their own time to meet them without prodding from management or overtime pay. They help redesign the products, the make and formulate the marketing plans. Their bosses for their part can run our business units with extraordinary freedom determining business strategy without interference from the top brass. They even set their own salaries with no strings. Then again everyone will know what they are since all financial information at Semco is openly discussed. Our workers have unlimited access to our books. To show we are serious about this, Semco with the labour unions that represent our workers developed a course to teach everyone, including messengers and cleaning people, to read balance sheets and cash flow statements. We don't have receptionists. We don't think that they are necessary. We don't have secretaries either, or personal assistants. We don't believe in cluttering the payroll with un-gratifying dead-end jobs. Everyone at Semco, even top managers, fetch guests, stand over photocopiers, send faxes, type letters and use the phone. We have stripped away the unnecessary perks and privileges that feed the ego, but hurt the balance sheet and distract everyone from the crucial corporate tasks of making, selling, billing and collecting. One sales manager sits in the reception area reading newspapers hour after hour, not even making a pretence of looking busy. Most modern managers would not tolerate it. But when a Semco pump on an oil tanker on the other side of the world fails and millions of gallons of oil are about to spill into the sea he springs into action. He knows everything there is…...

Similar Documents

Leadership Style of Ricardo Semler

...LEADERSHIP STYLE OF RICARDO SEMLER 1. Describe Ricardo Semlers leadership style. What do you think might be the advantages and drawbacks of his style? Ricardo Semler IS one of the greatest business managers of all times in the Brazilian city Sao Paulo. After joining his father in the company it was his father's believe that if his son does not work for him he will do so for someone else. But to maintain him in the company the father had to resign as the CEO and handed over the vast business to his younger son who was only 21 by then and had just graduated from Harvard Business School. Initially his father used the traditional style of management but his son was to use a more centralize leadership method. To effect this he started by firing all the top managers of the company on the day he started working as the CEO and introducing young innovative minds of whom he knew would adapt easily to his style of management. Having been introduced to run his fathers enterprises immediately after graduating from a business school he moved on to introduce great changes in the working environment and ended up having the best productive workforce. With a turn over of less that $ 4 million at his entry he led the company to an annual turnover of $ 212 million in 2003. When you treat your employees like adults they purely behave like adults and hence they become more productive and dedicate themselves to the work environment. With these changes he allowed and encouraged the employees to......

Words: 1955 - Pages: 8

Ricardo Semler

...1 Ricardo Semler The Brazilian CEO and best-selling author transformed his pump plant into a model of participative management, and launched his company on 14 straight years of double-digit growth. by Lawrence M. Fisher strategy + business issue 41 Won’t Take features the creative mind Photographs by Rogério Reis / Blackstar Control Semco Group Chief Executive Ricardo Semler at his impromptu office — a coffee shop near his company’s headquarters 2 features the creative mind Lawrence M. Fisher (fisher_larry@strategybusiness.com), a contributing editor to strategy+business, covered technology for the New York Times for 15 years and has written for dozens of other business publications. Mr. Fisher is based in San Francisco. 3 Like many chief executives, Ricardo Semler used to wonder what would happen to his company if he were hit by a truck. One night in February 2005, he found out — while driving 85 miles per hour on a highway in Brazil. Miraculously, he was still alive within the 20-inch pancake of crushed steel and shattered glass that remained of his car. Also miraculously, his company, Semco Group, of São Paulo, Brazil, carried on seamlessly during the months he spent lying in intensive care and recuperating from the multiple surgeries he needed to repair his broken neck and battered face. Numbers were met, deals were closed, and business continued pretty much as usual. Mr. Semler, 46, is the leading proponent and most tireless......

Words: 5943 - Pages: 24

Leadership Style of Ricardo Semler

...  1.) What HR problems were evident at the Denver Mint? Hostile Environment  The main HR problem at Denver Mint was the lack of employee safety especially the women group at Denver. The women were facing a hostile work environment. For one they were under constant sexual harassment from their co-workers. For example, the case of the pornographic materials stashed in the toilet. The other example is the proposition by the male supervisor to the lady who had just come from her passing leave of her late husband. It is the responsibility of every employer to make certain the safety of their workers and protecting employees from sexual environment should be one of them. Not only had Denver Mint failed to ensure the safety of its female staff but also made it worse by participating in it. For instance the case of the male supervisor propositioning the female sub-ordinate. His duty is to ensure her safety not endanger it. Longer time to act on complaints  The other HR problem is that it took Denver Mint long to act on complaints forwarded by the staff. For instance the female employee that filed a petition in 2000 with the facility’s EEO officer only had a hearing in 2003. Not only had that the ruling favoured the company. This shows not only lack of speed in acting to complaints but unfair ruling. Another HR problem is The lack of equal employment opportunities (EEO). Denver Mint favoured the male staff and any female staff that filed complaints it took longer to act......

Words: 1071 - Pages: 5

Critically Analyse the Benefits and Drawbacks to Semco of the Approach to Human Resources Utilised by Ricardo Semler.

...Ricardo Semler is one of the greatest business managers of all times in the Brazilian city Sao Paulo. After joining his father in the company it was his father's believe that if his son does not work for him he will do so for someone else. But to maintain him in the company the father had to resign as the CEO and handed over the vast business to his younger son who was only 21 by then and had just graduated from Harvard Business School. Initially his father used the traditional style of management but his son was to use a more centralize leadership method. To effect this he started by firing all the top managers of the company on the day he started working as the CEO and introducing young innovative minds of whom he knew would adapt easily to his style of management. Having been introduced to run his father’s enterprises immediately after graduating from a business school he moved on to introduce great changes in the working environment and ended up having the best productive workforce. With a turnover of less than $ 4 million at his entry he led the company to an annual turnover of $ 212 million in 2003. When you treat your employees like adults they purely behave like adults and hence they become more productive and dedicate themselves to the work environment. With these changes he allowed and encouraged the employees to evaluate themselves and their managers as well. They were also encouraged to rate themselves as to how much they should be paid and learn each other’s......

Words: 443 - Pages: 2

Business Communication

...A15-98-0024 Ricardo Semler and Semco S.A. Introduction In 1982 at the age of 24, Ricardo Semler took control of Semler & Company, a business founded and, until then, managed by his father. At that time, this Brazilian company’s organizational structure, like many historical Latin American enterprises, was a paternalistic, pyramidal hierarchy led by an autocratic leader with a rule for every contingency. Upon taking office, the younger Semler began dramatic organizational restructuring. Among other things, he immediately renamed the company Semco, eliminated all secretarial positions, and implemented an aggressive product diversification strategy. Most observers predicted that these actions would destroy the company. Semler’s changes, however, did not bring about the demise of the struggling industrial equipment manufacturer. Rather, they created a remarkably flexible organization whose sales grew from $35 million in 1990 to $100 million in 1996. Semco became one of the most sought-after employers in Brazil, manufacturing over two thousand different products, including marine pumps, commercial dishwashers, digital scanners, filters, and mixing equipment, and diversified into banking and environmental services. Over 150 Fortune 500 companies visited Semco in an attempt to discover the secret of its success. Ricardo Semler’s accomplishments were all the more remarkable when considered against the backdrop of the erratic economy that all of Brazil operated under as the......

Words: 4611 - Pages: 19

Semler

...1 Ricardo Semler The Brazilian CEO and best-selling author transformed his pump plant into a model of participative management, and launched his company on 14 straight years of double-digit growth. by Lawrence M. Fisher strategy + business issue 41 Won’t Take features the creative mind Photographs by Rogério Reis / Blackstar Control Semco Group Chief Executive Ricardo Semler at his impromptu office — a coffee shop near his company’s headquarters 2 features the creative mind Lawrence M. Fisher (fisher_larry@strategybusiness.com), a contributing editor to strategy+business, covered technology for the New York Times for 15 years and has written for dozens of other business publications. Mr. Fisher is based in San Francisco. 3 Like many chief executives, Ricardo Semler used to wonder what would happen to his company if he were hit by a truck. One night in February 2005, he found out — while driving 85 miles per hour on a highway in Brazil. Miraculously, he was still alive within the 20-inch pancake of crushed steel and shattered glass that remained of his car. Also miraculously, his company, Semco Group, of São Paulo, Brazil, carried on seamlessly during the months he spent lying in intensive care and recuperating from the multiple surgeries he needed to repair his broken neck and battered face. Numbers were met, deals were closed, and business continued pretty much as usual. Mr. Semler, 46, is the leading proponent and most tireless......

Words: 6071 - Pages: 25

2. What Challenges Might a Radically Hands-Off Leader Face? How Could Those Challenges Be Addressed?

...RADICAL LEADERSHIP I. Significant Case Facts Ricardo Semler the CEO of Semco Group of São Paolo, Brazil was not just the typical or traditional leader. He is radical; he breaks all the traditional “rules” of leading. He’s the ultimate hands-off leader; he doesn’t even have an office at the company’s headquarters. Semler’s philosophy is simple: Treat people like adult and they’ll respond like adults. Semler’s participative management approach is the belief that “organizations thrive best by entrusting employees to apply their creativity and ingenuity in service of the whole enterprise, and to make important decisions close to the flow of work, conceivably including the selection of their bosses.” And according to Semler, his approach works well. The employees have free will because there are no organizational charts, no long term plans, no corporate values statements, no dress codes, and no written rules or policy manuals. They also decide their work hours and their pay levels. The employees also select the corporate leadership and decide most of the company’s new strategic initiatives. Semler maintains his approach and has enabled Semco to survive the roller-coaster nature of Brazilian politics. Semco not just survive but also prosper. Semler says “If you look at Semco’s numbers, we’ve grown 27.5 percent a year for 14 years.” And Semler attributes that fact to flexibility…of his company and, most importantly of his......

Words: 300 - Pages: 2

David Ricardo & the Comarative and Absolute Advantage

...ECO2023 DAVID RICARDO & THE COMARATIVE AND ABSOLUTE ADVANTAGE   David Ricardo was one of those rare people who achieved both tremendous success and lasting fame. After his family disinherited him for marrying outside his Jewish faith, Ricardo made a fortune as a stockbroker and loan broker. When he died, his estate was worth more than $100 million in today’s dollars. At age twenty-seven, after reading Adam Smith’s The Wealth of Nations, Ricardo got excited about economics. He wrote his first economics article at age thirty-seven and then spent the following fourteen years—his last ones—as a professional economist. Ricardo first gained notice among economists over the “bullion controversy.” In 1809 he wrote that England’s inflation was the result of the Bank of England’s propensity to issue excess banknotes. In short, Ricardo was an early believer in the quantity theory of money, or what is known today as monetarism. In his Essay on the Influence of a Low Price of Corn on the Profits of Stock (1815), Ricardo articulated what came to be known as the law of diminishing marginal returns. One of the most famous laws of economics, it holds that as more and more resources are combined in production with a fixed resource—for example, as more labor and machinery are used on a fixed amount of land—the additions to output will diminish. Ricardo also opposed the protectionist Corn Laws, which restricted imports of wheat. In arguing for free trade, Ricardo formulated the idea of...

Words: 1159 - Pages: 5

El Tesoro de Ricardo Petaca

...importante que saber explotar en delirio, si no puede lograrse una repugnante pasta de boludeces que no solo no causaría risa sino que dejaría esa sensación de empacho o empalago que causaría el abandono seguro de la lectura, como una torta con demasiado dulce de leche. Un texto absurdo bien hecho no admite expresión de ideologías o políticas, o por lo menos no debería. El Tesoro de Ricardo Petaca no expresa y ni intenta expresar directa o indirectamente ningún tipo de ideología, política o discriminación, no da lugar a críticas públicas más que chistes cotidianos y de los acontecimientos actuales. El autor de El Tesoro de Ricardo Petaca recurrió al absurdo para poder utilizar la escritura como método de relajamiento y descarga, o sea, quería escribir sin ninguna presión ni preocupación. Esto fácilmente puede verse plasmado en el texto como por ejemplo en el completo descuidado para con los tiempos verbales, ya que puede notarse el cambio de los mismos no solo de párrafo a párrafo sino también entre las líneas de un mismo diálogo. En definitiva, si quiere tomarse a El Tesoro de Ricardo Petaca como un cuento con temática (dentro de la poca consideración que le tendría a la “temática” de un absurdo) yo diría que se trata de una especie de parodia a las clásicas historias de búsqueda del tesoro o de islas desiertas que tanto abundan en el mundo de la literatura. La historia nos ubica en algún país de Sudamérica en el año 2002 donde la sandía solía estar barata y el......

Words: 20141 - Pages: 81

David Ricardo and the Law of Comparative Advantages

...production of goods where it had an absolute advantage in terms of costs. By producing a good cheaper than everyone else and by importing others, a country could immensely gain from international trade. Although revolutionary, Smith’s theory of absolute advantages was not free from flaws. In fact if a country didn't have such advantage in producing a given good it wouldn't have access to trade, or in another words, trade wouldn't occur if country A couldn't be the most efficient in producing good B. In this context and in attempt to improve Smiths’ theory, David Ricardo a British political economist of Portuguese origin, introduced the theory of comparative advantages. In sum Ricardo argued that even if a country didn't have an absolute advantage in the production of a certain good, it would still participate in international trade by exporting the one it was relatively more efficient in producing. David Ricardo took and developed the notions brought about by Adam Smith in his 1817 book “Principles of Political Economy and Taxation” becoming even at the present day one of the most referred works in what international trade theory is concerned. Is however Ricardo’s theory of comparative advantages flawless and possible to apply to every economy and setting, or does it have limitations to its main axioms? In this essay it is aimed to test the present day validity of the aforementioned model by cross referencing it with the latest empirical findings who seem......

Words: 1813 - Pages: 8

Ricardo Case Study

...and Family Therapy Ricardo Case Study University of Oklahoma Professor Willie V. Bryan Ed.D John Smith December 8, 2015 Instruction: Read the following case study and answer the questions listed at the end of the case study. Ricardo: Ricardo is a 15 year old Hispanic male born in Mexico, now living in Houston, Texas. Ricardo moved to Brownsville, Texas with his parents, two brothers, three sisters, and two cousins and his maternal grandparents when he was four years old. When his family moved to America, they owned two pick-up trucks, a radio, television set, some household furniture, a pet dog and very few clothes. Ricardo’s father was a carpenter who was having difficulty securing work in Mexico. Likewise, his mother had less than a high school education and was a domestic worker who worked regularly but for very low wages. Ricardo is the youngest in his family which included his two cousins who were reared as his sisters. Two of his sisters had completed high school when his families moved to Brownsville, the others were still school age. His grandparents worked as they could find work to help support the family but same as his mother, the salary that they received was a minimum. Because of the age difference with his sisters and brothers, Ricardo’s best friend often was his pet dog. The family remained in Brownsville for three years, but again unable to secure adequate employment, the family except the grandparents and Ricardo and his dog......

Words: 1693 - Pages: 7

Leadership Style of Ricardo Semler

...Adejumoke Olaniyan DR Kolawole Sonaike Healthcare Leadership and Management (HCM618 -1601 -HDFSN) February 6 2016 Discussion Questions 1. Evaluate this situation from the view point of David Edmondson’s ethical leadership. What could Radio Shack have done differently? In this world some people crave money and power. To benefit these two things always, people choose the wrong paths. David Edmondson is one of them, because he cheated on his resume. David Edmondson is a fraud that means he is not an ethical leader at all. Because of Edmondson’s cheating his company RadioShack faced losses, so he didn’t do ethical leadership in his workplace. If a manager cheats, lies, steals, manipulates, take advantages of situations, or treat others unfairly that is not an ethical behavior. That is called unethical behavior. We can see lying on David Edmondson’s case, so we can say that he didn’t behave as an ethical leader. According to the text, “Ethical leadership is known as our core values and having the courage to live them in all parts of our life in service of the common good.” Before entering to a company a manager should know what is ethical leadership. If a manager doesn’t know what ethical leadership is, then he/she will never fulfill their job properly. If a manager doesn’t have knowledge about ethical leadership, then he will do unethical things in a company. Also, unethical leadership can create many problems, such as ethical......

Words: 1252 - Pages: 6

Ricardo Semler Teaching Notes

...Ricardo Semler: A Revolutionary Model of Leadership TEACHING NOTE 04/2014-5982 This teaching note was written by William W. Maddux, Associate Professor of Organisational Behaviour at INSEAD, and Roderick I. Swaab, Assistant Professor of Organisational Behaviour at INSEAD, in conjunction with Betania Tanure, Professor of Organisational Behaviour at PUC / BTA, and case writer Elin Williams, as an aid to instructors in the classroom use of the case “Ricardo Semler: A Revolutionary Model of Leadership”. Financial support from INSEAD Alumni Fund is gratefully acknowledged. Instructors can register and login at cases.insead.edu to access instructor-only material supporting INSEAD case studies (e.g., videos, handouts, spreadsheets, links). Copyright © 2014 INSEAD COPIES MAY NOT BE MADE WITHOUT PERMISSION. NO PART OF THIS PUBLICATION MAY BE COPIED, STORED, TRANSMITTED, REPRODUCED OR DISTRIBUTED IN ANY FORM OR MEDIUM WHATSOEVER WITHOUT THE PERMISSION OF THE COPYRIGHT OWNER. This complimentary copy is for the authors’ use only. Copying or posting online is a copyright infringement. The Story The case follows the story of Brazilian business leader Ricardo Semler, who took the family marine-pump business to multi-national, multi-sector success. However, this is no typical business success story. First, Semler dramatically changed his own leadership style by relinquishing control and working less hard. Next, he set about transforming Semco, the company founded......

Words: 4234 - Pages: 17

David Ricardo

...Ricardo: The Intellectual Contributor The aim of this paper is to point out how the great thinker David Ricardo continued or answered some of the unresolved questions in Adam Smith’s theories. David Ricardo started off as a stockbroker then turned to an economist. He was a man who contributed to numerous areas of economic theory, including methodology, diminishing returns, rent, theories of value, and international trade. Ricardo began studying economics around 1799 at age 28, and published his first pamphlet “The High Price of Bullion” in 1810. His book (which is also his major work) “The Principles of Political Economy and Taxation” replaced Adam Smith’s “Wealth of Nations” with regard to economic questions. When it came to political economy, Adam Smith had two ways of dealing with the questions. The first was through deductive theory, which he would use for his economic analysis. The second, he would present a well described, informative narrative of present and historical organizations. Ricardo, however, absorbed from his present economy and used the deductive method as a base to build an analysis. Thus, he represented “the pure theorist at work”. It is worthy to note that Ricardo had a firm position on the fact that “theory was a prerequisite to concrete analysis of the policy issues of the real world.” With the brief bibliography presented, and the different (yet brief) methods of each economic scholar explained, the three topics this paper will cover are the Labor...

Words: 1750 - Pages: 7

Ricardo Semler

...understood the TU Dual Award Regulations on cheating, plagiarism and collusion. We declare that this piece of work is our own and does not contain any unacknowledged work from any other sources. We authorise the University to test any work submitted by us, using text comparison software, for instances of plagiarism. We understand this will involve the University or its contractor copying our work and storing it on a database to be used in future to test work submitted by others. Note: The attachment of this statement on any electronically submitted assignments will be deemed to have the same authority as a signed statement. Signed: Signed: Signed: Signed: RICARDOSEMLER Signed: 22 Date: 1 GROUP ASSIGNMENT RICARDO SEMLER: ANALYSIS OF LEADERSHIP AT SEMCO ORGANIZATIONALBEHAVIOUR OBM60104 Dr. Shanthi Bavani RICARDOSEMLER 2 RICARDOSEMLER 2 1 (30%) Explain and differentiate the leadership contingency approaches using Fiedler’s contingency models of leadership based on your chosen leader (25%) Clearly identify and discuss on the leadership traits of your chosen leader. Criteria Key Components of this assignment 2-3-Poor Poor explanation on the leadership contingency approaches using Fiedler’s contingency models of leadership based on the chosen leader. Vague and unclear differentiation on the four different contingency approaches using Fiedler’s contingency models of......

Words: 1000 - Pages: 4