SEMCO BRAZIL - MANAGING WITHOUT MANAGERS

SEMCO BRAZIL: MANAGING WITHOUT MAANGERS

This was a classic case to start off my MBA. Quite unlike the regular workplace where a supervisor – employee relationship is followed, SEMCO’s first reading had taken me by surprise. I was not ready to believe for a case fact until I further read it. I guess, the class also took it for a surprise as it took some time for the class to start discussion.

Semco’s three values democracy, profit sharing and information sharing lead the organization achieve high growth with profitability. Semco began as small family firm in lube business in 1954 by Mr. Antonio Curt Semler. Semco is now one of the Brazils fastest growing companies with a profit margin of 10% on sales of $37million. It is became the largest supplier to the ship building industry.

At 27, Mr Smeler son of Mr. Antonio Curt Semler joined the company as per the pre agreed norm of freedom in the workplace.

The following were the changes introduced by him:

Pyramides and Circles

It primarily meant to cut down the all the walls between the employees and higher management. It consisted of central circle of five people who integrate the company’s movement. The second inner circle heads of eight divisions – called partners. Third the circle which consisted of the largest number of people who worked on the shop floor known as associates.

The idea was to create as a human bonding among the people and workers. Smeler wanted to make a organization which will have more employee involvement.

Semco did not hire people until they have been interviewed and accepted by all the subordinates, which was a direct derivative of employee involvement. SEMCO also contemplated to move in to the new factory however the factory workers had a different idea of moving in to a new place which unanimously they agreed. Though, the management was not in its favor but since the associates were keen for this place hence the partners and people in the first circle agreed on it.

All these practices lead to revenue increment from $14200 in 1984 to $37500 to 1988 and finally to $50000 in 1989.

Hiring Adults

The company believed that no workplace can have harmony if its employees are not happy. To embark on this Mr Semler removed all the rules and norms. He believed that people would work out of their responsibility and sense.

The company did not have a dress code so the further leveraging on the democracy and letting people choose their own freedom. The company has done away with physical searches, storeroom padlocks and audits of the petty cash employee. The idea was simple, that they did not want to humiliate the major set of people because one out of it was guilty.

Hunting the wooly mammoth:

The idea was to create a natural leader. They left 10 people in a group and did not appoint any leader, the person who had natural leadership qualities came out as the leader. This reduced all the friction that people had in them.

Profit sharing was another big pie that led to the improvement of the performance. Twice a year Semco calculated 23% of the after tax and gave it to the different divisions for their sharing. The workers shared the money among them and the management ( though there did not exist one) had a role in it.

Transparency

Semco maintained the highest level of transparency that is the let the workers ask as many questions and let them do it and ask about the future expansion plans. This had let the company to achieve the desired of transparency. The employees could decide their own payrolls and there was no secrecy in it. They could also plan their travel and travel expenses which suits them.

All of it, famed Semco in the international market. It drew people across the globe so that people can learn from its success. It included the US president of Allis Chambers and he was surprised by the efficiency.

Semco, belived that:

“Participation gives people control of their work, profit sharing gives them reason to do it better, information tells them whats working and what isn’t it.

Letting people do whatever they want post their job was done was another major attraction of Semco. It gave the employees greater level of freedom. All this did not mean, Semco compromised on numbers rather they were strict on the business.

Infosys Vs Google

Class Discussion on Google and Infosys:

This was another activity which we undertook in the class which I feel was another learning of how people look at different facts in a very different way.

I was Infosys team and was very upbeat about the fact that the company treats the human resources as assets in the balance sheet. Infosys treats their employees well with all the amenities that would make feel happy in the work environment. They have the best training facilities in the Asia. They have the biggest display screen in the Asia for the training purposes. Their facilities are built with in house residential apportments for the employees and all other amenities that are required for a hassle free work life. While they choose their employees through a high grade selection process in India however in US they select on a different selection pattern. They develop their resources in such a way that they become assets of the company. Infosys treats their employees well which is evident from the fact that they have got the least attrition in the industry.

Google on the other hand would play on its brand name and fat pay packages. Though a big conglomerate, I personally feel it’s just another IT company that does not have any special treatment for its employees. If I have to look at pay packages then I have other companies as well and not necessarily at Google as an option.

However, as mentioned above I was very excited about the fact that employees are treated as assets in the balance sheet however many in class a different view on this. They felt treating employees as assets demeans their human values. They are treated as just like any other building or cash assets in the balance and some said they would have felt insulted.

This was learning in a way that I could have never thought in this perspective but as they say “ different folks , different strokes

Billy Bonzai

Billy Bonzai
The case was all about a person, who pursued hobbies along with his work. He was an employee of local telephone exchange. He has been working in this organization for the last 22 years and made it from rags to riches.
Billy was in a collection department of the exchange and used to handle the various capacities since beginning of career. He used to prepare bills for the subscribers and issue the reconnection for the same based on their payments. Billy also had a hobby of creating a bonsai and bekisar as a sideline business.
We undertook an activity in the class based on the hobbies pursued a discussion based on it. We involved the various groups in it and participated in the discussion. I moderated the class as I was representative of my can group.
We came across very interesting insights about the hobbies in the workplace. Few said that the they pursue their hobbies as a leisure activity to break the stress and few said that they undertake it as a part of the work.
I remember Rahul said that he undertakes the yoga in the weekend to release the stress from the week. He also, said if he does not undertake the yoga then he does not feel over the course of the following week.
Ullas, pursues dancing and Crissa practices dancing on the weekends. This is a must for them and feel happier and much more energized if they are able to pursue it. The work pressure of the college generally does not allow them to undertake the hobbies over the week however they do so in the weekend.
I feel that the general consensus in class was that people love to pursue their hobbies provided they have the peace of mind. In the current life style many of us do not get the time to pursue our hobbies however if we do so then it fill’s us with that extra happiness.