Leadership and Management

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Introduction
This report includes information about Recardo Semler and his organization Semco. It shows link between leadership and management. It also explains different types of leadership theories and management theories. It shows link between these theories. It also includes future leadership skills required in semco. And also shows method to plan the development of leadership skills.

Answer: - 1
Ricardo Semler has situational leadership style. He is very close to Democratic leadership style. Philip (2003, p.63) describe the meaning of democratic leader “democratic leader, encourage the members of his or her group to share the decision making process and sees him or herself as a coordinator of group effort, rather than as the decision taker.” Followings are evidence to prove that Ricardo Semler is democratic leader: Semler created an environment of respect within the organisation by reducing the hierarchical structures built by previous leaders and through many unique strategies. Employees are involved in corporate decisions (such as diversifications and acquisitions). One of Semco’s basic philosophies builds on participation and involvement and encourages all staff to give opinions. Semco staff welcomes change and view change processes as healthy and positive. (Book Review of: Maverick, 2000). 1. Free Flow of Information

A saludygestion website on the Ricardo Semler and Semco S.A. states that “Semco made all of its financial data available to all employees. In fact, Semco developed a course to train employees in the interpretation of balance sheets and statements of cash flow. Profits and losses for each division were common knowledge, and everyone knew the salaries of upper managers (incidentally, their salaries were capped at ten times the average entry level salary). All meetings, including those of the Counselors, were open to all employees who wished to attend. Naturally, all who attended could command equal voting power. This free flow of information served two purposes. It gave associates the information necessary to make informed decisions, and reinforced the democratic nature of the decision-making process.” 2. Employee Participation

According to Ricardo semler (1994), there is a big room in the company where everyone from the firm has a place for discussion and to exhibit his opinion to solve any problem as well as to put the new plans. In addition, there are six counselors in the company who attempting to advice and guide the employees. Furthermore, instead of the annual budget which most of the firms around the world following it, Semco has six month budget. This in fact will motivate the managers of Semco to work earnestly as well as makes them on continual contact. '...because an annual budget tempts managers to postpone unpleasant decision to the third and fourth quarters' 3. Profit Sharing

A saludygestion website on the Ricardo Semler and Semco S.A. states that Ricardo Semler adopted a profit sharing plan; in which employee receive some percentage of the net profit of their respective division. A benefit of semco profit sharing was the use of a democratically selected committee to develop and implement the program, as well as disbursement of the profit sharing funds. 4. Self-Assessment, Reflection and Objective Feedback on Leadership Performance Twice a year, within Semco, employees evaluate leaders’ performance and attitudes using a questionnaire and discussion. This allows employees to provide honest feedback to managers about their leadership style (Hagberg Consulting Group 1998). Informally, positive and negative comments and suggestions of staff are always welcomed with leaders encouraging effective communication. (Book Review of: Maverick, 2000) 5. Rotation Through Different Developmental Assignments

Factory employees have implemented job rotation, which ensures team members understand and can perform all tasks within their team so that production is not affected under...
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