Managing People

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In this assignment, firstly we are going to discuss the concept of classical school of management, Motivation Theory and Theory of Empowerment. Secondly, we will be interpreting the relevance of Semco with the above given management issues. Finally, there will be a critical evaluation in context of a company with the same philosophy of Semco. All issues will be supported with the relevant references.

To study about Managing people has a very critical role, as it tells regarding the modern problems faced by managers in managing people, organization and involving change theoretically and practically. It also involves the better understanding of relations between the manager and employees; moreover it also details the complexities of human behaviour which is very important in terms of managing diversity and to get better organisational performance and effectiveness (Mullins L.J, 2007).

Mullins L.J, 2007 also adds that the shifting nature of modern organizations has significantly increased the need of new management philosophy, where level of trust and teamwork is promoted and employees are seen as a responsible resource. This new concept also focuses on continuous learning and personal career development. However, despite the emergence of new moral contract Furnham and Taylor (Mullins L.J, 2007) has stated that majority of the employees are patently violated by their employers.

That is why; there is a serious need to learn from the successful models of managing people of the companies like Semco and Best Buy to be able to understand the underlying theory and practical applicability, which will make us better managers in future:


The classical school of Management: To find out the “one best way” to perform and manage tasks the classical management theory developed. The classical scientific branch arose because of the need to improve efficiency and increase productivity .The classical scientific school owes its roots to several major contributors, including Frederick Taylor, Henry Gantt, and Frank and Lillian Gilbreth. The theorists of Classical management thought there was one way to solve problems of management in the industrial organization. Generally, their theories assumed that people could make rational and logical decisions while trying to maximize personal gains from their work situations.

The classical school of management is based on scientific management which has its roots in Henri Fayol's work in France and the ideas of German sociologist Max Weber. Henri Fayol is known as the father of modern management. He developed 14 principles of management based on his management experiences. These principles provide modern-day managers with general guidelines on how a supervisor should organize his/her department and manage his/her staff. Although later research has created controversy over many of the following principles, these principles are still widely used in management theories. (Lucey.T, 1991)

About Semco:

Ricardo Semler is the CEO of Semco, a Brazilian company. When he started, SEMCO was a traditionally structured and struggling industrial pump manufacturer. Young Semler proceeded to fire most of the top managers in an effort to perform emergency surgery on the foundering company. As Semco grew, Semler gradually made innovations, such as doing away with dress codes, introducing flex time, and encouraging employees to take more ownership of their work. These are all areas that many companies have experimented with over the last fifteen years. In Semco the system is transformed into a self regulating system in which only the stuff important to the future of the business (as opposed to future of an individual bent on covering his/her tracks) was retained. Everyone takes on a responsibility for determining what gets stored and what gets thrown away (Mann, 2003).

Evaluation of Semco’s Reliance:...
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