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Compare and Contrast Semco to a ‘Classical Organisation’, I.E. One Which Has a Traditional Approach to Industrial Relations.

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Compare and Contrast Semco to a ‘Classical Organisation’, I.E. One Which Has a Traditional Approach to Industrial Relations.
1.0 2.0 2.1 2.2 3.0

Introduction Semco and the Classical Theory- Similarities and Differences Similarities Differences Conclusion

References

1.0 Introduction "Organisation structure is more than boxes on a chart; it is a pattern of interactions and coordination that links the technology, tasks, and human components and accomplishes its purposes’

(Alajloni et al. 2010) “The purpose of work is not to make money. The purpose of work is to make the worker, whether working stiffs or top executives, feel good about life’

(Semler 2004) The present trend in human resource management and labour relations is to place more emphasis on employee involvement, productive employer -employee relations and mechanisms, and on practices that encourages them. The era of classical organisation theories evolved early in the 19 th century. These theories were

conceived as mechanical devices to achieve organisational efficiency and are still used till date. SEMCO widely considered as the most unusual workplace in the world is the brain child of Ricardo Semler, a Brazilian manufacturer and service provider. After taking over his father’s business, Semler went on to defy the status quo of organisational structure and developed a less rigid organisational structure based on three core principles – employee participation; profit sharing and free flow of information. The essence of task one of this write-up is to attempt to understand these ingenious principles by Semler and see how it stands against the age long classical organisation highlighting its similarities, if any and the differences.

2.0 Semco and the Classical Theory- Similarities and Differences In comparing Semco to a classical organisation, it is imperative to trace the history of the classical organisation schools of thought. The industrial revolution was the period where the interest in the study of organisations peaked. The period witnessed a shift from the conventional practice of individual



References: Adam Smith (1776). An Inquiry into the Nature and Causes of the Wealth of Nations. Available at http://www2.hn.psu.edu/faculty/jmanis/adam-smith/wealth-nations.pdf. (Accessed 15th December 2012) Fred Luthans. (2002)Organisational behaviour, New Delhi ; Mcgraw hill Irwin p. 16 Handy C. (1993) Understanding Organisation (4 edition), Harmondswork Penguin books. IS BN_13 9780140156034 Henri Fayol (1949) General and Industrial Management, Translated by J.N Cambrough (Genera International) Joseph W. Weiss. (2000) Organisational Behaviour and Change, Singapore Thomas Asia p. 9 Max Weber (1947) The Theory Of Social and Organization, New York; Oxford University Press Peter A Maresco, Christopher C. York (2005) Richard Semler Creating Organizational Change through Employee Powered Leadership. (http://www.newunionism.net/library/case%20studies/SEMCO%20-%20EmployeePowered%20Leadership%20-%20Brazil%20-%202005.pdf) Accessed 31 December 2012 Ramesh Arora (1972) Comparative Public Administration; an Ecological Perspective, New Delhi Associated Publishing House p. 52 Semler R (2004) The Seven Day Weekend, Changing the Way The World Works, New York Warner books. Semler R. (1993) Maverick; the Success Story Behind the World’s Most Unusual Work Place. New York Warner Books Stephen Robbins (2002) Organisational Behaviour, New Delhi Prentice Hall Of India Private Limited p.43 Taylor F.W (1911) Scientific Management, New York Harper and Row MOW 2013 (2013) Organisational Chart, Ministry of Works. (http://intra.works.gov.bh/DirectoratesUnits/Minister/Pages/DirectorateChart.aspx), (http://intra.works.gov.bh/DirectoratesUnits/Minister/UndersecretaryPublic/AUS%20Tec hnical%20Services/Cost%20Engineering%20Directorate/Pages/DirectorateChart.aspx) Accessed 8 January 2013 th th st

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