Question-1: To what extent does Semco rely on the classical school of Management?
Semco as an organization has not always been employee driven. When Mr.Ricardo Semler took over the business in 1980 from his father the company was facing severe recession in the Brazilian market and was also going towards bankruptcy. The kind of reversal of fortunes that Mr.Semler bought about the company was phenomenal. Turning it from such a bad situation to the current scenario where it is considered as a company with principles of management that are exclaimed as a major success. Semco’s success with management is not only because of the effective way it was managed but also the kind of efficiency shown by the executive team in handling the organization.
Effects of “The Classical School of Management” on Semco:
The first comprehensive definition for classical school of management was given by Mr.Henri Fayol in 1916-“Management is to forecast and plan, to organize, to command, to co-ordinate and to control”. Though there has been no direct relevance to Semco’s management theory to classical school of management, still there are few principles from the 14 principles of management that reflect in the managing strategy followed by them.
There are three main principles that reflect in the management style followed by Semco they are:
• Subordination of individual interests to the general interest - The organization’s interests should always take precedence over any employee’s general interest.
• Remuneration – Wages should be fair to both employee and employer.
• Esprit de corps – Unity and harmony are built only on promoting team spirit.
1. Subordination of individual interest to general interest:
“For the effective functioning of the organization interest of the whole employees should be taken into consideration than the interest of the individual person or small groups”( John B Miner , Organizational Behavior , 2002, pg...