managing without managers ricardo semler hbr - 1989

Semco is one of Brazils fastest growing companies

Named Best company in Brazil to work for Three Values: Democracy, profit sharing,

information Encourage experiment and conceptual

change Treats employees as “responsible adults”

Democracy and Employee Involvement

Four obstacles To Participatory Management Size Hierarchy Lack of Motivation Ignorance

• Anthony Jay’s 1950’s Corporate Man

Semco designed an organizational circle to replace the organizational pyramid

Contains 3 concentric circles

First-Counselors Second-Partners Associates and

Coordinators

Switched because of their view on organizational pyramids

Pyramids emphasize power whereas the circle promotes employee involvement

Some decisions made by company-wide votes

Example: Purchase of new factory

Treating employees as if they are adults allows workers to use common sense and in turn promotes personal responsibility

Therefore, letting them do whatever the hell they want breeds a culture of capable, accountable, and responsible employees

If you don’t appoint a leader, one will emerge

Roles FIND the person Results not status

Profit Sharing

Corporate profit sharing is today’s mammoth meat

Most successful when there is a broad program of employee participation

Information

Sharing all of the information & not holding back anything Confidential Salaries… The relevant information became

insignificant

Choosing your own: Pay Job Title Dress Code Office Decorations Work Hours

Semco is a company with a unique system

The level of employee involvement could be considered as overwhelming to many companies

Employee’s are “treated as adults”

Semco’s Three Core Values Democracy, Profit-sharing, information

http://www.freibergs.com/resources/articles/leadership/semco-insanity-that-works/