Examining the Leadership of Ricardo Semler in Semco

Leadership is the individual who has the capacity to direct others or the manner into result on other people in order to hold on distinct ends. Currently, leading is one of the most of import topics around the Earth. This in truth non merely because the thrive in any company depends on the degree ‘s of its leader and his endowment in taking the human resources, but besides because people need a leading in their life in all topographic points and at any clip, for illustration, people in any state need a organiser, any people is the procedure of promoting other people to move in punctilious ways in order to accomplish exact ends ‘ ( need a leader, any successful athletics squad necessitate a good leader, besides any pack require a leader, and so on. ‘Leadership ‘ Hannagan, T 2002 pg.37 ) .


  1. Semco, a successful Brazilian industry which specializes in Marine and food-service equipment. This company was established in 1952 by Antonio Curt Semler. In 1980 Ricardo semler took over the company he implemented a batch of alterations. As an impact SEMCO started bring forthing mixture of chemical, pharmaceutical and excavation industries it was the first measure of alteration made by Ricardo semler.
  2. During the approaching old ages SEMCO manufactured industrial infrigidation equipment, air -conditioning systems, nutrient processors.Later in 1984 SEMCO purchased subordinates and foreign companies which departed from Brazil such as Hobart.ion
  3. In 1990 when globalisation started it moved into advanced countries and they found spouse ‘s in international market. Thus ERM Brazil an environmental consulting bureau was started.
  4. In the new Y2K epoch at 2001 SEMCO manutencao volante is created and they provided electrical and civil care in Brazil. The company besides responsible for nomadic care services all over the state.
  5. In 2006 semco created Bioenergy undertaking which subsequently raised as BRENCO ( Brazilian renewable energy company ) .
  6. In 2007 they made Tarpon investimentos to name their portions on the Luxembourg stock market and on Bovespa. So, they are the first to plus directors in Brazil to originate the capital ‘s market.
  7. ( hypertext transfer protocol: //www.semco.com.br/en/content.asp? content=1 & A ; content Id=610 accessed 17 October 2010 ) .


Management and leading are the two critical things of an organisation.

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Leadership and Management are two typical and complementary systems of action. Each has its ain map and characteristic activities. Both are necessary for success in an progressively complex and volatile concern environment, strong leading with weak direction is no better, and is sometimes really worse, than the contrary. The existent challenge is to unite strong leading and strong direction and usage to equilibrate each other ” – JOHN KOTTER, MANAGEMENT/LEADERSHIP AUTHOR AND PROFESSOR OF ORGANIZATIONAL BEHAVIOUR, HARVARD BUSINESS SCHOOL.

When Ricardo Semler became CEO of semler he implemented a batch of alterations in his organisation. SEMCO ‘s direction manner is likely said to be employee empowered.

When sing about leading manner Ricardo semler follows ‘ Democratic manner leading in his organisation.

The democratic leader welcomes team input and facilitates group treatment and determination devising. This leading manner helps others and offers multiple thoughts towards the organisation. This sort of leading encourages the other members to work freely to transport out and complete their undertakings.

At SEMCO workers set their ain production undertakings. Employees decide among themselves about work clip, work environments. They even formulate new selling programs. Directors run their units with batch of freedom from the top direction. Each unit in the company repair their ain salary construction. All meetings and fiscal information are discussed openly and freely like Chinese parliament. In SEMCO workers and directors works together to do determinations. There are no personal secretaries or helpers. Every one in the organisation is responsible for their units.

As an impact Ricardo semler throw out all the regulations. He reduced the beds of direction from 12 to 3 and reduced the corporate staff by 75 % .There are no regulations and no audits. The full budget system has been issued to all. He stopped the bossy type of direction that reduced productiveness.

SEMCO does non utilize a formal organisation chart it is perfectly necessary to chalk out the construction of the company they ever do it in pencil and dispense with it every bit shortly as possible ( THE SEMCO SURVIVAL MANUAL ” ) . The basic criterion text definition of self-sufficing squads defines them as ” groups empowered to do certain alterations in their work procedures ” ( Stevenson, 2004, p.301 ) . The recent literature of SEMCO made the other work groups promoting by following this manner. About 50 % of the luck 1000 companies report utilizing such work manner. At SEMCO the work squad illustrates scheduling, undertakings and methodological analysiss, engaging and developing procedure. There besides been “ quality of work life done ” it supports the workers to get the better of the toughest undertakings.

( www.thirdway.org/files/articles/empwrkpl.html ) ( Accessed 17th October 2010 ) .

An of import portion of SEMCO ‘s success is the investing of worker ‘s energy through Research and Development procedure. Thus it provides to actuate the employees to make their on traveling undertakings so, that they can be able to accomplish high in their future undertakings.

Therefore democratic manner of leading creates a common relationship between the director ‘s and worker ‘s it makes a immense impact on directors about their workers ability and mentality.so, it creates existent life theoretical accounts in concern organisation.

When people are appointed or given publicity others in the organisation have the chance to interview them before doing any determination.

SEMCO has flexible work clip. Each work at different velocity at different timings so SEMCO do its best to full fill its employee ‘s demands.

When sing occupation security any one in SEMCO for the past three old ages who attained the age of 50 will hold particular protection and he can be removed after many blessings.

( hypertext transfer protocol: //www.newunionism.net/library/case % 20studies/SEMCO % 20- % 20Employee-Powered % 20Leadership % 20- % 20Brazil % 20- % 202005.pdf, accessed 19th October 2010 ) .



This moves beyond the place specifying the leader, to looking at the ability of the leader to act upon others-both those who could see themselves followings, and those outside the circle. Indirectly, it besides builds in leading character, since without keeping unity and trustiness, the capableness to act upon will vanish ( JOHN C MAXWELL ) .


Management is the procedure of working with and other to effectivrly achieves organisational aims by expeditiously utilizing limited resources in altering environment ” ( sisk ) .

Henry fayol a Gallic applied scientist published  THE PRINCIPLES OF SCIENTIFIC MANAGEMENT ” In the United States Of America in 1911 which synthesized assorted rules of organisation and direction. Fayol ‘s five maps are still relevant to discourse today they are forecast, be aftering, form, bid, co-ordinate and control.

( hypertext transfer protocol: //www.bola.biz/competence/fayol.html accessed 24 October 27, 2010 )

FREDERICK WINSLOW TAYLOR defined a system called scientific direction which described the application of scientific method in direction which could better productiveness in a huge mode. He insisted the undermentioned rules in scientific direction,

Replace the pollex work methods with scientific instance survey work.

Select and develop the workers in a scientific manner.

Guarantee the workers that the whole organisation is following the scientific methods.

Division of work between director ‘s and worker ‘s are indispensable so that directors ‘ can use scientific direction rules and workers can execute it.

Harmonizing to Peter Drucker Managers should avoid activity trap by investing themselves in all activities alternatively of that they should actively take part in strategic planning procedure in order to better them for future programs. Another construct of direction by aim was that directors should implement a scope of public presentation assessment. In fact direction by aims can therefore be seen as a replacement of value based direction.

  1. Explicit clip period
  2. Performance rating
  3. Feedback
  4. Specific aims
  5. Decision devising

( hypertext transfer protocol: //www.12manage, com/methods_smart_management_by-objectives.html entrees 24 October, 2010 )

Henry Fayol 1916

Fw Taylor 1881

Peter Drucker 1954

















  1. Contingency theory explains that group public presentation is a consequence of interaction between two factors such as leading manners and state of affairs favorableness. In Fiedler ‘s theoretical account of eventuality theory leading effectivity is the consequence of interaction between the leading manner and character of environment where the leader works. ( Fiedler )
  2. Eventuality theories in leading besides identify the interaction between leading manner and situational variables. It shows the size of the organisation and helps to follow them to the environment where they work. Contingency theory helps to cognize the importance of design an organisation and besides shows to suit themselves in the environment.
  3. New engineering should be used
  4. The directors should hold an premise about their employees
  5. It shows how the organisation steadfastly adapts themselves in the environment
  6. Contingency theory shows the importance of determination credence and quality
  7. The leaders ability to take is contingent upon assorted situational factors which includes the leader ‘s expressed on the job manner, the capablenesss and behavior ‘s of follower ‘s and besides the assorted situational factors
  8. ( hypertext transfer protocol: //changingminds.org/disciplines/leadership/theories/contingency_theory.htm accessed 24 October 2010 )
  9. ( hypertext transfer protocol: //www.12manage.com/methods_contingency_theory.html accessed 24 October 2020 )


Leadership theories focused on the qualities renowned between the leaders and their followings, while resulting theories looked at other variables such as situational factors and proficiency degrees. Whilst tonss of other theories have emerged about everyone can be classified of eight chief theories,

“ Great MAN ” Theory:

Great adult male theories believe that the power for leading is inherent-that great influential leaders are natural non made. These theories frequently depict great leaders as dandy, mythic and intended to lift to leading when needed. The word “ Great Man ” was used because, at the minute, leading was thought of chiefly as a male distinction, peculiarly in footings of military headship.

Behavioral Theory:

Behavioral theories of leading are based upon the strong belief that expansive leaders are made, non born. Ingrained in behaviorism, this leading theory focuses on the behavior of leaders non on psychological virtues or interior provinces. Harmonizing to this theory, persons can be taught to bechance leaders through instruction and examination.

( hypertext transfer protocol: //psychology.about.com/od/leadership/p/leadtheories.htm accessed 24 October 2010)


Transactional leading is based on eventuality, in that wages or penalty is deputation upon public presentation. The transactional leader works through making limpid constructions whereby it is clear what is necessity of their subsidiaries, and the wages that they get for subsequent mission. While transformational leading has more of a ‘business ‘ manner, transactional leading, one time the bond is in topographic point, takes a powerful manner.

( hypertext transfer protocol: //changingminds.org/disciplines/leadership/styles/transactional_leadership.htm accessed 24 Octoberv2010 )

Transformational leading:

Transformational leading is the manner to acquire things done by shooting passion and energy. It starts with the advancement of a thought, a mentality of the outlooks that will enthuse and accommodate likely followings. Transformational leaders besides lean to see the large representation, but non the inside informations, where the monster frequently lurks. Working for a transformational leader can be a fantastic and uplifting experience. They put enthusiasm and energy into everything ; they care about the organisation and progress to make good.

( hypertext transfer protocol: //changingminds.org/disciplines/leadership/styles/transformational_leadership.htm accessed 24 October 2010 )

Emotional intelligence is a alone quality to command, buttocks and place the passion of one ‘s ain ego, one ‘s group and of others related to him. There is a wide kind of difference in the significance of EI. No ordinary set of account has been reached as to how this phrase should be used. Within all these differences, this term of office is widely used and applied in diverse Fieldss. The initial beginning of this phenomenon can be traced back to Darwin ‘s book on the significance of emotions for endurance.

These full hypotheses affect the executive and leading scheme in different ways. Every theory is in footings of its execution and effects. As discussed above, transformational theory provides the concern with a reproduction in the leader to whom all the individuals of the company look up as a loom of strength and motive. Whereas, the transactional leaders affect an organisation by puting out the nonsubjective by following a certain policy. While eventuality theory provides an organisation with a leader who can either be occupation oriented or rapport tilting, depending on the state of affairs. Therefore doing the method deprived on the demand. On the other manus, a magnetic leader leads the organisation by illustration.


Harmonizing to Theodor Roosevelt  Peoples ask the difference between a leader and foreman. The leader works in the unfastened and the foreman in covert. The leader leads and the foreman thrust ”

( hypertext transfer protocol: //books.google.co.uk/books? id=C3ORVrTOjcgC & A ; printsec=frontcover & A ; dq=leadership++quotes & A ; hl=en & A ; ei=SYLFTI76DIKEOu-I5ZUM & A ; sa=X & A ; oi=book_result & A ; ct=result & A ; resnum=2 & A ; ved=0isCDgQ6AEwAQ # v=onepage & A ; q & A ; f=false, accessed 25 October 2010 ) .

As per the above definition a leader is like a captain of a ship, he should ever take the forepart and remainder of his companions should co-operate with him. Therefore, leading needs a batch of demands and forbearance to better his administration. In instance of SEMCO, Ricardo Semler follows democratic manner of leading and therefore it needs some specific demands manage it?

To transport out a company ‘s leading demand STEEPLE ANALYSIS is done.

STEEPLE Analysis:

All concerns maps in a dynamic environment. STEEPLE analysis is a technique used to place the alterations and demands in a concern administration that may consequences in new chances and alterations. It besides helps to rectify the menaces and overcomes the factors such as Social, Technological, Economical, Environmental, Political, Legal, and Ethical.


Social factor trades with tendencies such as occupation security, income distribution, work life balance and other demographic factors. When sing SEMCO Ricardo semler made his environment altering twenty-four hours by twenty-four hours some may believe this may non guarantee occupation security but he has chances to all workers from top brass to take down direction and employees ca n’t disregard without proper processs. Thus it makes every worker to make their work unfeignedly. Therefore every worker knows the importance of their work and makes a solution for other demographic factors this includes Ricardo semler excessively.


On the footings of engineering when Semler took the direction from his male parent he saw a deficiency of engineering spread between the professionals and the concern. As a leader Semler must cognize the importance of communicating and networking but it is non indispensable to cognize all the technological footings. So adding intelligence to communications allowed the concern networking widened all over the universe. So Semler added rich media conferencing and incorporate communicating such as CISCO to take a new concern attack therefore it helped Semler to take the technological crisis.

( hypertext transfer protocol: //www.ngoilgas.com/article/Technology-briefing-ndash-The-Semco-Intelligent — Information-Network/ accessed 23 October 2010 )


In a administration the leader every bit good as the directors should able to carry through the economical factors such as planetary economic system, rising prices, unemployment. During the 1990s some limitations on liquidness were laid down by the Brazilian president Fernando Collor de Mello to confront the hyperinflation of Brazil due to this policy Brazil ‘s economic system gone down coercing many company to shutdown. To confront this state of affairs Semler decided for pay cuts as of his leading manner SEMCO ‘S workers agreed for this determination this provided SEMCO to increase the portion net incomes by 39 % and all the employees had the right to O.K. outgo. Due to this sort of manner as of 2003 he got one-year gross of $ 212 million from $ 4 million in 1982 and $ 35 million in 1994 therefore it got an one-year growing rate of 40 % per twelvemonth.

( hypertext transfer protocol: //www.semco.com.br/en/content.asp? content=1 & A ; contentID=610 accesses 23 October 2010 )


BRENCO ( Brazilian renewable energy company ) was one of the companies of SEMCO which produced ethyl alcohol from sugar cane on a big graduated table which took portion in bring forthing bio-fuels. By bring forthing bio-fuels SEMCO helps themselves for planetary heating so there is no possibility of environmental jeopardies in SEMCO in instance of any environmental hazard Semler founded Environmental resource direction all over the universe with 3000 employers in 120 offices in 40 different states to manage environmental audits, sustainable development, waste direction, corporate societal duty, rectification of contaminated countries, air and noise quality and wellness and safety.

( hypertext transfer protocol: //www.semco.com.br/en/content.asp? content=1 & A ; contentID=562,

hypertext transfer protocol: //www.semco.com.br/en/content.asp? content=7 & A ; contentID=616 accessed 23 October 2010 )


Ricardo Semler formulated a survival manual for SEMCO so that it helped his workers to get the better of the political, demographical factors and trade unionism. As of to the survival manual SEMCO does non let political relations inside the company or among the workers it besides does non let any favoritism activities based on coloring material, faith, political relations etc.. Furthermore Brazil has a unsmooth economic system and political relations but semler do n’t let any political activities inside or outside the company. But SEMCO itself coincide with Brazil ‘s political system.


  1. Every administration they will hold some legal facets such as regulations and ordinances, corporate administration, conformity. The following are the some of the legal facets of SEMCO they are,
  2. Equality between short term and long term net income
  3. The administration ensures safe working conditions in order to protect workers and the environment
  4. Employee authorization is purely conducted.
  5. No tolerance to dishonesty
  6. No frock codifications, ordinances on travel
  7. Rules thwart invention
  8. Matter-of-fact lessons for directors
  9. ( hypertext transfer protocol: //www.scribd.com/doc/19128972/Maverick-Book-Review accessed on 23 October 2010 )


SEMCO is an utmost illustration of ethical concern that shows an epitome good paradigm for a new organisational construction. When workers are satisfied they perform better those consequences in high net incomes for the whole company. SEMCO has proved that it is non a theoretical hypothesis. Thus it can work in the commercial universe with right ends and acquire settled.

( hypertext transfer protocol: //wedreambusiness.org/index.php? id=196 accessed 23 October 2010 ) .


  1. “ Strategic direction is an on-going procedure that evaluates and controls the industries in which the company is involved ; assesses it rivals and sets ends and schemes to run into all bing and possible rivals: and so reassesses each scheme yearly or quarterly that is on a regular basis to find how it has been implemented and whether it has succeeded or needs replacing by a new scheme to run into changed fortunes, new engineering, new rivals, a new economic environment, or a new societal, fiscal or political environment ” ( Lamb, 1984 ) . Relaxed attitude is a cardinal factor in SEMCO. Since it follows an active direction in the company every member of staff can take portion in any personal businesss of the company. Consequently this system helps to work the new employees without preparation. There are no occupation rubrics and personal helpers. Since the company is following and free manner working conditions it is different from other companies due to its manner. In SEMCO both directors and workers have the same duty and they express their ideas wheresoever required. Therefore this bearing branch to the company. Incase SEMCO had common organisational construction so it may take the company to tragic terminal. So democratic type of leading made Semler to waies of glorification “ The wellness of democratic society may be measured by the quality of maps performed by private citizens- Alexis de Tocqueville ”
  2. ( hypertext transfer protocol: //www.brainyquote.com/quotes/keywords/democratic.html accessed 25 October 2010 )
  3. The methods of developing leading accomplishments have their ain effect. They can put to death good in diverse state of affairss. Most of the concern organisation works in formal steps while SEMCO works in ego styled leading therefore this method sounds stronger after an aerial position of SEMCO instance survey. Its insouciant on the job manner let the novices easy out of force per unit area to work in such environment.


After this comprehensive treatment about the development of strategic and leading manners, we can calculate out that the preferable nonsubjective by different methods, theories and manners. Semler himself introduced himself as a Rebel in industry by following parlous methods of direction. But all of his employees worked good for him, he gave chances to all his workers to be leaders of their ain house. But after the drawn-out analysis of the instance survey of SEMCO, We can province that the manner adopted by Semler one of the best originative manners of direction. Thus it creates confidence among employees and boosts them to work with more strength and passion towards the accomplishment of mark.

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