Leadership Skills Analysis Essay Example
Leadership Skills Analysis Essay Example

Leadership Skills Analysis Essay Example

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  • Pages: 4 (848 words)
  • Published: July 14, 2016
  • Type: Analysis
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SEMCO, a company founded in 1912 by Antonio Semler for producing centrifuges, experienced a significant change in leadership when Ricardo Semler took over as CEO in 1980. Feeling overwhelmed by the dire situation of the company, Ricardo aimed to end the autocratic leadership style practiced by his father during his time as CEO.

Ricardo Semler made significant changes upon joining SEMCO, including firing most managers, getting rid of job titles, and giving employees the power to determine their own salaries. He worked tirelessly to revive the company, often putting in late hours at the office to ensure progress. However, it wasn't until he suffered a collapse during a business trip to the US that he understood the necessity for transforming his company's operations. The following figure provides a comparison between Ricardo's and his father's leadership approaches.

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Over time, SEMCO implemented significant changes, granting every employee the freedom to express themselves and encouraging them to propose positive changes for the organization. Ricardo Semler acknowledges that initially, he embraced a style of corporate oppression but later focused on fostering flexibility and innovation within the company. In an interview with Charles Handy on BBC World Service, Semler emphasizes the importance of giving people the freedom to pursue their own interests, predicting that this approach will ultimately lead to more successes than failures.

The text states that Semler adopted a democratic leadership style while also incorporating elements of capitalism, individualism, socialism, and participative leadership. Semler believed in giving corporate profits to employees and introduced a radical form of industrial democracy and unorthodox business approach. Despite this, Semler is considered one of the most successful businessmen in

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the world. The figure below illustrates the impact of Semler's leadership style on SEMCO.

At SEMCO, all employees are treated equally without any preferential treatment. Every person is given the opportunity to contribute to corporate decision-making. The company's shifts in leadership and management approach have motivated employees to be more productive and invested in the organization, leading to consistent profit growth. Thanks to its distinctive style, SEMCO has reached its peak performance.

Ricardo Semler has implemented two types of leadership styles: Democratic leadership and Laissez-Faire.

The success of SEMCO is largely attributed to the hands-free leadership style of Ricardo Semler. This type of leadership can face more challenges if things go wrong, resulting in a stagnation of production. However, a hands-free leadership approach allows employees to work independently and improve their tasks in their own way. Semler gave his employees the opportunity to participate in the decision-making process, which aligns with democratic leadership theory. The figure below illustrates two models of theory applicable within SEMCO: transformational and contingent leadership theory. These models are important in understanding the SEMCO case study.

The leadership models applicable to SEMCO are the Transformational theory and contingency theory. Ricardo Semler, the leader of SEMCO, encouraged his employees to participate in business decisions and provided them with opportunities for career development. He empowered his followers to have self-belief, resulting in increased efficiency and productivity. Semler also implemented contingency theory by adapting his leadership style based on the situation. In his book Maverick, he mentioned reorganizing himself before reorganizing the organization. These theories can be applied to the working units within SEMCO. For instance, teamwork and mutual encouragement

are promoted among colleagues to achieve their tasks successfully.

SEMCO utilizes different leadership styles, including lassiez faire, that grant employees the liberty to make decisions, set their own salaries, and determine profits, among other aspects.

Prior to starting a leadership development program, it is essential for globally operating organizations to establish clear objectives. Formerly, the notion was that leaders were born and individuals who lacked natural inclination towards leadership had limited chances of becoming one. However, this viewpoint has changed in recent times. Currently, it is recognized that with hard work, honesty, dedication, and persistence, anyone can achieve leadership by putting in the necessary effort. SEMCO does not provide specific training methods for its employees.

The book Seven Day Weekend mentions that SEMCO lacks HRM, resulting in a lack of training methods for employees. This raises the question about the type of training employees receive without HRM. The answer is that at SEMCO, employees evaluate their own performance and decide if they need any training based on this assessment. Specifically, there is no specific guidance or training offered to employees at SEMCO.

Situational based theory can be applied to SEMCO as each employee is assigned different tasks or situations to handle. These tasks help them enhance their leadership qualities. 360 degree training is also applicable to SEMCO as all workers are updated on their performance and receive bonuses accordingly. This feedback helps employees develop their personalities professionally. The working environment at SEMCO is highly competitive, with ongoing competition among employees.

To succeed in this competition, employees must possess the intelligence to handle various situations. At SEMCO, every employee should exhibit

leadership qualities to enhance their professional growth, as the company has a shared objective of improving performance to meet their goals. The following figure illustrates the necessary qualities for employees at SEMCO.

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