Strategic Management Leadership in Corporations Essay Example

crisis. Little did anyone know that these dismissals were just the initial step in a transformation that would make Semco internationally renowned.

Once one employee's wife fell ill and he was unable to perform his job, leading the system to remove him from Semco.

Semler's Democratic Approach:

Semler's approach also appears to be democratic. In Semco, he places trust in his employees and encourages them to make decisions that are best for themselves and for Semco. He even entrusts his own house to his staff, allowing them the freedom to make decisions and determine the best advancement for Semco. This is evident as approximately 3000 employees at Semco are able to set their own working hours and wages. Furthermore, junior employees have the authority to hire and evaluate their seniors, managers, or supervisors.

Tired workers are allowed to take afternoon naps. Employees who work on Saturday evenings are given the option to take Monday as a vacation day. The company does not have organization charts, 5-year plans, corporate values statements, dress codes, written regulations, office uniforms, or policy statements. There are also no survival manuals. Semler believes that giving control of the company to the workers is the only way for him to have free time to focus on building relationships with clients, government entities, and other necessary connections to grow the company. By completely relinquishing control of internal matters, Semler is able to concentrate on sales and positioning.

Semco; Semler, afterwardsa

Semler's approach to management has transformed the structure of Semco, shifting it from an autocratic era to a democratic one. The entire construction of the company has been altered based on his belief in self-governance and small hierarchies. He

has eliminated security checks and dress codes.

In his interview with CNN in June 2004, he emphasized the importance of allowing people to do things their own way. He believed that by restricting their freedom, we would never know their true potential and they would simply adhere to our rigid school rules. He also believed that working fewer hours with good results was better than working long hours with no productive outcome for the company. At Semco, all employees participate in the decision-making process in a democratic manner. He saw Semco as a big family where every worker should be involved in making decisions. In this company, there are no receptionists, secretaries, or personal assistants. All employees, including Semler, handle their own guests, make copies, draft and send their own correspondence. Private offices do not exist, allowing workers to set their own hours and dress code based on their preferences. Job titles hold little formal status as all employees are encouraged to question and criticize their peers and managers.

Semco has undergone significant changes in its direction and corporate staff. The company's direction has been reduced from 112% to 3%, and corporate staff has been reduced by more than 75%. In addition to workers having brotherhoods, they now also have the ability to hire and fire their fellow workers. Furthermore, these workers are now responsible for evaluating the performance of their foremans. This Infect Democratic Style has completely transformed the way Semco operates in all aspects.

Semco's long-term strategy under Semler's leadership:

Semler has completely revolutionized the structure of Semco in every aspect. This is primarily due to the implementation of a Democratic style within the company. As a

result, Semco is no longer solely focused on hydraulic pumps but has expanded its operations to include partnerships, joint ventures, and alliances in the global market.

Semco's growth over the past six years has been remarkable, thanks to Semler's significant decisions. The company's revenue increased from $35 million to $160 million. This success has led to various accolades, such as being named Business Leader of the Year in 1990 and 1992. Semler's efforts have focused on dismantling the oppressive and unproductive dictatorship-like management style at Semco and empowering employees to be autonomous and self-managing. Consequently, many workers have taken on multiple roles and responsibilities within the company.

The Democratic manner has propelled Semco to its highest level with respect, honor, and an extraordinary and satisfied workforce. In fact, Semco, Semler, and the democratic manner have changed the lives of Semco employees, and the future of Semco is evergreen.

Different theories of Leadership and Management Styles:

Everyone has an opinion on what makes a manager a good leader. There are many theories and articles that have developed into different types of leadership. According to management perspective, each involves getting things done through people, taking into account the environment and culture. Some methods work better than others. Leadership and management can be seen as having similar qualities. However, some argue that leadership is about standing out, while management is more bureaucratic in nature. Sometimes we come across theories that suggest leadership is not management and a manager is not necessarily a leader. However, they both hold positions of bureaucratic authority.

Link between Strategic Management and Leadership Theories:

Kotter (1990) argued that leadership and management are two distinct

and complementary systems, each with its own function and characteristic activities. Both are necessary for the direction of complex organizations.According to Kotter, management involves planning, controlling, and implementing structures and systems, while leadership focuses on predicting and managing change and embracing a visionary approach.

According to Fayol and Drucker, there are similar principles that directors can utilize for successful leadership and management in an organization.

Fayol's theory emphasizes the importance of effective leadership in order to promote dependability and fairness among employees. He believes that leaders should demonstrate reflection, justice, and consistency in their approach. Similarly, Drucker's theory focuses on treating employees with respect and care. Both theories highlight the significance of the leader's role in achieving successful management.
Drucker also suggests that incentives and rewards can be used to motivate employees and maintain a high level of performance. He advises directors to constantly evaluate and support their employees to ensure that they meet their targets. These strategies are powerful tools for effective management.

Leadership Traits Theory & Contingency Theory:

The leadership traits theory suggests that specific qualities and abilities enhance the chances of individuals becoming effective leaders. These theories revolve around leaders' personality and behavioral traits, including adaptability, awareness of social environment, ambition, assertiveness, cooperation, decisiveness, and confidence. Conversely, Fiedler introduces the Contingency Theory which argues that task-oriented leaders achieve the most success in highly favorable or unfavorable situations while person-oriented leaders excel in moderately favorable or unfavorable situations.

The 7-S model of Mckinsey:

Created in the early 1980s by Tom Peters and Robert Waterman, advisors at McKinsey & Company, the 7-S model of Mckinsey highlights seven internal aspects of an organization that must

align for it to succeed under leaders and managers. This model reveals the interconnectedness and similarity between leadership and management within an organization. Many factors from Mckinsey greatly impact leaders and managers.

The 7S theoretical model can be used in a wide range of situations under Leadership and Management. The key factors of the Mckinsey model are:

• To improve the performance of a company.
• To analyze the likely effects of future changes within a company.
• To align departments and processes during a merger or acquisition.
• To determine how best to implement a proposed strategy.

In the above diagram, the three factors of the Mckinsey framework "Strategy", "Structure", and "System" are those factors that completely fit into the managerial structure of an Organization.

• Strategy: the plan devised to maintain and build competitive advantage over the competition.
• Structure: the way the organization is structured and who reports to whom.
• Systems: the daily activities and procedures that staff members engage in to get the job done.

And the remaining four factors are perfect for leadership in organization, namely "Shared Goals", "Staff", "Skills", "Style".

Shared Values: Originally referred to as "superordinate ends" when first developed, these are the core values of the company that are evident in the corporate culture and overall work ethic.
Style: Refers to the leadership style adopted.
Staff: Refers to the employees and their general capabilities.
Skills: Refers to the actual skills and competences of the employees working for the company.
These 7 factors of McKinsey are interconnected with each other and they assist in enhancing the effectiveness of the organization's strategy and long-term plan.

Impact on Organizational Direction:

• planning,
• scheme,
• organising,
• commanding ( best of
  

staff )

Leadership demands at Semco:

Semco is the universe renowned company with its alone substructure and policies for its employees and direction. There are many factors that still need to run, support and go on such a alone organisation. There are few highlighted factors that are reference below.

Analyzing the Fortunes:

Infect Leadership is a map or a procedure.

The relationship between state of affairs and leadership in an organization, specifically Semco Leadership, is complex. The leaders must always analyze the current situation and stay alert to make progress and stay ahead. However, different circumstances require different strategic steps.

Determine the nature and extent of the issue:

Once the issues are analyzed, Semco Leadership should overcome them and focus on ensuring these problems do not arise again. Long-term decisions must be made and specific strategies formulated and implemented.

Outline the tasks and relationships:

Semco Leadership must identify key areas for workforce development and establish relationships based on achievement.

Besides, Semco needs to establish barriers that hinder others from replicating their advantages in terms of civilization, merchandise design, and selling scheme.

Specifying the Resources:

Semco must identify its resources to maintain balance in various aspects such as manpower, human resources, technology, assets, revenue, and finance. This is crucial for staying competitive globally and staying at the forefront.

Leadership Core Competences Required at Semco:

The following factors are essential competences for leadership at Semco.

Skilled Negotiator:

Semco's leaders should possess excellent negotiation skills. Whether entering a joint venture or starting a new business, they should have the knowledge and ability to overcome challenges in both short-term and long-term scenarios. This includes understanding the specific business line they are stepping into.

Flexibility:

To illustrate this further,

if Semco were to enter into a joint venture or acquire another company, it must exhibit flexibility in terms of management. Specifically retaining the existing workforce and utilizing all associated resources. Adjustments can be made if necessary since replacing the working method of the new company with its own unique approach would not be ideal.

Fiscal:

Semco leadership should consider the financial status and rating of new business financial conditions. It is important for Semco to determine the amount of revenue that should be allocated for acquiring new companies or joint ventures. Additionally, it is crucial for Semco to monitor market trends and set targets for expected net income.

Execution:

Semco leadership must have the courage and ability to enforce its rules and regulations throughout the organization, with every employee adhering to them. However, it is worth noting that there are no written rules and regulations in place within the company.

Legal:

Semco leadership should comply with laws and regulations in the country where it operates or plans to start a business. This includes being aware of tax, customs, and import/export regulations.

Leadership Core Competence for Peoples:

The following are some key competencies that Semco leaders should possess when it comes to leading people (employees).

Motivation:

Semco leaders should monitor and encourage employees' behavior and productivity, motivating them to work hard and be honest.

Ability to deal with diverse workforce:

Semco leaders should be capable of working with employees from different backgrounds, including their origin, gender, race, work style, and abilities. They should promote balance

and equality among all employees.

Problem solver:

Leaders should address and resolve issues within the workforce and throughout the company.

They should maintain checks and balances and uphold fairness in all aspects, while also addressing the issue with integrity to prevent harm.

Applying STEEPLE analysis to Semco's Leadership:

Social: Semco is an exceptional company that has its own unique work culture. Its employees enjoy freedom in every aspect and Semco has also demonstrated flexibility in providing new job opportunities.

Now anyone can use their favorite section for occupation. The employees of the company introduced color cards civilization for their co-workers, including Red, Green, and Yellow cards that represent their temper. Technological: Semco is expanding its business. The main motivation behind this expansion is to take advantage of every opportunity to increase its net income.

Therefore, Semco has expanded its engineering in various areas such as IT and telecommunication. In terms of the environment, Semco has initiated a Bio Fuel project as an alternative to traditional fuel resources, aiming to reduce environmental pollution. Economically, Semco is a highly stable company, with its revenue growing from $4 million to $212 million by 2003. In addition, Semco pays attention to the political interests of the countries where it conducts business.

Each state has its own policies on importing and exporting. Semco has experienced some legal challenges with government departments in the past, as well as facing obstacles in importing and exporting their goods. It is important to address and resolve such issues. Ethically, Semco's leadership and workforce remain dedicated to the principle of "doing the right thing". The company has no tolerance for underperformers, and values hard work over monetary gain.

Leadership and Organizational Behaviour of Semco:

The leadership of Semco must be grounded in doctrine, values, vision, and goals. This will drive the culture of Semco, which encompasses formal administration, informal administration, and the societal environment. These cultures determine the types of leadership, communication, and group dynamics within the organization. Semco's leadership can also inspire and provide guidance to workers, ultimately building a strong organizational structure.

Organisational Development of Semco:

According to Newstrom and Davis, organizational development involves the systematic application of behavioral science knowledge at various levels such as groups, inter-groups, and the overall organization.

, to convey about planned alteration '' . Organisational Development of Semco can be a higher quality of work life, productiveness, adoptability and effectivity. It can carry through this by altering attitudes, behaviors, values, schemes, processs and constructions so that the organisation can accommodate to competitory actions, technological progresss in every facet, and the fast gait of alteration with in the internal and external environment. There are seven features of Organisation Development harmonizing to Newstrom, Davis, which are: Humanist Valuess: Semco Leadership should believe on its work force. And leading should look after their demands and it needs to actuate them, besides McGregors theory Y applies on Semco leading, harmonizing to this leading is self-motivated and capable of run intoing any kind of challenge.

At Semco, employees have the freedom to determine their own working hours and goals. They are encouraged to make decisions alongside managers. The entire Semco structure, including workforce and technology, is crucial for seamless operations. Semco's leadership learns from past mistakes in every aspect of the company, from management to marketing,

human resources to finances. They also pass on these lessons to new employees, with an emphasis on experiential learning rather than just verbal instruction.

Problem Resolution: Once the job has been identified and all the necessary information has been gathered, the next step is for leadership to find a solution.
Eventuality Orientation: Leadership must then decide which actions to take based on the specific circumstances at Semco.
Change Agent: Semco's leadership needs to initiate, streamline, and guide the transformation.

Degrees of Interventions: At Semco, there is a system in place to implement one or more job assignments at different levels of the organization.

The Learning Administration:

The Semco Leadership must maintain progress and adapt to external pressures while effectively allocating resources to meet customer needs. It must also prioritize improving the quality of its output at all levels and attracting more business by enhancing its reputation. Additionally, it needs to increase the pace of change within the organization.

Using the Learning Theory at Semco:

The Learning Theory at Semco encompasses various aspects, including:

The Behaviorist Approach:

Semco achieves optimal learning outcomes by employing strong assertions, visually presented facts, and a range of techniques and media.

The Operant Conditioning Approach:

At Semco, there is a platform where workforce receives practical training and must complete each development requirement before progressing. Furthermore, exceptional employees are incentivized with rewards.

The Cognitive Approach:

The Cognitive approach is particularly relevant at Semco as employees are knowledge-based and actively learn from their experiences. They also share their valuable experiences with others during meetings, resulting in collective awareness and the formation of a knowledge network.

As

Semco engages in diverse businesses and frequently changes preferences across different departments, it is beneficial to transfer and share knowledge, and get the opportunity to interact with people from around the world and communicate on various issues. This approach is highly valuable at Semco.

Leadership Development Plan:

A leadership development plan is generally a method employed to achieve a goal. It is a series of planned actions aimed at attaining an end objective.

Goal Setting:

The organization should establish clear objectives. The leadership should develop effective strategies and methods to achieve favorable outcomes. They should focus on both long-term and short-term strategies, all of which should be result-oriented.

Performance Metrics:

The leadership should implement checks and balances on every aspect of employee performance, including the quality of their work. They should also place emphasis on maintaining Key Performance Indicators for all employees to evaluate their performance.

The employees' Key Performance Indicators (KPI) can be assessed daily, weekly, or monthly to determine if they are meeting, falling behind, or exceeding management's set goals.

Salary and Benefits:

After evaluating the employees' KPI, they are rewarded with salary raises, incentives, and bonuses either on a monthly or annual basis.

Short-term Training Opportunities:

Current employees have access to on-the-job training if needed.

Conclusion:

Semco's success is attributed to its unique work style and managerial approach towards the workforce. The workforce is given the freedom to work in their own way, which is quite remarkable.

Semco, a leading company in the universe, has adopted a lifestyle that many other companies are now copying. In order to prevent

corruption and the misuse of resources, Semco's management must implement checks and balances on their employees' tasks. To encourage professional development and enhance the skills of the workforce, Semco also needs to emphasize job training and introduce learning opportunities.