Managing Without Managers

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Managing Without Managers

• Article by Ricardo Semler

Presented by Samantha Allan, Stephanie Spahmann,
Curtis Vanson, Craig Pelltier and John Tram
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Overview of company

• 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

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First value

• Democracy and Employee Involvement

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Participatory Management

• Four obstacles To Participatory Management
• Size
• Hierarchy
• Lack of Motivation
• Ignorance
• Anthony Jays 1950s Corporate Man

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PYRAMIDS AND CIRCLES
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Organizational Circle

• Semco designed an organizational circle to
  replace the organizational pyramid
• Contains 3 concentric circles
• First-Counselors
• Second-Partners
• Associates and Coordinators

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Organizational Circles Cont.

• 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

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HIRING ADULTS
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Review

• 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

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HUNTING THE WHOLLY MAMMOTH
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Hunting the Mammoth

• If you dont appoint a leader, one will emerge
• Roles FIND the person
• Results not status

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Semcos Second Value

• Profit Sharing

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• Corporate profit sharing is todays mammoth meat
• Most successful when there is a broad program of
  employee participation

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TRANSPARENCY
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Semcos Third Value

• Information

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Transparency

• Sharing all of the information not holding back
  anything
• Confidential Salaries
• The relevant information became insignificant

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Letting Them Do Whatever the Hell They Want

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

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Overview

• Semco is a company with a unique system
• The level of employee involvement could be
  considered as overwhelming to many companies
• Employees are treated as adults
• Semcos Three Core Values
• Democracy, Profit-sharing, information

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Questions?