In ‘Managing without Managers’ Ricardo Semler explains how his company Semco was managed without managers. The employees are treated as responsible adults and allowed to vote on many important corporate decisions. The company is built on three fundamental values: Democracy, Profit Sharing and Information. The working conditions are controlled by workers themselves. According to Semler, there are four major obstacles such as the size, hierarchy, lack of motivation and ignorance to effective participatory management. Semco introduced flexible and flat organizational circles with reduced management levels instead of organizational pyramid which emphasizes power and authority. They make small teams with counselors, partners, coordinators and associates. Teams find their own leaders based on the group dynamics. Regulations are replaced with the rule of common sense and self judgment. Employees do not necessarily have job descriptions and they undergo planned job rotation which prevents the boredom. I do not sympathize with Semler saying: “Employees can paint the walls any color they like….they can do whatever the hell they want”. My opinion is that self-supervising teams might be successful, however there must be clear guidelines; otherwise it might result in anarchy. At the same time, managers should give up control behaviors, and instead, they should emphasize leadership behaviors that inspire and promote personal achievement.
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