Developing Leadership Skills Using The Semco Case Study

Developing leading Skills Using The Semco Case StudyPurpose of the reportThe purpose of this report is to deduce the relationship between Strategic Management and Leadership . The different Leadership geniuss used for pick uping organisationss strategic decisions, the impact of the leaders theories on the organisatiton and the methods of developing leadership skills development the SEMCO case study .IntroductionIn 1982, Ricardo Semler took control of Semler Company, a concernfounded and, until then, managed by his father, Antonio Curt Semler. At that time, the companys organizational structure, was as such of treating employees in a fatherly manner, especially by providing for their needs without giving them rights or responsibilities. A pyramidal hierarchy led by an autocratic leader. Then, Ricardo took over the relatively piffling manufacturing company from his father . And by renaming the company as SEMCO , eliminated all clerical positions,and implemented an insistent p roduct diversification policy. Most observers predicted that these actions would wipe out the company.Leadership StylesLeadership style is an approach of implementing plans, providing directions, and motivating people working towards the organisation. A leaders must be able to acquire certain strategies and must fargon a certain style of leadership which suits the situation of the organisation. The watch outing argon the leadership style followed by Ricardo Semler and their evidence Authoritarian Leadership (Autocratic)Authoritarian leaders, in any case kn give birth asautocratic leader, provide clear outlook for what needs to be done, how it should be done, and when it should be done. These types of leaders take their decision on their own with little or no help from their subordinates or followers. There is as well a clear distribution between the leader and the followers. The analysts found that decision do was less creative under authoritarian leadership. Authoritarian lea dership is outstrip applied to situations where there is little time for group decision making for a possible outcome or where the leader is the most knowledgeable member of the group. (Lewin et. al, 1939).While Ricardo Semler was in law school, in 1980s,his father Antonio Curt Semler decided to arouse Ricardo the president and then shortly left him for a long Europe vacation, saying only, Do what you need to do. When the senior executives of SEMCO insisted on waiting out the declining conveyance industry, Ricardo decided to fire 60% of the top managers in a single afternoon. The departing executives wanted to return and while the frightened customers demanded their return, but Ricardo was determined and remained firm. Ricardo could not soften liquidation taking place in the company .Participative Leadership (Democratic)The democratic leadership style or participative leadership is a very open and its characterized style by having power and authority that is given equally among colleague of running a team. Ideas move freely and be discussed openly amongst the group. And discussion is relatively free-flowing. (Lewin et. al, 1939).SEMCO seeks the best by trusting their employees and to motivate them to apply their creativity in service of the whole enterprise. And to make some important decision related to the flow of work, which also includes the selection and election of their bosses. Employees atomic number 18 given a chance to express their feelings regarding the decision making carry out. Profit sharing also plays an important role in the organisation , which leads to very low employee turnover , and active involvement of all the employees. Employees be given a chance to select their managers which brings into good working shape in the organisation.Delegative Leadership (Laissez-Faire)In this leadership style the leader offers little or no guidance to the member of his team and leaves the decision making process on the team members, but the leader is responsible for the decisions made by his sub-ordinates. The leader allows the employees to take decisions if they can evaluate the condition and relies how the problem could be solved. (Lewin et. al, 1939).SEMCO encourages its employees to contain what, when and where they want to do it complete freedom is given to the employees for the task performance . About 3000 SEMCO employees set their own working hours and their salaries. Their supervisors are hired and reviwed by the subordinates. If the employees had exhausted Saturday afternoon in the office then they are encouraged to spent their Monday morning at the b for each one. There is no organisational chart as such in the organisation, no corporate value statement, no 5 year plan is implemented as most of the organisation does. The employees are not required to follow any dress code. There are no written rules or policy statements, as SEMCO is quite flexible.Impact of Leadership StylesAs Ricardo Semler followed the above me ntioned leadership styles, the following are the impacts of these style on SEMCOs strategic decisionsThe company has become more consistent and responsible.The turnover of the company had gone from $4million to $160million. Which is also considered as a highest growth.The annual sales had increased upto 24%.In 1982, there were just 90 employees working in the company, and by the year 2003 it went upto 3000 employees working for SEMCO.The overall mental faculty strength has increased due to which the companys profit has increased.SEMCO has diversified into different business unit.The company has generated balance between short-term and long-term goals.The products are offered at sportsmanlike prices.Customers are provided by variety of products and with a differentiated service styles.It had brought innovation and creativity.As it encourages every employees participation and the decisions are imposed from top-down management, good outcomes are brought due to motivated employees.2. Strategic Management and Leadership TheoriesStrategic managementis used to establish a mission, values, vision, goals, objectives, roles and responsibilities of any organisation. There are various theories to identify and to formulate the above mentioned points for an organisationHenry FayolTaylorPeter DruckerMintzbergFunctions of ManagementScienticfic Management TechniquesFive forcesRolesPlanningEstablishing GoalsSetting ObjectivesInformarion seeker, maintain inter personel contactsForward information to others instanceOrganisingOptimum use of resourses for meeting goalsOrganising the taskMotivates and direct the employeesMaintain informational links .CommandingReward system for meeting goalsMotivating employeesNew projects are initiated, identifying business developing areasDecisions are taken together during crisisResources allocator who decides who gets the schedule, budget and priorities.Negotiator who represents department during negotiations with unions and suppliers.Co-ordin atingMeasurement of good oblectivesControllingDeveloping skills by giving fosterageTrait TheoriesIn Trait theories people become heir to certain qualities and traits which makes them better suited for leadership. Trait theories often categorize soem behavioral characteristics shared by leaders.Contingency TheoriesAccording to the contingency theory no leadership is best suited for all the situation. It depends on the variables which are related to the environment the determines what particular leadership suits the situation.Situational TheoriesIn Situational theories the leaders choose the best possible action based upon various situations i.e. depending upon the types of situation. There may be different leadership styles suited for different decision making.Behavioural TheoriesIn Behavioural leadership theory the actions of the leaders are notFocussed on what they are from their mental qualities or versed states as the leaders are not made but they are born leaders.Participative TheoriesIn this type of leadership all the employees are encouraged to bear their input as a part of the decision making team for an organisation. The leader also retains the right to allow inputs of others. Great Man TheoriesAs undischarged leaders are born and not made, this theory portray thar great leaders are mythic, heroic and who are always designed to bring up leadership when needed.Management theories(Transactional)Transactional theories are based upon the system of rewards or punishments. For instance when the employees of an organisation are successful they are rewarded, and on the other had if the employees of the organisation take apart , they are punished at the same time.Relationship Theories(Transformational)Transformational theories focus upon inter personal relationship between the leaders and followers. These types of leaders help the group members to be inspired and get them know the importance. These leaders are focused on group performance , but at the same time these leaders also expect that each employees should fulfil their own potential.2.1 Link between Leadership TheoriesThe Strategic Management and Leadership theories can be linked by using Mckinseys 7-s Frame work. The McKinsey 7-s frame work model involves 7 interrelated factors which are further categorized as hard element and soft element. Hard elements are easy to identify or define the managements as it is related to the Managers which includes Strategy, Structure and System. Whereas Soft elements can be identified or defined as these are related to the Leaders which includes Shared values, Skills, Style and Staff.StrategyIt is a plan of action or a widespread plan to help create a competitive advantage which also involves the way of maintaining this advantage.Structure It is a basic hierarchy of an organisation which helps to understand who is responsible for what and who is suppose to answer to whom.SystemsIt includes the daily activities and procedures of the employees who are assigned for task performance in the organisation.Shared ValuesThese values are considered as the core values of the organisational, mostly ethical values.StyleThese are the style adopted by a leader in an organisation.StaffThese are the members of the organisation who are categorized according to their capabilities.SkillsThis helps in identifying the basic skills each employees possess in the organisation for performing different tasks.2.2 Impact of Leadership Theories on Organisational and Leadership Strategy