Discuss about the Management Procedure for SEMCO.
The development of the business organization is based on the formation of the appropriate measures and operations for the business organization (Benghozi, Krob and Rowe, 2013). The employees and workers of the organizations form the base for the improvement and operations of the business organization. The increase in number of managerial issues has resulted in yielding many issues at workplace such as conflict, labor unrest, and growth of dissatisfaction. However, the use of appropriate tools and strategies would help in dealing with the effect of these negative issues.
The following report has been made for understanding the role and concept of the growing ICT business organization. The case study selected for the analysis is of SEMCO and the decisions taken by Richard Semler. The following report highlights and evaluate the decisions of Semler for the organization of SEMCO. The managerial decisions, strategies behind it, and their impact would be analyzed in the following sections. The evaluation of the changes and the factors of risks would be examined from the provided case study of the SEMCO.
The case study has highlighted the various decisions and operations of the SEMCO Company. SEMCO is a Brazil company that had expertized in manufacturing industrial machines and among them machine pumps holds the most prior position. The company was founded by Antonio Selmer in the year 1950s and since then hierarchical system of management was followed. The company was autonomous and the rules and regulations set by the governing authority controlled the operations and people of SEMCO. Due to the issue of recession, Antonio’s son Richard Selmer implemented some transformations and development strategies for dealing with the issues and problems that rose in that situation. He drew some basic changes and modified the management system to go through the poor performance of the company.
The transformational plan at SEMCO was established for developing some strategies that would help in modifying the processes of the company along with policies, processes, and procedures (Delak and Bajec, 2013). The main benefit of the organization for implementing the transformational plan was to deal with the decreasing performance in production and dealing with the recession issue. However, the transformational plan can be universally accepted and implemented for the various organizations to increase their performance and form better acceptance. The main benefits that the transformational plan could bring to the business organizations are explained in the following points.
Growth of business organization: The business organizations have to evolve with the passage of time for forming better solutions and services (Engelmann and Pessoa, 2014). The transformational operations would be helpful for forming the scope for the development of the business organization. The business organizations have been following the use of transactional planning and management for their operations. However, the modern operations and situation have resulted in forming the faster operations the deployment of transactional planning with the ICT technologies would help in stimulating the growth of the business organizations by providing them with faster and better system symbolic operations and processes.
Solution to potential issues: The transformational planning helps in dealing with the immediate issues and their impact on the business organization (González-Bailón, 2014). The formation of the transformational planning would help in dealing with the issues of the business organizations. The issues include uneven performance, lack of superior quality of output, and economic issues. The issues can be dealt by employing a systematic development and formation of the transformational planning at the organization. The solution of the issues would be helpful for the formation of the quick solution and system development.
Retention of employee’s quality: The transformational plan is useful for retaining the issues of the employees (Gulati, Mayo and Nohria, 2014). The employees are the main source of the functional operations in the business organization. Hence, it is important for dealing with the issues of the degrading quality of the business organization. The role and involvement of the employees can be improved by forming a systematic development of the transformational plan. The planning process is most suitable for the implementation of the employee’s performance improvement by providing them with suitable perks and profits for the amount of work they do.
Motivation to the employees: The adjustment of the business management had helped in forming the growing motivation among the employees. The shift of operational control from the central authority to the employees would encourage them for the operations of the business organization. The use of the employee’s motivation plays a crucial role for the development of the operations and formation of the improved solutions at the organization.
SEMCO was facing the issue of recession when Selmer introduced the transformational planning in the organization. The strategies were formed for developing the business organization and formation of the effective operations to motivate the employees within the organization. The situational demand resulted in implementation of self managed teams, reward structure, and profit sharing. Selmer has implemented these strategies for managing the operations of SEMCO and motivating the employees to perform better. The explanation of the above stated strategies is provided below:
Self managed teams: Selmer abolished the hierarchical control of the team and implemented the self managed team for motivating the teams. The self managed teams were responsible for all the operations of the organization. The strategy supported the consideration of an individual team and their operations were not controlled by Selmer. The team would perform and self manage the operations allocated to them. It would form the most suitable solution for the underperforming teams to perform better and improve their functions (Hamad, 2015). The self governing team members would perform best in absence of the pressure from governing authority. The self managed teams would be highly motivated considering that they would be recognized for their good commencing and completion of the operations allocated to them.
Reward structure for employees: The use of reward structure at Selmer highly motivated the employees for performing better. Individual recognition and formation of the reward structure would form the most suitable solution for the motivation of the employees (Harrison, 2017). The use of tangible goods and appraisals for the recognition of good work performed by the employees would help in motivating the employees. It has been seen that due to the absence of recognition and appraisals in an organization, many employees performing well leave the organization due to lack of motivation factors. The implementation of the reward structure would end in formation of strong motivation reasons in the organization. The recognition of the employees would help in formation of increased motivation among the employees in the organization.
Profit Sharing with the working divisions: The sharing of the profit was the most compensating strategies of the transactional planning. The use of the profit sharing strategies would help in motivating the employees and workers (Hoption, 2015). A fixed 25% of the total profit was shared with the division of work in the organization. An elected committee would be held responsible for distribution of the profits with the employees and workers. The profit sharing with the employees would help in motivating the employees for performing better. The employees and workers would perform better in scope for getting a share in the profit distributed. It would help in increasing the overall involvement of the employees for the operations of the SEMCO Organization.
The organizational structure of SEMCO followed the structure of hierarchical management and operational control (Lee, 2013). The governing body was responsible for all the operations of the organization and he would have to manage and take care of individual operations. It resulted in formation of the basic issues of operations in SEMCO. The chain reaction for operations included the reporting of proposal of individual operation to successive senior and then to manger. The manager would have to report it to the vice presidents and the vice president would have to report it to the president. The flaws of hierarchical structure in SEMCO were resistant to deal with recession, inflexibility of operations, slower operations, and employee dissatisfactions. The flaws and tension of the SEMCO has been explained below:
Resistant to recession issue: The recession had a major impact on the operations of SEMCO and their economic conditions. The hierarchical management system had made the operations of the SEMCO resistive to the development and progress. The hierarchical management system had a stiff structure and it follows top-down structure for decision making process (Parker, 2013). The use of hierarchical system would lead to improper response to the competitive threats of the business organization. The deployment of such hierarchical management system in the organizations has resulted in the creation of discomfort among employees to accept any changes processed by the management.
Inflexibility of operations: The hierarchical management system in SEMCO had the prior operation system to vague for the operations of business organization. The employees would have to seek permission from their head and the head would have to seek permission from managers (Phoocharoon, 2013). The scale of operations was notched down for completions of operations in the allocated time. It resulted in limiting the aspects of the organization operations and forming a rigid structure for the operations. The inflexibility of the operations had resulted in forming the issue of not accepting and adapting the latest technology and innovation in the operations of the organizations.
Slower operations: SEMCO had to face the issue of slower operations and sluggish functionality due to the structure of hierarchical management system. Hierarchical management system involved the process of single authority at the SEMCO. The stiff structure and top-down structure for decision making process would require the decisions taken by the president to be channeled one by one step to subordinates (Volberda, Van Den Bosch and Heij, 2013). It would take considerable time for deploying the system operations. Overall, the processing is very slow and it results in taking longer time for completing any operation.
Employee Dissatisfaction: The growth of employee’s dissatisfaction has been resulted due to the following of the hierarchical operations in the SEMCO. The dissatisfaction have been eventually resulted because lack of recognition for their work done and performance (Stoichev, 2014). The hierarchical structure did not give importance to the employees and workers.
The risk factors at SEMCO for implementing transformational planning include the non acceptance of transformational planning management by the existing managers, misuse of influence, and no leadership involvement. The impact of risk factors had resulted in forming issues of the individual leaving the company and issues of non applicant of the transformational planning. These factors have been explained below:
Non acceptance of system: The transformational planning would not be easily accepted by the managers (Scarborough, 2014). The shift of power of operations from managers to the employees would result in discomfort among the managers. The non acceptance of the transformational planning has resulted in forming a disagreement of power division for the managerial decisions. It has resulted in forming the issue of the non agreement and many managers have left the SEMCO. The non acceptance of the system would lead to the issue of flaws in implementing the system and acute inhospitality among the managers and heads.
Misuse of influence: The most significant issue of the transformational planning management in SEMCO could be misuse of influence. The problem arises when there is lack of role models in the organization for completion of any operation (Seethamraju, 2012). The absence of leaders and role models could result in forming chaos for managing the operations and maintaining the working culture of the organization.
No leadership involvement: The absence of involvement of the leadership would result on distracting the employees to work sincerely. It can be possible that the employees would face the issue of the not being able to deal with any issue. Selmer would not have to dent the issue of the flaws in the organization operations. However, the implementation of the transformational planning and management at SEMCO has overcome the issues and made the development of the system more effective.
Conclusion
The report had been made for understanding the role and concept of the growing ICT business organization and implementation of the transformational plan by considering the case study of SEMCO. The transformational process includes modifying the policies, processes, and procedures. It can be stated that the main benefits of the transformational planning and management in SEMCO was growth of business organization, solution to potential issues, retention of employee’s quality, and motivation to the employees. The strategies were formed to motivate the employees within the organization. The self managed teams, reward structure for employees, and profit sharing with the working divisions were the main transformational change strategies that were implied in the organization of SEMCO. The issues of the company included the resistant to recession issue, inflexibility of operations, slower operations, and employee dissatisfaction. The various risk factors include the non acceptance of system, misuse of influence, and no leadership involvement. However, the conclusion of the report has provided the successful implementation of the transformational management and planning. It can be concluded from the report that the transformational management plays a very crucial role for the development of the present business organizations. The business organizations can use the development of transactional planning and information system for improving the operations and functions of the organizations.
References
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Scarborough, N., 2014. Essentials of entrepreneurship and small business management. 1st ed. Boston: Pearson.
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Stoichev, K., 2014. The Role of Business Continuity Management in the Business Management System. Science Journal of Business and Management, 2(3), p.97.
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