Styles of leadership and management

Essay add: 28-10-2015, 16:54   /   Views: 257

In this report we are going to study about the experiences of Mr recardo semeller with SEMCO company. We are going to get a brief idea of what leadership and management style has Mr semller adopted and how that style has impacted the decisions of the the company. We are also going to look at the link between management and leadership theories and how these theories impact on leadership strategy. Going further we are going to see the leadership skill requirements by analysing the issues with the help of STEEPLE the end this report is going to tell us about the future leadership skill plan for SEMCO and the usefulness of those plans for the improvement of the leadership skills,

Q.1) Management and leadership Style Adopted by Ricardo SelmerWhat is leadership?

Leadership is a quality to lead the people in order to achieve the common goals. It is very important for the leader to lead people in a proper manner to motivate his employees towards work and guide them to achieve targets. There are many styles of leadership and it completely depends on the nature of the leader or a manager which style to adopt as every company have its own economical and political conditions, environment, culture.

Definition of leadership & management,

According to Koontz & O'Donnell leadership influence people in order to achieve the shared goals.

According to Kotter(1991) management is ability of a leader ,to cope with the difficult situation with the help of planning & budgeting.

What is leadership & management style

Leadership style is the manner & approach of providing direction, implanting plans, and motivating people.

(Lewin 1993)

Management style are the ways of making decision relating to employees.

Leadership and management style adopted by Mr Selmer

In SEMCO company Mr Ricardo Selmer has quality of many leadership style but dominant style adopted by him is Democratic style of leadership.

What is Democratic style of leadership?

Democratic management style uses a method within a company that allows the employees to use their thought process and they can apply their own ideas in decision making process.

For example

Ricardo wanted to change Semco into a democratic organisation for which he had adopted the pattern of employee inspiration. Ricardo was not in the favour of the autocratic style of management, and was for participative management. He has always treated his employees as a responsible adults. Like there were no security checks and dress codes in the organisation, salaries are fixed by the employees only. In Semco all employees take part in decision making process. Ricardo has a belief that all employees are like his family members and work together to solve any situation and this is one of the most important feature of democratic leader. All the above mentioned gestures shows the democratic style of leadership

1.1) Impact of a Ricardo's leadership style on company strategic decisions

Semco company was established in the year 1952 by Mr Antonio Curt Semler. Mr Ricardo Semler took over the company in 1980 since when SEMCO is one of the most successful organisations in the world. This has happened only because of the decisions of Mr Semler.

Following are the major impacts on company :

SEMCO company has grown from 35 million dollar to 160 million dollars in past six years.

In 1992 and 1990 SEMCO was selected as a business leader of the year in brazil.

Employees have become more responsible towards their work and are motivated towards works.

By the mid 1990s, SEMCO manufactured over 2000 different products in many different markets, from electronics to marine pumps to filters

In addition, banking services and environmental consulting became new parts of the company, with 10-15% of profits earning from the environmental consulting area.

The new focus on environmental consulting, and diversification in general, demonstrates the high level of difficulty SEMCO now manages as a networked, self-organizing structure instead of the previous hierarchical control structure.

Q.2) Link between strategic management and leadership theories

Following are the common elements connecting management and leadership theories by being present in both the theories and these elements are the common links available in leadership and management theories.

1) Planning:

Planning is the most important element of an organisation. As we can see planning element is explained in two management theories(5 Functions by Henri Fayol, 4 Objectives of scientific management by FW Taylor) which connects other leadership theories like in contingency theory there is a factor called situational leadership model-telling, selling, participating, delegating. In McKinsey7 S framework-the leadership theory, also there is factor called 'Strategy' which talks about company strategies and plan linking managerial and leadership with each other.

2) Organising:

Organising means providing daily resources to the employees for running an organisation smoothly by leaders to managers and by managers to its employees. It links the theories of management and leadership for example in management theories Mr Henri Fayol says about organising is giving day to day resources and Mr Taylor explains about the developing the scientific methods for doing work and Mr Peter Drucker terms it as a organising the task where as in leadership theories organising is the key factor for leader.

3) Goals/Object setting:

Leader and a manager has to set short term as well as long term goals or an objects and have to work together accordingly so as to achieve it time to time.

For example in path goal theory of leadership, leaders helps their employees and support them to achieve their goals and at the same time we can see in management theory of Mr peter Drucker-1954 5 management processes, he talks about setting objectives is very essential for manager. Hence it is linking manager and leader to indirectly work towards same goals.

4) Emotional Intelligence:

Emotional Intelligence is related to organizational growth and developing people, as it allows the managers and leaders to understand and judge people's behaviours, working styles, thinking, man management skills, and capability. Emotional Intelligence is an important matter to be considered in human resources planning, job profiling, hiring people, interviewing. Emotional intelligence is common in both the levels, at management as well as leadership level. Manager has to understand the behaviour of his employees and accordingly leader has to react as per the psychology of the manager.

5) Motivation:

One of the most important factor for leader and managers are motivating skills for motivating employees. For instance in 4 objectives of scientific management theory , Mr Taylor speaks about establishing reward for the employees for achieving the objectives in addition to that in leadership theories of Higgs and Dulwich ,it has spoken about Drivers that motivates the people to attain goals which links both the theories.

2.1) Impact of these links on shapping an Organisation:1) Impact of planning:

according to fayols theory of 5 functions of management 1916, planning gives the course of action that associate the union, stability, flexibility and accuracy given the organisation's resources, importance of work and future trends. Planning helps the organisation to set the targets of the production in advance which results in achieving higher number on proper time and gives less number of errors.

2) Impact of Organising:

Impact of organising the work can be that work pressure of work will be less and will be less time consuming.

3) impact of goal setting:

Setting a goals can give a clear picture to the leader and the manager about where to go and which direction should be adopted to reach the right destination. Setting a vision for a goal reminds to achieve targets.

4) impact of emotional intelligence:

The training of the emotional intelligence programme helps the leader and manger to understand their employees in a better way and communicate the message in a proper manner in which an individual can understand the best. Which can help an organisation in creating a good bonding and retaining the good staff and motivating the employees.

5) impact of Motivation:

The organisation is based on the performance of the employees. It runs smoothly if all the employees are participative. Providing motivational factors to the employees can lead to 100 % participation of employees which is very essential for the growth of the organisation. Non availability of the motivational factors by leaders and managers will prove the organisation to be the less productive organisation.

Q.3)Techniques to review SEMCO leadership requirements

To see the Leadership requirements of the Semco it is necessary to have a look at the STEEPLE analysis of the company. With the help of it we can see the external environment of the company which will ultimately lead us to know what are the skills that one leader has to adopt for the growth and development.

What is steeple analysis?

Steeple analysis is a tool which says the current issues that exists in the external(macro) environment.

STEEPLE Analysis:

1) Social: poverty in the brazil, people are very poor to afford high technology, changes in people's taste, changing fashion, varied income level ,different standard of living, religion, are the factors which can affect the business and are essential for the business growth.

2)Technological: invention of the new technology and adopting the new technology, coming up with new distribution channel are one of the issues that can be faced by any company. For example when mainframe computers at the main of businesses were a new and coming trend. SEMCO also decided to put hands in information age. So in formulation for a new computerized system to handle all of the company's affairs the old hand written system had been left, and yet after several months past the deadline had gone by and the problem was either error in the software or a technical problem in the hardware.

3) Economic: inflation rates , taxation GDP etc are the economic issues which can take place.for instance in Brazil there is an average of a 400% yearly inflation rate, with a peak year of 1,600%, Brazils currency has had three zeroes knocked off twice. Banks have made billions with the inflations, and fired 150,000 clerical workers when things go bad. Brazil has become a warfare ground were a 10% pay increase turns out to be a fluke when inflation is calculated at 15%, and everyone is trying to arrange contracts to their own benefit. Most other companies in Brazil abide by the traditional form of organization and because of this are plagued with strikes, low profit or even debt.

4) Environmental: environmental problems such as natural disasters, change in climate, causing pollution are the major aspects to be looked after by the companies. Like SEMCO is manufacturer and distributor for the equipment for the recycle industry which causes a pollution.

5) Political: government policies and rules and regulations ,government pressures, relations with allies will lead the leader to adopt certain skills for instance in SEMCO

6) Legal: laws, rules and regulations , government intervention and licensing are the legal aspects of the business.

7) Ethical: Following the code of conduct looking at the external environment, trust.

After looking at the STEEPLE Analysis it becomes easy for the leader to make decision and to know basically what skills are required according to the situation. Lets have a look at the leadership skills mentioned as below.

1) Compelling Vision:

2) Unique Competencies

3) Networking Skills

1) How to create compelling vision?

A leader has to see what your organisation is concluded to achieve? According to Colin Coulson- is to identify the hoe differently leaders can set the task of visioning.

compelling vision that creates a vision of a future, required state of affairs can engage and motivate. A clear vision is important internally and externally. Internally it motivates people to get and focus their efforts, where as externally the vision will distinguish a company from its competitors.

2) Unique/core Competencies:

Core competency is a kind of a capability that are complicated to a business in obtaining competitive advantage.

The main point for analysing core competencies is knowing that competition between businesses is a battle for competence mastery for position and market power. Senior management cannot focus on all activities of a business and the competencies required to undertake them. So the leader has to focus on competencies that really affect competitive advantage. Core competency can provide ability to a leader to explore variety of markets. To qualify as "core", a competence should be something that other competitors wish they had within their own business.

3) Networking Skills

It is very important for a leader to

Networking and the development of good contacts can generate a variety of opportunities. The ability to network in the business environment is a leadership skill which can significantly aid your career development.

Q 4: Future leadership Skills Plan For SEMCO:

To see the future leadership skills for SEMCO we need to first have a look at the long term and short term strategies.

Long term strategy for SEMCO

AGR Group wants to sell AGR Project Partner AS to Semco Maritime AS, the Stavanger subsidiary of the Semco Maritime Group in Denmark.

AGR Project Partner AS gives Project Management and Engineering Services within the Crane replacement niche. AGR Project Partner AS, has employed a staff of 84, which is acquired by Semco Maritime AS. Semco Maritime's looking forward to make long-term customers relationships in the global market being an excellent supplier of complete solutions and creative designs.

Short term strategy for SEMCO

Short term strategy means putting a money in some project for less period of time like one or two years or achieving the near targets to run daily activities of the company.for example the investment plan in asset management company.

After looking at long term and short term strategies we need to see what are the aspects that needs to be developed by applying the organizational development model.

4.1) Organizational development.

Organization development is designed specially for improving the effectiveness of an organization by following factors mentioned bellow:

1) Human value:

Humanistic values means having a optimistic belief about the ability of the employees. Trusting them and allowing them to work in their own way. Like in SEMCO employees are treated as an adult and given a task and having belief in them to complete the same with their own capability. for example according to Carl Rogers, a teacher, should concentrate on each person and learner not only as a physical, cognitive being, but rather as a being that is mainly emotional (the affective factor).which means for leader it is important to learn the skills along with activity. In SEMCO the employees are already treated responsible individual as a scope of improvement they can be given chance to use their own creativity and innovative ideas.

2) System orientation :

System orientation means all parts of organization works together. As seen in SEMCO managers and workers work together but sometimes it becomes issue for a manager to work with a worker and their will not be motivation from the manager point of view. As a improvement some the aspects should be handled by managers alone as motivational factor for them.

3) Learning based on experience:

Experiential learning means employees learns from their experiences. In SEMCO employees do learn from their own experience as they get a chance to participate but it takes lot of time as every situation may not be the same. Learning along with task can harm the organizations decisions so for that already experienced staff should be given authority to avoid the problems.

4) Problem solving:

Problem solving is process that includes finding the reason of the problem and solving the same. In this process the leader has to gather the information identify the problem and take correct actions. In SEMCO all employees are equal and hence it is not a responsibility of the one person to look into the matter hence employees can cover them selves and can avoid the situation instead of solving them along with that solving a matter will also be time consuming. So there should be a leader who can take the authority by marinating the participating nature also.

4.2) Usefulness of the organizational development model for development of leadership skills.:

The organizational development model will help SEMCO to find a leader who can allow employees to use their own views judgments based on human values. Humanistic values lets the person learn and let the leader build good relation with employees by having a positive belief. It can be the motivational factor for the employees towards his work and brings an enthusiasm which leads organisational growth. This will help the SEMCO for employees to use their innovative ideas and creativity.

In SEMCO with the use of system orientation model managers will get some motivation as they get chance to get an authority.

Use of Learning based on experience will make SEMCO appoint expertise people rather fresh staff who learn on the job so it will save the time.

Finally the problem solving skill will give a SEMCO a complete leader having a ability of solving the problems for the betterment of the company.


SEMCO is a company working on unique business methods and has very unique style. People working in SEMCO are responsible for their own work and which is appreciable and the style of Mr Semller is also grabbed by many of the leaders in the industry. Semco in some of the ways should keep proper security checks on employees as all the important data is supplied to them so as to avoid the misconduct. SEMCO would need the leadership skill that will create a vision for the organisation and leader should be able to understand the competencies with extraordinary networking skills.

For further SEMCO leadership should adopt the skills of understanding human values , problem solving and the skill of system orientation.

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