CASE STUDY OF SEMCO

Shridhar kadam 12 Ritesh kelkar 31 Chetan devadiga 23

PROBLEM OF THE CASE

Ricardo semler has reduced his involvement in semco and has been devoting his time into other pursuits

SWOT ANALYSIS

STRENGTHS

Concepts like participatory management and diversification was introduced and successfully applied. Semco has wide range of products and services for almost every field of business. Identification of new opportunities which were converted to two third of semcos products. Annual turnover increased over a period of time from $4m to $200m.

WEAKNESS

There was dispute among ricardo and his father regarding changes in the business Semco had fired 60% of top managers

OPPORTUNITIES

If ricardo semler would concentrate on semco he can run the business more successfully and have more expansion and diversification plans. Successful establishment of new eco-tourist resort.

THREATS

Ricardo was not concentrating on the business of semco

More diversification may lead to many complications

Q1: WHAT COULD HAVE GONE WRONG WITH RICARDOS EXPANSION PLANS
As there was a slow down in business ricardo decided to cut down 60% top managers it may lead to the unloyalty in remaining employees. The team which he had appointed would not have performed well to come up with opportunities. As many of the companies were bankrupt there business was at stake and in such conditions expansion plans were risky. If the workers didnt agreed to cut down of wages and would have gone on strike.

Q2: IS PARTICIPATORY MANAGEMENT GOOD FOR AN

ORGANIZATION THAT IS PLANNING TO GROW RAPIDLY? WOULD IT NOT SLOW DOWN THE ORGANIZATION

Yes participatory management is good for organization in following aspects Increase in Productivity Job Satisfaction Motivation Improved Quality Reduced Costs

Decision making slows down: Participative management stands for increased participation and when there are many people involved in decision making, the process definitely slows down. Inputs and feedback starts pouring from each side.

It takes time to verify the accuracy of measurements which means that decision making will be slowed down.

Secrecy Issue: The security issue in participative management also arises from the fact that since early stages too many people are known to lots of facts and information. This information may transform into critical information in the later stages. There is thus a greater apprehension of information being leaked out.

CONCLUSION :
Employee participation at each level of decision making process is not at all harmful if managed efficiently. The whole process can be well coordinated and controlled by the sincere and honest efforts of human resource managers.

THANK YOU