Ricardo Semler And New Zealand Essay -- essays research papers

Introduction The biggest challenge facing any business today is change. Ricardo Semlars approach to management revolutionized they way in which Secom did business. However it is of question if Semlars model of business can be successfully transplanted into New Zealand’s business environment and change the way in which they operate. This essay will therefore discuss if Ricardo’s unique approach to business, and how it can be successfully used in the New Zealand business environment. This essay will firstly discuss the idea that profit sharing can motivate workers and how this idea is set up in the New Zealand business environment. Secondly the ways in which employee participation work in New Zealand, and how managers can better understand their workers. Lastly the importance of information sharing to a success of a company, and ways in which this idea has helped New Zealand companies find business success. Therefore this essay will show that Semlar’s approach to management can be successfully adapted to the New Zealand business environment. Background Ricardo Semler at the age of 24, implemented three main management schemes to try and successfully run a business. Stated by some as unique, Ricardo Semelr has gone and taken these schemes and used them in his fathers business Semco. After struggling for many years (close to bankruptcy) because of the high Brazilian inflation rate and poor business model, Ricardo was able to turn this all around. Within 8 years Semco had become one of Brazil’s fastest growing companies with a profit margin of 10% on sales of $32 million. Ricardo puts this down to his three core management techniques of profit sharing, employee implementation and the free flow of information.(Semler, 1989) These management schemes are not new, but Ricardo Semler was able to successfully implement these schemes into the Brazilian business environment, while other companies in Brazil and international companies such as Allis Chalmers failed. Thus it is of question if whether or not New Zealand companies can do wh at Ricardo Semler did. Profit sharing The first of Ricardo’s management schemes is the idea of profit sharing and the effect it has on the employee. Profit sharing is formed on the bases that employees should receive a share of the profits of the company. Semler (1889) believes that the idea of profit sharing shouldn’t be a gimmick... ...environment and hopefully more businesses will do so. Reference list Bell, D.W, & Hanson, C.G. (1987) Profit Sharing and Profitability. London. Kogan Page. Foster, B. & Mackie B.L (2002) Weddels Tomoana: A retrospective study of Workplace Reform. The New Zealand Journal of Human Resources Management, 2, p. 1-10 Killian, K. & Perez, F. (1998) Ricardo Semler and Semco S.A (Report No. A15-98-0024. Thunderbird: American Graduate School of International Management Light, E. (1997) Living the Dream. NZ Business. P34-36 Macfie, R. (2001, October 1st) Making it in New Zealand, Unlimited p. 14-17 Maetzig, R. (1999, December 20th) Not to chicken to try new approach. The daily News. P.5 Semler, R. (1989) Managing Without Managers. Harvard Business Review September/October, 76-84 Sinoski, K. (2004) No Incentive. The independent: New Zealand’s Business Weekly. August/September. P. 18 Smith, A. (1996, September 11) The Highs and Lows. The Dominion, p.20 Smith, D. (1977) Worker Participation: A critical appraisal of present practice in New Zealand. Wellington. Victoria University of Wellington Upfront-Unearned Rewards.(2004) Management . September/October. P. 12