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 ...