This document summarizes Semco's organizational structure and values. It discusses how Semco overcame obstacles like hierarchy by dividing into three separate plants to increase autonomy. It also describes how Semco implemented profit sharing, transparency of information, and giving employees liberty in their jobs. The conclusion states that Semco broke the norm for manufacturing firms by having a unique system with participation, profit sharing, and information sharing to give employees control and motivation to perform well.

1. Prepared by:
Anuraag Behera PGP/18/236
Dushyant Bheda PGP/18/237
Munisha Aggarwal PGP/18/258
Kshitij Patil PGP/18/260
Shweta Singh PGP/18/273
Arnab Roy PGP/17-D/199

2. 3 Values
Democracy
Profit
Sharing
Information
Background

3. Obstacle
Size
Lack of
motivation
Hierarchy
Ignorance
Democracy
Divided facility in three
separate plants which
increased “sense of
belonging”
Increased productivity.
Helped reducing work
size by 32% through
attrition and retirement
incentives

4. Counsel
ors
Partners
Associates
&
Coordinat
ors
Counselors
Partners
Associates
&
Coordinators
Pyramid structure generally
used in Manufacturing firm
Pyramid circle structure
used by Semco
Pyramid to organizational circle structure
Overcoming Biggest
Obstacle: Hierarchy
Major changes incorporated:-
• Subordinate evaluating managers
• Questionnaire about company’s creditability and top
management competence
• Company - wide vote

5. • Abolish norms, manuals, rules & regulations
• Rule of common sense to promote personal responsibility
• Lost in space approach
• Flexibility provieded to factory floor as well by making each cell self-
contained
• Job rotation every 2-5 years
• Provide job security to people over 50 or people served over 3 years
Adult Hiring
Treating employees as if they are adults allow workers to use common
sense and in turn promotes personal responsibilities
Letting them do whatever the hell they want breeds a culture of capable,
accountable and responsible employees

6. Issues with the current situation
If you don’t appoint a leader, one will emerge
Roles FIND the person
Results not status
Hunting the Wholly
Mammoth
Solution is PROFIT SHARING
Corporate profit sharing is today’s mammoth meat
Most successful when there is a broad program of
employee participation, when profit sharing criteria are
clear and simple

7. Transparency
Sharing all of the information & not holding back anything
Share monthly results with the employees
Employees trained to read and understand balance sheet
and cash flow statements
Confidential Salaries
Simple accounting system providing relevant information
The relevant information became insignificant
Liberty to do what they want
Employees can Choose your own:
Pay
Job Title
Dress Code
Office Decorations
Work Hours

8. Conclusion
Semco is a company with unique system breaking the normal
notion that a manufacturing firm needs to have mechanistic
structure.
Participation in decision making gives people control of their
work, profit sharing gives them a reason to do it better,
information tell them what is working and what is not.