Ricardo Semler: Democratization Instead of Decentralization

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Centralization and Decentralization > Best Practices > Ricardo Semler: Democratization Instead of Decentralization

Ricardo Semler: Democratization Instead of Decentralization
Shahid Ferozie, Consultant, India, Member
Decentralization has been around for very long, but with protracted results due to top-down hierarchical organization structures. Decentralization is only a fad and true decentralization is hardly practiced. Final decisions are still in the hands of top leaders who work for only one stakeholder viz the stockholder.
One exception has been manufacturing company Semco SA of Brazil where Ricardo Semler has proved that democratization and not decentralization is the real way to let the average worker participate in the decision making process.
The company's continued success and expansion is proof that this is the only way to include the average worker into the decision making framework - one that works for all the stakeholders. This is how true decentralization takes place.
 

 
Empower the Workers
Chloe Kane, Entrepreneur, United Kingdom, Member
I have always been impressed by Riccardo Semler's approach to work and business. His books, Maverick and the Seven Day Weekend, spell out how he turned an old-fashioned manufacturing business into a successful enterprise where the workers decide how to deliver products to a deadline,work practices and salaries. It is an embodiment of the Theory Y principle of management.

We live in an age where top down management has brought the world economic system to its knees and it is still refusing to acknowledge responsibility for this failed management approach. Outmoded practices such as having workers in place from 8 in the morning until 8 at night irrespective of whether the output is needed at the time, punishing all those who want to work more flexibly, refusing to take advantage of allowing workers to work from home and decide their own hours have no validity in the modern age of advanced communication and the internet.

I think that if workers were engaged in two-way communication and where their involvement in decisions from the top to the bottom is acknowledged and developed, businesses would be far more successful.
See: this video for an interview with Ricardo Semler.
 

     
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