Introduction
Both Southwest Airlines and Semco are successful organizations in their own market segments despite the economic struggles in 1980’s and 1990’s.
Southwest Airlines began operating in 1971, its primary operating philosophy is low fares and lots of flights. Much of organization’s success is due to the willingness of its leadership to be innovative.
Semco founded by Antonio Semler in 1912, was traditionally managed industrial equipment company. SEMCO is located in Sao Paulo, Brazil. Richard Semler, instituted an employee-friendly and employee empowered management system.
Semco’s success is basically attributed to three interdependent core values: employee participation, free sharing of information and profit sharing.
Case Study
It is widely discussed that both companies share success factors that make them market leaders.
Non-conventional organizational structure
Non-conventional organizational structure is adopted in both organizations. SMA and Semco both break the rules of hierarchy structure and bureaucracy.
SMA adopts decentralized organizational structure. ‘ the company cuts across hierarchical and job distinctions’ (Child). Team work, group decision making, training and stress on positive attitude are greatly embraced at the organization. Job specialization doesn’t go as far with other airlines like it does with Southwest. An example of this is in order to reduce the turnaround time, pilots help to clean the aircraft which rarely ever happens. Also technical orientation and training of employees on all stations and operational tasks have made the employees more productive in their performance as individuals which in turn has reduced costs at the airline ( Muduli 2011)
Similarly Semco incorporates the same feature where there is liberalization of employees from rigidity of hierarchy and reduced layers of management bureaucracy. Management consists of 3 layers rather than 12.
Semco’s reduced bureaucracy, group participation of employees were groups of employees make decisions, organize their work and set goals. Also outsourcing of administrative functions has helped Semco focus on core functions.
Corporate culture and Employee participation
Southwest management has created a culture where employees are treated as the company's number one asset. Southwest mixes in New Age management techniques, such as celebrating different milestones, and letting love play a part in running the airline. The company’s mission statements emphasizes the commitment to provide opportunities for learning and developing skills and the importance of providing employees with respect, care and attentions as they are expected to give to southwest customers (Child).
A relaxed and Fun spirited environment of the company is shared with customers through comic telecom announcements and humorous contests with passengers during flights. (' PP.117 – Southwest Airlines Success: A case study Analysis)
Southwest values its “people” as valuable assets of the company and includes all employees for problem solving and managements decisions. Mr. Keller and his team were faced with an issue were their needed to be a decision made to either sell some of their planes or layoff employees. MR. Keller discussed this with all his ground service employees and sought after a solution to avoid laying off people. The decision was made to try and reduce the turnaround time at the airport gate from 55 to 15minutes, thereby improving the revenue producing capability of the airplanes. Pp.29 ('An evaluation of the corporate culture of Southwest Airlines' 2004, Measuring Business Excellence, 8, 4, pp. 26-33, Business Source Complete, EBSCOhost, viewed 31 December 2013)
It has developed strong employee and customer loyalty - a feeling of devotion, duty and attachment to Southwest. The company culture is desired by many. People apply at SouthWest Airlines are greater than the number of jobs available ‘ in 2000, southwest reviewed 216,000 applicants for just over 5,000 jobs.
Semco’s corporate culture and organizational design are also similar to that of SWA. It is based on three core principles, employee participation in management decisions, companywide profit sharing, and an open information culture. These principles allow free access to all financial and other information for everybody within the company, about one third of the annual profits are being shared among all employees (child) and major decision making through voting.
Also working hours and pay levels are being set in a self evaluation process and justified through company internal supply and demand principles. An example of this is “Up ‘n’ Down Pay” (explain this in more detail from article in tab 2 in folder.
Job rotation for of all managerial employees, three organizational levels from chairman to manufacturing associate.
The upside for individual employees is a significantly higher reward potential compared to regular paychecks; Semco, in turn, benefits from the ongoing improvement efforts.
Semler states that “For Semco employees, the hours they work are determined by their own self-interest, rather than by company mandates.” (PP.14 tab 2 in file ‘ out of this world doing business the Semco Way, Ricardo Semler) He explains how don’t incorporate a Monday to Friday workweek but rather a ‘seven day weekend’. Employees judge their own working hours based on their lifestyles and duties needs. Employees can work during the day or in the middle of the night from anywhere they chose so long as their work is done and completed.
Conclusion

In conclusion, it can be said that there are a number of factors have benefited both Southwest Airlines and Semco’s organizational companies, to form employee productivity, environments, performance and benefits.
There were non-conventional approaches to the organizations and lesser formal structures which in a way resulted in no strict or inflexible division of works. Hence, it can be noted that with a non-conventional approach towards the organization, the real benefits were passed on to people which then resulted in greater productivity, better enthusiasm and reduced costs to the companies.