Ricardo Semler: Creating Organizational Change Through 
 Employee Empowered Leadership

The Semco Survival Manual



Organization Chart
Semco doesn’t use a formal organization chart.  When it is absolutely necessary
to sketch the structure of the company they always do it in pencil and dispense with
it as soon as possible.
Hiring
When people are hired or promoted others in that unit have the opportunity to interview
and evaluate the candidates before any decision is made.
Working Hours
Semco has flexible working hours and the responsibility for setting and keeping track of
them rests with each employee. People work at different speeds and differ in their
performance depending on the time of day. Semco does its best to adapt to each person’s
desires and needs.
Working Environment
We want all our people to feel free to change and adapt their working areas as they
please. Painting walls or machines, adding plants or decorating the space around you is
up to you. The company has no rules about this and doesn’t want to have any. Change the
area around you according to your tastes and desires and of the people who work with
you.
Unions
Unions are an important form of worker protection. At Semco workers are free to
unionize and the persecution of those connected with unions is absolutely forbidden.
Unions and the company don’t always agree or even get along but we insist that there is
always respect and dialogue.
Strikes
Strikes are considered normal. They are part and parcel of democracy. No one is
persecuted for participating in strikes as long as they represent what the people of the
company think and feel. The workers’ assemblies are sovereign in this respect.  11
Participation
Our philosophy is built on participation and involvement. Don’t settle down. Give
opinions, seek opportunities and advancement, and always say what you think. Don’t just
become one more person in the company. Your opinion is always interesting, even if no
one asked you for it. Get in touch with the factory committee and participate in elections.
Make your voice count.
Evaluation By Subordinates
Twice a year you will receive a questionnaire to fill out that enables you to say what you
think of your boss. Be frank and honest and not just on the form but also in the discussion
that follows.
Factory Committees
Employees at Semco are guaranteed representation through the Factory committee of
each business unit. Read the charter, participate, and make sure your committee
effectively defends your interests, which at times will not coincide with Semco’s
interests. We see this conflict as healthy and necessary.
Authority
Many positions at Semco carry with them hierarchical authority. But efforts to pressure
subordinates or cause them to work out of fear or insecurity, or that show any type of
disrespect, are considered unacceptable use of authority and will not be tolerated.
Job Security
Anyone who has been with us for three years, or has reached the age of fifty, has special
protection and can only be dismissed after a long series of approvals. This does not mean
that Semco has no layoff policy but it helps to increase the security of our people.
Change
Semco is a place where there are big changes from time to time. Don’t worry about them.
We consider them healthy and positive. Watch the changes without fear. They are
characteristic of our company and its culture.
Clothing and Appearance
Neither has any importance at Semco. A person’s appearance is not a factor in hiring or
promotion. Everyone knows what he or she likes or needs to wear. Feel at ease – wear
only your common sense.
Private Life
Semco has no business interfering with what people do when they are away from work as
long as it does not interfere with work. Of course, our human relations department is at
your service for any help or support you may need.
Company Loans
The company loans money to its people in unforeseen situations. Thus, loans to cover the
purchase of homes, cars, or other predictable expenses are not included. But the company
wants you to know that the day you run into difficult and unexpected financial problems
that it will be here for you.
Pride
It’s only worth working in a place in which you can be proud. Create this pride by
insuring the quality of everything you do. Create pride by insuring the quality of
everything you do. Don’t let a product leave the company if it’s not up to the highest
standards. Don’t write a letter or memo that is not absolutely honest.  Don’t let the level
of dignity drop.
Communication
Semco and its people must strive to communicate with frankness and honesty. You must
be able to believe  fully in what is said to you by your co-workers. Demand this transparency when you are
in doubt.
Informality
Promoting a birthday party at the end of the workday, barging into a meeting where you
are not invited, or using nicknames are all part of our culture. Don’t be shy or stick to
formalities.
Suggestions
Semco does not believe in giving prizes for suggestions. We want everyone to speak out,
and all opinions are welcome but we don’t think that it is healthy to reward them with
prizes of money.
Semco Women
Women in Brazil have fewer employment, promotion, and financial opportunities than
men. At Semco, women have various programs, run by women that seek to reduce this
discrimination. They are known as:
Semco women.
     
1. If you are a woman, participate.
 2. If you aren’t don’t feel threatened and don’t fight against this effort.
Vacations
Semco is not one of those companies that believe anyone is irreplaceable; everyone
should take their 30 days of vacation every year. It is vital for your health and the
company’s welfare. No excuse is good enough for accumulating vacation days for “later”
(Semler, 1993, Pg 299).
Appendix B 
The rules created with regard to union relations are totally humanistic and takes
seriously the position that the decisions of unions are also to be respected.  For instance:
1. Treat everyone as an adult.
2. Tell the strikers that no one will be punished when they return to work. Then
don’t punish anyone.
3. Don’t keep records of who came to work and who led the walkout.
4. Never call the police or try to break up a picket line.
5. Maintain all benefits.
6. Don’t block workers access to the factory or the access of the union
representatives to the workers. Insist that the union leaders respect the
decision of those that want to work, just as the company respects the decision
of those who don’t.
7. Don’t fire anyone during the strike, but make sure everyone sees that a
walkout is an act of aggressiveness.