Jul 18 2008
Brazil’s Semco Illustrates the Power of Decentralized Firm Structures
Today’s video to watch, rate, and promote is “The Caring Capitalist,” which describes the dynamics of an innovative firm from Brazil – Semco. This firm virtually lacks management, top-down hierarchy, and internal central planning. Instead, employees often pick the work they do, the hours they work, and even their salaries. The company’s founder, Ricardo Semler, has built in a set of incentives whereby workers encourage one another to work productively and to not shirk. He is also applying his decentralized business model to a school and a hotel which are in part run by the children and the residents of the local where the hotel is being built, respectively.
Semler’s work is an excellent example of entrepreneurial innovation – the kind of innovation we would see more of in a free market. Semler does not see himself in ideological terms, but he implicitly understands what free-market theorists have been saying for several centuries.
Sincerely,
Gennady Stolyarov II
Editor-in-Chief, The Rational Argumentator: http://rationalargumentator.com
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