Kilmer Systems Company Internal Problems

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Table of Contents

Introduction
Problems
Solutions
Conclusion
Reference List

Introduction

The case of Kilmer Systems Company is very interesting and complex, as it has many factors that need to be considered.

In order to provide Brendon O’Shaugnessy with a rationale for successful work, we need to analyze the roots of the problems, find the possible solutions and consider different factors that can influence the situation. We also need to analyze the company as a separate organization and as a part of the world market.

Problems

Outlining the problems in the company’s work may help to trace back the reasons of its failures in different spheres. The analyzed company has a number of problems. We think that it would be rational to divide them into internal and external problems.

Internal problems are those which occur inside of a company; external ones refer to the problems which might occur in the market and other environments in which the company is being involved.

Internal problems:

Autocratic leadership

This is one of the most important problems, as the proper management of the team is essential for its successful performance. We think that Brendon O’Shaugnessy is using the wrong type of leadership for the particular case.

The autocratic style of leadership is appropriate in teams where the workers are motivated and well-informed about what to do and how to do it (Newstrom, 1993); in contrast, the Kilmer Systems workers seem to be rather dissatisfied with their working conditions. Therefore, the need for a new leadership style is obvious.

Hierarchical structure

The organization of the company structure is also of vital importance. In case of Kilmer Systems, the hierarchical structure is applied. This can prove an impediment to the effective cooperation within the workers.

The leader should try to make the employees work as a team, while the hierarchical structure suggests a more formal and less mobile communication between the members of the company.

Lack of innovations

One of the company’s internal problems is the lack of innovations. In the world of modern technology, every company should be well-equipped in order to be able to compete with others.

Indisputably, this rule is even more important for a company which deals with telecommunication services. Thus, we think that the Kilmer Systems have a little technological support in comparison with other companies of the field.

External problems:

High level of competition in the market

While few decades ago telecommunication facilities have been a developing branch in electric engineering, lately they have become one of the most spread services. There is a multitude of consumers interested in them, and therefore there are many companies which provide these services.

These companies compete for better technological support, lower costs, and qualitative services. Therefore, Kilmer Systems should be analyzed as a participant of the general competition.

Inflexibility of the company

One of the greatest company’s problems is that it proved to be inflexible in the changing market. This problem is caused by all the mentioned drawbacks and is the main reason for company’s failures in the external business environment.

It failed to change its policies when the changes were introduced in the market; it did not adopt the new technologies when there was a need for them, etc.

Solutions

Having defined the main problems of the company, we will try to introduce some solutions which can improve its work and make it more successful.

Thus, we propose a simple plan for changing the Kilmer Systems:

Apply a different style of leadership
Reorganize the company
Improve the technological potential
Analyze the market of the telecommunication industry constantly
Be ready for changes

First of all, it is important for manager to change the way of managing the company and its employees, since it was decided that the existing methods proved to be ineffective. The style of leadership we offer Brendon O’Shaugnessy to use is democratic.

It is very different from the style he traditionally used; that is why the manager has to realize how important the basic change in his practice is. It may be hard for a person to give up the old methods; that is why, a serious motivation should be introduced.

The democratic or participative leadership style is based on involving the workers into the process of ruling the company (Tannenbaum, 1973). In other words, the workers are encouraged to discuss the different problems and decide which solution would be best.

It is told in the case that there was a lack of communication among the workers, which led to the misunderstandings between them and made the process of working rather disorganized.

The democratic leadership can help the manager to overcome these problems, as it will enable the employees from all the departments exchange the information and make decisions. Cooperation between the members of a team is very important for the system to perform well.

Secondly, Kilmer Systems needs to have another structure introduced, as the current structure has a lot of disadvantages. The need for reorganizing the company suggests that the current hierarchical structure is inefficient in the modern market.

Our advice is to organize a network, which means not domination and subjection of one company to another, but their cooperation (Raymond, 1992). We assume that networking is the best structure for the Kilmer Systems Company due to the numerous problems that can be resolved by the networking.

This type of company structure allows creating several points (departments) which do not need to be submitted to each other and to the head of the company. Therefore, this can make Kilmer Systems more mobile, as the workers will be able to cooperate within one department and within the whole network.

In addition, the modern studies show that the practice of offshore businesses can be very beneficial (Gregersen, 1996). The offshore business means situating offices or departments in places where their work demands the lowest costs.

Using this technique, Kilmer Systems can save costs, for example when placing their call centers in other countries or finding the sources of cheaper energy. This solution is very convenient for the big companies like Kilmer Systems.

Next, it is important for the company to catch up with the newest technologies. The technological support is crucial for a telecommunication company. The modern world offers new digital solutions for communication services, and companies need to use the new technologies in order to be competitive.

The financial planning of the company may reject this idea; however, it should be realized that the costs spent on the new technologies will be paid back with the money of customers who prefer the quick modern services.

In addition, the market of the telecommunication industry should be analyzed constantly. For instance, it is important to study the situation on the market, observe the different processes in economy, learn about new tendencies etc. With this purpose, a separate department can be organized.

The aim of the department can be exploring the telecommunication industry market and planning the company’s policy in accordance to the results of surveys. What is more, the company also should start monitoring the results of their work, which can help to see the drawbacks and advantages and properly plan the company’s policy in the future.

Finally, the company must be ready to change. This means that despite all the traditions, the company’s manager, as well as its workers, needs to be ready to change the company’s policy at any time. The rapid changes can sometimes seem to be risky, and the leader or employees can be reluctant to implement them.

However, the company should be flexible; therefore, the realization of the need for changes is a key to a successful work. The changes are needed due to the changing market, and the present situation in business world suggests that only the companies which are able to adjust to the new tendencies stay competitive.

Conclusion

Working with this case study, we tried to define the main problems of the Kilmer Systems Company, such as inappropriate leadership style, inflexibility of the company, and others. In addition, we proposed a plan for their liquidation.

We have outlined the needs for changes in the sphere of management, technology, and company policy. We believe that implementing the suggested changes can resolve the existing problems and help the company to be competitive in the modern market.

Reference List

Bass B 1985. Leadership and performance beyond expectation. Free Press, New York.

Burns J 1978. Leadership. Harper & Row, New York.

Burns T, Stalker G, 1961. The Management of Innovation. Tavistock, London.

Gregersen B, Johnson B 1996. “Learning Economies, Innovation Systems and European Integration.” Regional Studies vol. 31, pp. 479-490.

Gummesson E 2002. Total Marketing Control. Butterworth-Heinemann.

Newstrom, J, Davis K, 1993. Organizational Behavior – Human Behavior at Work. McGraw-Hill, New York.

Raymond E, Miles C, Snow, C, 1992. “Causes of Failure in Network Organizations” California Management Review, pp.28-31.

Robbins S, Judge T. 2007. Organizational Behaviour. Pearson Education Inc.

Schriesheim A, 1982. “The Great High Consideration- High Initiating Structure Leadership Myth: Evidence on its Generalizability”. The Journal of Social Psychology, vol. 116, pp. 221-228.

Tannenbaum, R, Schmidt, W, 1973. “How to Choose a leadership Pattern.” Harvard Business Review, No. 73311.

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