Airstar, Inc. Evaluation - Case Study Example

Airstar, Inc. (Student Name and ID) (Course Code and Name) (Lecturer and Tutor’s Name) (Date of Submission) (Title) Executive Summary This paper presents a report on the analysis of the case of Airstar, Inc. The report seeks to identify the key problems, which the company is facing, the current structure of the company, and the organization design of the company. The report findings indicate that Airstar, Inc. has a problem on organization structure and planning. This makes the executive members of the company not to be able to run the company effectively. Further, the company does not have a strategy for responding to competition threat, which affects running of various activities. Finally, the company is faced with a problem of communication, which makes sharing of knowledge and communication difficult. As such, the report recommends that the management team of the company perform a SWOT analysis, which will aid the company in developing the desired competitive edge. The new president, Morgan, should also develop effective leadership and management skills, which will enable him to handle the current situation of the company. The report concludes by arguing that Airstar, Inc. has the potential of regaining its former market strength when organization structure and design is addressed effectively. Table of Contents Executive Summary 2 Table of Contents 3 Introduction 4 Key Problems 4 Current Structure and Arguments 5 Solution and Arguments 6 Organization Structure 6 Leadership and Management Skills 6 Controlling 7 Organizing 8 Motivating 8 Planning 9 Mission Statement 9 Strategy 9 Recommendations 10 Conclusion 11 Bibliography 12 Introduction This report focuses on the organization structure and design of Airstar, Inc. The report seeks to presents findings on the key problems, which affect the organizational design of the company. This includes identification of the current structure of the company and discussion of why such a structure is not able to lead the company towards attaining success. Consequently, the report develops a concrete solution to the problems, which are affecting the company. Airstar, Inc. operates in the market segment of manufacturing and service industry. In this, the company is involved in the process of manufacturing and servicing of jet engines and pistons for private aircrafts. The company has being able to retain most of its managers for over 20 years. Roy Morgan assumed the position of president after the founder died five years ago. The market environment where this company operates is changing rapidly with competition among the related firms intensifying throughout. This has led to confusion among employees where roles overlap and communication becomes a serious issue in the company. Key Problems Airstar, Inc. is facing a problem of strategic direction and organizational design. This has made the company to be vulnerable to the overwhelming competition within its operation market, which has affected the sales output. Major competitors for Airstar, Inc. include Pratt & Whitney and General Electric. This competition is induced by the rapid changes within the operation market for these companies. Airstar, Inc. does not have an effective organization design and strategy, which has the ability of enabling it to survive under the stiff competition. Further, lack of an organization structure in Airstar, Inc. has resulted into several management problems. This has been evidenced by the overwhelming frustration of managers. As such, the executive has not been able to deliver as per the expectations (Georges 2003). A major cause of this situation is the lack of clear communication channels. Consequently, sharing of information and knowledge, as well as the management of the same has become a limitation towards the attainment of the desired success for the company. In addition, lack of organization structure has caused role duplication to take place, which makes employees not to improve on their individual level performance. On the same note, employees lack responsibility and processes and functions are not taking place effectively, in this company. Current Structure and Arguments Organization design depicts a process, which is adopted in an organization for the purpose of executing and administering the strategic plan (Georges 2003). This process also focuses on organization culture, human resource policies, production procedures, and linkages of the organization with other organizations. Unfortunately, Airstar, Inc. lacks an organizational goal, which would lead it towards attaining a competitive edge on its marketing environment. The company has being operating smoothly without experiencing instances of a threat. On the same note, the company did not have a strategy, which would make it counteract a competitive threat. Therefore, the competition threat induced by Pratt & Whitney and General Electric leads to the development of frustration among the management team and employees, and attainment of a chaotic working environment. Further, the executive members of the company find it difficult to run various activities because of the competition threat induced within the market. Aviation industry has experienced tremendous competition among all the firms within this industry. In addition to being a competitive industry, safety, accuracy and precision are crucial elements within this industry. This indicates that all the components used by the firms in this industry have to function under the expected standards (Jordi, and Jean 2007). Due to this, there is a rapid change, which is being experienced in the airline industry. This change is based on the desire to have a competitive price in the market. Morgan, the new president of Airstar, Inc. has discovered that the company is lagging behind among other companies in this industry. The major cause of this lag is poor strategic plans for the company, as well as the lack of objectives, which are aimed at guiding the company in improving on its performance level. Moreover, there is a lack of definition of the managerial structure for this company. This has caused the problem of duties duplication, which has the impact of declining the performance output of this company. In addition, the company lacks organization structure, which would contribute towards eliminating these problems. Solution and Arguments Organization Structure To overcome the problems facing Airstar, Inc., the management team of this company should focus on establishing an organization structure, which has a clear process of directing on how to handle change, respond to competition, and move forward (Yu 2004). This will ensure that the threat, which is induced to the company from the competition force, is minimized significantly. In addition, the working environment for the organization will not be chaotic and instances of frustration among the managers of the company and employees will not occur. Leadership and Management Skills The new president, Morgan, is operating under an outdated view. This is because is operation is based on the assumptions of predicable and stable environment. As such, he needs to recognize that the current marketing environment is changing. This would make him change is perspective on how to manage effectively, in this company. Moreover, Morgan needs to embrace management and leadership skills, so that he can handle the situation, as well as provide a new direction, which the company needs to adopt in order to attain the desired success level. Leadership skills focus on establishing the vision for the company. This should include devising of the strategies, which would aid the company in attaining its desired success. This is because a vision depicts a desirable and ambitious future for the company or team-members (Shelton, and Darling 2001). For the employees and other management team members to adhere to the vision, Morgan has to acquire leadership skills, which would make him convince employees that the vision is the best and they can share and relate to it as they perform various functions, in the company. Management skills will create an opportunity for Morgan to formulate and establish detailed schedules and plans, which would help him in attaining the desired success, as well as allocate for the company resources effectively to accomplish the outlined plan. Management in a company is viewed as continuous problem-solving activity, which managers are often engaged in (Nollenberger 2006). As such, the management of a company is focused towards attaining objectives and goals of the company. This occurs effectively when managers adopt four basic functions, which act as the main strengths for attainment of success in an organization. These include controlling, organizing, motivating, and planning. Therefore, the new president of Airstar, Inc., Morgan should focus on embracing these functions, so that the inherent problems in the company can be eliminated effectively. Controlling Controlling is deemed one task that involves a lot in the management process of an organization (Nollenberger 2006). This is because this function includes the identification of the performance standards of the company. These standards have to be aligned with the company’s objectives and goals. The function involves reporting and using statistical tools for recording and measuring. Managers use the results obtained from this function and categorize them as having either a negative or a positive impact in the running of the activities of the company. This is a crucial function, which the management team of Airstar, Inc. led by Morgan should adopt in order to ensure that all the processes and functions occur effectively in the company. Furthermore, controlling will enable the management team of this company to realize what needs to be done, so that the company does not lag behind. Organizing Organizing is a crucial function, which focuses on the development of an internal structure for the organization (Stebbins, and Shani 1995). This structure varies depending on the industry in which a company is located. Such a structure creates room for effective flow of information and comprehension of job responsibilities among employees. This is what Morgan needs to focus on establishing in Airstar, Inc. This will ensure that communication channels are open to all and there is no duplication of roles. Consequently, the company will be able to attain success within its operation market. Furthermore, establishment of an organization structure will ensure that employees understand their job expectations, so that they can attain their desired objectives. Motivating Motivating may be regarded as a psychological or physical process (Stern, and Borcia 1999). This function seeks to encourage managers to focus on improving the performance level of employees. In this, managers encourage employees to improve on their individual level performance. Morgan should embrace this function and focus on providing incentives to employees, which would encourage them to improve on their individual level performance. Further, Morgan should encourage other managers in the company to identify the needs of employees and ensure that these needs are addressed effectively. This results in satisfying employees. Consequently, employees have the ability and potential to improve on their individual level performance. Planning Planning may be regarded as one process, which is ever continuous in company (Mahesh, and Suresh 2009). This function occurs as the company focuses on ensuring that its mission and vision are attained. This process includes formulation of the means of attaining the objectives and goals of the company. Therefore, the management team of Airstar, Inc. should adopt this function at both narrow and broad perspectives. This will ensure that the company does not attain the current frustration of employees and managers. In addition, the planning process will provide a guideline for managers to follow in order to be successful in the management process. Moreover, planning will provide an accurate direction, which the company needs to follow in order to attain its desired success level. Mission Statement However, as the company embraces the four functions and implements them, there is a need for the company to develop an effective mission statement (Persson, 1997). This should be based on the leadership structure for the company. As such, performance of various duties and activities in the company will occur effectively. Further, the company should focus on developing a flexible business policy, which will enable the company to accommodate changes as they occur without having a negative impact on the operations of the company. Strategy Strategy depicts an outline by the company on how it aims at achieving objectives and goals (Furness 1997). This includes identification of the costs and problems of a company. Therefore, Airstar, Inc. should focus on strategic planning of its business activities. This will enable the company to know the procedures and assess its ability to achieve its business goals and objectives. Further, strategic planning will provide a direction, which the managers of the organization have to adopt in order to run the company such that it has the ability of attaining the desired success level. Recommendations Morgan needs first to acquire the necessary leadership and management skills. This will enable him to have the necessary competency level of handling the major issues, which affect this organization. Furthermore, Morgan will be able to analyze various situations and comprehend how to lead and handle such situations effectively in order to attain the desired success. Moreover, Morgan should be at the forefront of developing a vision for the company and directing employees on how to embrace the vision in their job roles. Mr. Morgan needs to direct the management team of this company in conducting an effective SWOT Analysis (strength, weakness, opportunity, and threat analysis). This should be based on both internal and external environment for the organization. Such an analysis will lead to comprehension of resources available, uncertainty level, threats and opportunities within the environments, and amount of change, which Airstar, Inc. is exposed to. Moreover, SWOT analysis will enable the company to comprehend its competency level in comparison to other firms, especially the competing firms like General Electric. Finally, Morgan needs to change his perspective of management (management at stable environment) and focus on management at a dynamic environment, which is characterized of several challenges. This will ensure he is able to handle the situation effectively. Moreover, such a management style will create room for Morgan to develop an effective strategy and plan, for the company, which is able to operate both at stable times and at dynamic times of the business activities of the company. Conclusion The major issue affecting Airstar, Inc. is the organization structure and plan. This makes the company to experience significant problems when exposed to a competition threat. This occurs since the company lacks a strategy of counteracting threats, which are exposed towards its business environment. Further, lack of the organization structure makes communication and sharing of knowledge difficult, in this company. This depicts that the issue of organization structure deserves to be addressed effectively to ensure that the company has the potential and ability to operate effectively within its marketing environment. Airstar, Inc. has the ability of regaining its market share and attaining a competitive edge in the market. What needs to be done for this company is that the task organization and organization design needs to be addressed effectively, so that they can meet the new changes in the market. However, this may only be effective if all the stakeholders of the company are involved. This will ensure that all employees comprehend their job roles and there will be no role overlap among employees. Moreover, the various activities of the company will be conducted based on the outlined mission and goals. This will ensure that employees in the company adhere to the strategic direction of the company. Moreover, the management team of this company has to conduct a SWOT analysis and develops organization culture and plan, which has the ability of leading the company towards attaining the desired success level. This will contribute towards identification of the strengths and weaknesses of the company, in terms of resources, to operate within its designated market environment. Bibliography Furness, E., 1997. “The Robust Organization: Transforming Your Company Using Adaptive Design.” Quality Progress, 30 (2), pp. 134-134. Georges, R., 2003. “Making a Difference: Organization as Design”, Organization Science, 14 (5), pp. 558-573. Jordi, T, and Jean, B., 2007. “What a Design Approach Offers to Organization Development”, The Journal of Applied Behavioral Science, 43 (1), pp. 23-40. Mahesh, K. and Suresh, J.K., 2009. “Knowledge criteria for organization design.” Journal of Knowledge Management, 13 (4), pp. 41-51. Nollenberger, K., 2006. “Combining Leadership & Management Skills.” Government Finance Review, 22 (4), pp. 28-32. Persson, G., 1997. “Organization design strategies for business logistics.” International Journal of Physical Distribution & Logistics Management, 27 (5), pp. 282-291. Shelton, C.K. and Darling, J.R., 2001. “The quantum skills model in management: A new paradigm to enhance effective leadership.” Leadership & Organization Development Journal, 22 (5), pp. 264-273. Stern, G. and Borcia, Y., 1999. “Motivation strategy.” Executive Excellence, 16 (7), pp. 17 18. Stebbins, M.W. and Shani, A.B., 1995. “Organization design and the knowledge worker.” Leadership & Organization Development Journal, 16 (1), pp. 23-23. Yu, H., 2004. “Leadership and Management in Education: Developing Essential Skills and Competencies.” Journal of Educational Administration, 42 (1), pp. 116-119. Read More