Case Study 2: Kenan Systems
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Case Study 2: Kenan Systems
Establishing and growing a company is a process full of challenges and obstacles. Most companies begin small, overcome problems and risks to be what they are. This fact can be understood only by studying the history of any company. This study will focus on the establishment and growth of Kenan Systems to highlight some success factors within a company and the challenges that are commonly faced and addressed.
Effectiveness of Team Approach
In an organization where a team-based approach is implemented, the value and importance of all employees are considered equally. They may have specific roles that may be simple or complex, but that does not deter them from being respected (Loop Team, 2020). In such an organization, groups of employees are assigned specific projects with specific targets and timelines to meet, and they handle work processes and business (Loop Team, 2020). The organizational structure adopted by Kenan System allows employees to make decisions and contribute significantly to the company’s development without the approval of managers.
This form of management and team structure is appropriate for the Kenan System organization because the company was in its early stages of development in a developing industry. To build the technology and adopt new and innovative ideas that could develop the company, employees had to be given the autonomy to contribute with a sense of ownership and personal responsibility (Loop Team, 2020). Teamwork has been highly attributed to the generation of new ideas and creativity. It also encourages taking risks. With the highly talented workforce that Sahin selected, tapping into their full potential could only be done effectively via teamwork (Loop Team, 2020). As such, this approach was effective and contributed to the development of the company.
Pros and Cons of the Upside-Down Mound Structure of Kenan Systems
Pros
In this form of management, all employees were considered important, no matter the simplicity and complexity of their roles (Quain, 2019). The absence of superiority or hierarchy led to effective and free-flowing communication between employees since no managers or one manager supervised others (Loop Team, 2020). With improved communication, problems were quickly solved because sharing of information was faster to speed up responsiveness. The team empowered the workforce and made it flexible (Quain, 2019). Employees could shift from one team to the other to ensure the availability of any skill or talent required in a team to give the best performance. It also made employees understand their roles better, and they felt validated and empowered as they discovered their potentials (Loop Team, 2020).
Cons
Team management is associated with potential conflicts. Personal conflict may arise within the team, thereby disrupting harmony and breeding negative energy. Managers might reshuffle the disruptive employee who, in turn, might find it adjusting to the new team as well (Loop Team, 2020). Besides, some employees are not team players. Such employees are better off working alone. Making them part of a team may limit their potential. Additionally, underperforming employees will hide behind the team. Relying on others to hind or cover the lack of effort by some employees may undermine the team and force managers to set individual performance milestones (Quain, 2019).
OB Predictions for the Company as it Faces the Risks
With the risks identified, Kenan Systems had very limited safe options to rely on but to take risks. The company will have to expand, generate more funds, diversify its products, or sell itself to other companies. To expand, Kenan Systems will have to allow mergers and acquisitions with developed companies. Additionally, to keep the employees motivated and usefully, the company had to diversify and implement most of the great ideas that the workforce had proposed but could not be implemented (Invest Northern Ireland, 2021). Since the biggest impediment to implementing these ideas was resources, merging or acquiring a developed company makes sense since a smaller one may not have the required sources (Goyette, 2016). Moreover, since the company requires more money to support its activities and staff, diversification and expansion become the only viable option through mergers and acquisitions. Such moves pose greater challenges to the company culture (Kenan Systems). Kenan Systems can maintain its culture by making prior agreements with the new merges and acquisitions to keep the original culture or develop a better one (Goyette, 2016). However, since such arrangements might not be guaranteed, Kenan Systems might have to make a compromise at some point.
Views about the AAWE Hiring Model
The AAWE hiring model stands for Aptitude, Attitude, Willingness to learn, and Experience/Extra. Sahin chose these models to be more strategic in hiring than the traditional hiring model that values experience (Kenan System). His reason was that experience was irrelevant given the turbulent times in which the business was operating. I share his concern and acknowledge that his approach was the best. During the 80s and 90s, the telecommunication industry was still developing, and having people with long years of experience was not easy because the industry was new (Kenan System). Besides, innovative technologies were rapidly rendering older ones obsolete. As such, new and innovative minds were easier to access and were fit for developing and building new ideas.
View about Sahin’s Views Concerning Company Ownership and Compensation
Sahin took full ownership of the company and did not allow employees to buy stocks. Additionally, he took a totally different style of compensation from the common one. He states reasons such as cushioning employees from the risks associated with a new start-up and ensuring that they focus on management rather than ownership (Kenan System). He also did not want employees to see the company as a source of financial profits. Such an ownership and compensation approach effectively directs the company’s focus to production and management (Loop Team, 2020). However, Salim should change the ownership system of the organization to give everyone a sense of belonging.
Motivation Approach for High Achievers
Self-fulfillment will work as the best motivation approach for high achievers. This is because they are ambitious, goal-focused, and self-disciplined individuals (Loop Team, 2020). Their desire to accomplish goals drives them. According to Human motivation theory, they are motivated by the need for achievement (Loop Team, 2020). Hence, self-fulfillment pushes them to reach their maximum potential and assures them of security and safety in the workplace.
Conclusion
Kenan Systems is a typical example of a company that began small and moved slowly throw the inherent challenges to become a successful company. The unique ways developed by the company’s management, such as the AAWE employment criteria, culture, and compensation criteria, are worth emulating. Company managers should strive to embrace Kenan Systems’ strategies to realize better success. Similarly, Kenan Systems will have to make drastic changes to overcome the changes that may hit the family in the near future.
References
Goyette, P. (2016). 3 Keys to Maintaining Company Culture Through Mergers and Acquisitions. Eagle’s Flight. https://www.eaglesflight.com/blog/3-keys-to-maintaining-company-culture-through-mergers-and-acquisitions
Invest Northern Ireland. (2021). Assess your options for business growth. https://www.nibusinessinfo.co.uk/content/business-growth-through-diversification
Loop Team. (2020). 7 Advantages of Teamwork. In the loop. https://www.intheloop.io/blog/advantages-of-teamwork/
Quain, S. (2019). Advantages & Disadvantages of Team-Based Organizations. CHRON. https://smallbusiness.chron.com/advantages-disadvantages-teambased-organizations-25370.html
Kenan System. PDF.