MGT600 Assessment 2: CST Management Analysis Report

This report provides an in-depth analysis of the managerial drawbacks and failures of CST Services, a multinational communication software company. It examines the challenges faced by CST, including declining market share, employee retention issues, and technological stagnation. The report identifies key problems such as the loss of skilled employees, rigid organizational structures, and outdated technology compared to competitors. Drawing from successful strategies of companies like CarMax and Charles Schwab, the report recommends improvements in employee retention, financial planning for employees, and digital transformation. The analysis covers the importance of employee engagement, organizational behavior, and the impact of management practices on performance and market competitiveness. The report aims to offer actionable insights for CST to improve its management practices and regain its market position.

Running head: CST MANAGEMENT: ANALYSIS
CST MANAGEMENT: ANALYSIS
Name of the student
Name of the university
Author Note

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Executive Summary
The respective paper is a report about the managerial drawbacks and failures of a
company CST Services along with the recommendations that can be put up by the managerial
departments of the company in order to rectify its faults. The respective recommendations are
taken from the literature and evidences available about the other companies who might have
been facing the similar managerial drawbacks and failures and how they might have rectified
their issues by utilizing certain organizational management theories, models and approaches.

3CST MANAGEMENT: ANALYSIS
Table of Contents
Introduction.................................................................................................................................................4
Discussion....................................................................................................................................................4
Company Overview.................................................................................................................................4
Background of the challenges faced by CST............................................................................................5
Main challenges faced by CST..................................................................................................................6
Recommendations.......................................................................................................................................8
Conclusion.................................................................................................................................................14

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Introduction
Success of management of an organization depends upon the leadership skills of the
managers. The act and process of management can be divided into four parts, namely, Planning,
Organizing, leading and controlling. A successful organization is generally taken as an
organization that has an efficient and successful management (Das & Baruah, 2013). The
respective paper is a report about the managerial drawbacks and failures of a company CST
Services along with the recommendations that can be put up by the managerial departments of
the company in order to rectify its faults. The respective recommendations are taken from the
literature and evidences available about the other companies who might have been facing the
similar managerial drawbacks and failures and how they might have rectified their issues by
utilizing certain organizational management theories, models and approaches. The report also
provides a deep insight about the different factors, perspectives and approaches of organizational
management, relationship between effective people management and organizational
performance, practical problem solving skills to manage employees in an organizational context
and challenges the managers and personnel face while addressing the changing environment
within and outside the organization.
Discussion
Company Overview
The company Comsyst Technologies (CST) is a multinational company that produces
communication software with system developers that caters to the needs and requirements of the
defense along with services that are deemed to be emergencies. The operations of the company

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are in different countries, such as Australia, the United States, New Zealand, South Korea and
India. The company has been relatively successful and popular in providing technological
solutions to different international organizations that worked for synergizing and integrating
organizational tasks. Apart from providing different sensors, control panels, instrumentations and
portals of engineering systems, the company CST also provides tertiary services as well. The
services such as designing the system through instrumental way, maintenance of the system
along with the operations, selection, cabling as well as termination of the instruments are also
provided by the company that are deemed to be secondary and tertiary services.
Background of the challenges faced by CST
The company CST, even after being a relatively successful company in the international
market of the industry of informational technology, has been facing numerous challenges. One of
the most significant challenges that there has been a gradual and unprecedented loss of certain
major offers of business transactions in the hand of its competitors or peers, a sharp regression in
its share in the market from the past two years which has been deemed to be completely
undesirable and unpleasant for the growth and development of the company. The company had
been continually failing in certain undertakings, projects and tasks assigned to them which has
been found out after a comprehensive research done on the company. Such actions have
drastically affected the market share of the company in an obnoxious way. Issues and problems
such as diminishing magnitude of retention among the competent employees in the company has
also been present which is hampering the performance of the company in the long run, affecting
its functionality and goodwill. The different key specialists of the company have been giving
their resignations more often. Such sudden resignations of capable professionals have been
creating a chaos within the company as the company is in dire need of excellently skilled experts

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and employees for its operations and functions. The technological parameters of the company are
also analyzed to be downtrodden. Technological regression within the organizational atmosphere
has reduced the efficiency of the company to a greater extent.
Main issues faced by CST
It is well known that the company CST faces multilateral and multifaceted issues.
However, there are three main challenges faced by the company which needs an utmost
attention. Firstly, there has been a steady and gradual decline in the withholding of the competent
and skilled employees along with a subsequently low motivation and decreased morale of the
staff in the organization. The staff, including the experts and highly skilled personnel had been
subsequently providing resignation and leaving the organization which is a sheer example of low
employee management skills within the organization. Secondly, resignation of certain key
specialists of the company who blamed the rigidity of the company and claimed that there has
been absolutely no hope and opportunity to increase their career and expand their profession.
Thirdly, the technological advancement of the other competitors and peer companies of CST
have somehow, overshadowed the capabilities of CST to a greater extent. The inefficiency of
technological advancement within the organization of the company is another reason for the
decline of the quality and the goodwill of the company. The respective major three challenges
that have been continuously perturbing the organization need to be addressed and worked upon
by the company as soon as possible. The management department of the company needs to look
into the matter more minutely so that such problems can be handled smoothly and the company
gets no more issues in their journey of growth and development.
The three challenges that have been affecting the entire reputation and goodwill of the
organization is elaborated hereafter. First of all, the unfortunate resignation of the most skilled

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and competent key specialists from the organization is definitely a matter of concern. If the
actions are observed and the organizational behavior is introspected, analyzed and interpreted, it
can be enumerated that the employees are not being provided with proper morale and motivation
in performing the tasks effectively and efficiently, which is indeed, a managerial fault and the
human resource management and development departments of the organization needs to put a lot
of attention on the respective situation. As the organizational behavior and dynamics were
studied, it was found out that there had been a very limited scope to the specialists to deliver
their tasks in the most efficient way, which means that the infrastructure of the company did not
provide integrating scope to the key specialists to improve and enhance the tasks that had been
allotted to them. Such acts had decreased their morals. The company has not been taking any
challenging tasks till date, therefore, they might be losing interest in their work and are also
dissatisfied with the work that has been delivered by the employees.
Secondly, with the decrease in the retention of the staff can be accused for the reason behind an
acute shortage of skilled employees within the organization. Observations and interpretations say
that as there had been major mishaps in management where the grievances and problems of the
employees are not addressed and ventilated, the morale of the entire employees are affected.
Thirdly, with lesser room for the employees to grow and advance in their career, the company
has become subsequently unpopular in the eyes of the existing employees as well as the
graduates and potential candidates. Due to the rigidity and less flexibility of the workplace, the
employees of the company are getting demoralized and de-motivated. With the rigidity in case of
time, holidays, leaves and work patterns, the company has become less flexible which has
created disturbance and become hectic for the employees. The technology used by the company

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has also been found to be backdated and this hampered the overall profitability of the firm in a
negative manner and making it incompetent in the global market.
Recommendations
Companies having strong employee retention strategies
Employee retention is referred to as the ability and capability of an organization to retain its
employees. Employee retention management is the process by which the company increases its
capabilities to manage and retain its employees (Cloutier et al., 2015). Employee retention is
important as it is directly as well as indirectly dependent on the performance of the company.
Poor employee retention management of an organization can result in turnover, low performance
and low service. According to the Gallup survey, it has been found out that only 13% of the
employees in an organization are engaged in their jobs on an average (Crabtree, 2013). However,
there have been cases of low employee retention in certain companies; nevertheless, the
companies had taken up certain premium strategies to meet the requirements of the organization
which are enumerated hereafter.
CarMax
CarMax, which is an American user- car retailer and a Fortune 500 company , has been listed
by the Gallup survey as one of the most successful companies in case of employee retention
strategies (Carmax.com., 2019). The company had been adversely affected due to the recession
in the year 2008. In the year of recession of 2008, instead of saving and accumulating money for
the sake of the company by minimizing employee benefits, perks and recognition programs, the
company acted judiciously and invested heavily in employee management programs
(Carmax.com., 2019). CarMax boosted its employee training and development programs,

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helping existing employees earn raises and jump through the ranks of the company. The
company had also focused and concentrated mostly on cultivating the employee management
ideas with the help of certain aids such as feedbacks and questionnaires in order to improve the
areas of drawbacks and shortcomings. CarMax had been working only for uplifting their
companies during the period of recession. In the year 2018, CarMax won the highest honors in
their respective size categories in the fifth annual Top Workplaces awards program, sponsored
by the Richmond Times-Dispatch (Businesswire.com., 2018). The employee retention programs
taken up by CarMax is revised and enumerated hereafter.
1. CarMax invests colossal amount of finances for employee retention management projects
and undertakings, takes the risk and has been successful in bringing out the best from
their employees till date.
2. Development plans, transparent feedback systems, extra perks and bonuses have been
integral part of CarMax that brought the company to success.
Charles Schwab Incorporation
Charles Schwab Incorporation is unique and unconventional than its peers and competitors as
it invests more on financial future of its employees rather than for itself (Schwab.com., 2019).
The company is famous for its unique and remarkable financial plans for its employees (long
term as well as short term). The company provides a plethora of financial benefits to its
employees, some of which are enumerated hereafter.
1. The majority of the workforce of the company participates directly in corporate bonus
plans.

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2. The company enables the employees to help his or her peers and other employees within
the organization in financial and other areas as well which is the most unique feature of
the company (Schwab.com., 2019).
3. The employees have been offered complimentary personal Charles Schwab financial
consultations and support as well as financial workshops and discounts and savings on
their own trading and portfolio.
4. The organization also provides stock purchase plan, comprehensive medical, dental,
visual and healthcare plans to make the employees financially sound and strong.
Companies having strong digital strategies
Volkswagen
Volkswagen is a German automobile manufacturing company which had created and
formulated most intense and effective digital transformational plans (Volkswagen.com., 2019).
The company had invested almost 3.5 billion into the digitalization initiative that is to be
completed in the year 2025 (Cnbc.com., 2019). For example, the company is thinking of making
a new set of mobility solutions that will become integral to consumers, such as a service that
enables car owners to have packages delivered to their car, and a parking app that offers real-
time personalized recommendations based on location (Volkswagen.com., 2019). The massive
step taken by the company proves how competitive the company is in order to survive and thrive
in the fierce global competition. Therefore, it can be enumerated that:
1. Volkswagen has been investing in a colossal manner to improve and transform itself and
its technologies.

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2. The company has speculated and is also working on integrating their functions and tasks
into different kinds of applications, software and other information technology
synergizing platforms so that the company becomes efficient and swifter in its operations.
Experian
The company Experian which is considered as one of the largest consumer credit reporting
agency has been utilizing the technologies in order to transform itself fast and become more
competent and swift in its operations. Experian helps business customers prevent fraud, offer on-
the-spot credit to consumers and make data-driven marketing decisions with the help of
outstanding amalgamation and integration of technology In its functions and operations
(Experian.com., 2019).
1. The company has exploited information technologies in order to trace, observe and study
customers and customer trends that helped in the growth of the company.
2. The company completely transformed the technologies used in accessing information,
making them more advanced with a plethora of latest features, software and other
characteristics to accelerate the tasks even better (Experian.com., 2019).
What CST can learn
Strategies taken up by the companies, namely, Volkswagen and Experian are intrinsic as
well as instrumental. The companies have utilized the technologies for digital improvement and
transformation on integrating their functions and tasks into different kinds of applications,
software and other information technology synergizing platforms so that the company becomes
efficient and swifter in its operations. CST can learn from the strategies taken by the mentioned

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companies. CST must also include the latest and the most advanced technologies to integrate and
synergize their activities, thereby, conserving time and other resources to a greater extent.
Strategies taken up by the companies with best employee retention strategies and programs,
namely, the companies like CarMax and Charles Schwab follow the “high level” employee
retention strategies. There are three levels of employee retention strategies in the arena of
employee retention management. They are: low level, medium level and high level employee
retention strategies.
Low level employee retention strategies can be enumerated as meagerly recognizing and
appreciating a well recognized job, personal or professional events, providing basic benefits,
perks, workplace conveniences, providing basic recreation in the place of work, providing
occasional stress relievers and providing employee support in difficult situations (Terera &
Ngirande, 2014).
Medium level employee retention strategies include medium appreciation and recognition of a
well done job, personal or professional events, providing the employees with benefit programs
for him or her and families support, providing a good quality convenience at workplace,
providing training, development and personal growth opportunities (Al Mamun & Hasan, 2017).
Higher level employee retention strategies include promoting work- life effectiveness among the
employees, understand the employee needs, encouraging professional training and development
along with personal growth and opportunities of self- realization and self- actualization,
providing an amicable and productive environment of trust and also hiring the right employees
for the right designations (Al Mamun & Hasan, 2017).

13CST MANAGEMENT: ANALYSIS
The mentioned companies follow the “high level” employee retention programs and strategies as
they provide the employees with greater financial leverage, financial consultations and support
as well as financial workshops and discounts and savings on their own trading and portfolios
along with greater investment in training and educating the employees of their skills and
expertise, along with flexibility promoting work life balance and comprehensive healthcare
bonuses which has proved to be providing positive results as the employee performance and
morale has been increasingly boost and accelerated. As the companies follow “high level”
employee retention strategies and programs, the employees in the company stick to the
organization for a long time where they find enough room to increase their skills, dexterities and
expand their job opportunities within the organizational structure.
How might CST address and solve the issues
CST is a prolific company and it can utilize the resources available judiciously in order to gain
special leverage in the global business world.
1. With the help of “high level” employee retention strategies, that include promoting work-
life effectiveness among the employees, understand the employee needs, encouraging
professional training and development along with personal growth and opportunities of
self- realization and self- actualization, providing an amicable and productive
environment of trust and also hiring the right employees for the right designations, the
company can gain the trust, confidence and high morale of the employees. With the help
of the mentioned strategies, the company CST might be able to enhance and accelerate
the productivity of the employees. Self-realization and self-actualization policies, such as
providing the employees with several challenging situations to deal with, certain

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entertainment and refreshment arrangements for the employees, proper leaves, and health
and retirement policies are counted in the employee retention policies in an organization.
The company is also suggested to encourage the employees to execute any project or
operation with the help of proper teamwork. Teamwork is a significant way by which the
organizations can generate employee engagement. Employee engagement can be brought
up by digital means that can act as a catalyst in accelerating employee performance and
productivity (Kane et al., 2015).
2. The company is suggested to build team based high performance culture within the
organization. A team based high-performance culture is a set of behaviors and norms that
leads an organization to achieve superior results by setting clear business goals, defining
employees' responsibilities, creating a trusting environment, and encouraging employees
to continuously grow and reinvent themselves inside as well as outside the organization.
The company CST can provide the employees with premium training and education
related to the company ethics, values, goals, objectives and what performance is needed
from them. In order to carry on such tasks, the company needs to follow the policies of
CarMax and Charles Schwab, which is investing a massive amount of financial resources
on the developmental plans for the employees of the organization, apart from efficient
recruitment of the trainers and professionals.
3. CST should produce the best services and products they generally offer with the help of
premium technologies and digital platforms. CST can also utilize digital platforms to
enhance the performance of the employees intrinsically, carry out digital marketing and
churn out the best and the most innovative talent among the masses with the help of
proper optimization of the technologies (Parviainen et al., 2017).

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Conclusion
The respective paper concludes to be a report about the managerial drawbacks and
failures of a company CST Services along with the recommendations that can be put up by the
managerial departments of the company in order to rectify its faults. The respective
recommendations provided before the conclusions are taken from the literature and evidences
available about the other companies who might have been facing the similar managerial
drawbacks and failures and how they might have rectified their issues by utilizing certain
organizational management theories, models and approaches. The companies that have been
taken as examples are Volkswagen, CarMax, Charles Schwab Incorporation and Experian. The
report concludes to provide a deep insight about the different factors, perspectives and
approaches of organizational management, relationship between effective people management
and organizational performance, practical problem solving skills to manage employees in an
organizational context and challenges the managers and personnel face while addressing the
changing environment within and outside the organization.

16CST MANAGEMENT: ANALYSIS
References:
Al Mamun, C. A., & Hasan, M. N. (2017). Factors affecting employee turnover and sound
retention strategies in business organization: A conceptual view. Problems and
Perspectives in Management, 15(1), 63-71.
Businesswire.com.(2018). Available at:
https://www.businesswire.com/news/home/20180215005692/en/CarMax-Celebrates-14-
Years-FORTUNE-Magazine%E2%80%99s-100
Carmax.com.(2019). Available at: https://jobs.carmax.com/about-carmax/benefits/
Carmax.com.(2019). Available at: https://jobs.carmax.com/career-development/
Cloutier, O., Felusiak, L., Hill, C., & Pemberton-Jones, E. J. (2015). The Importance of
Developing Strategies for Employee Retention. Journal of Leadership, Accountability &
Ethics, 12(2).
Cnbc.com. (2019). Available at: https://www.cnbc.com/2019/06/05/volkswagen-set-to-slash-up-
to-4000-jobs-in-digital-transformation.html
Crabtree, S. (2013). Worldwide, 13% of employees are engaged at work. Gallup, last modified
October, 8.
Das, B. L., & Baruah, M. (2013). Employee retention: A review of literature. Journal of Business
and Management, 14(2), 8-16.
Experian.com. (2019). Available at: http://www.experian.com/blogs/news/2019/04/12/driving-
innovation-digital-transformation-experian/

17CST MANAGEMENT: ANALYSIS
Experian.com. (2019). Available at:
http://www.experian.com/blogs/news/category/responsibility/
Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2015). Strategy, not
technology, drives digital transformation. MIT Sloan Management Review and Deloitte
University Press, 14(1-25).
Parviainen, P., Tihinen, M., Kääriäinen, J., & Teppola, S. (2017). Tackling the digitalization
challenge: How to benefit from digitalization in practice. International journal of
information systems and project management, 5(1), 63-77.
Schwab.com. (2019). Available at:
https://www.schwab.com/resource-center/insights/content/are-you-making-the-most-of-
your-employee-benefits
Terera, S. R., & Ngirande, H. (2014). The impact of rewards on job satisfaction and employee
retention. Mediterranean Journal of Social Sciences, 5(1), 481.
Volkswagen.com. (2019). Available at:
https://www.volkswagen-newsroom.com/en/digitalization-3711