What makes you think the company's management is acting illogically? The system works, the computers get the job done and there are no problems other than the fact that someone hired as a System Administrator now wants to be an I.S. Manager and feels he needs a few more people on staff to justify that title. This company isn't in the business of running a computer network, so why should it dedicate more staff than necessary to maintaining one perfectly when there's nothing impeding the daily running of what the comapny does do?

If it ain't broke, don't fix it. Obviously this System Administrator thinks that proper I.S. management is the well-spring of all company productivity, but everything looks like a nail to someone with a hammer. I say he just accept the fact that he isn't going to advance his career very far at this company. He should quit for that reason, but don't blame the company for it.