The paper "Acme and Omega Managerial Styles" is a good example of a management case study. Acme and Omega are two companies competing for the same subcontract. Each of the organization has a different form of organization with Acme using a mechanic and organic form of structure. The main issue in this case study is raised by the different organizational structure they use which influences their management style. The structure determines the final winner of the contract which is the main issue here. Rational theory and open system theory are used to explain the mechanistic and organic structure of Acme and Omega.
It is recommended that Acme and Omega should consider adopting both mechanistic and organic structure to enable them to survive in a competitive market. With the high development in the industry, Acme should consider adopting a free exchange of ideas environment to promote innovation while Omega should reduce the integration since it slows down the speed of decision making and it increases production costs. 2.0 Introduction This case study focuses on the main issue in the two companies who used to be in the same division before their sale to different identities.
Acme and Omega are competing to win a contract of manufacturing 100 memory units from a photocopy manufacturing. This report discusses the difference between the organic and mechanistic structure of the two companies. Acme and Omega after their sale each adopted its own organizational structure with Taylor the Acme president retaining the original structure and its organizational chart. On the other hand, Omega hired a new president and promoted some of its employees. Omega president doesn’ t believe in the organizational chart and he terms it as an artificial barrier and encourages jointly working. The demand for memory unit is high and the two companies are given subcontract by a photocopying manufacturing company.
Some component lack in the market and the two companies are both depending on the external environment for the components. Omega which its decentralized decision making makes the memory unit prototype faster but an error is found in design. After correction, all their components are tested and their quality is high. On the other hand, Acme with its centralized decision making delivered the prototype late and even they are found to defective.
Finally, Acme was allocated the final contract and this is where the issue arises. 3.0 Acme and omega managerial styles Acme and omega adopted different management style after their sale. Each company has its own structure which determines its management style of their organization. Below is the table comparing which of the two companies is mechanistic and which is organic? structure characteristic Acme (mechanistic) Omega (Organic ) Integration The organizational structure is hierarchial. From the president to vice president and then bottom to departmental managers.
This is stipulated well in the organizational chart. Each part in the hierarchy is entrusted with authority which defines their responsibility. The president believes organizational chart is just an artificial barrier and therefore uses direct contact to communicate with managers and other employees in the organization. The integration mechanism here is direct contact Specialization The employees work as individual in accomplishing their tasks. Each of the employees is assigned a specific task. Therefore, there is a high degree of specialization. Employees work as a team. There is no definite job which must be done by somebody.
Therefore the employees here work jointly. Authority in the organization The authority is centralized. Taylor the president acts as an autocratic leader who makes a decision and then communicates to the lower management. The authority is decentralized and decisions are made by the management team while vital decisions are left for experts. Rules and regulation There are defined rules and guidelines. Every activity to be done there is written orders to be followed. Therefore there is the standardization of rules. There are no written rules or guidelines for any job to be done.
Flexibility is applied. job is done on mutual adjustment. Formalization Communication runs from top management to the lower management by use of memos. Therefore the communication is through the horizontal channel Communication is informal and freely. Both horizontal and vertical channels are used by the management to departmental managers to departmental managers with the staffs. 3.1 Organizational structure issue Understanding the organization structure makes it possible to coordinate each activity systematically by reducing redundancies and eliminating unproductive processes (Millett, B.1998). After the sale to individual investors, each company adopted its own procedures and policies. Acme retained the original structure and promoted its general manager to president.
Omega hired a new president and upgraded several existing individuals within the plant. Acme managerial style is of Mechanistic while Omega adopts organic. 3.1.1 Impacts of mechanic structure (Acme) Employees Specialization of activities is encouraged in Acme and employees follow rules and regulations to perform their duties. They are contented with their job. However, a number of managers aired their will to have their jobs cover a wide range of tasks. The communication in the organization is centralized and therefore the employees are not able to contribute much in decision making.
One manager said he wished he had little information about what is going on. Acme wins the final contract because the employees are able to reduce cost by maximizing efficiency.
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