There are two plants Acme and Omega electronics called as The Paradoxical Twins because Both Acme and Omega produce similar products that is digital microprocessors along with the production of circuit boards and offer similar services. They both are competiting for the same contracts but the difference is that both follow different organizational structure.
The president of Acme, John Tyler follow well defined organizational structure and decisions are often taken by top management without consulting manufacturing department and they have well defined job responsibilities and authority. In short the decision making authority is centralized
In case of Omega, the president Jim Rawls did not believe in organizational charts and the decision-making authority is decentralized to the lower level of the management. Rawls was concerned with employee satisfaction and wanted everyone to feel part of the organization. Acme’s prices were lower than Omega’s because of that Acme won the competition
Ques1 what organizational factors contributed to success of acme?
• In this particular case, Acme decides to run on mechanistic structure in order to increase productivity and efficiency, and to decrease costs. The advantage of this strategy is that they can undersell their competition (Omega) by selling at a lower cost
• Factors include the degree of specialization formalization and centralization. Mechanistic structure are highly specialized highly formalized and highly centralized similar to acme.
• Specialization can be seen through narrow job descriptions with clear responsibilities while high formalization can be seen through the well defined organizational charts and “tight ship” management style.