Paradoxical Twins Acme and Omega Electronics

Topics: Management, Organization, Organizational studies and human resource management Pages: 5 (1708 words) Published: November 25, 2012
Case Study on
Paradoxical Twins Acme And Omega Electronics

Paradoxical Twins Acme And Omega Electronics
Defining the issue
After reading the case of the “Paradoxical Twins Acme and Omega Electronics”, I found Both Acme and Omega produce similar products and offer similar services. Acme president John Tyler is a very tough going individual and he is portrayed to be an autocratic individual because there is one way communication in Acme. The case provides an opportunity to evaluate both Acme and Omega’s organization structure of a business. Both companies used to have the same organizational structure but after they were sold to different investors, as a consequence of this, each company has its own procedures and company policies. Following are the same facts about both the company mentioned in the case after they became the separate business entity. Acme retained original management and promoted GM to the president. They have 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. Omega hired a new president and upgraded several existing personnel within the plant.They don’t have the organizational structure and they believe that Organizational chart seems like artificial barrier. They have a participative management style of leadership and they don’t have well defined job specification. Acme has shipped the 100 prototypes on 2 shifts, and 20% of these units were found defective. While Omega has shipped the100 units on time, and no defective items were detected. Despite of these facts, and although, as seen in the previous section,Omega was more effective than Acme, the photocopier manufacturer decided to split the final contract between Acme and Omega, under the conditions of maintaining zero defects and lowering the final cost Justifications of this decision could be: 1-Acme retained the original structure of Technological Products of Erie, and has been able to be an Omega in profitable contracts in the past. This has formed a good reputation for Acme that might have contributed in giving them a chance to have a portion of this contract. 2- Acmes price was slightly lower than Omega’s, and since the photocopier manufacturer have conditioned high quality, I t might have been more profitable to choose Acme as well as Omega. 3-Omega was not rejected because that would be unethical and may be illegal since they met the deadline and provided high quality inputs to photocopier manufacturer. At Acme:

The high formality of coordination, and the tall hierarchy of the organizational chart, has affected the way activities were being done. The most important effects can be summarized as follows: 1-Little information was communicated to the organization as a whole and between different departments. 2-Lack of motivation, as some manager’s voiced.

3-Some inertia against trying new methods of work existed.
4-Coordination between divisions was not high enough that some important decisions were wrongly taken. At Omega:
1-Due to the highly informal fashion work was being done in,employees had an ambiguous view of their own roles. 2-Information sharing was high among all levels, with sometimes caused a waste of time.3-Innovative thinking was encouraged.4-The work was highly collaborative

Analyzing the case data
The paradoxical twins describe two organizations, Acme and Omega Electronics that are competing for the same contract for manufacturing a memory unit to be used in a photocopier. Omega, having an organic structure, wins the race because they are able to produce the higher quality memory unit. On the other hand, Acme having mechanistic structure seems less competent and less reliable because of its low quality memory unit which they are unable to produce in time and some of its prototypes fail to work. Omega even corrects a design error in the original blueprint, which...
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