Leadership Report: Acme and Omega Organizational Structure Analysis

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Added on  2023/02/02

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This report provides a comparative analysis of the organizational structures of two companies, Acme and Omega, examining their leadership styles, company cultures, and workflow processes. The analysis delves into the distinct characteristics of each organization, highlighting the differences between mechanistic and organic structures. Acme is identified as having a mechanistic structure, with a focus on predictable behavior, centralized decision-making, and functional departmentalization. In contrast, Omega is characterized by an organic structure, emphasizing adaptability, decentralized decision-making, and informal communication. The report explores the impact of these structures on employee roles, communication methods, and the adoption of different technologies. Furthermore, it discusses the effectiveness of each structure in relation to the company's workflow processes and the broader external environment. The report concludes by offering insights into the implications of these structural choices on organizational performance and adaptability.
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STRONG CULTURE
In organization of Omega strong culture is used respectively. The employees can ask questions
freely. Employees are strongly identified with their culture.
In the organization of Omega forgoing the innovative culture is used to invent new things.
Employees have freedom to ask questions or to discuss on new things. If there is something
wrong going in the organization the conference is being held in the office where employees and
managers face each other in front of directors to solve the conflicts. And vice versa in omega
they think these are the barriers.
WORK PLACE SPIRITUALITY
In Acme there is a strong sense of purpose that they work as team focused on a single goal to
achieve. Employees are hired by their job specialization in the organization which creates less
employee turnover.
In Omega there is no sense of purpose that they work under cooperative management don’t have
a single goal to achieve. Employees are hired without job specialization in the organization and
do whatever they like.
EXTERNAL ENVIRNOMENT
Those factors and forces outside the organization that effect the organization performance.
There are two types of external environment or we can say components.
1. Specific Environment
2. General Environment
The environment that effects these organizations is the specific environment which the external
forces have a direct and immediate impact on the organization. Managerial decisions effected by
culture.
Organizational Structure:
Acme's organisational structure is based on mechanical principles. An organisational structure
that is meant to drive people to behave in predictable, accountable ways is referred to as a
mechanistic structure." (George & Jones, p. 508 in George & Jones, 2005). Employees in a
mechanistic organisation are allocated tasks to complete and are not permitted to take on
additional responsibilities unless directed by management. Rules, procedures, and a defined
hierarchy of authority describe the internal organisation. Acme's decision-making authority is
centralised in the top management, and they use a top-down communication method. There is a
well defined job description (i.e. authority and responsibility connected with each job) and all
communication flows from top to bottom. He requires his managers to run the company with
strong supervision, or a "tight ship," as he defines it. Because he has complete decision-making
authority, the president does whatever he wants (centralized). Acme's organisation charts and job
descriptions are quite thorough. This is because Tyler believes that everyone should have clearly
defined roles and duties. Finally, the organisation has vertical communication. Departments do
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not communicate or engage with one another. From top management to lower management and
staff, all knowledge is sent down. Tyler produces memos to transmit changes or demands to the
corporation, which he passes down to high management, who then passes it down to lower
management, and maybe to the workforce.
Omega, on the other hand, is organised in an entirely different way than Acme. It has an organic
structure, with a "looser, free-flowing, and adaptable" internal arrangement. The term "organic
structure" refers to an organisational structure that is designed to encourage people to initiate
change and adapt swiftly to changing circumstances (George & Jones, 2005, p. 508). This
adaptable structure resembles a team setting in which all personnel are capable of handling any
duty.
There are no clearly established norms and regulations, and no well defined authority hierarchy.
The decision-making authority has been dispersed to the lowest management levels. At Omega,
this may be seen in the departments' contributions to shared duties (when they were making the
chips). Because Rawls does not believe in organisational charts, tasks can be changed and
redefined by collaborating with coworkers. For instance, when a new employee joins the
engineering department, he discovers that his position is unclear. Because he didn't have a job
description, he worked in different places on different days. When it comes to problem solutions,
Omega takes a judgmental stance. They prefer informal communication over standardisation and
written standards, and they believe in mutual adjustment.
Types of Structure Design:
The Acme’s formal frame work by job tasks is divided in groups but is coordinated (flows top to
bottom). The basis on which jobs are groups in order to accomplish organizational goals is
functional departmentalization and process departmentalization.
Form of departmentalization used
The form of departmentalization used in Acme is functional departmentalization. In which jobs are
grouped by the functions (i.e., marketing, finance, and human resources) performed.
Hiring, selection, training and compensation of employees
Hiring and selection is based on merit basis. There are interview and group activities to see
whether they will fit in the organization or not.
For training and compensation they always make sure that everyone is on the same page and the
encourage all of their employees to learn new things, and provide them platform as well.
Workflow processes
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When the technology used by those organisations fit the structure of the organisation, it was
more effective. Because the manufacture of unique objects necessitates a great lot of informal
communication and adaptability, an organic structure proved appropriate for small batch
production. When utilising a mechanistic framework, organisations using mass production
technologies were more effective. The explanation for this was that rules and regulations could
successfully impose control over a complicated and repeated process. An organic structure was
more successful when a continuous process technology was applied.
We need consistent techniques to measure structure in order to compare one organization's
structure to another's, to study the effects of structure on organisational performance, and to link
structure with technology and work flow procedures. Complexity, formalisation, and
centralization are three significant structure measures. The two broad and descriptive categories
of mechanistic and organic can be combined from these structural metrics of complexity,
centralization, and formalisation. Machines can be seen operating in mechanistic organisations.
They are distinguished by highly specialised, rigorously defined jobs, hierarchical authority and
control, and communications that primarily take the form of instructions and decisions provided
by superiors to subordinates. From the top down, communication is primarily vertical. Acme
electronics is the organisation that has a mechanistic structure in our scenario. Large-batch and
mass production technology is the optimum technology or work flow processes for organisations
with mechanistic structures. I believe they use this technology in the most effective way possible
according to their organizations structure. Control in an organic organisation is based less on
formal job positions and more on expertise relevant to the task at hand. Depending on where the
relevant information is located, communication is both vertical (up and down the hierarchy) and
horizontal (across different departments of the company). The majority of these messages are in
the form of information and guidance. The organic organization's commitment is to the
organization's tasks and goals. Organic organisations are typically simple, decentralised, and low
in formalisation. They are able to adapt to and produce change in their surroundings. The organic
structure is exemplified by Omega electronics. Small-batch technology is the ideal work flow
technique or technology for organically structured organisations since it allows
people/employees to make their own decisions. so that they can respond quickly and flexibly to
the customer’s request and produce the exact product the customer wants.
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