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Case 2 - Group 6.docx -

Organizational Structure Desig…
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Organizational Structure, Design, and Change

OB III | HR C | Primary Group 6
Ambar Jain H21127 | Dixit Dutta H21137 | Jatin Sharma H21143 | Meghna Puri H21147 |
Shashwat Krishna H21166 | Vaibhav Gupta H21176| Vanya Pandey H21177

The Paradoxical Twins: Acme and Omega Electronics

1. Compare the structure and process followed in both organizations (based on the STAR
model discussion)

Structure

Acme Omega

Specialties Needed Division of labour and specialties are the same for both
organizations
Shape Fixed span of each manager Random, no fixed shape

Distribution of Power Centralized Decentralized

(Vertical)

Distribution of Power Task Specific Same for every employee of the

(Horizontal) organization

Departmentalization Definite, well-defined Non-existent

Processes

Vertical (Allocation of Not enough data, assuming it to be the same for both
Resources)

Lateral (Information  No information passed  Everyone works like a unit

Flow) between departments until the end
 Formal memos created  No written memos
and exchanged allowed as per process
 Efficient communication  Inefficient communication
flow flow

Informal Channels Structured, Formal Informal and free, can go and talk
(Social) things over with anyone

2. Are you able to find any relation between structure and performance of both
organizations during different stages of the case? Explain.

Before 1966 – Acme had implemented a specific hierarchical structure that helped in the smooth
workflow because most of its employees were used to such an organizational structure and
didn’t take much time to fit in. They even retained their original management, and the top
management knew everything there was to know about how to operate the plant. There were
no structural changes from when the plant was under Technological Products. Because of this,
Acme was able to produce quality products, beat Omega for most profitable contracts, and post
greater net profits regularly.

As for Omega, they didn’t have any specific organizational structure. There was no strict
hierarchical structure, and because of that, there was no particular task that each employee
needed to do. This could be why they were always behind Acme in terms of performance.

After 1966 – As there was a change in demand for integrated circuits over printed circuit boards,
both the firms had to change their strategy. Acme had an issue while implementing the changes
required. As most of the employees worked in silos, the flow of knowledge across domains was
difficult. It took time for information to flow from one department to the other. This hindered
their performance, resulting in the plant producing ten defective items out of the 100 delivered.

For Omega, there was free cross-functional knowledge flow, which was essential in setting up
something new, as all the departments needed to work together to get it done. This increase in
performance was evident because they could deliver all 100-prototype error-free.

3. How do you rate the alignment of all five elements of the STAR model in both
organizations? Any implications/recommendations?

In this case, there is no data given about the rewards element. Furthermore, information about
t h e strategy element is also limited. It is provided only for Acme, where they gained a
competitive advantage by cutting the cost by 20%. Therefore, only alignment between the other
three elements can be analysed.

For Acme –
Vertical power distribution is centralised, and in lateral distribution, different
departments make decisions based on the task. Also, there is a definite hierarchy. It is in
line with the lateral processes in which information by departments is first passed to Mr
John Tyler, and then he disperses the information to others. So, it can be said that
structure and process elements are aligned.

Some of the managers were not happy with Mr Tyler taking all decisions. Also, from the
conversations of two method engineers, it can be inferred that people's mindsets are
counterproductive. Hence the people element is not aligned with structure and process.

For Omega –

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