problems i.e. communication problem, shows how different sections of the firm relate to
each other, it shows who is in charge, who makes and carries the decisions and shows
individuals where there positions in the firm is. Having a flat structure makes it quicker to
solve problems, less roumous and gossip.
Tyler seems like a very confident and strong minded person “We have been able to beat
Omega regularly for the most profitable contracts thereby, increasing our profits”.
John Tyler’s attitude resembles F.W Taylor (1911) views. He believed that these 5
principles increased production:
1. A clear division of tasks and responsibilities between management and workers
2. Use of Scientific methods to determine the best way of doing a job.
3. Scientific selection of the person to do the newly job.
4. The training of the selected worker to perform the job in the way specified.
5. Enthusiastic co-operation with the workers to ensure that the work was performed in
accordance with scientific management principles and this was secured by use of
economic incentives.
John Tyler carries out methods and procedures the classical way.
From reading inside Omega I found that the president Jim Rawls did not believe in
organisational charts/ structures. “Organisation charts just put artificial barriers between
specialists who should be working together”. Although I think that Omega is a matrix
organisation.
I feel that not having an organisational structure does not clearly show what position the
employee has in the firm, therefore causes problems within the work force as workers will
work in any department. This means that the individual may feel that s/he does not have full
responsibilities. The worker also would not have a clear job description, this may effect the
firms' effectiveness. To back up my point of workers not having a clear job description a
worker said “When I first got here I wasn’t sure what I was supposed to do. One day I
worked with some mechanical engineers the next day I helped the shipping department
design some packing cartons.”
This overall can cause low working standards and low morale- low production output. Jim
Rawls felt that having an organisational chart would create problems between specialists. I
also deduced that Omega had no clear form of communication. I say this because he does
not allow written memos, he expressed “the plant is small if people want to communicate
they can just drop by and talk things over”. Employees of Omega complained that this was a
waste of time. To me passing round is time consuming and gives workers excuse of talking
to one another, this slows down production and performance. Also messages can be
misleading if someone passes the wrong message out. This can also cause problems as
workers will not get the correct information.
Most decisions at Omega were made by the management team.
Acme has an organisation structure therefore communication is good although there are
improvements that need to be made like the way John Tyler communicates with his
managers. Whereas Omega has no structure therefore is causing problems within the firm.
Ames president is a person who wants everything perfect. He believes his firms greater
effectiveness to his mangers is to run a ‘tight ship’. This I think is because his firm would
have:
* Good control
* Good communication
* Dept functions
* Well structured and organised
* Has simple reporting relationship
* Concentration on skills.
This shows Acme’s president has a firm grip whereas Omegas president does not, he seems
to be more laid back.
Acme’s president is autocratic leader as he does what he wants and does not take other
workers/ mangers' opinions or suggestions into consideration. The advantage of an
autocratic style is known as efficient and it is essential in some circumstances. Autocratic
leadership produces quicker decisions, however the autocratic style creates frustrations and
resentment. Whereas Omegas president is a democratic leader, as he
seeks the opinions and suggestions of workers. This shows that he shows interest in his
workers. Although he sometimes spends too much of his time informing workers of
information.
Omegas' decisions are made by management team whereas Acme’s decisions are made by
the president. Acme’s president demands rather than speak politely - “demanded that
Mechanical Engineering begins building those damn chassis”. On the other hand Jim Rawls
spends too much of his time listening to suggestion “Jim spends too much time and mine
making sure everyone understands what we’re doing and listening to suggestions”.
From reading the part where both firms are trying to reach the deadline of completing the
units on time and successfully I can comment on both firms.
I think Acme did well because of the way they communicated. For example John Tyler sent
out a memo to all departments stating “ the critical time constraints of this job and how he
expected that everyone would perform as efficiently as they had in the past”. This showed
that Tyler was controlling his employees. Although John Tyler put a lot of pressure on his
employees.
Because Acme had a structure, this allowed them to be well organised, therefore helped and
keep everything in control.
Whilst trying to complete the units John Tyler and the Head of Industrial Engineering fell into
a dilemma. “ don’t bother me with method details now”. The Head of Industrial then replies
“if my boss think our output is needed, to hell with him!”. This shows that they both can’t
work well and communicate with each other. This to me seems like both of these individuals
are not working together very professionally.
The foreman also didn’t listen to the method engineers therefore this slowed down Acme
from completing the units.
When the units were completed John Tyler should have checked more than just one
component as this was not very professional.
Acme’s president needs to consider taking his workers' opinions and suggestions. He should
try to talk to them rather than demanding on what he wants.
From looking at the way Omega was preparing to complete the units for the photocopier
Jim Rawls gave good advise compared to Tyler. Jim Rawls did not pressure his workers but
told his workers what to prepare for. He outlined what the job involved and discussed what
was to be started on. Omegas workers seemed to be very organised and methodical, they
worked well and communicated well with each other compared to Acme’s workers. For
example when they decide to check the blue prints “all of the engineers agreed after
checking and rechecking the blue prints”. To back up that they worked well together as a
team “people from Mechanical Engineering and Electrical Engineering spent Monday night
redesigning the cable”.
This relates to R. Likert 1961. He believed that the structure of an organisation should be
formed around effective work groups rather than individuals. He proposed the concept of
the overlapping group membership structure. This involved a linking pin process in which the
superior member of one group was subordinate member of group above. Likert argued that
the benefits of such an organisations design include improved communication increased co-
operation and more team commitment and faster decision making.
Overall I think Acme got the contract due to many reasons, for example Acme had a
structure therefore made it look like Acme has good control. Acme also may have been
given the final contract because of there past, as they achieved grater net profit than Omega
“Acme was consistently more effective than Omega and regularly achieved greater net
profit”. Acme’s annual sales was also higher than Omegas. Acme’s president was also a
very confident and demanding man therefore it makes the firm look strong “Tyler was very
confident that had the demand not been so great, its competitor would not have survived”.
In the end Acme reduced there costs by 20% therefore the photocopier manufacture gave
them the contact as it would have been more cheaper to buy units.
Omega could have used the same tactics/methods but this may not have been the only thing
that could have given them the contract. Things that I could suggest that may have given
them the contact would be if they were a larger firm with a clear structure to show that they
have some sort of control.
DIPTI BHUDIA
CASE STUDY
98169701
