Organizational Environment Uncertainty

This essay Organizational Environment Uncertainty has a total of 1907 words and 9 pages.


Organizational Environment Uncertainty
Acme is made up of five key departments, they include: purchasing, drafting,
productions, industrial engineering and mechanical engineering. Omega, on the
other hand, is made up of four key departments: mechanical engineering,
electrical engineering, industrial engineering and drafting. Both are similar.

These departments play an instrumental role in the success of both companies. It
is evident that Acme operates under a mechanistic structure whereas Omega
operates under a more decentralized organic structure. It can be stated that in
regards of complexity, both organizations have a moderate number of sectors and
operate at a low level of environment complexity. In order to fully understand
the organization environment of the firms we must also define the levels of
stability. In this particular case it is evident that both firms operate in an
unstable environment. The electronic market is unpredictable at best and little
planning can be done to predict the changes in the market. In the case, the
demand for the memory units was unexpected by both firms. In this particular
case, the demand for memory chips by the photocopier firm was an unpredictable
event. This created an unstable environment for both firms. It can be concluded
that Omega, being simple and unstable, is operating at high-moderate levels of
uncertainty. Acme, on the other-hand, is more complex but is also unstable. They
are operating at low-moderate levels of uncertainty. Resource Dependence "The
environment is the source of scarce and valued resources essential to
organizational survival." Both Acme and Omega rely heavily upon environmental
resources. They are extremely resource dependant as they acquire their essential
materials from external sources (external environment). The success of the firms
is directly related to how quickly and easily they can obtain their resources.

In this case, both Acme and Omega had to delay their shipment of prototypes
memory chips to the photocopier firm due to the delay of the external materials
needed to produce the chips. This clearly indicates the resource dependence of
both firms. Strategy Both Acme and Omega manufacture similar products. In this
case it is the printed circuit board. Also, both firms are in direct competition
with one and other seeing as they are in the same geographical region and they
presumably acquire their resources from the same supplier(s). With this in mind,
both firms realize the importance of competitive emphasis within their corporate
culture. Seeing as the characteristics of strategic planning are directly
related by the dynamics of the external environment, both firms are trying to
gain an "edge" on one and other. In this particular case, Acme decides to
run a "tight ship" (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. Omega,
on the other hand, is nearly to opposite. They run a more organic structure,
which relies heavily upon communication, delegation and teamwork. This strategy
allows Omega to effectively compete with Acme by stressing reliability and by
placing emphasis on quality. Organization Structure John Tyler, President of

Acme Electronics, credited his firm’s greater effectiveness to his managers’
abilities to run a "tight ship." He retained the original functional
structural form developed by Technological Products in which detailed
organizational charts and narrowly defined job descriptions would produce
efficient performance and high company profits. These characteristics describe

Acme as a very mechanistic company with high standardization and formulation.

Vertical communication is method of information flow from John Tyler to the
department heads and then each department’s workers. Only departmental
managers have contact with Tyler who makes any major decision for Acme and thus
maintains a high span of control. Acme’s President John Tyler believes that
through an intense level of control and specialization the company’s
efficiency can be maintained and thereby achieving Acme’s continued success.

Yet Acme’s organizational design promotes structural differentiation and Tyler
limits the development of many managers. According to Woodword’s
classification of the technological structures, Acme should use a mass
production method. Since Acme is already highly centralized and formalized along
with low degrees of communication, there is no problem. But there was clearly a
problem with the work flow interdependence among departments with regards to

Thompson’s classification. Acme is a mixture of pooled and sequential
interdependence in which there is low communication and there are strict
procedures. This work flow process needs to be addressed by the management. On
the other hand Omega Electronics Incorporated is a much more organic company.

Even though Omega and Acme have similar departments, Omega’s President Jim

Rawls operates with a low span of control with a belief that the implementation
of organizational

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Topics Related to Organizational Environment Uncertainty

Business, Acme, Organizational structure, Organizational culture, Omega, Interdependence, Science, Economy

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