the questions :

Which one has simpler differentation mechanism than the other? Acme or Omega?

How many hiearchy levels can you count in Acme?

What is span of control of Acmes president? What is span of contol of plant manager in Acme?

What do you think about span of control of Omegas president?

The case

The Paradoxical twins: Acme and Omega Electronics In 1986, Technological Products of Erie, Pennsylvania, was bought out by a Cleveland manufacturer. The Cleveland firm had no interest in the electronics division of Technological Products and subsequently sold to different investors two plants that manufactured computer chips and printed circuit boards. Integrated circuits, or chips, were the first step into microminiaturization in the electronics industry, and both plants had developed some expertise in the technology, along with their superior capabilities in manufacturing printed circuit boards. One of the plants, located in nearby Waterford, was renamed Acme Electronics; the other plant, within the city limits of Erie, was renamed Omega Electronics, Inc. Acme retained its original management and upgraded its general manager to president. Omega hired a new president who had been a director of a large electronic research laboratory and upgraded several of the existing personnel within the plant. Acme and Omega often competed for the same contracts. As subcontractors, both firms benefited from the electronics boom and both looked forward to future growth and expansion. The world was going digital, and both companies began producing digital microprocessors along with the production of circuit boards. Acme had annual sales of $100 million and employed 550 people. Omega had annual sales of $80 million and employed 480 people. Acme regularly achieved greater net profits, much to the chagrin ofOmegas management. Inside Acme The president of Acme, John Tyler, was confident that, had the demand not been so great, Acmes competitor would not have survived. In fact, he said, we have been able to beat Omega regularly for the most profitable contracts, thereby increasing our profit. Tyler credited his firmsgreater effectiveness to his managers abilities to run a tight ship. He explained that he hadretained the basic structure developed by Technological Products because it was most efficient for high-volume manufacturing. Acme had detailed organization charts and job descriptions. Tyler believed everyone should have clear responsibilities and narrowly defined jobs, which would lead to efficient performance and high company profits. People were generally satisfied with their work at Acme; however, some of the managers voiced the desire to have a little more latitude in their jobs. Inside Omega Omegas president, Jim Rawls, did not believe in organization charts. He felt his organization haddepartments similar to Acmes, but he thought Omegas plant was small enough that things suchas organization charts just put artificial barriers between specialists who should be workingtogether. Written memos were not allowed since, as Rawls expressed it, the plant is small enough that if people want to communicate, they can just drop by and talk things over. The head of the mechanical engineering department said, Jim spends too much of his time and mine making sure everyone understands what were doing and listening to suggestions. Rawls wasconcerned with employee satisfaction and wanted everyone to feel part of the organization. Thetop management team reflected Rawlss attitudes. They also believed that employees should befamiliar with activities throughout the organization so that cooperation between departmentswould be increased. A newer member of the industrial engineering department said, When I first got here, I wasnt sure what I was supposed to do. One day I worked with some mechanical engineers and the next day I helped the shipping department design some packing cartons. Thefirst months on the job were hectic, but at least I got a real feel for what makes Omega tick.