Acme & Omega - Case Study #2

Case Study #2: Acme and Omega

Organizational values and cultures are the personality and the crucial key to whether a company succeeds or fails (Daft, 2008, p. 434). According to the competing values approach, the dominant culture at Acme is bureaucratic, characterized by an internal focus and consistency orientation for a stable environment (Daft, 2008, p. 436). In the leadership role as president, Tyler places emphasizes and value on formality, order and obedience (employees follow the rules), rationality, integration and thriftiness with the economy of the organization (Daft, 2008, p. 436, 448). This is evident by Acme's managers running a "tight ship", utilizing detailed organizational charts and narrowly defined jobs to ensure employees have a clear understanding of their responsibilities, resulting in effective performance and high company profit (Daft, 2008, p. 448). Although employees are diligent, follow the rules, and are generally satisfied with their jobs, they are hopeful for empowerment opportunities (Daft, 2008, p. 436, 448).

In contrast, Omega incorporates the clan culture, characterized by internal focus on involvement and participation of employees to meet changing expectations from external environment (Daft, 2008, p. 436). As president, Rawls places emphasis and value on employee satisfaction, cooperation, consideration of employees and customers, social equality and fairness, and reaching agreement with others (Daft, 2008, p. 436). This can be seen by the avoidance of status differences. Rawls does not utilize organizational charts to ensure no artificial barriers were evident between employees. Strict and narrow job descriptions are not needed at Omega because employees participate in job rotation throughout each department so they would be familiar with all areas of the organization, which helps the employees understand organizational and individual goals. Rawls also creates an inviting, friendly and trustful environment among employees and management by encouraging face-to-face communication and listening to employee suggestions, making the employees feel that they are part of the organization, and ultimately leading to superior employee commitment and collaboration (Daft, 2008, p. 448). Although Acme reports greater net profits, Omega produces new products more quickly and works out problems more accurately due to highly cohesive teamwork and employee commitment (Daft, 2008, p. 448).

As competitors in the electronics manufacturing industry, Acme and Omega have similar values in common, such as an internal organizational strategic focus because they operate in similar environments (Daft, 2008, p. 434). However, the cultural gap is evident in the competitive environment. For instance, Acme's competitive environment is one of stability and consistency, whereas Omega's is that of flexibility. Acme's acquisition of Omega Electronics leads to the culture gap of whether the newly merged company should operate on flexibility or stability, or more importantly, how the two cultures can be merged to become one effective culture ready for rapid changes and needs of the internal and external environments (Daft, 2008, 428-429).

In order to make the transition smoothly to an effective and high-performing organization, the adaptability culture would be appropriate for the newly merged company, characterized by values that support the organization's ability to interpret and translate signals from the external environment into the new behaviors of the internal environment (Daft, 2008, p. 434). Continuous learning and innovation are crucial roles in a newly merged organization in order to respond to new challenges, new competition and new opportunities (Daft, 2008, p. 429). With the resistance of Omega's managers, change is difficult to accomplish. Acme Electronics must encourage adaptation and change to enhance organizational performance by energizing, motivating, unifying, and guiding employees around shared goals and alignment with strategic priorities (Daft, 2008, p. 429).

Standing in for Tyler, there are several techniques available to integrate and shape the culture to overcome the culture gap. The first step in shifting the culture toward more adaptive values is to recognize when the organization has adhered to the wrong values, as well as the important values that have not been held strongly enough (Daft, 2008. p. 428). In order to facilitate high performance, the cultural values of Acme Electronics must be aligned with the company's day-to-day operations. Three crucial components include to (1) incorporate an emphasis on the whole, rather than the parts, to reduce boundaries within the organization and with other companies allowing coordinated action and continuous learning; (2) emphasize honest and open communications throughout the organization to build trust; and (3) to question the status quo and assumptions