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What does a company need to follow? Production driven? Efficiency driven? If we think about the contingency theory, there is no one best way for an organization, because it depends on what kind of task or environment that the organization is dealing with.As we know, organizations are open systems that need careful management to satisfy and balance the internal needs and to adapt to the environmental circumstances.
In this rapid society, we can¡¦t predict what kind of change will be in the market and what kind of organization can survive, however, an autocratic leader or a democratic leader leads different type of organization to deal with the circumstance.Although autocratic leader always does what he wants and doesn¡¦t take other workers¡¦ opinions or suggestions into consideration, in some circumstances this style produces quicker decisions and brings about some efficiency.On the other hand, democratic leader sometimes spends too much time informing workers of information, but this means that he shows interest in his workers, and respects them.
Employees at Acme run as a mechanistic structure, they specialize in one specific area and work individually, the advantage of this strategy is that they can undersell their competition by selling at a lower cost, but how about the quality control? On the other hand, Omega runs an organic structure that relies heavily on communication, delegation and work as a teamwork, this strategy allows them to emphasis on quality control, but how about the cost? This means that Acme is good for mass production; in Omega, the possibilities of confusion and contradictory procedures in deferent departments could result in many administrative conflicts, therefore, Omega should be a small production volume organization.
In summary, because Acme can reduce final cost to 0 percent and also maintain zero defects, I think that is the reason why they can ultimately awarded the total contract.
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