Critically Analyzing the Main Issues in the Case Study Using Relevant Theories Related to Organization and Management

Critically Analyzing the Main Issues in the Case Study Using Relevant Theories Related to Organization and Management

This case study deals with the Oticon’s organizational change, a

Danish firm specialised in hearing aids. Due to an instable

environment, the firm has transformed the organisation of the

structure in order to be competitive in an international market and

consequently it has changed the work, the hierarchy, the

organisational culture and patterns. The case study shows us with the

real example of Oticon how that change can affect the organisational

behaviour of the employees and how Lars Kolind manage them in order to

stimulate their motivation and increase the productivity. According to

the results of the turnover and market shares, that change is a

success but it also has some limits which may affect the activity of

Oticon.

Indeed, the organization has completely changed in term of work

because “everyone started in a different workplace” and Oticon has

adopted a structure in which the employees are present and involve in

the important decisions. This new structure based on

“project-organisation” is called “spaghetti-organisation. We can

recognize some aspects and characteristics of an organic structure

with “the lack of a line of command”. Oticon has therefore abolished

the hierarchy from the top and the departmentalisation and the work is

based on projects in which the employees involve. All has been done to

valorise this involvement and the communication between the employees

in and inter-project: “turn down the wall…, employees move desk to

desk”. Oticon chose to adopt a kind of matrix structure (Hatch 1997,

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...s of an Industrial Civilisation,

Macmillan, New York as quoted in Huczynski A. and Bucanan D., (2003)

Organisational behaviour, 2nd ed., Prentice Hall.

Weber Max, (1947) The theory of social and economic organization, A.H.

Henderson and Tallcott Parsons, as quoted in Hatch M.J., (1997)

Organizational theory, Oxford University Press.

Bibliography

Huczynski and Buchanan, (2003) Organizational behaviour, 2nd ed.

Prentice Hall.

Mullins Laurie J., (1999) Management and organisational behaviour, 5th

ed. Financial Times Prentice Hall.

Mary Jo Hatch, (1997) Organizational theory, Oxford University Press.

Pfeffer J., (1978) Organizational Design, AHM Publishing Corporation.

Steven Lukes, (1987) Power, Basil Blackwell.

www.longroad.ac.uk/accreditation/subject_business/bs_as/module_2/motivation/mayo_as.htm