8 May 2010
MBA 721
Oticon Case
1. The spaghetti organization is the title given to the transition from a mechanical management structure to a more non-organized style, which allowed for a more open-type communication style within the company. They decided to change the style of the company by getting rid of all titles and departments in order to get out of the stable environment mindset. This paradigm shift allowed them to climb up the ranks to number 3 in the market. The design of the spaghetti company is an example of a matrix organizational design, which focused the workers orientations to varying, approved projects in which they approve of. This allowed workers to focus more on the production side, which in the end cut project development time in half. 2. While operating within an industry in which products are complex and technically advanced which would require innovated thinking, Oticon a disorganized, free-flowing organizational structure. By doing so, they were able to adapt to changes, which were occurring in the market to better figure out solutions to the problems they would experience. This complex system allowed them to operate more efficiently to better serve their customers. Their strategy was viable as it allowed for quicker lines of communication, increased innovation and a more efficient production process, as in the end their profits eventually doubled from their old strategy. 3. The leadership style at Oticon was based on a task oriented bureaucratic structure, until they introduced the spaghetti style structure, which turned their strategy into a more employee-oriented style. Kolind was an example of a discretionary management role as he helped shape the organization in order to change of the company to better suit that to the environmental relationship. The strategy ended up being very successful as it was out of the norm in comparison to other competitors and it also had the full support from the employees of