Oticon had a hierarchical structure, where authority falls in the hands of senior management. Now, with a project-based organization, each employee no longer works in a department with a single job, but is involved in a number of projects (business units) simultaneously, with its own resources, time schedule and success criteria. Currently, managerial authority is assigned to project groups or the individual employee whereby every employee has a say in decision-making. Employees now communicate through the Information Technology (IT) system instead of written papers.
To replace individual offices and maximize physical flexibility, open-space office area with “desk-wheeled” allows employees to move around with the desk and gather in different project groups easily.
Correlation between the changes in the way that employees worked and Oticon’s overall business strategy:
Oticon’s business strategy is a strong commitment to hearing care professionals around the world to empower and support people with hearing loss to continue taking an active part in life (Octicon, 2012). Oticon focuses on innovation, empowering people and encourages active communication naturally. Such strategy is to meet the high expectations of today’s consumers and the huge technological challenge of “in-the-ear” hearing aids.
Replacing the hierarchical structure, project-based organization empowers employees in decision-making, which is directed to Oticon’s focus on empowering consumers. Employee empowerment allows employees to own their work and be responsible for their results in a way that meets the goals of business strategy.
To generate innovative ideas, an open-space office area with trolley-desks has replaced the traditional individual cubicles. Such informal environment allows employees to communicate freely and participate actively in project group discussions, rather than having a barrier that intrudes thoughts and
Bibliography: Octicon. (2012). Octicon - Based on a Strong Commitment. Retrieved 2012 йил 4-March from http://www.oticon.com/About%20us/Press/Press/Latest%20Press%20Relases/New%20Corporate%20Brand%20Strategy.aspx Corcoran, C Lepsinger, R. (2012). THREE FACTORS MAKE PERFORMANCE MANAGEMENT A SUCCESS. (Evan Carmicheael) Retrieved March 5, 2012 from http://www.evancarmichael.com/Leadership/5219/THREE-FACTORS-MAKE-PERFORMANCE-MANAGEMENT-A-SUCCESS.html CompareInfobaseLimited ReviewSNAP. (2012). ReviewSNAP Performance Management System Testimonials. Retrieved March 7, 2012 from http://www.reviewsnap.com/testimonials.cfm Atkinson, N