ORGANIZATIONAL BEHAVIOR

Organizational Behaviour

Organizational Behavior

Introduction

The increasing complexity of today's society especially in large cities produce an exacerbation of individualism, a gradual loss of identity and an increase in irresponsibility. In this context, our institutions must account for a process of quality education and training rather than human values ??reverse the individualistic social message for our students and their families. What we offer is an organizational response that, that will open the institution to the daily life of children, adolescents and adults and be able to keep indoors, an orderly atmosphere of belonging, favoring the internalization of values message.

Case Overview

Competition to the business of Oticon in late 1980's was at its peak leading to downfall in market share, profit and sales turnover ; Oticon as a product used the traditional 'Behind the ear' model to generate sales whereas its competitors introduced more advanced, innovative and cheaper products into the marketplace. Starkey Inc. an American company captured 80% of US market as they used the latest 'In the ear' hearing aid model. This led to a huge financial setback in 1987.

Lars Kolind became CEO in 1990 and shortly realized that innovation will be the key to company's success. He created an environment which promoted the flow of knowledge and introduced entrepreneurial behavior amongst the employees. He changed the entire structure of the company where traditional way of doing things were abandoned and incorporated new ideas where every employee was free to select the projects they were interested to work on; line of command was removed and there was no formal hierarchy in the organization; they started working on project base rather than department wise.

This was the theme of spaghetti organization. Every employee was expected to use a PC which was a new experience then. Although there was initial resistance to the change, the employee turnover was very low and nobody left the organization. He incorporated portability at the office where the employees could actually move their tables to discuss the projects with their colleagues, use of paper was completely stopped, and open door policy was introduced where new ideas could be conveyed to the manager, director or even CEO. Provided with an opportunity, anybody whose project idea was accepted could lead the project and also select the people who would work for the project, they could also work from their home as far as it did not affect the deadline and the budget of the project. This flexibility gave birth to thinking process to generate new ideas, enthusiasm, responsibility and interest towards the work. Further Oticons return on equity rose to 25% as they went on to manufacture innovative digital hearing aids.

Statement of Problem

Oticon had all the major problems such as hierarchy, procedures issues, conservatism, and attrition. They were world's leading supplier of hearing aids, in 1980s but still had problems in sales, organizational structuring, and financial issues.

Management had very reactive and hierarchy oriented approach.

They mainly concentrated on external stakeholders interests which lead to difference of opinion at ...