Revolution at Oticon : the spaghetti organization (1994)

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Revolution at Oticon : the spaghetti organization (1994)

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Abstract

Oticon is a famous Danish manufacturer of high-quality hearing aids, which is based in Hellrup in Denmark. It is a niche company which was born in 1904. At that time hearing aids were not available in Denmark. Hans Demant decided to import hearing aids there as his wife was hard of hearing.
The Second World War, made it difficult to source, which is why the company began to produce its own material and commercialize it. In the 1960s and 1970s, Oticon expanded internationally, with subsidiaries in the Netherlands, the United States, Germany, Norway and Switzerland. Moreover it opened its own independent research center in Denmark. Thanks to this research center, Oticon keeps its competitive advantage by innovating constantly.1
Throughout the years, Oticon has also implemented organization change to remain competitive. Management change has involved managers as well as employees. Methods of work have changed. It was a new beginning for everyone, a chance to achieve new challenges.
Changes were made progressively until the ultimate organization was reached: the Spaghetti organization.
How were those changes implemented? In which directions has human resources development moved? Does everybody like this kind of organization?

The case study was written 15 years ago (in 1994), which is why some things are no longer valid.

Oticon's new organization
1. What is the new organization of Oticon?
2. Which aspects of the new organization do improve creativity?
Leadership in organizations like Oticon
1. General definition of leadership
2. Leadership at Oticon
Human Resources development
1. Human resources within Spaghetti organization
2. Emerging human resources development at Oticon
To work or not to work for Oticon
1. Yes, I would like to work in this kind of companies
2. But I need a defined framework

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[...] I believe that the Oticon organization can destabilize some people. Some employees prefer to work individually and do not like to work in team. They need to have their own objectives and deadlines, and they cannot work on several projects at the same time. People who are narrow-minded or inflexible at work may feel ill-at-ease. They may feel lost because they have no landmark. Some employees prefer to be supervised by one and only one person, but in this kind of organization managers move quickly. [...]

[...] The Spaghetti Organization After arriving at Hellerup headquarters, the rules changed, and a new organization called “spaghetti organization” was born. What is it? This structure was project-oriented, and people were multi-skilled. In fact people the job they were hired for, but also worked on other projects. This organization was compared to a organization because it was completely “un-hierarchical, chaotic, always changing, and with no organization diagram.”[3] People had to create their own job a new context, with their new relationships” declared Torben Groth. [...]

[...] How did the Spaghetti organization improve employees' creativity? The formal and traditional job descriptions had been done away with. Everyone could create their own job. What better way could there be to enhance people's creativity? Thus employees now have a lot of competencies, and fit more than one job profile. Lars Kolind said quickly agreed that all employees would have a portfolio of jobs, and we were tough; we said at least three jobs, with the main one in the profession or using the greatest competence, and the other two in outside areas. [...]

[...] The success of the new Oticon After having set up the new organization and moved headquarters to Hellerup, Lars Kolind used another strategy to demonstrate to employees that they had done well by changing Oticon organization. Once installed in the new buildings he invited the press to witness the revolution at Oticon. Employees became the spokesmen of this new organization. Journalists were very enthusiastic and nobody regretted the loss of the former Oticon. The Spaghetti Organization Lars Kolind let people do what they wanted within the company. [...]

[...] constantly.1 Throughout the years, Oticon has also implemented organization change to remain competitive. Management change has involved managers as well as employees. Methods of work have changed. It was a new beginning for everyone, a chance to achieve new challenges. Changes were made progressively until the ultimate organization was reached: the Spaghetti organization. How were those changes implemented? In which directions has human resources development moved? Does everybody like this kind of organization? The case study was written 15 years ago (in 1994), which is why some things are no longer valid. [...]

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