The spaghetti organization (oticon case)
I) Oticon’s crisis
a. The new organization of Oticon
b. The benefits of this new organization
II) The leadership at Oticon
a. What is Leadership
b. The leadership within the company
III) Human Resources development
a. HR & Spaghetti Organization
b. New HR development at Oticon
IV) My own opinion about the company
Oticon was created in 1904 in Danemark by Hans Demant who began importing hearing aids. His wife had severe hearing loss and he wanted to help her (and other bad hearing people). The creator of the company died in 1910, and William, his son decided to take over the business of the family.
William had the exclusive distribution for his hearing aids products in the Nortic Area countries but when the World War II began, it had been difficult to get supplies, so he had the idea to produce his own hearing products. Oticon TA became the leader of the hearing aids market in 1946 and opened its own (and independent) research center in Danemark (which one allowed the company to innovate and to keep its competitive advantage towards its competitors).
But in the 70’s, Oticon suffered of a huge crisis because of its management and its retard in term of technology (they were not able to produce ITE products yet) and their market share decreased from 15% to only 7%. They were not leaders anymore, and moreover, lost almost 40 million of DKK (Danish Crowns) between 1986 and 1987!
The company decided to change its management to be competitive again and hire a new CEO (Lars Kolind) who has involved new young managers, but also all the employees into new working methods and also a new organization : the Spaghetti organization.
All over this paper we are going to figure out what is this “Spaghetti Organization”, how Human Resources are involved in, what changes are going to be implemented in the