Organisational Structure of Oticons - Report

Organisational and
Behaviour

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 compare and contrast different organisational structures and culture...................................3
1.2 Relationship between organisational structure and culture and its impacts on business
performance ................................................................................................................................4
1.3 the factors which influence individual behaviour at work....................................................5
TASK 2............................................................................................................................................6
2.1 Compare the effectiveness of different leadership styles in different organisations.............6
2.2 organisation theories underpin the practice of Nice cars......................................................7
2.3 advantages and disadvantages of different management approaches...................................8
Task 3.............................................................................................................................................10
3.1 Impact of leadership styles on motivation..........................................................................10
3.2 Comparison of mcGrego and Herzberg motivational theories...........................................10
3.3 Usefulness of motivational theories....................................................................................12
TASK 4..........................................................................................................................................13
4,1 the nature of groups and group behaviour within organisations. .......................................13
4.2 Factors that may promote or inhibit the development of effective teamwork in
organisations.............................................................................................................................14
4.3 Impact of technology...........................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Organizational behaviour is the study that understand how people will perform and
behave within the organization. Normally this study is applied to create more efficient business
organisation. This study examines human behaviour in a work environment and determines its
impact on job structure, performance, communication, motivation , leadership, etc. in the central
of this study, scientific study is also applied to the management of workers. Organisational
structure of Oticon's has been discussed. Along with this, it also focuses on assessing the
different leadership styles that directly impact the activities within the organisation. Different
approaches to management with respect to different management styles also been discussed.
Impact of technology on team functioning is being mentioned.
TASK 1
1.1 compare and contrast different organisational structures and culture
Organisations features more complex and social structures which seeks to make the best
and optimum use of the people as vital and essential resource, especially in today's dynamic and
competitive environment. Economic and efficient business performance and accountability along
with coordination across the business can be achieved by the proper structure of organisation.
There are different types of organisational structures that the company can use in its
organisation. Oticon, a Danish company,which is the second largest company producing hearing
aids, have adopted horizontal structure to manage its organisation (Boselie, 2010.). Horizontal
structures have different aspects in comparison to vertical structures. Horizontal structure is the
structure which consists of various subordinates under the manager. Management of Oticon's has
many subordinates under them. The manager of Oticon's supervises large number of people. The
chain of command above one is small. The manager of Oticon's have large number of
responsibilities because there is a great number of individual in organisation immediately under
him. The people under manager are dependent upon direction, help and support.
While Oticon's have changed its organisational structure to bring innovation in the
company. Now the company have adopted vertical form of organisation. In comparison to
Horizontal structure of management , it is the concept which is also known as Top -down
management. In this senior authorities are responsible for strategy making and implies
responsibilities to their subordinates . In this factor manager handle five to eight sub ordinates. In

this good communication can be done as manager has to handle minimum people. It results in
one long chain of command. Managers form many ranks and each has a mall area of control.
Organisation culture is a concept, which is the set of values , rules and beliefs. There are many
types of organisational culture (Brown, 2013). Oticon has adopted task culture form of
organisational cultural organisation, which means management of oticon has formed various
teams to achieve the targets or solve critical issues. Individuals with common interests and
specialization form a team. Each member of team gives its best to achieve the objectives and
goals of Oticon.
1.2 Relationship between organisational structure and culture and its impacts on business
performance
As mentioned above, Organisational structure and culture is very important for any
organisation. It tells about level of hierarchy that who is responsible to whom and also shows
position of person. To achieve the goals and objectives of the company, Oticon always need a
formal structure because It is important to distribute the tasks into different groups to ensure that
every individual in company is performing its own task so that company can attain desired
output (Chahal and Mehta, 2010). When the employees formally work in an organisation with
different informal structure or environment in, consisting of different attitudes, perceptions and
behaviours it gives rise to an organisation culture. It can also said that structure is a framework
for the culture that needs to be implemented, on the other hand culture dictates how the company
should be structured. Oticon has adopted vertical form of organisation, which has an impact on
the culture of Oticon.
In vertical form of organisation, there are five to eight employees under the manager of
company, having same kind of perceptions and beliefs. Manager of each team assigns tasks to
them and they are supposed to report manager. As the Oticon has adopted the task culture form,
which is based on the formation of team on the basis of tasks allotted to a team having same
interests and beliefs. (Chiboiwa, Chipunza and Samuel, 2011). It has both positive and negative
impacts on the business performance of Oticon. The positive impact of the vertical form of
organisation on the business performance is that it shows different policies, rules and regulations
about communication with its employees. Proper communication is presented in vertical form.
It also enables the manager to let its employees know about whom they are accountable
and responsible for. It is done for the proper organisation of resources in company. The