People, Organizations and Management Essay Example | Topics and Well Written Essays - 1500 words

People, Organizations and Management - Essay Example The organization structure depicted narrowed perspectives due to the separateness of the different divisions. Horizontally it was separated in to divisions the two main ones being electronics and sales. Managers must have had difficulties and used a lot of time to relate to sales for instance which is an exclusively different division from product development. Consequently the reactions of the company in response to consumer demands were made more challenging. The organization structure was professional bureaucratic. In addition internal cooperation and effective communication may have been an issue. Oticon’s basic organizational design and structure differs from hotel easy due to its larger size and hence structural concepts likely to be more formal, decisions more central, experience more specialized and operations more complex. Initially, the organization vertically had a tall hierarchy with six levels of management. Easier communication and Decisions made are impeded since these processes become very slow in a company with many layers of hierarchy. The authority is mostly centralized and there was a lot of formalization. This structure does not expose the managers to other fields apart from their own. The managers have not the opportunity to observe how the all the departments interact and collectively perform. Previously option’s executives did not understand the interrelationships and the interdependence between the departments and hence ultimately what results is that the executives are only equipped with experiences in handling top management responsibilities hence the company’s goals and market needs do not mingle as they should. However the structure’s advantages are that it had well defined channels of authority and the structure minimized duplication of personnel and equipment than the one he later adopted. Functional structure makes it easier to monitor. The new C.E.O attempted to change this initial structure to