The Advantages and Disadvantages of Allowing Oticon to Regain a More Formalized Structure - Assignment Example

The paper "The Advantages and Disadvantages of Allowing Oticon to Regain a More Formalized Structure" is an outstanding example of a management assignment. An organization is a socio-economic entity that is oriented towards goals. It is formed by a set of resources that are human as well as non-human in nature within a given framework motivated to pursue certain goals and objectives. The functions of the organizational elements are highly influenced by the structure of the organization. The organizational structure can be of two kinds: formal and informal.

A formal structure refers to an organization, where procedures and operations are defined by a fixed set of rules and regulations. In such an organization, work is delegated to individuals through a formal chain of hierarchy and their performance is monitored and controlled by a line of command. If Oticon regains a formalized structure, then the company will be based on basic principles of formal structural factors, namely division of labor, scalar and functional processes, structure and span of control.

A formal structure is created in an organization mainly with the purpose of minimizing confusions and conflicts related to the role of individuals. Moreover, it defines the chain of command for employees so that they are guided and monitored by one or more managers and to whom the employees report their work-related queries. It has been observed in organizations, where the nature of work is less creative in nature, formal structure is more appropriate. The formal structure ensures the effectiveness of employees owing to well-defined job designs.

With a subconsciously formed formalized structure, the employees will perform their tasks with a constant efficiency rate, but there is a high probability that little improvement in the rate of progress will occur (Jones, 2010).Oticon can follow a formal structure as it enables individuals to work collectively towards achieving a common goal. However, such a method always put certain restrictions on behavior of individuals on the personal front. The formal organizational structure works on a rigid format of reward and punishment, which frequently results in disappointment among employees.

In formal structure, individual talents are rarely nurtured and given importance. The relation and communication channels among superiors and subordinates are highly formal. The rigid structure and little scope for creativity often cause employee dissatisfaction.