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Oticon, a Danish hearing aids manufacturer, decided to appoint Lars Kolind as the new CEO in 1988, for overcoming its major financial and competitive problems. Kolind’s vision was to make Oticon a change competent organization by radically transforming Oticon’s traditional tall hierarchal bureaucratic structure into a ‘spaghetti organization’, by sending out a brief 4 page memo to Oticon employees. A ‘spaghetti organization’ is described as having no fixed structure, because it encompasses the informal, complex, and almost anarchic features of the project organization. Thus, Oticon adopted a flat, boundary-less ‘adhocracy structure’, whereby all employees had full freedom to simultaneously work in multiple project teams for developing innovative hearing aids. Kolind also developed new corporate cultural values to support the implementation of the spaghetti organization. These changes have numerous organizational behaviour implications, from an individual(micro-level) perspective; requiring employees’ to adopt new work attitudes, whereby they experienced cognitive dissonance and started to resist against Kolind’s proposed changes. It also affected employees’ job satisfaction, depending on how achievement orientated (motivational factor) and emotionally stable or open to experience (personality factors) they were. From a group(macro-level) perspective, Oticon suffered from groupthink because management rationalised any resistance to their assumption to maintain status quo, such as being technologically behind competitors. Kolind suffered from groupthink as he was in an ‘illusion of unanimity’; managerial silence to his proposed decisions was interpreted as a full agreement by him. However, Oticon’s project teams developed beneficial norms for lateral communication; fostering a relaxed atmosphere, which made it possible for all functional professionals to work as one unified team. The Hawthorne Effect states that this should positively impact employees’ sentiments to...