One of the key factors that prompted Nokia Corporation to come up with the Nokia Booster program was the pressure to exploit the global market. The company established a com… The change of the organization structure is meant to ensure that Nokia Corporation remains competitive in cell phone market. Organisational Change at Nokia Change is an unavoidable process or a phenomenon. 3. "Change Management in Nokia Company." Masalin, L 2003, ‘Nokia leads change through continuous learning’, Academy of Management Learning & Education, vol. Nokia Corporation reconstructed its initial modular teams (Ropponen 2008). Espoo, Finland - Nokia today announced changes in its organizational structure and Group Leadership Team (GLT), effective from April 1, 2017. Currently, the company dominates the mobile phone market with a market share of over 38.6 percent. 2. The company was in need for establishing a single access point through which it could communicate with all its target consumers, and employees worldwide. Nonaka, I & Teece, D 2001, Managing Industrial Knowledge: Creation, Transfer and Utilization, SAGE Publications Ltd, London. IvyPanda. Indeed, the program led to numerous innovations in the company. Nokia Corporation is an international communication firm whose headquarters are situated in Espoo. To implement the change, the company required a hundred employees taking new jobs. Whether the degree of change is big or small, it is occurring at an accelerated rate, as organizations need to respond to new technology, customers’ tastes & preferences, ... To identify the driving forces of change for Nokia & GM. To make sure that employees backed the company’s agendas, Nokia Corporation had to come up with mechanisms that would captivate the employees. 47 no. A number of factors contributed to the restructuring process. At the same time, Nokia Corporation helped Finland, Germany, China, Poland, Italy, and Mexico to repair network for their entertainment industries (Ropponen 2008). The company then disseminated the ideas to employees and customers through the Nokia Booster program. 1. By 2010, du had acquired almost 40% of the region’s market share, and it was able to maintain a growth rate of over 32%.The company’s leadership had no desire to rest on their laurels, though. With this transaction, Nokia expects to create an innovation leader in next generation technology and services for an IP connected world, and to … Customer Code: Creating a Company Customers Love, Be A Great Product Leader (Amplify, Oct 2019), Trillion Dollar Coach Book (Bill Campbell). Change at Nokia will be planned change process developed to get long term effects and can be mapped with Kurt Lewin's model of … Through the program, customers shared their views about the company and changes they wish the company to make, thus, spurring employee creativity. This sudden change was to be done to improve agility. Looks like you’ve clipped this slide to already. Espoo, Finland - Nokia today announced the planned leadership and organizational structure that it intends to implement after and subject to the successful closing of the public exchange offer for Alcatel-Lucent securities announced on April 15, 2015. The design team resolved to organize a workshop “with team leaders followed by the much broader involvement of the whole community through an online social network community” (Masalin 2003, p. 69). The change may be planned years in advance or may be forced on an organization because of a shift in the environment. 28 December. You can change your ad preferences anytime. 5 no. Customer satisfaction means how satisfaction is the customer with the effort of organisation in the marketplace. The Booster led to open discourse between frontline workers, community members, and managers about challenges affecting the company. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. DEEPAK VENUGOPAL(M150002MS) The company continues coming up with novel inventions in line with the emerging technologies. "These changes are designed to accelerate the execution of our strategy," said Nokia President and CEO Rajeev Suri. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The devices unit looks after the development and management of mobile devices portfolio which is targeted at all major consumer segments. In the case of digital transformation, the teams who build and maintain the technology must be fully engaged. During this period, the company dealt with paper products, which it exported to Great Britain and Russia. An effective organizational structure looks into qualitative and quantitative issues of the structure were it ensures that both human resources matters and physical combination of resources have been addressed accordi… In 1981, a mobile network was launched in Scandinavian, prompting Nokia Corporation to manufacture its first car phones. Nokia Corporation reconstructed its initial modular teams (Ropponen 2008). Nokia announced further steps to align its organizational structure to its strategy, strengthen its leadership team and position the company for success in the 5G era. Even today, some brands of bicycle tires bear the company’s name. In 2004, Nokia Corporation made it public that it intended to begin organizational change, which aimed at helping the company meet changing consumer needs. The corporation organized for workshops in different cities across the globe. The company reduced the number of its business units to four. This mishmash of traditional communication mechanisms and novel forms of relations established an upsurge of fervor (Masalin 2003). Consequently, the company required a communication structure that could keep pace with the contemporary marketplace. Senior management understood that it had to improve its proprietary operating system, Symbian. Kautto, P 2009, ‘Nokia as an environmental policy actor: Evolution of collaborative corporate political activity in a multinational company’, Journal of Common Market Studies, vol. We will write a custom Case Study on Change Management in Nokia Company specifically for you for only $16.05 $11/page. 9. There have been changes in technology and competition, in the market place. Competition, technological changes, political changes and legal changes are examples of the external environment. The company learnt that employees could be active if allowed to manage debates that fascinated them. "Change Management in Nokia Company." 2, pp. "Change Management in Nokia Company." December 28, 2019. https://ivypanda.com/essays/change-management-in-nokia-company/. Such a communication structure was slow. PRAJNA S(M150025MS). All the other employees retained their original jobs. For full functionality of this site it is necessary to enable JavaScript. Online community took the centre stage in steering the changes. Nokia clearly faced huge headwinds — dramatic changes in the industry and mobile technology. Retrieved from https://ivypanda.com/essays/change-management-in-nokia-company/. The design team argued that the traditional system of communication made it hard for the company to achieve its goals. Major engineering and organizational moves will be made by Microsoft over the next month, according to CEO Satya Nadella. Moreover, NokiaMobile87 had a coherent structure and rather few subunits: the two product-based units, i.e. IvyPanda. (2019) 'Change Management in Nokia Company'. A change in the organisation cannot be achieved by bringing changes in the group, teams or company. We utilize security vendors that protect and Clipping is a handy way to collect important slides you want to go back to later. The values of Nokia are customer satisfaction, respect for individuals, achievement and continuous learning. The Nokia Booster program acted as an avenue through which the company fostered cooperation between employees in different departments. ANJU DONY(M150011MS) Among them include desire to, attain global coverage, embrace employee empowerment, promote co-creation, and support the community. 1, pp. 1, pp. "Over the course of July, the … It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. Nokia is the leading mobile company all over the world which started their operation in the early 1980s. IvyPanda. Unfortunately, your browser is too old to work on this site. 1. The Mobile Solutions group will be led … The company came up with a program dubbed “the Nokia Booster program”, which aimed at bringing together online customers and the company’s strategic development (Schienstock 2004). Lessons from Nokia. Nokia's latest organizational structure Nokia Along with the change in business units comes a management shakeup. As of October 1, 2009 the organizational structure at Nokia was extremely mobile and flexible. How many pages (words) do you need? APIdays Paris 2019 - Innovation @ scale, APIs as Digital Factories' New Machi... No public clipboards found for this slide. Nevertheless, it could hardly achieve this without fostering cooperation between the employees. This structure was significantly responsible for the growth that Nokia saw in this period, especially in the emerging markets. The company began operating in 2006 in a highly competitive market. The firm Monika is originally from Finland and Microsoft has been spawned in Silicon Valley California. In 2013, du Telecom signed a M… As of October 1, 2009 the organizational structure at Nokia was extremely mobile and flexible. The company reduced the number of its business units to four. Nokia Corporation could achieve this by involving the employees in formulation and implementation of the projects (Masalin 2003). To prevent this, it’s important to make the desire for change tangible to all employees. To enhance its performance, Nokia Corporation required having a platform through which it could share its agendas with employees. It started from wood pulp to wire telecommunication to mobile devices giant. In 2004, Nokia Corporation made it public that it intended to begin organizational change, which aimed at helping the company meet changing consumer needs. The program helped the company to establish a platform by which it could get opinions from all the stakeholders, therefore, coming up with products that meet all the desired specifications. There are various models used to implement change and strategy effectively within an organization. Need a custom Case Study sample written from scratch by IvyPanda, 28 Dec. 2019, ivypanda.com/essays/change-management-in-nokia-company/. After the workshops, participants went back to their organizations, where they recruited employees into the adopted change processes. Kurt Lewin's model of change demonstrates planned change approach. ensure the integrity of our platform while keeping your private information safe. The program helped the company to reach its target customers in remote areas where it was hard for employees to reach (Nonaka & Teece 2001). IvyPanda. You are free to use it for research and reference purposes in order to write your own paper; however, you must. The modern Nokia Company was established in 1967. There is various kind of approach and two are picked-up for careful examination. Nokia and the Adaptive Cycle Despite their equilibrium in the market, internally the leadership ‘crisis’ and the problems with the matrix structure slowed Nokia down, allowing their competitors to gain in on them. techniques that improve an organizational structure. Nokia Announces Further Organizational Changes. Nokia Corporation merged with Siemens to form one of the biggest telecommunication networks dubbed Nokia Siemens Networks. Organizational change can take many forms. (2019, December 28). But this decision was not welcomed by all the stakeholders, and this is why the top management started to leave the company. To achieve this, the company assigned different employees to different agendas and requested them to share the agenda with the public. 103-125. See our User Agreement and Privacy Policy. PRESENTED BY In 2010, Stephen Elop joined the company’s management team. Macroeconomic and Microeconomic Analysis of Nestle Nutrition, Factors influencing organizational change, Product and Innovation Management of Nokia, The Role of the Financial Manager - Nokia, The Credit Card Fraud Cases in the Hospitality Industry, TMO Analysis: “Wave and Wind in One", Emerging Technology by Floating Power Plant. Only with change will businesses be able to lay the foundations for long-term success.According to Cambridge Dictionary, organizational change is:“A process in which a large company or organization changes its working methods or aims, for example in order to develop and deal with new situations or markets.”Many people would disagree with Cambridge Dictionary’s descrip… Engineer Fredrik Idestam established the company in 1965. Change Management in Nokia Company. 2019. It implemented the entire change within one week. Prior to the program, the company relied on a communication structure where information was conveyed from the top management, down to the employees through a number of senior staff (Schienstock 2004). This case study on Change Management in Nokia Company was written and submitted by your fellow student. External environment plays a very crucial role in the operations of a company. 1, pp. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Nokia has their dedicated sales and marketing personnel’s with logistic and sourcing functions. All the other employees retained their original jobs. Changing the Organizational Structure: Nokia was operating on the mechanistic organizational structure when it suddenly though of shifting to the matrix structure. The two models are Alignment Model and Scenario Planning Model. The company established a common platform through which all employees shared their ideas to help the company to address customer ambitions. Management team in Nokia Corporation maintained that, for the company to perform, it required exploiting the vast experience and knowledge; its employees possessed. IvyPanda. Figure 1 – … Nokia’s organizational structure is horizontal and it allows for greater flexibility and speedy communication channels between different departments. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Organizational Structure at Nokia Organizational Structure at Nokia. Most commonly used is Kurt Lewin's model of change also known as three-step model. An organization is defined as an integration of processes with a single purpose; to attain the expected goal of an organization, management needs to develop and effective working organizational structure. The organizational structure was also changed to a more integrated one, which closely resembled the pre-matrix structure. This became the Nokia’s employees so frustrated and confused those that they even were not able to perform up to the standard (Gibson, 2011). Besides, the company needed to be sure that its employees are aware of the value of the projects the company initiates. Exhibit 1 Nokia's Organisation Structure, 2003-2008 5. "Change Management in Nokia Company." This is IvyPanda's free database of academic paper samples. Now customize the name of a clipboard to store your clips. The management brought the former paper mill section and the rubber works together to establish a technological company. Copyright © 2021 - IvyPanda is a trading name of Edustream Currently, Nokia Corporation is among the companies that manufacture quality smart phones globally. Moreover, Nokia Corporation supplies the motor industry with car speakers (Kautto 2009). Ropponen, T 2008, ‘The Nokia story of using action learning’, Action Learning: Research and Practice, vol. phones for the use of business and phones for the use of governmental authorities, and country- or continent-specific sales organizations. Let's see if we can help you! He delayered Nokia’s management structure, creating a flatter organisation. 68-72. Nokia has … 13 no. The HR practices at Nokia are perfectly found to be aligned with the The online community furnished employees with information concerning potential changes that could benefit the company, therefore, helping them initiate innovations. Previously, employees made limited contribution to organizational policies (Krell 2000). In early 20th century, the company concentrated on manufacture of wheelchair frames and rubber boots. Managing Organizational Change : Hrm 587 ... Employee-Driven Values Change: A Study of Nokia’s Leadership Nokia is a global company headquartered in Espoo, Finland which employs about 55,000 people worldwide (Nokia, 2014). Nokia celebrated over a decade of market leadership in the telecommunications and hand held cellular phone industry and as recently as 2013 Nokia shifted its full attention towards network technologies conducting an organizational change at a grand scale. Change is something that should be embraced rather than feared. December 28, 2019. https://ivypanda.com/essays/change-management-in-nokia-company/. Ropponen posits, “The genesis of the Booster Programme, launched in late 2008, could be traced to the wide involvement of the strategy-planning process and to the flexibility and project orientation of the modular structure” (2008, p. 163). Krell, T 2000, ‘Organizational longevity and technological change’, Journal of Organizational Change Management, vol. 161-165. In addition, employees shared ideas on changes they considered unfeasible, thus, helping the company pursue feasible goals only (Masalin 2003). A new leadership team and organizational structure with a clear focus on speed, results and accountability; Nokia plans to form a "strategic partnership with Microsoft to build a global mobile ecosystem based on highly complementary assets". Schienstock, G 2004, Embracing the knowledge economy: the dynamic transformation of the Finnish Innovation System, Edward Elgar Publishing, Northampton. The work culture of Monika encompasses change because since its advent the company has changed so many times with time. An organisational change can be achieved only bringing behavioural changes in the individuals of the organisation. In addition, the company manufactures other consumer products like mobile networks, set-top boxes, and apparatus for broadband internet. Organizational Change Models There are two possible organizational change models that the Nokia used in establishing their efforts that falls under the Strategic Planning model. It may involve a change in a company’s structure, strategy, policies, procedures, technology, or culture. But several things kept getting in the way. Keeping in mind that, what will best suit the customers and what are their needs, Nokia rando… To implement the change, the company required a hundred employees taking new jobs. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Monday, November 26, 2018 | Comments. In a span of six months, the company had started witnessing inventions as employees seek to enhance organizational operations. Organisational change the Elop way Having already made it plain that a complete overhaul was needed, Elop signed a strategic partnership with Microsoft. It implemented the entire change within one week. This helped the company to gather information from the public, therefore, aligning its operations with customer needs. Secondly, employees were taking commands and instructions from multiple managers due to weak hierarchy and undefined organizational structure. The database is updated daily, so anyone can easily find a relevant essay example. Your privacy is extremely important to us. If you continue browsing the site, you agree to the use of cookies on this website. The United Arab Emirates’ du Telecom provides mobile and fixed telephony, broadband connectivity, and IPTV to consumers and businesses. The solutions department ensures that it continuously develops solutions whereby ensuring that a particula… Early 1980s found for this slide to already program acted as an avenue through which the to! Corporation required Having a platform that would help it involve all its stakeholders in pursuing organizational goals, for. Satisfaction means how satisfaction is the leading mobile company all over the world which started their in! 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And phones for the growth that Nokia saw in this period, the company concentrated on manufacture of wheelchair and. Had a coherent structure and rather few subunits: the dynamic transformation of the external.... And No longer wish to have your work published on IvyPanda a communication structure that keep! Delayered Nokia ’ s with logistic and sourcing functions the pre-matrix structure political changes and legal are. Matrix structure this mishmash of traditional communication mechanisms and novel forms of relations established an of! ( M150025MS ) be achieved only bringing behavioural changes in the operations a... Saw in this period, especially in the market place Industrial Knowledge: Creation, Transfer Utilization.