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Corporate Culture Case Study | Nokia

I. INTRODUCTION

The company which will be analyzed in this paper is Nokia Corporation. It is known that Nokia Corporation is a well-developed Finnish multinational communications corporation. Its headquarters is located in Espoo, Finland. Nokia is a successful manufacturer of mobile devices. Moreover, this company is engaged in Internet and communications industries. According to the statistical data, today more than 132.000 employees are working in 120 countries. The representatives of Nokia Сorporation sell its products in more than 150 countries of the world. The global annual revenue of the company is over €42 billion and its operating profit of €2 billion as of 2010. (Nokia Corporation, 2011, p.1)

Today Nokia Corporation is considered to be one of the world’s largest manufacturers of high quality mobile phones. Nokia produces different types of mobile devices for any market segment and protocol, including GSM and CDMA, W-CDMA. Besides, Nokia Corporation offers various Internet services such as interesting games, modern music, important and useful maps, as well as media and messaging through its Ovi platform. It is known that Nokia’s joint venture with Siemens Corporation, Nokia Siemens Networks produces up to date telecommunications network equipment, best solutions and services.(Nokia Research Center, 2008, p.1)

In addition, Nokia Corporation provides free digital map information as well as different navigation services through its Navteq.

Brief History of Organization

As Nokia Corporation is one of the multinational corporations in the world, it is famous throughout the world. The employees of the company are involved in telecommunication, Internet and computer software. The company’s services include both the software and online services. Nokia Corporation was founded by Fredrik Idestam and Leo Mechelin in the city of Tampere, Finland in 1865. In 1871, the company received the name Nokia. One of the interesting facts is that the company started its manufacturing business from rubber and cables. Over hundred years, Nokia has become the most powerful telecommunication multinational company in the world. From 1968 to 1991, Nokia Corporation took the leading position in the market due to its evolution and manufacture of mobile phones. In 1999, Nokia launched its new model of 3G phone. Today, Nokia Corporation is the world leader. It is known that in 2007, Nokia and Siemens companies were united into one company. Their merger of their networks and carrier operations provided a benefit. Now Nokia Corporation sells its billionth mobile phone model as the third generation of the company’s mobile technology. (Tel, 2011, para.5)

Organizational demographics. The employees who work for Nokia Corporation are of different nationalities, different age groups and genders. According to the statistical data of June, 2010, Nokia Corporation has 129,746 employees from all over the world. Nokia Corporation adheres to a so-called “flat” corporate culture. The main language of the company is English. It means that all the employees who take different positions in the company can speak English.

II. ANALYSIS

1. What does the organization stand for? (The organization’s highest value, its mission, its ideology)

The organization’s mission is “to Connect People”. Nokia’s highest value is “to build great mobile products that enable billions of people worldwide to enjoy more of what life has to offer”. Moreover, the organization’s main goal is to take the leading position in the increasingly dynamic and competitive environment. Nokia Corporation “prides itself four core values and principles which it places at the heart of its corporate philosophy: customer satisfaction, respect for the individual, achievement and continuous learning”. (Fitzgerald, 2011, p.2) “Ideas. Energy. Excitement. Opportunities” are the best organization’s principles. “Connecting people” is a slogan of the company. The organization’s ideology is built on the fact that it is necessary to move with rapidly changing times. (Nokia, Official Site, 2011)

2. What does it take to be highly successful in this organization? What kind of person is most respected? What is considered heroic?

It is known that leadership work is considered to be highly successful in this organization. Nokia Leadership Team is responsible for managing different operations of the company. The Chairman and all the members of Nokia Leadership Team are highly experiences specialists. The most respected person in this organization is the Chairman Stephen Elop. He is the president and CEO of Nokia Corporation. It is considered heroic that Stephen Elop uses special approach in his leadership activity. According to some facts from his biography, Stephen took the position of the president of Microsoft’s Business Division. He was an active member of Microsoft’s senior leadership team that was responsible for the company’s overall strategy. His huge experience can help him to perform his duties as the Chairman of Nokia Corporation. (Nokia, Official Site, 2011)

3. What is viewed as serious punishment in this organization? What kinds of mistakes are not forgiven?

The most serious punishment in the organization is dismissal. The following kinds of mistakes are not forgiven: lack of leadership skills, lack of communication skills, undisciplined behavior of employees, lack of human factor.

4. What company folklore, rituals, symbols, and ceremonies best reveal the essential character of the organization?

The essential character of the organization is best revealed through the company’s environment. It is known that the company’s buildings are built of natural material, such as wood. They have large windows and only warm colors. Besides, “open floor plans and pedestrian bridges, game/recreation areas, fitness centers and saunas” create a so called symbol of good quality which can be related to the products of Nokia. (Fitzgerald, 2011, p.2)

5. Make believe this organization is a person. How would you describe this person?

Self-confident, goal-oriented, talented, hard-working, calm, amicable, faithful and well-organized.

6. What are the main rules that everyone has to follow in this organization?

The main rules that everyone has to follow in this organization include the following ones: to adopt new strategy in respond to the rapidly changing global market, to provide a feeling of family in the team, to be responsible, disciplined and motivated.
Organizational Effectiveness and Satisfaction

7. What is the one thing the organization doesn’t do as well as it should?

The major problems of Nokia Corporation are rooted in its bureaucratic corporate culture. (Bilton, 2011, para.4)

8. Where is this organization headed?

Nokia Corporation’s headquarters is located in Espoo, Finland.

9. What is the employee turnover in the organization relative to other comparable organizations?

As Nokia Corporation is one of the best European brands and a well-recognized brand in the world, the employees who work for the company are highly motivated and are proud to work with Nokia. Moreover, Nokia Corporations uses a good system of rewards for its employees that helps to increase their motivation and job satisfaction.

Status of the Individual in the Organization

10. On which key groups or individuals, in addition to one’s manager, would you be most dependent to get the job done successfully?

I think that I would be most dependent on the leaders of the group because they should provide the appropriate working environment and to set the goals in order to get the job done successfully.

11. What are the biggest hurdles that have to be overcome to do the job well?

The biggest hurdles that have to be overcome in order to do the job well include misunderstanding, lack of attention, law motivation, dissatisfaction.

12. What important sources of support are potentially available for getting the job done? (Technical, logistical, interpersonal, and political factors)

The most important sources of support include interpersonal factors and technical factors, because the goal can be achieved in positive environment and by means of appropriate technical equipment.

13. Is there a possibility of becoming stereotyped in the organization? What is the status and progression of those who are similarly stereotyped? (Age, race, gender, ethnic heritage, educational background and their effects on stereotypes, status, and effectiveness)

There is always a possibility of becoming stereotyping in the organization. One of the biggest impacts of stereotyping in organizations, is that people are not open and honest. They don’t try to be better. Their specific role is to remain calm and to avoid any innovations. It creates a system which prevents personal interaction with other employees who take higher or lower positions. It can lead to dissatisfaction and even frustration in the situation when other team members don’t recognize the abilities of the stereotyped person.

14. How readily are new employees accepted into the culture?

It is difficult for new employees to be accepted into the culture because they are not ready to follow all the rules and regulations of the organization, and sometimes they can make serious mistakes in the decision making process.

15. What do you think are the most important forces in the external environment creating uncertainty for your organization today? Do the forces you identified typically arise in the task environment or the general environment?

The most important forces in the external environment which can create uncertainty for my organization today are directly interactive forces, which include not only customers and suppliers, but also competitors, employees, and employee unions. These forces can arise both in the task environment and in the general environment.

III. SUMMARY

Nokia Corporation is one of the leading multinational companies in the world which produces such products as mobile phones, and other communication devices. Its corporate culture which includes the main values, customs and traditions of the company make Nokia a unique company in the world of business. Nokia’s corporate culture provides speed and flexibility in the decision-making process. Moreover, it influences the performance and productivity of its employees.

IV. CONCLUSION

Corporate culture plays an important role in the development of Nokia Corporation and in achievement of the major organizational goals. Due to equal opportunities and openness, good leadership and employee participation, Nokia Corporation is a progressive mobile technology group which has the major goal – to connect people.

 

REFERENCES

Bilton, N. (2011) The Engineer-Driven Culture of Nokia The New York Times. February 11, 2011. Retrieved from:< http://bits.blogs.nytimes.com/2011/02/11/for-nokia-design-will-be-key-to-future/>
Fitzgerald, M. (2011) Nokia Corporate Culture Challenge: A Case Study. AllBusiness.com. Retrieved from: <http://www.allbusiness.com/management/3589653-1.html>
Nokia. Official Site. The company’s Vision and Strategy. 2011. Retrieved from:< http://www.nokia.com/global/about-nokia/company/about-us/about-us/>
Nokia Corporation. Annual Results 2010. January 27, 2011. Retrieved from:<http://ncomprod.nokia.com/results/Nokia_results2010Q4e.pdf>
Nokia Research Center. Nokia Corporation. October 23, 2007. Retrieved from:http://www.nokia.com/NOKIA_COM_1/Press/twwln/press_kit/Nokia_Research_Center_Press_Backgrounder_October_2007.pdf
Tel, J. (2010) Nokia Corporation Company Profile. The Free Resource. Retrieved from:<http://www.thefreeresource.com/nokia-corporation-nok-information-profile-research>