Organization Change and Development

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Organization Change and Development
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Table of Contents
Introduction.................................................................................................................................................3
Organization problems and opportunities analysis.....................................................................................4
Change intervention that will address the problem....................................................................................7
Barriers to change.......................................................................................................................................8
Lack of employee involvement................................................................................................................9
Poor culture planning..............................................................................................................................9
Shareholders resistance..........................................................................................................................9
Ethical issues.............................................................................................................................................10
Decision-making issues..........................................................................................................................10
Compliance and governance issues.......................................................................................................10
Diversity issues......................................................................................................................................11
Conclusion.................................................................................................................................................11
Bibliography...............................................................................................................................................13

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Introduction
Nokia Corporation or Nokia is a multinational technology, telecommunication, and
consumer electronics company based in Finland. The company was established in 1865 and it
has its headquarters at Espoo in Finland. As of 2017, Nokia had employed about 102,000
workers and had operations in over 130 countries. It also posted revenue of 23 billion Euros in
this period. Nokia is the 415th world largest organization according to revenue measured in 2016
by Fortune Global 500. Nokia has had a huge market share in the mobile phone industries right
from the late 1990s to early 2000s. In 1998, Nokia was the best-selling mobile phone brand in
the world. The profits of the company went up from 1 billion US dollars in 1995 to 4 billion in
2000. When Apple introduces the iPhone in 2007, about half of the world mobile phone market
was controlled by Nokia. One of the main problems that affected Nokia Corporation was its
failure to innovate (Masalin, 2014, pp.70). Apple introduced the smartphone will Nokia was still
stuck in budgetary phones. The quality of high-end devices declined significantly and six years
after the launch of the iPhone, Nokia had lost about 90 percent of its market share (Yun, Won
and Park, 2016, pp.7). The dismal performance by Nokia can be attributed to organization fear
and lack of communication between the management and the staff. After the advent of the
iPhone, the executives were adamant to acknowledged the inferiority of Symbian, Nokia
operating system, and institute organization changes the will increase innovation at the helm of
the company (Van Rooij, 2015, pp.220). Part of this fear was losing existing and potential
investors and shareholders by acknowledging the inferiority of the company to Apple. The
managers also failed to prioritize the critical functions of the company. Instead of allocating
resources for research and development of a new and better operating system, the management
decided to develop products for short-term market demands.

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Organization problems and opportunities analysis
The early success at Nokia was attributed to a young and energetic management team at
the helm during their period of Nokia glory. The team was visionary and leveraged competition
by producing innovative devices and digitalization that spread the Nokia brand across the globe.
However, in the mid-1990s, the constant decline in business operation indicated that the
company was on the verge of being a victim of its own success (Commons, 2018, pp.14). The
core business at Nokia was focused on incremental improvements, and in the year 1996, the
company launched its first smartphone, the communicator, followed by the first camera phone in
2001 (Hornstein, 2015, pp.295). The second generation smartphone by the company was the
popular Nokia 7650 mobile phone. Nokia problems started at the reorganization of the
management matrix in 2004 that saw the departure of key members of the executive team. The
middle managers selected had no capacity to decentralize critical programs. The company was
constantly locked into a never-ending conflict on product development with the managers
struggling to allocate the scarce resources to different functions within the company. This
conflictual culture slowed decision making and decrease employee morale (Vuori and Huy,
2016, pp.40). The managers were no longer tech-savvy or strategic in making innovative
decisions and this resulted in the proliferation of products of poor quality. One of the key
facilitators of the failure in Nokia was its Symbian operating system (Pisano, 2015, pp.50). Even
though the operating system had early given Nokia an advantage, it was a device-centric system
in what was becoming an application-centric world. The operating system was delaying the
release of new phones as the operating system had to be tested with each device and tweaked to
fit the features of the device. For example, in 2009, Nokia had over 60 version of incompatible
Symbian operating system (Leavy, 2014, pp.10). Nokia lacked the critical skills to adapt to the
application centered eco-system. By 2010, it becomes obvious that Nokia had failed to innovate