Investigating Organizational Change at Nokia: Strategy and Leadership

This report examines Nokia's organizational changes in response to the evolving smartphone industry. It discusses the force field analysis, barriers to change, and Kotter's 8-step model in the context of Nokia's strategic shifts. The report also analyzes dynamic and transformational leadership approaches adopted by Nokia, highlighting their advantages and disadvantages. Nokia's partnership with Microsoft, restructuring programs, and innovative changes like the launch of Windows phones and Lumia series are discussed. The analysis covers the impact of these changes on Nokia's market position, customer base, and financial performance, ultimately assessing the effectiveness of Nokia's organizational transformation efforts. Desklib provides access to similar solved assignments and past papers for students.

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Introduction
Nokia brings organizational change to cop up with the innovative world. In this report, Force
field analysis discussed, because it helps the organization in the decision-making power. Force
field analysis improves the effectiveness of decision power. Another discussion is on the barrier
of change, which means what barriers, faced by the Nokia while implementing the major
organizational change such as barrier of resources and funds. Further discussion is on the Kotters
step model this model maintains a sense of urgency and helps the company to identify the
strength and opportunities.
Another discussion is on the leadership approaches there are two types of approaches that are
dynamic leadership approach and transformational leadership approach both approaches helps
the company to improve its decision making power.

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Assessment 2
Case Study: Nokia
In 2008, Nokia launches its Booster program with the motive to know the taste and preferences
of customers in smartphone businesses. Another motive of this program is to identify the latest
technology among the competitors and ever-changing taste and preferences of the customers.
Nokia reorganized its nine organization units into the four organization units. The company
restructured all its three horizontal business units to sustain its production and innovation.
Company changes its manufacturing and development methods to cop up with the innovation in
the emerging market (Anon., 2019)
Nokia through its organizational change expands its technological platforms to invite millions of
individual where they can join worldwide. In the 2009, Nokia creates innovative ideas and
constantly strategizing to cop up with the innovative world. To bring organizational change,
Nokia actively involved its employees and teammates into the business transformations. The
major motive of Nokia organizational change is to make new and prompt customer solutions and
they changed their focus on market business (Anon., 2019).
Designing department of the company, refuse to follow the traditional method because the
procedure of this model is very slow. In this method, the contribution of employees is not
available even by providing technologies. (Anon., 2019).

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Force field study
Source: (Anon., 2019)
After the analysis of the Force field, it comes to know that communication not properly
transmitted between the different departments of the company due to bureaucratic management.
Nokia needs to change its strategy and objectives in order the fronting fierce competition with
the iPhone and Samsung. It’s time to rethink the company’s plans and procedure. (Oreg,
2011)The company declared Stephen Elop as a chief executive, which makes disappointed to the
other employees of the company. Drastic change faced by a company where leaders are going
through the strategic challenges in the management. When Nokia comes into partnership with
Microsoft, it gives misunderstanding to employees about their tasks and job security. When
Nokia entered into the collaboration with Microsoft, it created a protest among team and staff.
Many conflicts faced by the company from stakeholders due to the innovation of a window
platform replaced by Symbian platforms. Investment decreased in the company due to the
reduction in the prices of share by 10%. (Appelbaum, 2012).
Nokia brings major re-structuring programs to minimize the bureaucracy and lay off in
management. One of the innovative changes in Nokia was launching of window phone products

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and Lumia series. Innovative change in the organization gives a boost to regain the position and
become more profitable in the upcoming years (Parson, 2015).
Barrier in change
One of the basic barriers of Nokia, they do not have an efficient team of implementation and
marketing planning of selling is very ineffective. Nokia is unsure between the selling map and
sales construct. The cost of production of Nokia’s product is very high such as the pecuniary
value of nomadic phones is very high as compared to other businesses products. The main barrier
that occurs to Nokia the looking of Nokia’s did not draw the attention of the customers in the
market (Rosenbargh, 2011).
Influencing decision making
Barrier influence the decision making power as it creates confusion for the employees and
leaders to make the policies regarding the leadership. It creates ineffectiveness for management.
Kotter’s 8-Step model
This model increases efficiency during the implementation of major change. This model includes
eight steps:

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Source: (Anon., 2019)
Stage 1: Recognize the requirement for transformation: To take any step regarding the
innovation change the identification of change is very necessary so this model recognizes the
change to accelerate the change. The in-depth analysis must conducted by Nokia to identify the
urgency of change. To know the evaluation and effectiveness of the changes in smart businesses
are very crucial (Small, 2016).
Stage 2: Well-organized team: After the identification of changes, the second step of this
model helps in handling the staff in an efficient manner to implement the major change in the
company. Managing of the workforce in an efficient manner can limit to certain changes in the
management. Maintenance of the workforce before implementing a change is important for the
operations of the company. (Tidd, 2018)
Stage 3: Introducing the idea for modification: The third stage of this model, give a clear
vision of ideas, which identified by the company. For the successful implementation of change,
the clear idea of changes is very essential. For the constant growth of the company, the perfect
vision of strategy and objectives is important.
Stage 4: Requirement of change: The further stage helps in strong communication among
different departments of the organization. For successful implementation of major change strong
communication in the internal management is very essential or employee alertness is also
important (Swanson, 2014).
Stage 5: Empower the team for major change: This stage empowers the managers and
teammates to take part in decision-making and growth of major change of company.
Stage 6: Consistency of ideas: The objectives and missions of the organization must be
consistent and there must not be a variation on a regular basis.
Step 7: Maintaining consistency: For successful implementation of organizational major
change, there must be uniformity in the functions and operations of the company (Jin, 2011).

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Step 8: Execution of major change: Last stage of a model in which the company is
implementing the actual amendment, which identified by the company in its portfolio. Any
innovation change takes by the company in the products will be an efficient manner.
Implementation strategy
The major implementation strategy of Nokia was it shifts the strategic plan in the
telecommunication networks. Nokia entered into the deal of buying of Alcatel-Lucent in
US$16.6. One of the basic strategies of Nokia is to communicate the cultural differences with the
team members and management of the company. Another implementation strategy of emotional
regulating procedures used to tackle the problem of internal dysfunction. Nokia to implement the
window platform installed the external operating system (Masalin, 2017).
Successful story
Nokia through the major change sustains its customer’s base because change did not help the
company to regain its position. The portfolio administration of Nokia becomes more efficient
through the major change. Innovation in the products by the company gets positive feedback
from the clients. The major change in Nokia improves the operating profits of the company.
Foreign investment in the company is increased by the major change. Through the leadership
policies and Programs Company have more potential leaders. Revenue of the company in a
financial year is increased by $30 billion in 2018 ( Vijayasarathy, 2018-2019).
Dynamic Leadership approach
The dynamic leadership program is for use for the managers and leaders. Through this approach,
the problems and stress level is decrease day by day. This approach increases the effectiveness of
the performance level of managers and leaders. This approach helps in delivering the material
business value. This approach increases the revenue and cash flow of the company and receives a
heavy investment in Nokia. (Mubarak, 2017).
Advantages
One of the advantages of dynamic leadership approach, the efficiency in the decision-making of
leaders in increased. By using this, approach leaders bring innovation change in the products,

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which attract more customers from the market. Dynamic leadership approach reflects positive
impacts on the operations of management. This approach helps the leaders in innovative thinking
which maintain efficiency in the management ( Lane, 2016).
Disadvantages of dynamic leadership approach
One of the drawbacks of this method less experienced teams could not access this approach.
Accountability crises arise in this approach among different branches. For an understanding of
this approach, highly experienced staff and employees are required. Example, in the case of
Nokia, the old staff is not capable to accept the changes. (Myers, 2012).
Transformational leadership approach
Transformational leadership approach mainly helps the organization to encourage the employees
and teammates of the organization. Transformational leadership approach helps to achieve
success in the major change. Nokia is a great example of Transformational leadership approach
as it directly jumped into the window technology and maintained its innovation focus. Example,
Nokia was about to become insolvent but they bring major change and improve its core values.
Advantages
 This approach helps in the current evaluation of company and gives vision about
company’s growth it helps Nokia to improve its innovative growth.
 This method is used for motivate the people and teammates of company as in Nokia with
the help of this approach company adopted the “Leadership program “ to motivate
people.
Disadvantages
 This approach creates the problem of detail orientation and create problem for the leaders
to take the right decision.
 This method is useful only for short-term basis not long-term basis but Nokia is looking
for the long-term change so this approach cannot be useful for Nokia.

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Conclusion
During the innovative change in the smartphone industry, Nokia failed to adopt those changes. In
order to cop up with the competitors and innovative industry Nokia bring organizational change
by adopting a window platform with Microsoft. This step was not successful step for company
but they maintain their position and improve their revenues. To regain the market position in the
smartphone industry Nokia should work more on leadership and innovative policies of the
company. Major organizational change by Nokia should implement in an efficient manner.
Major policies and plans must efficiently plan and control in the process of implementation.
Leadership policies of Nokia should re-frame to maintain consistency in the management.

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