INSTITUTE OF MANAGEMENT STUDIES GHAZIABAD

A PROJECT REPORT ON
ANALYSIS OF CHANGE MANAGEMENT PROCESS SUBMITTED TOWARDS THE PARTIAL FULFILMENT OF POST GRADUATE DIPLOMA IN MANAGEMANET

ACADEMIC SESSION 2011-13

Submitted to Dr. Anita Singh Chairperson, HR

Submitted by Kapil Sharma (BM-011259) Kulbhushan (BM-011087) Rohit Kumar (BM-011175)s

TABLE OF CONTENT

S.NO

TOPIC

PAGE NO.

1.

ABSTRACT

2.

INTRODUCTION

4-5

3.

OBJECTIVE

4.

CHANGE MANAGEMENT PROCESS

7-9

5.

RESISTENCE TO CHANGE

10-12

6.

MANAGING RESISTENCE TO CHANGE

13

7.

COMPANY PROFILE

14-29

8.

SUGGESTION

30

9.

CONCLUSION

31

Abstract

Change management experts have emphasized the importance of establishing organizational readiness for change and recommended various strategies for creating it. Although the advice seems reasonable, the scientific basis for it is limited. Unlike individual readiness for change, organizational readiness for change has not been subject to extensive theoretical development or empirical study. Organizational change management takes into consideration both the process and the tools that manager use to make change at organizational level. Most organizations want change implemented with the least resistance and with the most buy-in as possible. For this to occur, change must be applied with a structured approach so that transition from one type of behavior to another organization wide will be smooth. The change management process is the sequence of steps or activities that a change management team or project leader would follow to apply change management to a project or change. Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intended to produce. The idea of organizational effectiveness is especially important for non-profit organization as most people who donate money are interested in knowing whether the organization is effective in accomplishing its goals. In this report the change management in Nokia has been taken for detailed study. Here in this organization the reason of the change, strategies and implementation of change including its effectiveness has been analyzed. Here the changes are implemented through top to down management and strategic change management.

Introduction Change is a constant, a thread woven into the fabric of our personal and professional lives. Change occurs within our world and beyond -- in national and international events, in the physical environment, in the way organizations are structured and conduct their business, in political and socioeconomic problems and solutions, and in societal norms and values. As the world becomes more complex and increasingly interrelated, changes seemingly far away affect us. Thus, change may sometimes appear to occur frequently and randomly. We are slowly becoming aware of how connected we are to one another and to our world. Organizations must also be cognizant of their holistic nature and of the ways their members affect one another. The incredible amount of change has forced individuals and organizations to see the big picture and to be aware of how events affect them and vice versa. Organizational development efforts, whether facilitated by an outside expert or institutionalized and conducted on an ongoing basis, bring about planned change within organizations and teams. However, they are but one type of change that occurs in organizations, for change can be both planned and unplanned and can occur in every dimension of the universe. A change in chief justice, appropriations, or staff support can dramatically alter the character of a judicial education organization. Institutional alignment of the state bar, local law schools, area colleges and universities, and judicial professional associations may yield similar impacts. Planned change takes conscious and diligent effort on the part of the educator or manager. Kanter (1983) originated the concept of the change master: a person or organization adept at the art of anticipating the need for and of leading productive change. As a way to reinforce the judicial educators role in the change process, this term will be used to refer to educators and managers who are interested in effecting change in their organizations or work teams. Change will not occur unless the need for change is critical. Because individuals and organizations usually resist change, they typically do not embrace change unless they must. One OD consultant describes how pain drives change (Conner, 1990). Pain occurs when people pay the price for being in a dangerous situation or for missing a key opportunity. As such, change is needed to relieve the pain. According to this perspective, change will not occur just because its a good idea. It will only occur when the pain of an individual or an organization is sufficiently high to justify the difficulties of assimilating change. Therefore, a change master must focus on the absolute need of the organization to change, rather than simply on the benefits of the anticipated change. Effective change masters understand this, and they then assist others in recognizing that the organization has no choice but to change. The organization cannot afford to maintain the status quo; change is simply that critical. The Ohio Judicial Colleges movement to full funding emerged from such a catharsis. In other states, mandatory training saved the office of justice of the peace. Court administration emerged as an independent vocation out of exigent circumstances. These examples of change in state judicial education provide evidence that effective change masters have perceived a critical need for change and then helped to make that change happen. Examples of organizational change Mission changes, 4

Strategic changes, Operational changes (including Structural changes), Technological changes, Changing the attitudes and behaviors of personnel, As a multidisciplinary practice that has evolved as a result of scholarly research, Organizational Change Management should begin with a systematic diagnosis of the current situation in order to determine both the need for change and the capability to change. The objectives, content, and process of change should all be specified as part of a Change Management plan. Change Management processes may include creative marketing to enable communication between change audiences, as well as deep social understanding about leaderships styles and group dynamics. As a visible track on transformation projects, Organizational Change Management aligns groups expectations, communicates, integrates teams and manages people training. It makes use of performance metrics, such as financial results, operational efficiency, leadership commitment, communication effectiveness, and the perceived need for change to design appropriate strategies, in order to avoid change failures or resolve troubled change projects.

OBJECTIVES

To study the change management process in Nokia Company. To explore the types or strategies used by Nokia Company for the change management. To find out the resistance to change management in the organization

Change management process

The change management process is the sequence of steps or activities that a change management team or project leader would follow to apply change management to a project or change. Based on Prosci's research of the most effective and commonly applied change, most change management processes contain the following three phases: Phase 1 - Preparing for change (Preparation, assessment and strategy development) Phase 2 - Managing change (Detailed planning and change management implementation) Phase 3 - Reinforcing change (Data gathering, corrective action and recognition) These phases result in the following approach as shown below in Figure 1.

t is important to note what change management is and what change management is not, as defined by the majority of research participants. Change management is not a stand-alone process for designing a business solution. Change management is the processes, tools and techniques for managing the people-side of change. Change management is not a process improvement method. Change management is a method for reducing and managing resistance to change when implementing process, technology or organizational change. Change management is not a stand-alone technique for improving organizational performance. Change management is a necessary component for any organizational performance improvement process to succeed, including programs like: Six Sigma, Business Process Reengineering, Total Quality Management, Organizational Development, Restructuring and continuous process improvement. Change management is about managing change to realize business results.

Resistance to change

Despite the potential positive outcomes, change is nearly always resisted. A degree of resistance is normal since change is: Disruptive, and Stressful Kotter and Schlesinger identified four key reasons why change is resisted: Parochial self interest Individuals are concerned with the implications for themselves Misunderstanding Communications Inadequate information Low tolerance of change Sense of insecurity Different assessment of the situation Disagreement over the need for change Disagreement over the advantages and disadvantages Management trying to implement change will often come across other people in the business responding with phrases such as: My needs are already being met We dont need to do this This sounds like bad news The risks outweigh the benefits What does this mean for me? Of course a degree of scepticism can be healthy especially where there are weaknesses in the proposed changes. However resistance will also impede the achievement of business objectives. Some common reasons why change is resisted include: problems

10

Parochial self interest Habit Misunderstanding Low tolerance of change

Individuals are concerned with the implications for themselves; their view is often biased by their perception of a particular situation Habit provides both comfort and Habits are often well-established and difficult to change Communications Inadequate information Sense of insecurity change security problems

Different assessment of the Disagreement over the need for situation Disagreement over the advantages and disadvantages Economic implications

Employees are likely to resist change which is perceived as affecting their pay or other rewards Established patterns of working and reward create a vested interest in maintaining the status quo Proposed changes which confront people tend to generate fear and anxiety Introducing new technology or working practices creates uncertainty

Fear of the unknown

We have touched earlier on personal barriers to change there are also several organisational barriers to change, including: Structural inertia Existing power structures Resistance from work groups Failure of previous change initiatives Change is also resisted because of the poor way in which change is managed! For example, a failure by management responsible for the change to: Explain the need for change Provide information Consult, negotiate and offer support and training Involve people in the process Build trust and sense of security Build employee relations As a result of change resistance and poorly managed change projects, many of them ultimately fail to achieve their objectives. Amongst the reasons commonly associated with failed change programmes are: Employees do not understand the purpose or even the need for change Lack of planning and preparation Poor communication 11

Employees lack the necessary skills and/ or there is insufficient training and development offered Lack of necessary resources Inadequate/inappropriate rewards

12

Managing Resistance To Change It is normal to experience resistance whenever there is change. Understanding that there will beresistance to change will help you anticipate resistance, identify its sources and reasons, and modify your efforts to manage the issues of change to ensure the success of your change efforts. Resistance is actually healthy. Try not to react against it defensively. It is good for you because it makes you check your assumptions and it forces you to clarify what you are doing. You must always probe the objections to find the real reason for resistance. Many times, it comes down to personal fear. As the leader, you must take the time to understand resistance and you may have to come at it from several different angles before it is conquered. You must understand what your employees are feeling, as well as thinking. Ways to reduce resistance to change: Involve interested parties in the planning of change by asking them for suggestions and incorporating their ideas. Clearly define the need for the change by communicating the strategic decision personally and in written form. Address the "people needs" of those involved. Disrupt only what needs to be changed. Help people retain friendships, comfortable settings and group norms wherever possible. Design flexibility into change by phasing it in wherever possible. This will allow people to complete current efforts and assimilate new behaviours along the way. Allow employees to redefine their roles during the course of implementing change. Be open and honest. Do not leave openings for people to return to the status quo. If you and your organization are not ready to commit yourselves to the change, don't announce the strategy. Focus continually on the positive aspects of the change. Be specific where you can. Deliver training programs that develop basic skills as opposed to processes such as: conducting meetings, communication, teambuilding, self-esteem, and coaching.

NOKIA
Preface

13

In this era, where the technology is growing in a very faster speed and every positive change is bringing new and enhanced features with them, the cellular phones are at the very hot issue in this growing technology. The technologies in these cellular/mobile phones are enhancing and developing day by day, including new features of entertainment, and multiple options like imaging facilities, movie/animation features, sound technologies etc. When the technology is the matter, every consumer/user prefers the latest, best and interacting featured technologies and also prefers these facilities in less cost. So, in this view, there is a very big and fast competition between many companies/manufacturers of cellular phones at the world level. So I have choose the Nokia for my change management project.

Executive Summary

14

For this project, we have chosen the company NOKIA. Nokia is a mobile telecommunications company, and offers far more than just mobile phones for everyday use. They offer networking solutions for businesses that help businesses stay connected and communicate with each other at all times and places. For them, Nokia also offers special mobile phones with exquisite and unique functions and options. In this project, we will first talk about what Nokia is and what they do. We will talk about their history, and how they came to where they are today. Vision, goals, and their strategy are discussed, as well as their wide variety of products and services offered for the regular consumer, businesses, and service providers. Nokias success benefits were some advantages they had in the market. These also include the advance technology and features, as well as services they offer to their consumers. However, like most other companies, Nokia has some weaknesses, but we consider these to be very minimal, and almost only come down to their competition. Lastly, we will talk about their informational business model. This model includes Nokias work organization, control system, industrial relations, human resources, business strategy, and finally, enterprise organization. We will look closely at and discuss all of these elements, and why we think that they are relevant to Nokia. Nokia has recently undergone a major organizational restructure. As a result of this restructuring, Nokia has revised it goal, mission and strategy into clear and specific objectives. On Nokias website they state, Our goal is to be a good corporate citizen wherever we operate, as a responsible and contributing member of society. We take part in long-term projects aimed at helping young people create their own place in the world, for example through our global youth programs. They hope to fulfill their goal by following their mission statement that is, By connecting people, we help fulfill a fundamental human need for social connections and contact. Nokia builds bridges between people both when they are far apart and face-to-face and also bridges the gap between people and the information they need. Nokia plans to achieve its goal and pursue its mission by implementing its strategy of, Expand mobile voice, drive consumer multimedia and bring extended mobility to enterprises. There are many different products Nokia offers within a common product line. This common product line is cellular phones and accessories. Nokia offers many different cell phones with many different features. Nokia, however, is more than just a manufacturer. In addition to its manufacturing base, Nokia offers cellular phone and digital television service though in limited areas. It may seem that Nokia has a limited product line but when include with the research and development of these areas, their service and manufacturing portfolios become more impressive. As it can be assumed the cellular phone market is very lucrative. In 2003, according to The Journal.com, Nokia had sales of $37.1 billion and profit of $4.53 billion. This encompasses all revenue and profit areas, with a market share in the phone industry of nearly 35%. This market share has declined, at least in the first quarter of this year, to 29%. Rival phone manufacturers are stealing market share away from Nokia, while Nokia failed to meet the demand for its phones in the first quarter. More recent estimations of market share where not available as of November 2004. Technology is absolutely crucial to the prosperity of Nokia. Technology is what sets Nokia apart from its competitors. As a pioneer in the development of cell phone capabilities, Nokia uses cutting edge technology in mobile instant messaging, browsing, video, imaging, music, and emailing. Security while using the features is also one of their primary concerns. With new Bluetooth technology, Nokia is providing peace of mind in information transfers. Data

15

synchronization and wireless Internet capabilities are also part of Nokias advanced mobile technology. Also using advanced technology is the digital television service they provide, but pioneers in this field they are not. As can be imagined with any large employer, Nokia offers many different employment opportunities. These opportunities are available for almost every educational level, with jobs varying from janitor to research development specialist. As both a manufacturer, service provider and research development firm there are many different positions available. In the service field there is phone assistance that works with customers and their accounts, while actual technicians work in the field fixing disruptions in service and connecting accounts. The research department creates new technology for the manufacturing sector to put into production. Obviously, there are the necessary departments such as accounting and human resources that facilitate the everyday operation of the company. The management team coordinates the focus and strategy of the overall company and works to improve upon existing procedure. The entire employment structure is tiered in the fact that each member of each department is accountable to an overseeing authority. In fact, even the chief executive officer of the company is accountable to the board of directors. This accountability forces the ethical behavior of each member of Nokia, since the board is ultimately accountable to the stakeholders of the company. The entire structure is similar to and umbrella in shape, funneling together towards the peak, but then funnels back out to the stakeholder at the top. Everyone is accountable.

Nokias History

16

Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighboring Finland's capital Helsinki. Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries, with over 123,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of EUR 41 billion and operating profit of 1.2 billion as of 2009.It is the world's largest manufacturer of mobile telephones: its global device market share was about 39% in Q4 2009, up from 37% in Q4 2008 and 38% in Q3 2009, and its converged device market share was about 40% in Q4, up from 35% in Q3 2009. Nokia produces mobile devices for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet services such as applications, games, music, maps, media and messaging through its Ovi platform. Nokia's subsidiary Nokia Siemens Networks produces telecommunications network equipment, solutions and services. Nokia is also engaged in providing free digital map information and navigation services through its wholly-owned subsidiary Navteq. Nokia has sites for research and development, manufacture and sales in many countries throughout the world. As of December 2009, Nokia had R&D presence in 16 countries and employed 37,020 people in research and development, representing approximately 30% of the group's total workforce. The Nokia Research Center, founded in 1986, is Nokia's industrial research unit consisting of about 500 researchers, engineers and scientists. It has sites in seven countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United States. Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. Nokia plays a very large role in the economy of Finland; it is by far the largest Finnish company, accounting for about a third of the market capitalization of the Helsinki Stock Exchange (OMX Helsinki) as of 2007, a unique situation for an industrialized country. It is an important employer in Finland and several small companies have grown into large ones as its partners and subcontractors. Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In 2004 Nokia's share of the Finnish GDP was 3.5% and accounted for almost a quarter of Finland's exports in 2003. So,I select Nokia corporation as my project topic, and I will study finance ,marketing , human resource departments of Nokia corporation and discuss how change mangement enters in nokia corporation and how it whats are its effects on both the internal and external environment of the company. Nokias first century: 1865-1967 The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta river. Between 1865 and 1967, the company would become a major industrial force; but it took a merger with a cable company and a rubber firm to set the new Nokia Corporation on the path to electronics...

17

1865: The birth of Nokia Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-western Finland, where the Nokia story begins.

1898: Finnish Rubber Works founded Eduard Poln founds Finnish Rubber Works, which will later become Nokia's rubber business.

1912: Finnish Cable Works founded Arvid Wickstrm starts Finnish Cable Works, the foundation of Nokia's cable and electronics businesses.

1937: Verner Weckman, industry heavyweight Former Olympic wrestler Verner Weckman becomes President of Finnish Cable Works.

1960: First electronics department Cable Works establishes its first electronics department, selling and operating computers.

1962: First in-house electrical device The Cable Works electronics department produces its first in-house electrical device - a pulse analyzer for nuclear power plants.

18

1967: The merger Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create Nokia Corporation.

The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of mobile communications. As European telecommunications markets were deregulated and mobile networks became global, Nokia led the way with some iconic products...

1979: Mobira Oy, early phone maker Radio telephone company Mobira Oy begins life as a joint venture between Nokia and leading Finnish television maker Salora.

1981: The mobile era Nordic Mobile Telephone (NMT), the first international mobile phone network, is built.

begins

1982: Nokia makes its first digital telephone The Nokia DX200, the companys first digital telephone switch, goes into operation.

switch

1984: Mobira Nokia launches the Mobira Talkman portable phone.

Talkman

launched

19

1987: Mobira Cityman birth Nokia launches the Mobira Cityman, the first handheld NMT phone.

of

classic

1991: GSM a new mobile Nokia equipment is used to make the worlds first GSM call.

standard

opens

up

Mobile revolution:1992-1999 In 1992, Nokia decided to focus on its telecommunications business. This was probably the most important strategic decision in its history.

As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the mobile telephone industrys global boom and made it the world leader before the end of the decade...

1992: Jorma Ollila becomes President and CEO Jorma Ollila becomes President and CEO of Nokia, focusing the company on telecommunications. 1992: Nokias first Nokia launches its first GSM handset, the Nokia 1011. 1994: Nokia Tune Nokia launches the 2100, the first phone to feature the Nokia Tune. 1994: Worlds first The worlds first satellite call is made, using a Nokia GSM handset. 1997: Snake a classic The Nokia 6110 is the first phone to feature Nokias Snake game. GSM handset

is

launched

satellite

call

mobile

game

20

1998: Nokia leads Nokia becomes the world leader in mobile phones. 1999: The Internet Nokia launches the world's first WAP handset, the No

the

world

goes

mobile

Nokia now:2000-today Nokias story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to the future...

2002: First Nokia launches its first 3G phone, the Nokia 6650. 2003: Nokia launches Mobile gaming goes multiplayer with the N-Gage.

3G

phone

the

N-Gage

2005: The Nokia Nseries is Nokia introduces the next generation of multimedia devices, the Nokia Nseries.

born

2005: The billionth Nokia phone is sold Nokia sells its billionth phone a Nokia 1100 in Nigeria. Global mobile phone subscriptions pass 2 billion. 2006: A new President and CEO Nokia today Olli-Pekka Kallasvuo becomes Nokias President and CEO; Jorma Ollila becomes Chairman of Nokias board. Nokia and Siemens announce plans for Nokia Siemens Networks. 2007 Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks commences operations. Nokia launches Ovi, its new internet services brand. 2008 Nokia's three mobile device business groups and the supporting horizontal groups are replaced by an integrated business segment, Devices & Services.

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Nokias Human Resource Department: The following excerpt is from Nokia Supplier Requirements, defining our expectations for Human Resources. Workforce planning and recruiting Supplier shall have a system to ensure the availability of workforce for current and future business needs, in a sustainable and ethical manner, at both organizational and unit level. Resource planning Resources need to be available to meet both current and future business needs according to company strategy. Resource planning shall be conducted at both organizational / global and unit / local levels. In particular, underage workers or false apprenticeship schemes must not be used. Recruiting and exit procedures Supplier shall ensure that competent and eligible individuals are recruited and appointed to open positions, according to competence, with equal opportunity and on a voluntary basis. Supplier shall check the eligibility of candidates and that they exceed the minimum legal age of employment. Upon employment, individuals shall be provided with a work contract /agreement /offer letter, basic induction training and not be required to give financial deposits or original identity documents. Forced labor must not be used. Employees shall be free to leave the company after giving reasonable notice. Supplier shall ensure that exit procedures are compliant with local legislation, international labor standards and applicable collective agreements. Non-disclosure and confidentiality agreements Supplier shall ensure that employees working with Nokia products or projects or having access to Nokia specific knowledge, information or data, or to Nokia facilities, have signed a Non-Disclosure Agreement (NDA). Supplier shall ensure that the employees fully understand its practical implications. Occupational health and safety protection Supplier shall ensure that physical and mental working conditions allow employees to perform their tasks safely and efficiently. Supplier shall have procedures for identifying, minimizing and preventing hazards. They shall be implemented as, for example, safety instructions, work procedures, preventive maintenance, employee training, identification of potential hazards and appropriate safety devices, personal protective equipment and clothing, hearing protectors, chemical control or machine safeguarding. Supplier shall nominate and train persons responsible for the occupational health of employees. Supplier shall have specific procedures in place for employees under the age of 18 (young workers).

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Supplier shall assume responsibility for the occupational health of employees working off-site (e.g., at customer premises). Occupational health and safety response Supplier shall have occupational health and safety procedures to prepare for and respond to emergency situations involving occupational health and safety risks. Supplier shall record and investigate emergency situations. Management shall encourage employees to report accidents and take action upon these records and reports. Employee amenities Supplier shall ensure that employees are provided with access to potable water and clean toilet facilities. Canteen facilities and food preparation areas shall be clean and safe, and food shall be provided at reasonable cost. Employee dormitories shall be clean, safe (equipped with, e.g., fire extinguishers and exits), adequately ventilated and/or heated, shall provide reasonable personal space and shall be provided at reasonable cost.

Competence analysis Supplier should periodically conduct competence analyses to identify the knowledge and skills/competences required to perform the organizations business activities according to short- and long-term strategic goals. Competence development Supplier shall ensure that employees, at all levels and with equal opportunity, have the education, training and competence they need for their positions and tasks. Supplier shall develop training plans based on competence analyses and implement them to enhance and develop workforce capabilities. Supplier shall maintain a training register, detailing the training employees have received. Nokia specific training and certification Supplier shall ensure, on request, that personnel allocated to Nokia work have the necessary training on Nokia policies, products, processes and guidelines and, if needed, have necessary licenses and certificates. Supplier shall ensure such licenses and certificates are valid in terms of time and scope. Supplier, providing services at Nokia facilities, including (Nokia's) customer sites, shall ensure that its personnel act in accordance with Nokia values and Code of Conduct. Working time and time off Supplier shall ensure that employees can perform assigned tasks efficiently without exceeding the maximum working hours as defined by local labor laws or applicable collective agreements. Supplier shall ensure that employees have at least one day off per seven-day week, and that overtime

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work is voluntary. Holidays (e.g., public holidays) and leaves of absence (e.g., medical or parental) shall comply with local labor laws or applicable collective agreements. Compensation and benefits Supplier shall provide all employees (permanent, temporary, apprentices and contract workers) with fair compensation (wages /salaries) meeting or exceeding local legal and industry minimum standards, for regular as well as overtime work. Supplier shall also provide employees with benefits to reward contributions, skills and behavior considered vital to success. Compensation and benefits shall be aligned with relevant company policies. Fair treatment Supplier shall ensure that employees at its facilities are treated with respect and dignity, equal opportunity and are safe from abuse, harassment or bullying of any kind (e.g., physical, verbal, mental, sexual, racial, cultural, age or disability related). Supplier shall ensure company rules / guidelines are communicated to employees. Supplier shall ensure that disciplinary procedures prohibit physical punishment and do not support financial deductions, or the threat thereof. Performance management Supplier should have a system to manage employee performance. Supplier should ensure individual objectives are derived from company strategy and policies. Supplier should ensure performance is evaluated fairly and objectively, against defined criteria and on a periodic basis, to identify ways to improve performance. Communication and coordination Supplier shall ensure that information relevant to employees (about, e.g., business activities, changes and results) is communicated across the organization. Supplier shall ensure employees can share such information fast enough to be able to align their activities efficiently. Supplier shall respect the right of all employees to form and join trade unions of their choice and to bargain collectively, and in cases this is restricted by law, facilitate parallel means to ensure that individuals or groups are able to raise concerns to the attention of the management. Employee satisfaction Supplier should have the means to evaluate and improve employee satisfaction. A company of substantial size (i.e. headcount exceeding 100) should have an employee satisfaction program based on employee opinion surveys and should take action based on the results of the program.

Feedback and complaint channels Supplier shall have a system through which employees can give feedback or complain about unethical conduct, unfair treatment or practices, violation of company values, policies and 24

procedures, or improvement ideas and suggestions. Management shall, when appropriate, act upon this feedback and handle it confidentially and anonymously. Management shall ensure that there are no adverse consequences as a result of giving feedback.

Nokias Changes Management Introduction 25

What is the call for an organizational change of a company? Before the decision reached its final, the organization must first identify the reasons for the organizational change. The organization is the brain of the business, this is the place where you will find different of people but working together to reach the growth potential of the business. The collection of people that aiming for the success of the business and they are the head the thinking for some possibilities on how to make the success come to life. The organization is an essential part of the business that composes of different creative minds and if the ideas are insufficient, the brainstorming steps in. Sometimes, organizational change happens for the good of the business, they are only inviting the fresh ideas to come. Organizational Change on Nokia Some firms have had to change dramatically to stay in business. Nokia began life as a lumber company, making the equipment and supplies needed to cut down forests in Finland. It moved through into paper and from there into the paperless office world of IT and from there into mobile telephones.1 As the world leader in mobility, Nokia is driving the transformation and growth of the converging Internet and communications industries. The company makes a wide range of mobile devices with services and software that enable people to experience music, navigation, video, television, imaging, games, business mobility and more. Developing and growing our offering of consumer Internet services, as well as the enterprise solutions and software, is a key area of focus.2 It seems like every year, the company acknowledges the organizational change and reshuffling the leaders. The company planned further changes in its sales and marketing activities in the Markets unit, which is expected to affect about 450 employees, maximum 100 in Finland.3Joining with the occurrences of change, it is deliberately needed intense adjustments especially on the newly-deputies. The Aims: 1. To follow-up the companys reorganization in the past year that target to strengthen the customer interface, and ensuring that all resources are well allocated to meet the business needs and de-layer the organization. 2. To make the Nokia Research Center (NRC), which specialize long-term research activities, sharpen its focus on fewer but stronger research areas. 3. 4. The company is planning to relocate their activities in a more convenient site. The company also plans some smaller workforce adjustments in global process operations.

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. There is various kind of approach and two are picked-up for careful examination. The two models are Alignment Model and Scenario Planning Model.4 Alignment Model This kind of model ensures the strong alignment among the organizations mission and its resources to effectively operate the organization. This model is useful for organizations that need to fine-tune

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strategies or find out why they are not working. An organization might also choose this model if it is experiencing a large number of issues around internal efficiencies. Overall steps include: 1. The planning group outlines the organizations mission, programs, resources, and needed support. 2. 3. 4. Identify whats working well and what needs adjustment. Identify how these adjustments should be made. Include the adjustments as strategies in the strategic plan

Scenario Planning This approach might be used in conjunction with other models to ensure planners truly undertake strategic thinking. The model may be useful, particularly in identifying strategic issues and goals. 1. Comes with the selection of several external forces and imagining the related changes which might influence the organization. 2. For each change in a force, discuss three different future organizational scenarios which might arise with the organization as a result of each change. Reviewing the worst-case scenario often provokes strong motivation to change the organization. 3. Suggestions are formulated what the organization might do, or potential strategies, in each of the three scenarios to respond to each change. 4. Planners soon detect common considerations or strategies that must be addressed to respond to possible external changes. 5. The selection of the most likely external changes to effect the organization, and identifying the most reasonable strategies the organization can undertake to respond to the change. Stakeholders Stakeholders are any constituencies in the organizations external environment that are affected by the organizations decisions and actions. These groups have a stake in or are significantly influenced by what the organization does. One reason is that it can lead to other organizational outcomes such as improved predictability of environmental changes, more successful innovations, greater degrees of trust among stakeholders, and greater organizational flexibility to reduce the impact of change.5 Profit Down, Nokia Change Management

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After experiencing a profit down in the third quarter 2009, the giant mobile phone company began to take strategic steps to overhaul its management ranks. Nokia separate business entities, namely mobile phone division and the division smartphone. Chief Financial Officer (CFO) Motorola, Rick Simonson as chief of the division is positioned mobile Phone. Both divisions will begin running in early November. Rick's position as CFO, will be replaced by the Global Head of Sales Siemens, Timo Ihamuotila. "After five years of success as CFO, Rick's time to move to a more strategic position. Rick Simonson has an intimate knowledge of business and finance, and this is a precious value for Siemens business," said Nokia CEO, Olli-Pekka Kallasvuo. Rick Simonson joined with Nokia since 2001 and occupies the position of CFO since 2004. At its new venue, as head of the Mobile Phones division, Rick will be fully responsible for the sustainability of products outside the smart phone Earlier, Nokia reported a decline in profits that they produce in the third quarter of 2009. Nokia profit falls to 391 million pounds, equivalent to Rp5, 96 trillion (Rp15.243 per pound) compared to the same quarter last year, which reached 1.3 billion pounds. Even the sales growth of Nokia fell 20 percent year on year to 9 billion pounds. This report has been commissioned by top management at Nokia to produce an implement plan concentrating on people's aspects of implementation of the new environmental initiative of reducing its carbon footprint by introducing a company wide centralized management information system and policy focused at reduction in paper and printing usage. Therefore the specific objectives of this report can be highlighted as to understand the dynamics of environmental initiative for the organization, to analyze the impact of this initiative on the attitude and behaviour of employees, and to recommend an implementation plan focused at softer aspects of organization for the successful change management. Conclusion The Nokia is really connecting its people, though there are employees that will affected by the organizational changes. An effectiveness of an organizational change is satisfying the stakeholders goals and interests. The effect of organizational change in the view of the stakeholders is inconceivably high. The possibilities of the success and loss plays in the middle of the company,

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not until every proposed projects was deployed. No matter how many times a company imposed organizational change; the success for the new plan will be useless if the appointees were not cooperating

Suggestion For improvement

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Nokia Should Encourage Diagonal Alliance. Nokia need to break out of Cities to Rural areas. Focus on youth i.e. imaging and games. Nokia need to reframe its Strategy for US market. It needs to create affordable alternative of Black Berry. Nokia should reduce its prices According to its Competitors. Nokia should enhance its voice and sound Quality. It should reduce heavy wait of cell phones. Also concentrate on the size of cell phones. Nokia must analyze its cell phones style and designs.

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Conclusion As Nokia is the leading manufacturer of mobile phones whole over the world, its new strategy of diversification in Nokia Mobile Network will be at great success, also customers are loyal to Nokia and Nokia has positioned itself properly in the minds of all the customers. It will be easier for Nokia to attract its existing customers. Besides this Nokia with its latest technology and strong networks is laying more stress on rural areas where till now no network has satisfied rural people. Nokia maintains distinctive advantage over their current and future competition without patent protection But on the other Hand the products from the Finnish company, Nokia, are some of the very best in the world, but the company still hasnt found a profitable way to market its goods. The very reason that other mobile phone companies are fast eating up Nokias market share is their superior (yet simple) marketing practices. Motorola and Samsung must now be in the FUW (frequently used words) list in Nokias board meetings. These companies have made Nokia pay dearly for its undeveloped approach in marketing its phones. The aggressive marketing practices followed by Motorola have hit Nokia very hard and it is losing very crucial global market share every month to its American competitor. Hence if Nokia doesnt take much care of this matter he will face tough time in the Future.

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