mcoe project report.doc

7/30/2019 mcoe project report.doc

1/32

INSTITUTE OF MANAGEMENT STUDIESGHAZIABAD

A PROJECT REPORT ON

ANALYSIS OF CHANGE MANAGEMENT PROCESS

SUBMITTED TOWARDS THE PARTIAL FULFILMENT OFPOST GRADUATE DIPLOMA IN MANAGEMANET

ACADEMIC SESSION 2011-13

Submitted to Submitted byDr. Anita Singh Kapil Sharma (BM-011259)

Chairperson, HR Kulbhushan (BM-011087)Rohit Kumar (BM-011175)s

1


2/32

TABLE OF CONTENT

S.NO TOPIC PAGE NO.

1. ABSTRACT 3

2. INTRODUCTION 4-5

3. OBJECTIVE 6

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

2


3/32

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.

3


4/32

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 physicalenvironment, in the way organizations are structured and conduct their business, in political andsocioeconomic problems and solutions, and in societal norms and values. As the world becomesmore complex and increasingly interrelated, changes seemingly far away affect us. Thus, changemay sometimes appear to occur frequently and randomly. We are slowly becoming aware of howconnected we are to one another and to our world. Organizations must also be cognizant of theirholistic nature and of the ways their members affect one another. The incredible amount of changehas forced individuals and organizations to see the big picture and to be aware of how eventsaffect 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 beboth planned and unplanned and can occur in every dimension of the universe. A change inchief justice, appropriations, or staff support can dramatically alter the character of a judicialeducation organization. Institutional alignment of the state bar, local law schools, areacolleges 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 atthe art of anticipating the need for and of leading productive change. As a way to reinforcethe judicial educators role in the change process, this term will be used to refer to educatorsand 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 andorganizations usually resist change, they typically do not embrace change unless they must.One OD consultant describes how pain drives change (Conner, 1990). Pain occurs whenpeople pay the price for being in a dangerous situation or for missing a key opportunity. Assuch, change is needed to relieve the pain. According to this perspective, change will notoccur just because its a good idea. It will only occur when the pain of an individual or anorganization is sufficiently high to justify the difficulties of assimilating change. Therefore, achange master must focus on the absolute need of the organization to change, rather thansimply 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 otherstates, mandatory training saved the office of justice of the peace. Court administrationemerged as an independent vocation out of exigent circumstances. These examples of changein state judicial education provide evidence that effective change masters have perceived acritical need for change and then helped to make that change happen.

Examples of organizational change

Mission changes,

4


5/32

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, OrganizationalChange Management should begin with a systematic diagnosis of the current situation in order todetermine both the need for change and the capability to change. The objectives, content, andprocess of change should all be specified as part of a Change Management plan.

Change Management processes may include creative marketing to enable communication betweenchange audiences, as well as deep social understanding about leaderships styles and groupdynamics. As a visible track on transformation projects, Organizational Change Management alignsgroups expectations, communicates, integrates teams and manages people training. It makes use ofperformance 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.

5


6/32

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

6


7/32

Change management process

The change management process is the sequence of steps or activities that a change managementteam or project leader would follow to apply change management to a project or change. Based onProsci's research of the most effective and commonly applied change, most change managementprocesses 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.

7


8/32

8


9/32

t is important to note what change management is and what change management is not, as defined bythe 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 whenimplementing 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 improvementprocess to succeed, including programs like: Six Sigma, Business Process Reengineering, Total

Quality Management, Organizational Development, Restructuring and continuous processimprovement.

Change management is about managing change to realize business results.

9


10/32

Resistance to change

Despite the potential positive outcomes, change is nearly always resisted. A degree of resistance is

normal since change is:

Disruptive, andStressful

Kotter and Schlesinger identified four key reasons why change is resisted:

Parochial self interest

Individuals are concerned with the implications for themselves

Misunderstanding

Communications problemsInadequate information

Low tolerance of change

Sense of insecurity

Different assessment of the situation

Disagreement over the need for changeDisagreement over the advantages and disadvantagesManagement trying to implement change will often come across other people in the businessresponding with phrases such as:My needs are already being metWe dont need to do thisThis sounds like bad newsThe risks outweigh the benefitsWhat 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:

10


11/32

Parochial self interest Individuals are concerned with the implications for themselves; theirview is often biased by their perception of a particular situation

Habit Habit provides both comfort and securityHabits are often well-established and difficult to change

Misunderstanding Communications problemsInadequate information

Low tolerance of change Sense of insecurity

Different assessment of the

situation

Disagreement over the need for changeDisagreement over the advantages and disadvantages

Economic implications Employees are likely to resist change which is perceived as affectingtheir pay or other rewardsEstablished patterns of working and reward create a vested interest inmaintaining the status quo

Fear of the unknown Proposed changes which confront people tend to generate fear andanxietyIntroducing new technology or working practices creates uncertainty

We have touched earlier on personal barriers to change there are also several organisationalbarriers to change, including:

Structural inertiaExisting power structuresResistance 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 failureby management responsible for the change to:

Explain the need for changeProvide informationConsult, negotiate and offer support and trainingInvolve people in the processBuild trust and sense of securityBuild employee relations

As a result of change resistance and poorly managed change projects, many of them ultimately failto achieve their objectives. Amongst the reasons commonly associated with failed changeprogrammes are:

Employees do not understand the purpose or even the need for changeLack of planning and preparationPoor communication

11


12/32

Employees lack the necessary skills and/ or there is insufficient training and development offeredLack of necessary resourcesInadequate/inappropriate rewards

12


13/32

Managing Resistance To Change

It is normal to experience resistance whenever there is change. Understanding that there willberesistance 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 yourchangeefforts.

Resistance is actually healthy. Try not to react against it defensively. It is good for you because itmakes you check your assumptions and it forces you to clarify what you are doing. You must alwaysprobe the objections to find the real reason for resistance. Many times, it comes down to personalfear.

As the leader, you must take the time to understand resistance and you may have to come at it fromseveral different angles before it is conquered. You must understand what your employees arefeeling, as well as thinking.

Ways to reduce resistance to change:Involve interested parties in the planning of change by asking them for suggestions andincorporating their ideas.

Clearly define the need for the change by communicating the strategic decision personally and inwritten form.Address the "people needs" of those involved. Disrupt only what needs to be changed. Help peopleretain friendships, comfortable settings and group norms wherever possible.

Design flexibility into change by phasing it in wherever possible. This will allow people to completecurrent efforts and assimilate new behaviours along the way. Allow employees to redefine their rolesduring 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 notready 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: conductingmeetings, communication, teambuilding, self-esteem, and coaching.

NOKIA

Preface

13
http://www.bia.ca/managing-change.htmhttp://www.bia.ca/change-management.htmhttp://www.bia.ca/change-management.htmhttp://www.bia.ca/managing-change.htmhttp://www.bia.ca/change-management.htm


14/32

In this era, where the technology is growing in a very faster speed and every positive change isbringing new and enhanced features with them, the cellular phones are at the very hot issue in thisgrowing 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 interactingfeatured technologies and also prefers these facilities in less cost. So, in this view, there is a very bigand 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


15/32

For this project, we have chosen the company NOKIA. Nokia is a mobile telecommunicationscompany, and offers far more than just mobile phones for everyday use. They offer networkingsolutions for businesses that help businesses stay connected and communicate with each other at alltimes and places. For them, Nokia also offers special mobile phones with exquisite and uniquefunctions 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 theirstrategy are discussed, as well as their wide variety of products and services offered for the regularconsumer, businesses, and service providers. Nokias success benefits were some advantages theyhad in the market. These also include the advance technology and features, as well as services theyoffer to their consumers. However, like most other companies, Nokia has some weaknesses, but weconsider these to be very minimal, and almost only come down to their competition. Lastly, we willtalk about their informational business model. This model includes Nokias work organization,control system, industrial relations, human resources, business strategy, and finally, enterpriseorganization. We will look closely at and discuss all of these elements, and why we think that theyare 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. OnNokias website they state, Our goal is to be a good corporate citizen wherever we operate, as aresponsible and contributing member of society. We take part in long-term projects aimed at helpingyoung people create their own place in the world, for example through our global youthprograms. They hope to fulfill their goal by following their mission statement that is, Byconnecting 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 alsobridges the gap between people and the information they need. Nokia plans to achieve its goal andpursue its mission by implementing its strategy of, Expand mobile voice, drive consumermultimedia and bring extended mobility to enterprises.

There are many different products Nokia offers within a common product line. Thiscommon product line is cellular phones and accessories. Nokia offers many different cell phoneswith many different features. Nokia, however, is more than just a manufacturer. In addition to itsmanufacturing base, Nokia offers cellular phone and digital television service though in limitedareas. It may seem that Nokia has a limited product line but when include with the research anddevelopment 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 TheJournal.com, Nokia had sales of $37.1 billion and profit of $4.53 billion. This encompasses allrevenue and profit areas, with a market share in the phone industry of nearly 35%. This marketshare has declined, at least in the first quarter of this year, to 29%. Rival phone manufacturers arestealing market share away from Nokia, while Nokia failed to meet the demand for its phones in thefirst 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 Nokiaapart from its competitors. As a pioneer in the development of cell phone capabilities, Nokia usescutting edge technology in mobile instant messaging, browsing, video, imaging, music, andemailing. Security while using the features is also one of their primary concerns. Withnew Bluetooth technology, Nokia is providing peace of mind in information transfers. Data

15


16/32

synchronization and wireless Internet capabilities are also part of Nokias advanced mobiletechnology. Also using advanced technology is the digital television service they provide, butpioneers 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 jobsvarying from janitor to research development specialist. As both a manufacturer, service providerand research development firm there are many different positions available. In the service fieldthere is phone assistance that works with customers and their accounts, while actual technicianswork in the field fixing disruptions in service and connecting accounts. The research departmentcreates new technology for the manufacturing sector to put into production. Obviously, there are thenecessary departments such as accounting and human resources that facilitate the everyday operationof the company. The management team coordinates the focus and strategy of the overall companyand works to improve upon existing procedure. The entire employment structure is tiered in the factthat each member of each department is accountable to an overseeing authority. In fact, even thechief 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 thestakeholders of the company. The entire structure is similar to and umbrella in shape, funnelingtogether towards the peak, but then funnels back out to the stakeholder at the top. Everyone isaccountable.

Nokias History

16


17/32

Nokia Corporation is a Finnish multinational communications corporation that is headquartered inKeilaniemi, Espoo, a city neighboring Finland's capital Helsinki. Nokia is engaged in themanufacturing of mobile devices and in converging Internet and communications industries, withover 123,000 employees in 120 countries, sales in more than 150 countries and global annualrevenue 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, upfrom 37% in Q4 2008 and 38% in Q3 2009, and its converged device market share was about 40% inQ4, up from 35% in Q3 2009. Nokia produces mobile devices for every major market segment andprotocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet services such asapplications, games, music, maps, media and messaging through its Ovi platform. Nokia's subsidiaryNokia Siemens Networks produces telecommunications network equipment, solutions and services.Nokia is also engaged in providing free digital map information and navigation services through itswholly-owned subsidiary Navteq.

Nokia has sites for research and development, manufacture and sales in many countries throughoutthe 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 about500 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 stockexchanges. Nokia plays a very large role in the economy of Finland; it is by far the largest Finnishcompany, 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 importantemployer in Finland and several small companies have grown into large ones as its partners andsubcontractors. 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 , humanresource departments of Nokia corporation and discuss how change mangement enters in nokiacorporation and how it whats are its effects on both the internal and external environment of thecompany.

Nokias first century: 1865-1967

The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirtariver. Between 1865 and 1967, the company would become a major industrial force; but it took amerger with a cable company and a rubber firm to set the new Nokia Corporation on the path toelectronics...

17


18/32

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 electronicsbusinesses.

1937: Verner Weckman, industry heavyweight

Former Olympic wrestlerVerner 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 pulseanalyzer for nuclear power plants.

18
http://www.nokia.com/about-nokia/company/story-of-nokia/nokias-first-century/the-birth-of-nokiahttp://www.nokia.com/about-nokia/company/story-of-nokia/nokias-first-century/verner-weckmanhttp://www.nokia.com/about-nokia/company/story-of-nokia/nokias-first-century/first-electronic-depthttp://www.nokia.com/about-nokia/company/story-of-nokia/nokias-first-century/the-birth-of-nokiahttp://www.nokia.com/about-nokia/company/story-of-nokia/nokias-first-century/verner-weckmanhttp://www.nokia.com/about-nokia/company/story-of-nokia/nokias-first-century/first-electronic-dept


19/32

1967: The merger

Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create NokiaCorporation.

The newly formed Nokia Corporation was ideally positioned for a pioneering role in the earlyevolution of mobile communications. As European telecommunications markets were deregulatedand 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 leadingFinnish television maker Salora.

1981: The mobile era begins

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

1982: Nokia makes its first digital telephone switch

The Nokia DX200, the companys first digital telephone switch, goes into operation.

1984: Mobira Talkman launched

Nokia launches the Mobira Talkman portable phone.

19
http://www.nokia.com/about-nokia/company/story-of-nokia/nokias-first-century/the-mergerhttp://www.nokia.com/about-nokia/company/story-of-nokia/nokias-first-century/the-mergerhttp://www.nokia.com/about-nokia/company/story-of-nokia/the-move-to-mobile/mobile-era-beginshttp://www.nokia.com/about-nokia/company/story-of-nokia/nokias-first-century/the-mergerhttp://www.nokia.com/about-nokia/company/story-of-nokia/nokias-first-century/the-mergerhttp://www.nokia.com/about-nokia/company/story-of-nokia/the-move-to-mobile/mobile-era-begins


20/32

1987: Mobira Cityman birth of a classic

Nokia launches the Mobira Cityman, the first handheld NMT phone.

1991: GSM a new mobile standard opens up

Nokia equipment is used to make the worlds first GSM call.

Mobile revolution:1992-1999

In 1992, Nokia decided to focus on its telecommunications business. This was probably the mostimportant strategic decision in its history.

As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the mobiletelephone 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 GSM handset

Nokia launches its first GSM handset, the Nokia 1011.

1994: Nokia Tune is launched

Nokia launches the 2100, the first phone to feature the Nokia Tune.

1994: Worlds first satellite callThe worlds first satellite call is made, using a Nokia GSM handset.

1997: Snake a classic mobile game

The Nokia 6110 is the first phone to featureNokias Snake game.

20
http://www.nokia.com/about-nokia/company/story-of-nokia/the-move-to-mobile/mobira-citymanhttp://www.nokia.com/about-nokia/company/story-of-nokia/the-move-to-mobile/first-gsm-callhttp://www.nokia.com/about-nokia/company/story-of-nokia/mobile-revolution/jorma-ollilahttp://www.nokia.com/about-nokia/company/story-of-nokia/mobile-revolution/nokia-tunehttp://www.nokia.com/about-nokia/company/story-of-nokia/mobile-revolution/snake-gamehttp://www.nokia.com/about-nokia/company/story-of-nokia/the-move-to-mobile/mobira-citymanhttp://www.nokia.com/about-nokia/company/story-of-nokia/the-move-to-mobile/first-gsm-callhttp://www.nokia.com/about-nokia/company/story-of-nokia/mobile-revolution/jorma-ollilahttp://www.nokia.com/about-nokia/company/story-of-nokia/mobile-revolution/nokia-tunehttp://www.nokia.com/about-nokia/company/story-of-nokia/mobile-revolution/snake-game


21/32

1998: Nokia leads the world

Nokia becomes the world leader in mobile phones.

1999: The Internet goes mobile

Nokia launches the world's first WAP handset, the No

Nokia now:2000-today

Nokias story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to thefuture...

2002: First 3G phoneNokia launches its first 3G phone, the Nokia 6650.

2003: Nokia launches the N-Gage

Mobile gaming goes multiplayer with the N-Gage.

2005: The Nokia Nseries is born

Nokia introduces the next generation of multimedia devices, the Nokia Nseries.

2005: The billionth Nokia phone is sold

Nokia sells its billionth phone a Nokia 1100 in Nigeria. Global mobile phone subscriptions pass2 billion.

2006: A new President and CEO Nokia todayOlli-Pekka Kallasvuo becomes Nokias President and CEO; Jorma Ollila becomes Chairman ofNokias board. Nokia and Siemens announce plans for Nokia Siemens Networks.

2007

Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks commencesoperations. Nokia launches Ovi, its new internet services brand.

2008

Nokia's three mobile device business groups and the supporting horizontal groups are replaced by anintegrated business segment, Devices & Services.

21
http://www.nokia.com/about-nokia/company/story-of-nokia/mobile-revolution/leading-the-worldhttp://www.nokia.com/about-nokia/company/story-of-nokia/nokia-now/first-3g-phonehttp://www.nokia.com/about-nokia/company/story-of-nokia/nokia-now/nokia-nserieshttp://www.nokia.com/about-nokia/company/story-of-nokia/nokia-now/nokia-todayhttp://www.nokia.com/about-nokia/company/story-of-nokia/mobile-revolution/leading-the-worldhttp://www.nokia.com/about-nokia/company/story-of-nokia/nokia-now/first-3g-phonehttp://www.nokia.com/about-nokia/company/story-of-nokia/nokia-now/nokia-nserieshttp://www.nokia.com/about-nokia/company/story-of-nokia/nokia-now/nokia-today


22/32

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 businessneeds, 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 companystrategy. 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 openpositions, according to competence, with equal opportunity and on a voluntary basis. Supplier shallcheck 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, basicinduction 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 reasonablenotice. Supplier shall ensure that exit procedures are compliant with local legislation, internationallabor standards and applicable collective agreements.

Non-disclosure and confidentiality agreements

Supplier shall ensure that employees working with Nokia products or projects or having access toNokia specific knowledge, information or data, or to Nokia facilities, have signed a Non-DisclosureAgreement (NDA). Supplier shall ensure that the employees fully understand its practicalimplications.

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 andpreventing hazards. They shall be implemented as, for example, safety instructions, workprocedures, preventive maintenance, employee training, identification of potential hazards andappropriate safety devices, personal protective equipment and clothing, hearing protectors, chemicalcontrol 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).

22


23/32

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 toemergency situations involving occupational health and safety risks. Supplier shall record andinvestigate emergency situations. Management shall encourage employees to report accidents andtake action upon these records and reports.

Employee amenities

Supplier shall ensure that employees are provided with access to potable water and clean toiletfacilities. Canteen facilities and food preparation areas shall be clean and safe, and food shall beprovided at reasonable cost. Employee dormitories shall be clean, safe (equipped with, e.g., fireextinguishers 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 andskills/competences required to perform the organizations business activities according to short- andlong-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 plansbased 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 trainingon Nokia policies, products, processes and guidelines and, if needed, have necessary licenses andcertificates. 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 thatits 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 themaximum 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

23


24/32

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) withfair compensation (wages /salaries) meeting or exceeding local legal and industry minimumstandards, for regular as well as overtime work. Supplier shall also provide employees with benefitsto reward contributions, skills and behavior considered vital to success. Compensation and benefitsshall be aligned with relevant company policies.

Fair treatment

Supplier shall ensure that employees at its facilities are treated with respect and dignity, equalopportunity 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 proceduresprohibit 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 individualobjectives are derived from company strategy and policies. Supplier should ensure performance isevaluated fairly and objectively, against defined criteria and on a periodic basis, to identify ways toimprove performance.

Communication and coordination

Supplier shall ensure that information relevant to employees (about, e.g., business activities, changesand results) is communicated across the organization. Supplier shall ensure employees can sharesuch information fast enough to be able to align their activities efficiently. Supplier shall respect theright of all employees to form and join trade unions of their choice and to bargain collectively, andin cases this is restricted by law, facilitate parallel means to ensure that individuals or groups are ableto 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 basedon 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 aboutunethical conduct, unfair treatment or practices, violation of company values, policies and

24


25/32

procedures, or improvement ideas and suggestions. Management shall, when appropriate, act uponthis feedback and handle it confidentially and anonymously. Management shall ensure that there areno adverse consequences as a result of giving feedback.

Nokias Changes Management

Introduction

25


26/32

What is the call for an organizational change of a company? Before the decision reached its final, theorganization must first identify the reasons for the organizational change. The organization is thebrain of the business, this is the place where you will find different of people but working together toreach 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 cometo life.The organization is an essential part of the business that composes of different creative minds and ifthe ideas are insufficient, the brainstorming steps in. Sometimes, organizational change happens forthe 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 lumbercompany, making the equipment and supplies needed to cut down forests in Finland. It movedthrough into paper and from there into the paperless office world of IT and from there intomobile 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 withservices and software that enable people to experience music, navigation, video, television, imaging,games, business mobility and more. Developing and growing our offering of consumer Internetservices, 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 andreshuffling the leaders. The company planned further changes in its sales and marketing activities inthe Markets unit, which is expected to affect about 450 employees, maximum 100 inFinland.3Joining with the occurrences of change, it is deliberately needed intense adjustmentsespecially on the newly-deputies.The Aims:

1. To follow-up the companys reorganization in the past year that target to strengthen thecustomer interface, and ensuring that all resources are well allocated to meet the business needs andde-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. The company is planning to relocate their activities in a more convenient site.

4. The company also plans some smaller workforce adjustments in global process operations.

Organizational Change ModelsThere are two possible organizational change models that the Nokia used in establishing theirefforts that falls under the Strategic Planning model. There is various kind of approach and two arepicked-up for careful examination. The two models are Alignment Model and Scenario PlanningModel.4

Alignment ModelThis kind of model ensures the strong alignment among the organizations mission and its resourcesto effectively operate the organization. This model is useful for organizations that need to fine-tune

26


27/32

strategies or find out why they are not working. An organization might also choose this model if it isexperiencing a large number of issues around internal efficiencies. Overall steps include:

1. The planning group outlines the organizations mission, programs, resources, and neededsupport.

2. Identify whats working well and what needs adjustment.

3. Identify how these adjustments should be made.

4. 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 undertakestrategic 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 whichmight influence the organization.

2. For each change in a force, discuss three different future organizational scenarios which mightarise with the organization as a result of each change. Reviewing the worst-case scenario oftenprovokes strong motivation to change the organization.

3. Suggestions are formulated what the organization might do, or potential strategies, in each of thethree 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 themost reasonable strategies the organization can undertake to respond to the change.

Stakeholders

Stakeholders are any constituencies in the organizations external environment that are affected bythe organizations decisions and actions. These groups have a stake in or are significantly influencedby what the organization does. One reason is that it can lead to other organizational outcomes suchas improved predictability of environmental changes, more successful innovations, greater degreesof trust among stakeholders, and greater organizational flexibility to reduce the impact of change.5

Profit Down, Nokia Change Management

27
http://specialgadgetinformation.blogspot.com/2009/10/profit-down-nokia-change-management.htmlhttp://csharpdotnetfreak.blogspot.com/http://specialgadgetinformation.blogspot.com/2009/10/profit-down-nokia-change-management.html


28/32

After experiencing a profit down in the third quarter 2009, the giant mobile phone company began totake strategic steps to overhaul its management ranks. Nokia separate business entities, namelymobile phone division and the division smartphone.

Chief Financial Officer (CFO) Motorola, Rick Simonson as chief of the division is positionedmobile 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. RickSimonson has an intimate knowledge of business and finance, and this is a precious value forSiemens business," said Nokia CEO, Olli-Pekka Kallasvuo.Rick Simonson joined with Nokia since 2001 and occupies the position of CFO since 2004. At itsnew venue, as head of the Mobile Phones division, Rick will be fully responsible for thesustainability of products outside the smart phoneEarlier, Nokia reported a decline in profits that they produce in the third quarter of 2009. Nokiaprofit 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 20percent 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 organizationfor the successful change management.

Conclusion

The Nokia is really connecting its people, though there are employees that will affected bythe organizational changes. An effectiveness of an organizational change is satisfying thestakeholders goals and interests. The effect of organizational change in the view of the stakeholdersis inconceivably high. The possibilities of the success and loss plays in the middle of the company,

28
http://4.bp.blogspot.com/_RumWYaIRNzc/StwTg1SGIiI/AAAAAAAAAK0/FwBmTo2NtwA/s1600-h/kantor+nokia.jpg


29/32

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

Suggestion For improvement

29


30/32

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.

30


31/32

Conclusion

As Nokia is the leading manufacturer of mobile phones whole over the world, its new strategy ofdiversification 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 Nokiato attract its existing customers. Besides this Nokia with its latest technology and strong networks islaying 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

protectionBut on the other Hand the products from the Finnish company, Nokia, are some of the very best inthe world, but the company still hasnt found a profitable way to market its goods. The very reasonthat other mobile phone companies are fast eating up Nokias market share is their superior (yetsimple) marketing practices.Motorola and Samsung must now be in the FUW (frequently used words) list in Nokias boardmeetings. 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 itis 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.

31


32/32

Documents

mcoe project report.doc