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Organisational Restructuring of Nokia

Nokia underwent organizational restructuring in 2004 with the "Nokia Booster program" to better satisfy customers and align strategically. This involved decentralizing decision-making, opening communication channels, and empowering employees to directly engage customers and share ideas. By decentralizing and gaining stakeholder input, Nokia aimed to establish a single access point for global communication and decision-making at a faster pace than its previous top-down structure allowed.

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Manikant Kumar
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65 views2 pages

Organisational Restructuring of Nokia

Nokia underwent organizational restructuring in 2004 with the "Nokia Booster program" to better satisfy customers and align strategically. This involved decentralizing decision-making, opening communication channels, and empowering employees to directly engage customers and share ideas. By decentralizing and gaining stakeholder input, Nokia aimed to establish a single access point for global communication and decision-making at a faster pace than its previous top-down structure allowed.

Uploaded by

Manikant Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Organisational restructuring of Nokia

In 2004, Nokia Company started restructuring their operations so that they satisfy customer
aspirations. The company emerge with a program dubbed “the Nokia Booster program”, which main
motive is to bringing online customers and the company’s strategic development.

In the restructuring process there are number of factors which contributed some of them include
desire to attain global coverage, promote co-creation, embrace employee empowerment and
support the community.

One of the important factors that promoted Nokia to come up with the Nokia booster program was
the pressure to exploit the global market. There is need for establishing a single access point through
which they communicate with their entire target consumers and employees worldwide.

Prior to the program, the company more relied on the commutation structure where information
was conveyed from the top level management to down to the employees through number of senior
staff. This commutation Patten is slow and company required that type of commutation structure
which gives pace with the contemporary marketplace.

Due to this commutation structure employees made limited contribution to organisation policy.
Nokia come up with a platform through which it could share its agendas with employees and
company learned that employees could be active if they are allowed to manage debates that
fascinated them.

To achieve this agenda, the company open their communication pattern and assigned different
employees to different agendas and request them to share with the public. This will help the
company to not only achieve the trust of the employees but also helped to gather information from
the public and by this employees understand the customer needs and further communicate with top
level management.

This helped the company to reach its target customers in remote areas which is very difficult earlier.
This program also helped in enhancing employee creativity. Nokia could hardly achieve this without
fostering cooperation between the employees.

This program estabilised a platform by which it could get opinions from all the stakeholders.

Nokia Corporation could achieve this by involving the employees in formulation and implementation of
the project. Company become more decentralised and increase the involvement of employees in
decision making.

Within six months, the company had stared witnessing changes in employees which seek to enhance
organisational operations. In addition, employees shared ideas on changes they considered
unfeasible, thus, helping the company pursue feasible goals only.

In 2004, the company reduced its number of business units to four and these entire changes are
implemented within one week.

The four departments also called business group. These departments are multimedia, mobile
phones, Enterprise Solutions and Networks; other than the departments, the company has two
horizontal departments as Technology Platforms and Customer and Market Operations.
Neither the business group nor the horizontal department work independently. They all are
interdependent to one another.

Each manager or departmental head is responsible for his area and is expected to work for the
organisational goal.

The large number of staffs at Nokia and different management and supervisory level offers Nokia a
tall Organisational structure.

Nokia also give more emphasis on human resource management and they have separate department
for that.

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