Information and case studies: Developing corporate culture

Table of Contents

Page No.

1. Culture 1

2. Organization culture

3. Types of Organization Culture

4. Objectives of Nokia 2

5. The Paradigm

6. The Organizational culture and national culture 3

7. Difference between Organizational and national culture

8. Corporate Culture profile of Nokia 4

9. Characteristic of Nokia 5

10. Conclusion 6

11. Reference 7

1. Culture

According to the Webster's dictionary, culture is the ideas, customs, skills, arts, etc. of a given people in a given period.

“Culture is a term that is used regularly in workplace discussions. It is taken for granted that we understand what it means. In their noted publication In Search of Excellence, Peters and

Waterman (1982) drew a lot of attention to the importance of culture to achieving high levels of

organisational effectiveness. This spawned many subsequent publications on how to manage

organisational culture.” (eg. Deal & Kennedy 1982; Ott 1989; Bate 1994)

(Ref:http://www.usq.edu.au/extrafiles/business/journals/HRMJournal/AJMOBarticles/Org%20culture%20paper%20LB1.pdf)

2. Organization Culture

“Organizational culture has been characterized by many authors as something to do with people and the unique quality and style of the organization (Kilman et al; 1985), and the way things are done in the organizations (Deal & Kennedy, 1982). Sometimes, organization culture is also known as “corporate culture”. “Corporate Culture” is used to denote the more “commercialized” meaning of organizational culture (Deal & Kennedy, 1982). This study adopts the definition of Hofstede (1980). According to Hofstede (1980), organizational culture refers to the collective programming of the mind that distinguishes the members of one organization from another.This includes shared beliefs, values and practice that distinguish one organization from another.The beginning of formal writing in an organizational culture started with Petigrew (1979).He introduced the anthropologist concepts like “symbolism, myths,” and “rituals” that could be used in organizational analysis.”

(Ref: http://www.ijbssnet.com/journals/Vol._1_No._3_December_2010/4.pdf)

3. Models of organization culture

In the year 1982 Deal and Kennedy introduced the types of the cultures which are mentioned below. All these culture types are seen by feedback and risk frequencies.

a. TOUGH GUY MACHO CULTURE: - Where big risks are involved and individual performance are more focused over the team work like sports and advertising.

b. WORK HARD PLAY HARD CULTURE:- Least risk involved and quick feedback where people can focus on quantity of work like sales and restaurants.

c. BET YOUR COMPANY CULTURE

d. PROCESS STRUCTURE

Similarly Robert Quinn and Kim Cameron gave the below types of cultures

a. Clan culture

b. Adhocracy culture

c. Market culture

d. Hierarchy culture

If we focused on case study, NOKIA was following the Process culture and Hierarchy culture or Bureaucratic culture.

4. Objectives of NOKIA

Nokia’s main headquarter was situated in Finland and they were mainly focused to introduce the new technology like touch screen handsets with a large display which could lead them to get the advantages form growing market of Smartphone. Although Nokia wanted to take the more advantages from phone market where they can introduce the touch screens, software applications and 3-D interfaces. So Nokia was more seeing for its objectives to serve the customer demands with the use of new technology.

As per the case study Nokia could achieve the objectives by adopting the proper organizational model.

5. THE PARADIGM

The PARADIGM is the day to day actions in an organization and the routinethings which are being around the organization

This model consists of 6 elements which are given below.

a. Symbols – Nokia was already power full in other products where it was using its image and reputation to attract the customers, however the logo of the company was so well known through which Nokia was gaining the trust from the market for it’s every products. Moreover Nokia could use the specific jargons for its new technology towards touch screen phones, 3- d interfaces or to software applications.

b. Power structure–In this specific element Nokia could evaluate the strengths of their employees and power of the team work which could give lot of new ideas to the success of the new products.

c. Organization structure- Organization structure can be defined in three ways which are Formal, Informal and Levels of Hierarchy. Here where the Nokia was following a typical structure with hierarchy, it was strongly needed to change the structure so that new innovation could be happened in successful way.

d. Control systems- Nokia was intended to introduce the new smart phone where it was very necessary to focus on the objectives, measure it and if they get some more new responses the same could be warded to give the motivation to the employees, also to give more focus on its goal.

e. Rituals and Routines- This element giving more focusing to the organization as it Is very important to see the relation of each employees, coordination with each departments and make a such rutin to enjoy the ambience of the company.

f. Stories- The best ways to boost up the employees of Nokia to tell the success stories and give the importance to the important event and individual’s characteristics by celebrating the event of the organization.

Nokia was following the bureaucratic culture in the organization through which the above points were needed to be implemented.

6. The Organizational culture and National culture

This is the assumption that organizational culture is the subset of national culture. The organizational culture usually considered as micro context and national culture considered as the macro context. The only difference between both the culture is national culture consists different backgrounds of people where their values are deeply rooted; however organizational culture consists of the culture of that particular organization which is well practiced amongst all the employees.

(Ref:http://www.businessmate.org)

7. Difference between Organizational and National culture on case study

As per the case study we know that most of the products for smartphones were getting failed from Nokia compare to I phone and the main reason the Nokia’s bureaucratic culture style but still in 2002 Nokia sold 70 million smartphones all over the world where apple sold only 33 million smartphones. Nokia has established its pride internationally as the most other products took business in India and china and in other nations.

In those culture is very different then one and other, Nokia wanted to make changes in its system so also found that in 1865 they did business of 1.6 percent of domestic products with total work people of 129,000 and almost 10 percent were exported in other countries. Nokia wanted to change the its picture infront of market so in last 5 years Nokia recruited international staff to merge the value on national culture in its main head office but included Finnish board member to remain it organizational culture.

This was the biggest change in Nokia’s value where many people got employed international and national level and merge in to organization and worked together to maintain the organizational culture. Also they took benefit of those changes where they could use the ideas of each employees to make the successful products then they made ever.

8. Corporate culture profile of Nokia

Nokia was following the bureaucratic culture where there were several internal grudges happening within the managers. Also the feedback of the product result was not that accurate and sure so occurred main reason of technology failures.

9. Impact of Nokia’s organization culture to achieve the objectives

a. Advantages

i. Mission and vision statement

ii. Flat reporting structure (Flat network organization)

iii. Openness towards people

b. Disadvantages

i. Weak penetration in US market The US market made up only 4.2% of Nokia’s2009 revenues equaling $2.4 billion compared to its main US competitor Motorola whichgarnered $11.8 billion and RIM bringing in $8.6 billion (Datamonitor: Nokia, 2010).

ii. Age old Operating system when put up against Andriod, Blackberry and I Phone

iii. Bureaucratic organization

iv. Only concentrating on Mobiles

- To compete with I phone Nokia introduced a model which was being trashed as management was worried about that it would not be accepted by the customers. This proves that management was not ready to take the chances.

- Due to certain bureaucratic decisions Nokia is not able to gain dominance in smart phones segment

- Also Nokia had been a world leader in Mobile phones due to which it became complacent and did not paid attention to consumer desires. The management did not concentrate on changing the designs for touch screens, software applications and 3-D interfaces

- Company rejected early design of Nokia online application store, which was being adapted three years later which depicts the poor decision making

- Most the products could not sold and did less profit due to improper technology which was not suitable to the customer’s demands. Moreover they also could not stand up infront of I-phone and apple as the advanced technology took place before Nokia’s implementation.

- Nokia had been overcautious in changing or upgrading the Symbian technology due to the age old philosophy on which they got success

10. Conclusion

Nokia has been an industry leader for many years however the market hasbecome dynamic and organization of Nokia has to make changes accordingly. To do so Nokia is partnering with Microsoft and bring revolution in the operating system.