What organisations have to face when they bring an organisational change. Nokia is used as an example

1. Presented by - Yashaswini Agarwal
2016

2. Outline
1. Why organisations need change?
2. Effects and outcomes
3. Resistance
4. Company introduction
5. Specific questions addressed

3. Why change ?
CustomerNeeds
As timepasses by theneeds of the
consumers change. This
could be due to increased
awareness, new lifestyles,
new trends or technological
advancements.If the
customerneeds are not
taken into consideration, the
firmshall fail in themarket.
New technology
New methodsof production,
packing, delivery, disposal etc
should be adopted. Usually thenew
technologyleads to increase in
productivity level, reduction in
manual labour work and cost saving.
Also customersatisfaction is
enhanced. Adapting new
technologyalso shows thatcompany
is welcoming change and improves
theimage of the firmin themarket.
Meet competition
Companies performanceand products
need to be competitivein the current
market.If the companydoes not
provide products/servicesthatare up
to the marketexpectations, otherfirms
will gradually takeoverits position.

4. Change in management
structure
Changes in the marketwill ultimately
forcethe company to bring about a change
in its structute.This mayinvolve job
descriptions to be reviwed, positions to be
cut down, creation of new posts etc. In
extremelycomplex structure,power is
transferredand also reporting authorities
changed. This all is done to increase
performanceand efficiency.
Performance goal gap
Targets are set each yearand performance
of thefirmis measured against those
benchmarks.If theperformanceresults are
not as expected, the managementwill need
to introduce changes in theconcerned
function to meet thegoals set.
Mergers and
acquisitions
When companies merger/ or are
acquired, the managementneed to
come up with new guidelines and
corporate cultutre.It may not be
entirely new, but it is their
responsibility to bring in therequired
change so thattheemployees know
thenew work culture and performeas
expected. In large organisation, such
mergershavea great impact on the
organisational structureand reporting
authorities; management should make
sure thereis no ambiguity, as this can
makeemployees redundant and
encourage absentism .

5. Positive Outcomes
 Utilizing available resources effectively
 Addressing employees concerns
 Reducing risk and inefficiency
 Better prepared for challenges

6. Negative Outcomes
 Work pressure – mental stress, physical tiredness, negative effecton employee
performanceleasing to absenteeism.
 Unhappy stakeholders (shareholders, employees, customers etc)
 Lack of skill – inadequate training for the changed/modified job, current skills don’t
match the requirement
‘A 60-70%failureratefororganizationalchangeprojects — a statistic that has stayed constant
from the 1970’s to the present.’

7.  Unhappy customers may lead to shrinking of current market share –
Customers may be extremely well adjusted to the previous product/service. A change may
not be well accepted(could be for multiple reasons – extremely advanced technology, cultural
clash etc).
 Resistance from employees - Vast scale change without prior employee
opinion/consent will lead to resistance.

8. Resistance
 Disruption of routines
 Unknown and threat
 Vested interests
 Extra workload

9. Nokia
1865 - Co founded
1982 - First car phone
1987 - First hand held phone
1998- World’s largest phone manufacturer
2007- Market receives Apples phone
2008 - Google launches android
2010 – Project MeeGo announced (Nokia and Intel )
2010 – Stepehn Elop appointed CEO

10. Identify and describe key aspects
of resistance to change at Nokia.

11.  Cultural Effect
Nokia was a Finnish company. Finnish culture
does not promote uncertainity. With the
change in the company, no clear
communication and no certainity of job
security, many employees felt at a risk and
took to protest. The employees were not
comfortable with the appointment of a non-
finnish CEO. This had happened first time in
the history of the company. Cultural
difference made it difficult for everyone to
adjust.
Before 2011, Nokia paired with Intel’s Linux based
platform Memo and Moblin to develop MeeGo. With
the new CEO joining, this project was earlier on hold
and later shelved. Employees had been working on
this project and had invested time and effort. The
sudden change was not welcomed by the employees.
 Giving up old projects fully

12. The speed of changes was also a problem.
Appointing a new non-finnish CEO and
projects changing, collaborating companies
chaning. In all this, employees opinion and
concerns were over shadowed.
Statements from employees say that MeeGo
was a very feasible project, however, it was
cancelled.
 New strategy
developed without
employees concerns
 Waste of existing
knowledge
Employees were working on MeeGo
and had the needed expertise. With
change in projects, there was a waste of
the knowledge that the programmers
already had. Also new projects and
work required the company to invest
in training for new skill.

13.  Effect on job contract
Nokia had outsourced Symbian
to Accenture.
Job termination or transfers.
 Resource allocation
Earlier there was heavy resource usage
by Symbian as that was the focus of the
company.
Focus then shifted on Microsoft’s Windows
platform.

14.  Holding employees
responsible for
failure
The CEO’s letter was not supporting nor
calming for the employees who
were in this turmoil of changes.
Elop’s letter indicated that
employees were themselves the
reason for the downturn of the
company.

15. Describe the process incorporated to
overcome resistance to change at
Nokia, and how it addressed key
aspects of resistance to change.

16.  Freedom to develop something ground breaking
 Flexible deal with partner company
 Facts about layoffs
 Encouraged employee interaction

17. THE END

18. References
1. http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=bda4df41-f0b8-4ca0-b444-
e5640aba3fc1%40sessionmgr114&vid=1&hid=101
2. http://www.processexcellencenetwork.com/organizational-change/columns/why-organizations-
change-and-what-they-can-change/
3. https://hbr.org/2013/04/change-management-needs-to-cha
4. http://www.reply-mc.com/2010/09/19/why-70-of-changes-fail-by-rick-maurer/
5. http://www.consultparagon.com/blog/10-benefits-of-an-organizational-change-management-plan
6. http://smallbusiness.chron.com/negative-impact-organizational-change-employees-25171.html
7. http://www.telegraph.co.uk/technology/nokia/10282657/Nokia-a-timeline-in-pictures.html
8. http://uk.reuters.com/article/us-nokia-meego-idUSTRE71832O20110209
9. http://www.bloomberg.com/bw/magazine/content/11_24/b4232056703101.htm#p6
10. https://culcmsralte.wordpress.com/2012/04/01/change-and-resistance-to-change/