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Unit 12: Organisational Change

Notes
The need for a "Culture of mobility" has led to an external strategic focus and flexible
environment. This flexibility has ensured that even major changes result in minimum
discontent among employees. Transparency in the restructuring process and a clear
definition of new roles and duties allow things to fall in place quickly ensuring a smooth
transition from one structure to another.
The structures adopted also have a role to play in the success of the restructuring exercise.
The newer structures have allowed for significant growth through acquisitions and
collaborations. The divisions' multifunctional competencies have resulted in increased
cooperation with organisations in the wider ecosystem. Acquisitions of smaller technology
firms are an attempt to use its divisions' expertise to grow. These acquisitions and other
collaborations form a part of Nokia's extended firm. Symbian, Nokia's leading collaborative
platform for mobile devices is one such component of its extended firm.

Conclusion
Nokia, over the years, has evolved both organically and inorganically. It has always kept
an eye on the future and worked towards achievement of its future goals. To support this
corporate strategy, it has undergone three structuring changes in the past six years in
order to adapt its business model and culture. This has helped Nokia to be a step ahead of
its competitors.
Nokia's entry into the mobile internet application development is important for its future
growth. Nokia sees this as the next step to stay ahead of the competition. This would
require one more structural change for Nokia to foray into a completely new field. Whether
or not it succeeds will depend on how it is able to change itself from what it is now to what
it should be to meet the demands of a new era. While the first two waves of restructuring
had not greatly tested the ingrained culture of flexibility, commitment and innovation,
the next wave will require a never seen before emphasis on these traits. Restructuring a
giant organisation is not easy, and Nokia will have to do it all over again to maintain its
competitive edge.
Question

Do you think that with the restructuring Nokia will be able to maintain its competitive
advantage?

Source: http://tejas-iimb.org/articles/16.php

Case Study Reorganisation as Rebirth
ike many organisations in the 1980’s, St. Francis Regional Medical Center of Wichita,
Kansas, tried downsizing. A layoff of 400 people was a horrible experience, both
Lfor those who left and for those who stayed. The 1990’s brought a change in the
health care environment, and the hospital’s administration needed to change the structure
and culture in order to remain competitive.
The management team re-mapped the ideal management structure to run things without
regard to the structure that was actually in place. To make such radial change work, they
defined specific job titles, but not specific people. They dissolved the old organisational
chart and created a new one, unveiling a chart that had all the new titles on it with no
names. Those who wanted to be part of the new organisation had to apply for whatever

Contd...

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