Report on

innovation
&change
in
management

Nokia

Submitted to ;
Maam Faryal

Business
Adminstration
Department

DATE OF SUBMISSION:
AUGUST 20, 2014

Submitted by;
M. Jameel
ShariqHaider
Zain Ahmed
ImranJaveed
WaqasHussain
NawafRafique
YasirLatif
Mushaid bilal

74
82
70
62
60
61
52
47

 Shafqat rasool

49

DEDICATION:
We dedicate this report to Maam Faryal Shareef.

ACKNOWLEDGEMENT:
Thanks to Allah Almighty who has
showered His blessing upon us and enable
us to present this research. This research
is the outcome of the dedication efforts of
our respected Maam Faryal and our

group in this regard. We are greatly

thank full to them.

Table of contents
Sr#

topics

1
2

introduction
Inovation &
change in
management
Analyzing the
nokia
results
conclusion
refrences

3
4
5
6

page no

Introduction of nokia
In the year 1865 Fredrik Idestam built a paper manufacturing mill in Southern Finland and
followed it up by launching a second mill in the nearby town of Nokia in 1868. Three years later
Idestam transformed his company to a share company and the Nokia Company was formed.
Nokia kept growing through the 19th century and in the 1960s the company branched out into
electronics. In the next two years it developed a host of electronic devices including radio
telephones for the army. In 1979 Nokia took its first steps into telephony by creating MobiraOy
in a JV with Finnish TV maker Salora, and they created the Nordic Mobile Telephone (NMT)
service. This was the worlds first international cellular network and in the 80s, Nokia launched
its first car phone called the Mobira Senator.
Five years later Nokia launched the MobiraCityman, the first mobile phone that would run on the
companys NMT network. At 800 grams and priced at $6,308, it may be heavy and pricey by
todays standards, but the device soon hit cult status when Mikhail Gorbachev was photographed
using the device.

THE GLORY YEARS

The 90s were the glory years for the Finnish company. In 1994, Nokia launched the 2100 with
the now iconic Nokia ringtone. Three years later it launched Snake, one of the most widely
recognized mobile games of all time. The Nokia 2100 was such a big hit that it went on to sell
more than 20 million handsets worldwide, much higher than what the company had predicted.
In 1997, Nokia also launched the Communicator, which 11 years before the first iPhone was
considered to be much ahead of its time. The device not only looked cool, but also offered
features like email, fax, calendar and a massive display.
The same year, Nokia also launched the 6110 and the 5110 two more devices, which were way
ahead of their time and competition. These devices offered a much sleeker way of text
messaging, a beautiful menu system customization options like multiple color snap-on covers.
These devices were followed by the 7110, which offered basic web functions, the 7650, with a
built-in camera and the 6650, the companys first 3G enabled smartphone.

By 1998, Nokia had firmly established itself as the global leader. Where its rivals like Apple,
Sony and Siemens had failed to predict the global demand, Nokia sailed through these years with
a turnover that increased 500 percent from $ 8.9 billion to $42.8 billion.

THE DOWNFALL
There is an old Finnish tale, which talks about Sampo, an engine of eternal wealth created by the
poor people of Kalevala. Sampo essentially grinds out gold, salt and wheat from three horns, day
and night, but as nothing good lasts forever, one day Sampo drowns to the bottom of the lake and
the people of Kalevala are returned to their gloom and poverty.
As is with old tales, one can easily relate Nokia to the Sampo. After the glorious 90s, in 2007
things began to go downhill and rapidly. In the year 2009, Nokia posted its first quarterly loss
in more than a decade. This was largely due to HTC developing a smartphone running on the yet
new Google Android operating system. With the iPhones and various Android smartphones
taking the market by storm, Nokia failed to keep up with them. Instead of joining the horde of
Android adopters, Nokias new CEO Stephen Elop joined hands with Microsoft to develop
smartphones running on the Windows Phone platform.
Though the partnership saw the development of Nokias popular Lumia series of smartphones,
Nokia wasnt able to rekindle its glory days.

END OF AN ERA
On September 3, 2013, Nokia announced that its hardware department would be acquired by
Microsoft in a deal worth $7.2 billion. After eight months, the deal was completed today and
with it came the end of an era.

Innovation & Change in

management
Innovation
Innovation is the process of turning creative ideas into useful products or work methods.
Therefore, it is application of a new idea to initiate or improve a process, product or services.

Change management
Change management is the process, tools and techniques to manage the people-side of change to
achieve the required business outcome.
Change management incorporates the organizational tools that can be utilized to help individuals
make successful personal transitions resulting in the adoption and realization of change.

Managing change and innovation to

accelerate critical learning
Innovation inherently requires some level of change. Change requires learning. However,
humans and organizations tend to learn as a reaction to events. Business incentives provide
additional motivation to exploit existing knowledge. What change triggers will motivate the
investment in new learning needed to innovate?
Triggers come from both internal and external sources and include:

External triggers

Customer needs, desires or expectations

Competitive offers

New technology

Changing demographics

Economic cycle

Geo-political events

Environmental change

Societal change

Industry structural changes

Regulation change

Internal triggers

Decisions

Problems in operations

Company growth or decline

Leadership and personnel change

Changes to inter-organization alliances

Innovation provides a response to these change triggers and help characterize these responses,
suggesting innovation that could provide a more effective response to a specific change
environment or trigger. With high uncertainty and possibility, managing change and innovation
effectively requires that learning investments be focused on the areas of change that represent the
highest risk and/or opportunity for continued sustainability and growth of the business.
Of this long list of change triggers, only decisions come fully under control of the firm.
Innovation processes typically include external and internal scanning to provide early
identification of change triggers, moving company responses into the strategic decision and
innovation funnel.

Methodology
Data collection:
We have collected data about the innovation and change in management. We use primary &
secondary data in this research. For primary data we use question ear and personal interview etc..
And collect secondary data through internet like introduction and history.

Analysis in Nokia
The Internal Environment
The internal environment of an organization refers to events, factors, people, systems,
structures and conditions inside the organization that are generally under the control of the
company. The company's mission statement, organizational culture and style of leadership are
factors typically associated with the internal environment of an organization. As such, it is the
internal environment that will influence organizational activities, decisions and employee
behavior and attitudes. Changes in the leadership style, the organization's mission or culture can
have a considerable impact on the organization.

The External Environment

The external environment is those factors that occur outside of the company that cause change
inside organizations and are, for the most part, beyond the control of the company. Customers,
competition, the economy, technology, political and social conditions and resources are common
external factors that influence the organization. Even though the external environment occurs
outside of an organization, it can have a significant influence on its current operations, growth
and long-term sustainability. Ignoring external forces can be a detrimental mistake for managers
to make. As such, it is imperative that managers continually monitor and adapt to the external
environment, working to make proactive changes earlier on rather than having to take a reactive
approach, which can lead to a vastly different outcome.

Change leadership styles

Not only do the greatest teammates allow different leaders to consistently emerge based on their
strengths, but also they realize that leadership can and should be situational, depending on the
needs of the team. Sometimes a teammate needs a warm hug. Sometimes the team needs a
visionary, a new style of coaching, someone to lead the way or even, on occasion, a kick in the
bike shorts. For that reason, great leaders choose their leadership style like a golfer chooses his
or her club, with a calculated analysis of the matter at hand, the end goal and the best tool for the
job.
Following are a few things leaders can do to build an environment that empowers people for
innovation and change in management.

Give power to those who have demonstrated the capacity to handle the responsibility.

Create a favorable environment in which people are encouraged to grow their skills.

Dont second-guess others decisions and ideas unless its absolutely necessary. This
only undermines their confidence and keeps them from sharing future ideas with you.

Give people discretion and autonomy over their tasks and resources.

Successful leaders and managers today are willing to exercise their leadership in such a way that
their people are empowered to make decisions, share information, and try new things. Most
employees (future leaders) see the value in finding empowerment and are willing to take on the
responsibilities that come with it. If future leaders have the wisdom to learn from the experience
of present leaders, and if present leaders have the wisdom to build an environment that
empowers people, both will share in the benefits.

How manager change your organizational culture

Step 1 Evaluate your current culture and performance: 1) Define your 1-3 critical
performance priorities e.g. growth, profitability, customer satisfaction, etc.; 2) identify your 3-5
value/behavior strengths and 3) identify no more than 1-3 value/behavior weaknesses that are
holding back your organization from achieving its full potential with the performance priorities
you defined.
Step 2 Clarify your initial vision: Define your vision for improving results with only one or
two of the performance priorities from step No. 1 and how you will build a culture advantage by
leveraging the value/behavior strengths and improving the weaknesses. Clearly communicate

how you will work together to improve the weak areas since they are holding your organization
back from supporting your purpose and stakeholders.
Step 3 Clarify values and expected behaviors: Define supporting expected behaviors for the
1-3 weaknesses that you identified in step #1. These behaviors would be consistently exhibited in
your organization if you were living your values. People interpret values from their own
perspective so define expected behaviors like Zippos, The Container Store, and others.
Step 4 Clarify strategic priorities: Define and clearly share the 3-5 actionable strategic
priorities that your organization will focus on to support the 1-2 performance priorities included
in your initial vision from the Define steps. If the performance priority is growth, will it be
achieved through new products or services, revised sales strategies, growth with current
customers, or other strategies. Employees want and need to understand the big picture.
Step 5 Engage your team in defining SMART goals: Engage your organization and utilize
extensive feedback and prioritization to define the objectives that support each strategic priority.
These goals need defined in a way to support the expected behaviors for the 1-2 weaknesses you
identified from the Define steps. For example, if accountability is a weakness, goals should
include more disciplined plans, measures, reviews, recognition, and other approaches to support
the behavior you need. Goals also need translated to all levels in larger organizations so people
understand how work on their goals and measures impacts the broader organization.

Innovation and growth derived

Even the best technology cant deliver success without focus on business strategy and goals. It is
important to have a clear vision of where the company is going
As it will define and set the context for the role innovation will play in enabling
Profitable growth help determine the type of innovation you want to drive
And the way you need to organize to effect change
Innovation can manifest itself in multiple ways, whether in a technology change that determines
the products and services you de
Liver or a business model change that defines the value you deliver. Companies must determine
the types of innovation they need
Incremental, breakthrough, or radical:
Incremental innovations
Make small changes to a companys existing technologies and business
Models
Breakthrough innovations
Make significant changes to either the technology or business model,
Producing significant growth

Radical innovations which take place more rarely, combine technology and business model
innovation
To create major new industries with exponential growth

Technologies effects the organization

Technological change will have an impact on all organizations. There will be a need for new
types of managerial, diplomatic, and social skills and a concomitant need for a new type of
decision making process that will not be accommodated by existing organizational structures.
Three particular aspects of the organizational environment will be affected by technological
change: the amount of market competition and uncertainty will increase; there will be
requirements for more diversity and higher quality in the organization's products or services; and
external politics and legislative reform will increase in complexity. Each of these changes will
provoke responses from the organization in its structure and relationships with employees and
customers.
Technological change will force changes in basic managerial functions. There will be increased
responsibility on management for organization outcomes leading to added emphasis on planning,
decision making, control, and coordination. These will often rely on computer-based
management science techniques which demand a higher intellectual capability of managers. This
will produce strain on managers and other individuals, potentially affecting morale, productivity,
and output.
Technological change can positively affect individual values leading to increased time for
consideration of both the heart and the brain in decision making. This may lead to greater moral
sensitivity and more tolerance and compassion for others, all coupled with a more rational
approach to decision making. A possible effect of technological change may be increased loyalty
to one's profession rather than to one's organization. The effect of technological change on the
manager's quest for self-actualization is still debatable.
The net result of technological change for all organizations is a greater requirement for strategic
planning. All of us must continually ask the question "What do we have to do now to attain our
objective tomorrow?" Through this process we can anticipate changes, including those brought
about by technology, evaluate the various alternatives available to us to cope with those changes,
and be prepared for the future as it arrives.

Employers hire for innovation

Increase the Number of Hours Worked

Offer overtime work to existing workers to increase production output.

Ask exempt workers to work more hours (for a short duration) during this "tight period."
Ask workers to work on holidays or on weekends (at increased pay) to increase total output.
Reduce PTO like sick and vacation days to increase the number of hours worked.

Increase Worker Productivity

Re-train your employees in order to increase their skills and effectiveness.

Re-train your managers in productivity tools and approaches.

Explain the situation and ask workers to do "more with less."
Solicit and reward suggestions from employees, suppliers and customers that increase
productivity.
Increase the use of "distributed metrics" to help employees see their high and low
productivity areas.
Re-design key jobs to eliminate low value work and duplication.
Increase production targets and use "stretch" goals.
Implement quality or cost control programs to increase efficiency.
Offer productivity incentives to your team.
Offer individual productivity incentives.
Shift pay to a "piecework" basis.
Offer incentives for bottom performers to leave (or fire them), and then hire average or top
performers to replace them.
Do an assessment of each management process and minimize/stop doing low-value steps.
Reduce team size or change team composition to increase effectiveness.
Increase safety and stress reduction programs in order to reduce "downtime."
Develop more effective scheduling programs to insure that shifts are not under- or
overstaffed.
Forecast
future
headcount
needs
so
that
you
are
not
overstaffed.
Change the Tools
Buy new technology and use its increased capabilities to reduce the need for people.
Update or buy better equipment to increase productivity without increasing your need for
more people.
Use the web to allow your employees, suppliers and customers to do more of their work in a
self-service mode.

Train and develop skills in your employers for change

in management and innovati0n
Identifying Developmental Needs
The six steps below, which we've adapted from the Nokia Society for Training and
Development's Strategic Needs Analysis will help you better, understand people's training needs:

Reviewing team members' job descriptions.

Meeting with them.

Observing them at work.

Gathering additional data.

Analyzing and preparing data.

Determining action steps.

Change in culture is difficult, but manager manage it

Changing an organizations culture is one of the most difficult leadership challenges. Thats
because an organizations culture comprises an interlocking set of goals, roles, processes, values,
communications practices, attitudes and assumptions.
The elements fit together as an mutually reinforcing system and combine to prevent any attempt
to change it. Thats why single-fix changes, such as the introduction of teams, or Lean, or Agile,
or Scrum, or knowledge management, or some new process, may appear to make progress for a
while, but eventually the interlocking elements of the organizational culture take over and the
change is inexorably drawn back into the existing organizational culture.
Changing a culture is a large-scale undertaking, and eventually all of the organizational tools for
changing minds will need to be put in play. However the order in which they deployed has a
critical impact on the likelihood of success.
In general, the most fruitful success strategy is to begin with leadership tools, including a vision
or story of the future, cement the change in place with management tools, such as role
definitions, measurement and control systems, and use the pure power tools of coercion and
punishments as a last resort, when all else fails.

People resist in change:

A career coaching client, newly promoted into a management position, called me to discuss a
situation at work. We had to reduce expenses within the company so I made some changes
in the organizational structure of the department by consolidating a few positions, putting
several projects on hold, cancelling one project, and letting a few people go, she explained.
I didnt think it would be any big deal, but some employees in the department are acting
like Im as ruthless as Attila the Hun. Several are avoiding me and a few have become
downright hostile in their attitude towards me. I dont understand why theyre acting this
way.
Prior to making changes that will affect others, its important for managers to carefully think
through: 1) what the specific changes include, 2) who the changes will impact, 3) how it will
impact them, and 4) how they might react (understanding reasons why people might resist the
changes). Knowing this information makes it easier to create a plan of action for a smooth
implementation of the changes.

Manager overcome resistance in change

Step 1
Create a way to communicate with employees about new initiatives and their progress. Instruct
key management to provide employees with regular updates at team meetings.
Step 2
Market the new business strategy to each group. Explain the new plan in terms (a common
language) that help each group understand how the new strategy will make their own jobs better
or easier. Everyone in the organization must understand the goal of the new business strategy.
Step 3

Invite a team member from each functional group to participate in meetings or provide seminars
for each group to market the strategy.
Step 4
Select a group of change agents from key positions to help manage planning and
implementation. Find one person from each group who is vocal. Try to select those in no
management positions as well.
Step 5
Develop key deliverables for each department, organization and person involved in the new
business strategy. A deliverable is a final report or the output from implementing the new
business strategy. Each group head must tailor the deliverable to the goals of the group. For
example, one deliverable can be to increase sales by 5 percent. Another can be lower costs by 5
percent.
Step 6
The successful implementation to compensation. Create at least four key milestones and goals to
measure success throughout the year. Report on performance regularly and publicly reward those
people or groups that meet goals.

Manager motivate employers

The following are Top 12 ways help to motivate your employees ensuring best performance and
commitment of employees to the company.
1. Personal thanks
A simple "thank you" employee for doing a good job-one on one, in writing, or both, still goes a
long way in motivating employees. Do it timely, often and sincerely.
2. Give praise in public
Acknowledge an employee's achievements in a public forum such as a staff meeting. This is
great for the individual's morale and motivational to others.
3. Promote two-way communication
The best managers spend more time listening than talking. Maintain an open-door policy;
employees who feel comfortable communicating with supervisors are more inspired to deliver
their best work.
4. Feedback and Response
Provide specific feedback or give respond on performance of the person, the department and the
organization.

5. Tailor your rewards

Recognition can be formal, such as starting an "Employee of the Month" program, or as simple
as a face-to-face compliment or thank-you note. Learn what works best for each individual and
acknowledge his or her accomplishments accordingly.
6. Happy environment
Strive to create a work environment that is open, trusting and fun. Encourage new ideas and
initiatives.
7. Clear Direction
Provide information on how the company makes and loses money, upcoming products and
strategies for competing in the marketplace, and how the person fits into the overall plan.

8. High Involvement
Involve employees in decisions, especially those decisions that affect them.
9. Reasonable rewards
Recognize, reward and promote people based on their working performance.
10. Sense of ownership
Provide employees with a sense of ownership in their work and the work environment.
11. Employees development
Give people a chance to grow and learn new skills; show them how you can help them meet their
goals within the context of meeting the organization's goals. Create a partnership with each
employee.
12. Celebration
Celebrate successes of the company, of the department and of individuals in it. Take time for
team-and morale-building meetings and activities.