- 1. Name / ID # : Tugce Guner / 630052291 Azar Hasanov /
620036032 Alibay Alibayli / 590066639 Ayush Agrawal / 630058475
Module Name : BEMM162 The Creative Organisation Assignment # :
Assignment 3 Topic : Nokia Company Organizational Creativity Report
Module Convenor : Dr. Varuni Wimalasiri Number of Pages (including
this one): 18
2. Table of Contents Executive
Summary............................................................................................................................
2
Introduction............................................................................................................................................
3 Aim
.............................................................................................................................................................
4 Investigation
Methods........................................................................................................................
4 Literature Review
.................................................................................................................................
4 Findings
...................................................................................................................................................
6 External Factors
...............................................................................................................................................6
Recruitment and
diversity............................................................................................................................6
Organizational
environment........................................................................................................................8
Crowdsourcing..................................................................................................................................................9
Conclusion............................................................................................................................................10
Recommendations.............................................................................................................................11
Methods of evaluating
creativity............................................................................................................
11 Different disciplines drawn to generate solutions
.........................................................................
12 Diverse
Recruitment....................................................................................................................................
12
Structure...........................................................................................................................................................
13 Cultural Adjustments
..................................................................................................................................
13
References............................................................................................................................................14
3. BEMM162 THE CREATIVE ORGANISATION Nokia Company Organizational
Creativity Report 2 Executive Summary Nokia is a Finnish company
operating in the fields of network infrastructure, location- based
technologies and advanced technologies and is headquartered in
Espoo, Finland (NOKIA, 2014a). Nokia was the dominant player in the
mobile telecommunications sector for more than a decade (Lee,
2013). It was not the first company releasing a mobile phone, but
the thing making Nokia get to top was to do this well by reaching
the true mass appeal (Lee, 2013). Ben Wood, who is an analyst at
CCS Insight, indicated that people would not talk about the brand
names while they were talking about the phone they have, they would
only say the numbers like 3310 or whatever they had; because there
were no mobile phone brands as big as Nokia (Lee, 2013). This is a
fact that Nokia first fell behind Apple by the year 2007, when the
so-called revolutionary mobile phone, iPhone was introduced by
Steve Jobs. Then Samsung started rising in the mobile
communications sector. While these two mobile giants were leading
the sector, Nokia fell behind step by step. Blaming only one reason
would be unfair for the sudden fall of Nokia; however, the first
reason behind this fall was the operating system that Nokia was
using on their mobile phones. Nokia was still making great phones,
but the time that iPhone was introduced they were using Symbian
systems for their phones and Symbian have quickly been out- dated;
as Ben Wood indicated that Nokia missed the importance of software
(Lee, 2013). In addition to this, the timing of changing to the
Microsoft operating systems can be considered as late; since Apple
and Samsung have already taken over the dominance in the market and
left Nokia behind. There is one more fact that should not be missed
out, which is that, Microsofts Windows Phone system was the only
choice left for Nokia to survive and differentiate. Another reason
was that Nokia could not respond to the trends in mobile market
quickly. They waited a year after iPhone to unveil their fist
touchscreen phone which was less 4. BEMM162 THE CREATIVE
ORGANISATION Nokia Company Organizational Creativity Report 3 than
a smartphone but more a handset optimized to play music (Cheng,
2014). In the late 2012, a research conducted by Roger Cheng, who
had the chance to talk to former and current employees of Nokia
that time, resulted that to many of the employees of Nokia, it
wasn't just arrogance that kept them rooted in Symbian, but the
inability to take risks (Cheng, 2014). By the end of 2013, Nokia's
market share was still 15 percent, which was basically a result of
their cheaper basic phones, according to data compiled by Strategy
Analytics; however, smartphone market share of Nokia was in the low
single-digits (Cheng, 2014). Microsoft bought Nokias handsets
production on April 25th ; therefore, the question for Nokia is now
whether or not the Nokia and Lumia branding will dissolve (Struble,
2014). Stephen Elop, who is the former CEO of Nokia and now heading
the Microsofts devices division, hinted that the Nokia brand may
disappear in the future along with the Lumia range. He spoke to
TechRadar and said: What we have to decide is what the brand will
be. Because we have not decided what brand will be dominant for
smartphones, thats work thats still ahead. And of course the way
well go through that process is to assess with consumers what they
respond most positively to, what conveys the best message and the
best hopes of success. (Smith, 2014). Introduction Before taking
further steps, it is useful to understand what creativity is.
Creativity is defined as the use of imagination or original ideas
to create something; inventiveness (Oxford Dictionaries). It is a
concept that is very useful for the companies to differentiate
themselves from their competitors, therefore theres a need to apply
it in the organizational framework successfully. Shalley and Gilson
define organizational creativity as the development of ideas about
practices, procedures, products or services that are potentially
useful to an organization (Shalley & Gilson, 2004). In the case
of Nokia, the level of creativity also needs to be considered on
the cultural level. Nokias code of conduct is striving for the
highest degree of ethical conduct in 5. BEMM162 THE CREATIVE
ORGANISATION Nokia Company Organizational Creativity Report 4 every
action they take as indicated in their corporate website (NOKIA,
2014b).This is based on the Finnish culture of the company.
Focusing on ethics and risk management, Nokia missed out the
importance of organizational creativity in their corporate
governance structure. The cohesive Finnish culture affected Nokias
decision of not embracing creative ideas, consequently not taking
risks (Beckett, 2011). Aim The aim of this report is to evaluate
the level and processes of creativity at Nokia by analyzing the
factors by looking at the historical facts that left the company
behind its competitors. By the time the writers of this report
decided to make their research about Nokia, the basic aim was to
make assumptions for the future of the company. Meanwhile, it was
announced that Nokia would be acquisited by Microsoft Company who
was in partnership with Nokia on producing Windows operated Lumia
smartphones. The acquisition of Nokia by Microsoft is now confirmed
and the deal, announced last fall, is worth more than $7 billion
(Molina, 2014). Therefore, this report focuses on the reasons of
the fall of the company by pointing out the lack of creativity
processes in their organizational structure. We hope to identify
the core differences in the company structure with main competitors
like Apple and Samsung to find an answer to this particular
question: Why Nokia stayed behind in the race of innovation on
mobile phone and tablet PC industry? Investigation Methods The
information to be used in this research project is going to be
provided by mainly looking at the company reports and press
releases. Literature Review Progressively, creativity has become
appreciated and esteemed across a multiplicity of responsibilities,
professions, and businesses (Nonaka, 1994). In the present days
fast- 6. BEMM162 THE CREATIVE ORGANISATION Nokia Company
Organizational Creativity Report 5 paced vibrant work setting,
supervisors and administrators go on to apprehend that to keep on
being competitive they require their workforces to be
enthusiastically involved in their work and putting an effort to
produce original and fitting merchandises, practices, and methods.
Granting the level of creativity needed and the significance of
creativity can vary contingent on the jobs or profession in hand, a
great deal of supervisors would approve that there is a
possibility, in virtually every job, for personnel to be extra
creative (Amabile, 1997). Additionally, since individual creativity
offers the basis for organizational creativity and innovation, and
these have been associated to company performance and existence, it
is imperative, if not grave that personnel are creative in their
work (Shalley and Gilson, 2004). Creativity as a whole in an
organization comes down to individual level creativity. According
to Bharadwaj and Menon, individual level creativity can be
considered using individual creativity mechanisms. These mechanisms
talk about actions undertaken by individual workers within an
organization to improve and augment their proficiency and
competence for creating something, which is significant and
innovative within their work setting (Bharadwaj and Menon, 2000).
Research done has revealed findings that companies that offer
knowledge creating environments end up being more successful than
other companies. Organizational creativity mechanisms talk about
the degree to which the organization has introduced proper methods
and implements, and delivered resources to embolden evocatively
innovative performances within the organization (Ford and Giola,
1995). Employing data collected from 634 organizations, the results
of the research revealed that the existence of both individual and
organizational creativity mechanisms brought about the maximum
level of innovation performance. Institution of a creative
environment within an organization, even with low levels of
individual creativity has proved to create more innovation within
that particular organization (Nonaka, 1991). Employing creative
individuals does not simply increase creativity within an
organization. Instead, it is important to institute a creative
environment for such employees to work in. The consideration of
what and how creativity impacts innovation 7. BEMM162 THE CREATIVE
ORGANISATION Nokia Company Organizational Creativity Report 6
performance can be critically improved by added study that
assimilates the inherent and extrinsic drivers of creativity
(Bharadwaj and Menon, 2000). Findings External Factors Some of the
external factors that might influence the creative environment in
Nokia include competition and diversity. With increased competition
from other organizations such as Apple, Samsung and others, Nokia
might be forced to become more creative in the creation of its
products as well as the processes and procedures being used.
Similarly, the creation of diverse products could motivate
employees to think out of the box and become more creative in the
merchandises being produced in the coming. With the incessant
change in technology in the present day world, individual as well
as organizational creativity becomes imperative, and the companies
are forced to generate a more creative environment for their
employees. Another external factor that might be deemed to alter
the creative environment of Nokia is the preferences of the
customers. There are constant changes in the environment with
individuals preferring products that fully suit their needs and
beyond. This affects the creative environment of the company as it
is forced to create better and more innovative products that suit
these needs of the customers (Inkpen, 1996). In addition, with the
diversity in the products created by other companies, employees in
Nokia and the organization as a whole was forced to be more
creative in coming up with novel and original products which are
different from the rest. This factor boosts creativity within the
organizational environment. Recruitment and diversity According to
Mullins (2006), the company pays special attention to the
recruitment process in order to pick up the experienced workers to
support the individual level creativity. Dijk and Ende (2002) state
that the recruitment of experienced employees 8. BEMM162 THE
CREATIVE ORGANISATION Nokia Company Organizational Creativity
Report 7 plays a key role in organizational creativity. More than
that, another analysis is carried out in order to check the
cultural compatibilities of the new employees (Steinbock, 2001).
Recruitment process of Nokia also includes the behavioural
interview section that aims for checking an individual's creativity
level (Bardia, 2005). During that interview, several questions are
being asked about the previous initiatives that an employee took
during the creativity process. Despite the fact that Nokia's HR
department have got some frameworks and tools in selecting the
applicants, in order to increase the diversity they sometimes allow
some flexibility in order to employ the people from diverse
background. The reason is that the company believes that creativity
is driven by the diversity (ibid, 2005). Cultural differences are
another factor to consider that could affect the creative
environment of an organization. Nokia is a global corporation,
which encompasses employees from different cultural backgrounds.
However, in order to gain mutual creativity within the
organization, these employees have to work together. Being from
different cultural backgrounds with different points of views and
ways of life, this can affect the creative environment of the
organization (Niu and Sternberg, 2001). For example, the Chinese
employees would differ in their own perspectives with employees
from the Western world due to different points of views (Nisbett
and Masuda, 2003). However, Gilson (2001) argues that diversity and
dissimilarity can increase creativity. This is because it enhances
composition of different capabilities and understanding within a
creative setting or an organization. The event of World Cafe
Methodology was applied to create an environment in which Nokia
employees from diverse backgrounds could discuss the issues. While
the discussions carried on, facilitators could take the ideas those
agreed. However, the concept is not used now, as it has been valued
as impractical (Willigan, 2009). 9. BEMM162 THE CREATIVE
ORGANISATION Nokia Company Organizational Creativity Report 8
Organizational environment Institution of a creative environment
within an organization, even with low levels of individual
creativity has proved to create more innovation within that
particular organization (Nonaka, 1991). Therefore, employing
creative individuals alone might not increase creativity within an
organization. It is also important to institute a creative
environment for such employees to work in. The consideration of
what and how creativity impacts innovation performance could be
critically improved by added study that assimilates the inherent
and extrinsic drivers of creativity (Bharadwaj and Menon, 2000).
Nokia could take note of creative structures set in place by Google
Inc. The employees who are deemed to be the creative centre of the
organization are not given any chain of command. There is an open
door system, which encourages employees to be more creative and
openly discuss any issues concerning the products, processes and
practices of the organization (Scott, 2008). The organization has
also gone ahead to employ organizational creativity. The workforces
are encouraged to work in groups so as to come up with more
creative ideas and products. This ensures that the creative
strengths of each and every employee are utilized and harnessed.
The company has also created a creative environment whereby the
creative employees are encouraged to work when it suits them best
and are not given a restricted work time line as all the other
companies. This has greatly increased the level of creativity
within Google (Scott, 2008). Nokia might also use this proven
technique to foster the creativity within the organization. One of
the problems in Nokia as an organization is the dawdling decision
making which slows down and terminates the possibility of
creativity and innovative activities. Some of the problems
experienced by the company are deemed to be due to poor decision-
making and internal rivalries. Creativity is hampered if the
organization does not encourage or foster its continuity. In
particular, individual creativity becomes diminished. Employees,
who are responsible for the creative and innovative activities,
stop being effective once the organization lacks recognizing or
considering their work. Nokia could 10. BEMM162 THE CREATIVE
ORGANISATION Nokia Company Organizational Creativity Report 9
employ some of the institutional creativity structures set in place
by Apple Inc. Apple has been one of the outstanding companies that
fully encourage and inspire their employees to incessantly come up
with innovative products. The level of creativity within the
organization is fostered, and the creative ideas brought forth by
employees fully considered (Zylla-Woellner, 2010). It has to be
noted that the organisational culture of Nokia, which is the
cohesive Finnish culture, prevented Nokia managers to take risks
and not support creative ideas, thus underestimated the changes in
the market (Beckett C., 2011). According to Denning, workers in
Nokia had been creative enough to come up with a prototype and
model of a smartphone several years before their inception into the
market. However, the company failed to consider these creative
ideas from its employees and discarded them. Several years later,
Apple introduced the iPhone into the market which propelled into
success and in turn caused the downfall of Nokia (Denning, 2011).
With these in mind, it is imperative for Nokia as an organization
to take risks. It is through such risks that creativity produced by
employees can be turned into innovation and success. The company
also has to define its corporate culture to suit the levels of
creativity of both the individual creative thinkers but as well as
the organization as a whole. This could be achieved through
implementing as well as recognizing the creative ideas brought
forth by the employees. Crowdsourcing Nokia weighs in on its
external environment as a basis of creativity, and in turn employs
its customers as a foundation of motivation and incentive. For
example, the company uses online forums and discussions to permit
the public to recommend and propose new concepts and enhancements
as well as offer more insight regarding the existing products and
systems set in place. Being in partnership and association with the
public and the consumers, Nokia is able to make the most of the
level of creativity provided by the external sources. This in turn
expands and broadens the knowledge levels of the 11. BEMM162 THE
CREATIVE ORGANISATION Nokia Company Organizational Creativity
Report 10 institution. In addition, as much as these ideas and
recommendations might not be groundbreaking, Nokia uses them to
develop and integrate the needs of the customers. This as a result,
fosters creativity of the companies by the creation of standards
that are recommended. Another source of creativity that Nokia uses
for its benefit is the creative environment outside of the
organization (Vanhemert, 2010). Nokia created a web-based
environment called "Ideasproject" where anyone could participate,
share thoughts, and create mobile apps (Ideasproject, 2014).
Nokia's online forums also serve for this purpose. This kind of
projects helps Nokia to benefit from the creativity of its
customers, to get a customer feedback on the products and form a
basis for the future developments. Additionally, this is also a way
of diversification where the company is not only depended on the
internal environment but uses the external environment which
provides an opportunity and reduces the risk of lacking the
improvement techniques. Conclusion It is bewildering to comprehend
how Nokia has been a dwindling player in the mobile phone market
considering it was the main player by far a few decades ago.
Institutions such as Samsung and Apple have grown and come up with
ground breaking and innovative ideas that have seen them stake a
place as the main players in the industry. Therefore, for a company
that highly relies on creativity has got to come up with creative
and innovative concepts and in the end implement such ideas.
Regardless of employing and recruiting the most creative
individuals in the environment or employ the recommendations and
ideas from its consumers, Nokias vertical corporate structure
inhibits success of such aspects. The company is too risk averse
and the managers of the companies are afraid to implement and
finance ideas that are pitched through by their creative thinkers.
The company goes wrong because it places a lot of emphasis on the
resources used and barely focuses on the processes or the results
that follow through. For Nokia to improve its position in the
market it was 12. BEMM162 THE CREATIVE ORGANISATION Nokia Company
Organizational Creativity Report 11 necessary to take risks and
also change the structure of the company. The creative employees,
even those on the lowest levels should have been given the chance
to bring out their thoughts and ideas, not only on novel matters
but also on the existent nature and structure of the company.
Recommendations In as much as Nokia has full knowledge of the
importance and need to improve on creativity levels, at least as a
part of Microsoft today, it is imperative for the organization to
place emphasis on employing and encouraging changes in the
following aspects: Methods of evaluating creativity Some of the
methods that managers can use to evaluate the creativity levels in
an organization include brainstorming. It is usually used by
managers in order to gain knowledge quickly on any upcoming or
recent developments or technologies (Bouchard, 1971). According to
Bouchard, another method employed was called the Morphological box
but was not frequently used as much as brainstorming. Another
method that can be employed is the use of teams. The managers can
place the creative thinkers in teams and initiate programs or
projects to evaluate and ascertain the level of creativity. This
method can also be used to evaluate the level of individual
creativity in relation to organizational creativity (Crawford,
1966). Environmental and psychological evaluations can also be
another method used by managers. These methods encompass the usage
of sound, pigment, sensory incentive or deficiency, scent, and the
likes, to change the brain's regular environment to support
creativity (Crawford, 1966). In order to understand creativity in
this kind of environment it is important for managers to create a
good relationship with the creative thinkers. Having an atmosphere
where such creative thinkers are given the platform to bring out
their creative ideas and trust the organization, it becomes easier
to understand creativity (Gee and Tyler, 1976). 13. BEMM162 THE
CREATIVE ORGANISATION Nokia Company Organizational Creativity
Report 12 Different disciplines drawn to generate solutions The
company can also draw solutions from other disciplines such as
psychology. Studies in psychology have revealed that individuals
tend to be more aggressive and determined once their work is
recognized. Therefore, it is imperative for Nokia as an
organization to recognize and ascertain the level of creativity
produced by its employees. According to research done by Dehnavieh
et al, the factors that influence creativity and innovation within
employees such as managers are mostly individual factors such as
lack of appreciation and motivation (Dehnavieh et al, 2010). These
can help Nokia as an institution to better institute a creative
environment which would in turn increase the level of creativity in
the forthcoming (Anderson and King, 1993). Other solutions can also
be drawn from other disciplines such as social learning theory and
cognitive theory. These theories imply that a certain set of
behaviours if not all can be learnt through observation and
therefore passed on. This usually can help in leadership and
passing on new behaviours or certain skill sets that can easily be
learnt. This notion can be highly beneficial to Nokia as it can
increase its levels of creativity through social learning theory.
This could be implemented and employed in organizational creativity
through individual creativity. Creativity in a team can be
established through the observation of creativity levels of an
individual. Diverse Recruitment It is necessary for Nokia to cease
being stingy and restrictive while seeking and recruiting their
employees. More so, Nokia being an organization that is heavily
dependent on creativity to have a competitive advantage over its
rivals in the phone market and industry, it is important for them
to permit a wider range of employees during recruitment. This will
aid the company in being able to react properly to changes in its
environment. Therefore, the company should not always focus on the
level of experience of employees while hiring them. 14. BEMM162 THE
CREATIVE ORGANISATION Nokia Company Organizational Creativity
Report 13 Structure The main structure that was prevailing in the
company is a vertical and ordered one. It is recommended that the
company should institute and follow a more decentralized and
horizontal structure. It is necessary for the company to institute
a friendlier and somewhat lenient corporate culture (Nonaka and
Toyama, 2003). A more permitting and open-minded structure will
foster communication of creative and notions as well increase
levels of creative thinking amongst the employees. With this in
place, creativity will emerge from all areas of the organization
(Swailes, 2000). Cultural Adjustments Due to the cohesive Finnish
culture, the company is overall risk averse. It has previously and
frequently observed that Nokia instigates numerous ideas and
notions but fails to make them come to life due to not taking
risks. It is imperative for the company to realize that only when
these ideas are implemented can they be turned into valued
resources in the end. Being set in an industry that is based on
technology and values inventiveness and groundbreaking concepts. As
a part of the Microsoft now, Nokia has to start taking risks and be
more willing to take up such ideas and make the most of the
creativity presented (Shalley and Gilson, 2004). 15. BEMM162 THE
CREATIVE ORGANISATION Nokia Company Organizational Creativity
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