Apply the knowledge of Management presented in this chapter to the following cas

Question

Apply the knowledge of Management presented in this chapter to the following case. Applying this knowledge should enable you to have a better understanding of how Nokia uses social media to its advantage. Read the case below and answer the questions on the right. Nokia is a Finnish multinational communications and information technology company. It was founded in 1865. In 2015, the company had 114,256 employees and four business groups: Nokia Networks, Nokia Technologies, Alcatel-Lucent, and Nokia Bell Labs. Total revenue in 2015 was 23.22 billion euros.162 The company’s vision is to be an “innovation leader in the technologies that connect people and things.” Making this happens involves pursuing a strategy of “creating a new type of network that’s intelligent, efficient, and secure, and advancing the technologies that tap its power through smart devices and sensors.”163 It is not surprising that Nokia would focus on using social media for its internal communications given the company’s history, vision, and strategic focus. Nokia created a Social Media Communications Team in 2008 to improve communications. The team’s goal is to: “Encourage the use of social media internally to bring out the company’s unique authentic voice and to engage in social media externally on behalf of Nokia, and contributing to product and service announcements by opening up a dialogue and driving online engagement.”164 Nokia’s Communication Strategy Nokia’s communication strategy entails a three-pronged approach using social media: (1) build relationships, (2) improve products and services, and (3) demonstrate corporate values and leadership.165 The two key tools being used in this pursuit are BlogHub and VideoHub. BlogHub. Members of the Social Media team believe BlogHub is the most effective internal communication tool used at Nokia. According to Molly Schonthal, former team member in North America, “The BlogHub lowers barriers for employees to find conversations relevant to them.” BlogHub gives all employees a voice because communication spreads in all directions—horizontally, upward and downward. This contrasts with the top down communication approach used in many companies. Schonthal concluded BlogHub provides a “dynamic community that is ruled by members, not executives.”166 BlogHub enables employees to share ideas and update others on what they are doing. This fosters collaboration and breaks down communication silos. It also provides valuable information to management. One blogger noted that “BlogHub is an effective way to gather employee feedback on various issues and track the conversations that are happening inside the company. One of the primary ways that is accomplished is via a voting mechanism, enabling employees to rate blog posts, with the most popular entries rising to the top."167 Nokia Conversations is one specialized internal blog run by Phil Schwarzmann, its Editor-in-Chief. One feature focuses on telling employee stories about interesting people or interesting aspects of someone’s job. For example, one story pertained to a 6” 11” employee who played basketball for Norte Dame and now plays for a Finnish league. Other stories involve people who live the Nokia values of: Respect—treating each other with respect and working hard to earn it from others Achievement—working with others to deliver superior results and win in the marketplace Renewal—develop your skills and grow the business Challenge—avoid complacency and question the status quo168 VideoHub. This collaborative tool allows employees to post and share videos. It contains a combination of professionally produced corporate or marketing videos and employee-generated content. The company provides a network of trained employees who help employees create short videos. Videos of Nokia’s quarterly business reviews represent examples of formal videos. These videos feature “top leaders’ insights into the company’s performance on a quarterly basis. The video is largely based on professionally conducted recording and editing, but is often complemented by employee-generate video clips.”169 One example of less formal videos entailed management’s requests of clips of employees who exemplify the company’s values. Over 100 video clips were created. Johanna Komonen, Nokia’s communications manager, commented that “Nokia is a very non-hierarchical company and I don’t think you could ask people to make videos that are honest unless they felt confident enough to know that it’s their video. We don’t tell anyone what to put in their video, they know that it’s their video and their views.”170 All told, this tool “acts as a hub through which Nokia’s employees can post, view and discuss work-related videos. Employees are encouraged to keep the clips to only a few minutes or so in length, with even the professional shot Quarterly Business Review lasting only around eight minutes.”171 Communication Doesn’t Stop with BlogHub and VideoHub Other communication tools include the following: Live Meeting enables employees to ask questions online during presentations. Employees can also send text messages if they can’t be online during the presentation. Road shows are used to educate employees about new products. “Regionally, mini product launches—aka ‘mobility happy hours’ are held so employees can ask questions and become familiar with Nokia devices.”172 Video conferencing is used to communicate across geographical boundaries. Annual communications meetings are also accessible with this medium in order to cut down on travel costs. Electronic newsletters are used on daily, weekly, or monthly bases to communicate about important topics and Nokia businesses and their initiatives. Corporate intranet is used to communicate about organizational charts and human resource benefits. Flat Scree Displays are located around regional offices and provide consistently streamed information about corporate issues, information, and real-time business metrics.173 Social Media Certification Nokia has highly invested in its communication strategy. To facilitate its success, the company developed a six-part social media certification. Employees must complete the process before actively using the social media tools. To be certified, employees must:174 Be prepared Be transparent Be smart Be nice Be yourself Be professional

Explanation / Answer

Management is a process through which an organization can achieve cost advantage, better control, planned way of task completion, employee’s commitment and a sound growth path in the marketplace. Knowledge management is process through which an organization keeps its employees engage in updating, improving and encouraging learning new skills sets and technical capabilities at the workplace. A learning organization like Nokia can be adopted all those managerial structure which might contribute to employee’s development as well exponential growth to the organization itself. Nokia’s efforts can be summarized as follows,

1)Structure less communication: It has promoted non-hierarchical company’s concept by giving employees full autonomy and task significance. It has contributed to their self managed effort for a better coordination among employees at Nokia.

2) Use of social media for feedback: It helps employees to know various pros and cons associated with a particular development. It has focus on using social media for its internal communications given the company’s history, vision, and strategic focus. Nokia created a team for managing communication in a strong way.

3) Strategic Intent of Nokia :

The vision, mission and goals have distinguished it from other players in the industry. It gives employees and mangers a new way to achieve the dreams of the company.

4) Creating a value centred organization: nokia has adopted a code of ethics for its employees as well as a highly quality conscious value delivery to its customers. This is its unique value advantage in the industry.

5) Management of key business stakeholders:

Being, a brand it has succefully management its key internal people like executive, directors and employees. The vendors, government, and customers are some other stakeholders which are effectively managed by the Nokia .

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