How a multi-industry company became the world leader in mobile communications with Nokia’s human resource
strategy
Wireless wizard Nokia is the world leader in mobile communications. Nokia is the world's leading mobile phone supplier and a leading supplier of mobile and fixed telecom networks including related customer services, ahead of Motorola, Siemens, and Samsung among many others. Today, the Nokia Group comprises Nokia Telecommunications, Nokia Mobile Phones and Nokia General Communications Products. Nokia's corporate world headquarters are located in Helsinki, Finland, and Nokia is listed on the New York, Helsinki, Stockholm, London, Frankfurt and Paris stock exchanges, has sales in over 130 countries and employs more than 47,000 people worldwide. In the last few years, the company has experienced explosive growth in terms of both profit and headcount. In 1998, net sales totaled EUR 13.3 billion. Frankly, It is hard to believe that less than a decade ago, one of the world’s leading innovators in the field of mobile communications today, Nokia Mobile Phones, was hardly known. However now it is one of leading mobile phone brands worldwide. Here, the
essay concerns that how a clear and stable human resource strategy to achieve such phenomenal growth and become the giant among the communication rivals.
“HRM in the new economy ought to be human centric with a strong technology focus. We need to leverage on emerging technologies to better satisfy the wants and needs of the knowledge workers, and in the process, build a competitive advantage that lasts.”
Guest-of-Honour Mr. Lim Swee said on the conference held on 15 February 2001 by the Ministry of Manpower (MOM), which was on “Transforming HRM: How IT Can Enhance HR Capabilities” for some 500 HR practitioners. Mr. Lim said that the employee-employer relationship in the new economy would be one where employers demand greater flexibility in hiring and firing of employees, and where employees expect more responsive rewards, and a greater balance between work, personal pursuits and family responsibilities. He spoke about the importance of handing this relationship well, so as to create a win-win situation, where employees can trust their employers to invest in their skill and knowledge upgrading and employers can be confident that their employees would give of their best to the organization. Mr. Lim mentioned the Nokia experience:
Mr. Alan Bentley, Vice President (human resource) of Nokia Mobile Phones (Finland), spoke on the development of strategic HRM in his company. He emphasized that the main role of HR would be to align HR practices to business strategy and to address the implications of change management. He said that the shortage of talent in software engineering, IT and e-business has resulted in a global war for talent.
Attraction and retention of talent have become the main external influence on Nokia’s human resources strategies, as other companies also strive to be the employer of choice.
At Nokia, the development of human resources is a business proposition, which endeavours to delight its customers, motivate its employees and increase the agility and flexibility of the management to address specific HR needs.
Mr. Bently also stressed the importance of optimizing productivity while promoting work-life balance. The HR manager is also challenged with the task of providing the skills, cultures, atmosphere and processes necessary for e-knowledge and capabilities
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