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Group 11 Section B
Rohan Mishra Riaz Khan Aritra Banerjee Asit Balwantrai Acharya GROUP 11 Page 1 SECTION B
CONTENTS
Contents..................................................................................................................................2 BRIEF COMPANY Description...................................................................................................4 Job analysis.............................................................................................................................4 Recruitment and Selection......................................................................................................5 Global Recruiting Principles:.................................................................................................5 Resource Planning Focus......................................................................................................5 Objectives of the global recruitment process: .....................................................................6 Performance Management system at Nokia:...........................................................................6 Goal and objective planning: ...............................................................................................6 Performance evaluation/achievement review .....................................................................6 Training and Development at Nokia:.......................................................................................7 Development assessments at Nokia:...................................................................................7 Identification of development objective............................................................................7 Selection and ordering OF THE assessment......................................................................7 Taking the assessment and receiving 1:1 feedback..........................................................8 Integrate assessment results ...........................................................................................8 Career Management:...............................................................................................................8 INTERNAL JOB MARKET (IJM).................................................................................................8 70/20/10: Organizational Impact due to flexibility............................................................9 70/20/10: ENABLING WORK VIRTUALIZATION...................................................................9 Compensation and BenefitS:.................................................................................................10 Structure of compensation:................................................................................................10 Implication of using the NFF:..............................................................................................11 Benefits..............................................................................................................................11 GROUP 11 Page 2 SECTION B
Summary...............................................................................................................................11 REFERENCES:........................................................................................................................11 EXHIBITS...............................................................................................................................12 EXHIBIT 1: Global Rcruitment Process................................................................................12 EXHIBIT 2: Resource Planning............................................................................................12 EXHIBIT 3: Career Management.........................................................................................13 EXHIBIT 4: Compensation...................................................................................................14
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JOB ANALYSIS
At Nokia, we are committed to connecting people. We combine advanced technology with personalized services that enable people to stay close to what matters to them. Every day, more than 1.3 billion people connect to one another with a Nokia device - from mobile phones to advanced smart phones and high-performance mobile computers. Today, Nokia is integrating its devices with innovative services through Ovi (www.ovi.com), including music, maps, apps, email and more. Nokia's NAVTEQ is a leader in comprehensive digital mapping and navigation services, while Nokia Siemens Networks provides equipment, services and solutions for communications networks globally..(http://jobs.nokia.com/job/Mountain-View-%28Senior%29-Manager,-Intelligence-%E2%80%93-N_American-Competitors-Job/1013992/) The above is the beginning of a job description for a senior manager, Intelligence North American competitors. The description runs for half a page before it mentions the qualifications required for the job. It also lists the primary location of the job, average percentage of time travelling will be required, level of the job, employee status (regular/part time) and so on. The description is a lot smaller for a data integration engineer job (http://jobs.nokia.com/job/Burlington-DataIntegration-Engineer-Job/1160424/) , but it still contains a very appealing description of the core values and mission of the company (same as in the description for a managers job as given above). In all it catches eye immediately. The description for this particular job goes into the technical details of the requirements of the job, which is understandable considering it is a specialists job. And then a list of required qualifications follows. Both the descriptions talk about compensation being competitive and a few of the benefits awarded like medical, dental and paid time off. Join a global company that can challenge you and encourage you to innovate. After all, our days are devoted to developing the potential of mobility. It's your world. At Nokia, you have an extraordinary opportunity to shape it. Our future is your creation. We offer a dynamic learning culture that nurtures openness, transparency, with endless opportunities for competence development. We reward the results of your success. The company clearly leverages its high brand value to attract the best talent, which is augmented by the strong emphasis on career development and dynamic learning environment that it promises the employee would work in.
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There are no easily available information on the methods and approaches adopted to collect job related data by the HR team at Nokia. But few observations from us point towards a low level of employee involvement in the data collection, frequency of data collection and analysis being more than a year at least,
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Please refer to exhibit 2 for diagrammatical representation of components of workforce maintained at Nokia.
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Performance Evaluation helps ensure that all employees receive constructive feedback on their performance and development. Through Performance Evaluation the employee gets a positive reinforcement of the strengths, and gets constructive feedback on how to improve performance. Performance evaluation helps both the employee and employer. As an employee: 1. It helps analyze an employees own performance over the last one year, and plan for improvements 2. It helps consolidate and share feedback from key stakeholders with the manager 3. It helps to analyze how the performance outcomes were aligned to the companys values Performance evaluation gives equal weight to both halves of the performance equation: What was achieved How it was achieve The performance management review for the bonus component of the pay happens once every six months, while any yearly hikes in pay is mainly attributed to the base pay, and the reviews are done by the line managers. The base salary review for each country happens in the corresponding financial year (April 1 st to March 31st for India), whereas the review/appraisal for bonus component happens every six months starting January. The employees are measured on what and how of their work in the last year, and the ratings are grouped into bands (above/below expectations for example). For the bonus component of the pay however the ratings are not grouped into bands, and hence for the bonus component the firm uses the actual ratings along with the funding factor to compute the bonus earned by the employee.
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The following assessment methods are used for leaders/potential leaders: o 360 Leadership assessment o MBTI o Decision Styles o FIRO-B
CAREER MANAGEMENT:
In Nokia, the HR team has implemented plans so as to align development of employees towards their career choices, there by infusing a sense of trust towards the company as well as enhancing job satisfaction. (EXHIBIT 3) Career Self Reliance is Nokias Career Development philosophy. It means that The ultimate responsibility for the long term career development of any employee rests with the employee himself and no one else. The role of the manager or coach is to support career development mainly by providing a supportive environment and coaching: helping the employee to recognize and utilize his/her strengths and also agreeing planned career development actions that are executed Nokia aims to provide a stimulating environment and tools that support career development
Nokia creates this environment by: Development discussions and joint efforts through the continuous process of objective setting Promoting a "70/20/10" approach towards development - making every day a learning day by 70 - Identifying challenging experiences/situations/available projects that develop required/desired competencies 20 - Creating self-awareness through assessment and mentoring/coaching relationships 10 - identifying training for a required/desired new skill in order to apply it in your job immediately
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Nokia recognizes the need to provide not just time but also real opportunities for an employee to seek jobs that excites him/her. The IJM is a portal that helps individuals browse through opportunities in work areas as well as geographical locations so as to seek a change from their current work. On applying, the line manager of the team to which the employee has applied has the discretion to process the employees case further by conducting interviews etc. Once the line manager of the applied to team reaches a decision to agree on the employee inclusion, then the line manager of the present team and that of the applied to team may discuss and agree for the transfer of the employee to the new team. The impact of having such flexibility is increased job satisfaction, motivation among employees, and reduced levels of attrition.
nature of the industry demands). As a result the time that an employee in a new team takes to contribute visibly to the top line decreases.
STRUCTURE OF COMPENSATION:
Nokia follows a pay structure consisting of a fixed and a variable component. The variable component on an average forms about 10-30 percent of the base pay. This is awarded half yearly to the employees and is linked to the performances of individual, company and the team, and it also carries some linkage to the overall customer satisfaction (internal as well as external customer as we will see in the following description of the practice). Nokia follows the 70-20-10 rule in structuring the variable component of the compensation as well (we saw a similar division, only time wise, in career management earlier). The description is as follows: 70% of the variable paid out is directly linked with companys performance in the last half year 20% of the variable component is linked to the performance of the individual, based on the goals set at the beginning of each half year, and corresponding assessment of the performance by the line managers 10% of the variable component is linked with the performance of the team of which the individual is a part of
Besides factoring individual performance based on prior goals set, Nokia performs a statistical analysis of the product/feature under consideration (i.e. the product or feature that the individual is involved in development/enhancement of). The exact parameters taken up for analysis vary with the different life cycle stage that the product/feature is in. For example, if the product has been launched in the last 6 months, then the customers and their tastes form the main part of the survey, and hence all related parameters are taken up for statistical analysis. But in case the product has only just moved in to the testing phase then the testing team would be the internal customers who will form the sample of the survey being performed. Nokia computes a universal factor (applicable to the whole of company for all geographical locations) based on a weighted sum of the different customer satisfaction ratings obtained for products/services. This is called the NFF (Nokia Funding Factor).
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On an average the products/services which hit the market during this period are awarded the highest weight, and the products/services that are still in the development phase are awarded the lowest weight. This is multiplied with whatever rating is obtained by the individual. (Assume variable component is 15% of base pay) If the NFF is more than one this means that the bonus component for this half year would be more than 7.5% of the base pay, and less than one would mean less than 7.5% of the base pay as the bonus component. We will see the implication of using such a factor in the following section.
BENEFITS
In addition to the compensation discussed above Nokia awards its employees the following standard benefits: Provident fund and gratuity Transport Crche Canteen Medical benefit and insurance Health care at centers maintained by Nokia Work from home
SUMMARY
Over the years, Nokia has evolved both organically and inorganically. It has always paid been very receptive of changes in the industry that it operates in, and it has been a strong follower of its goals. To support its 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. The extent of objectivity that the HR team at Nokia follows in all its policies (especially in the case of compensation) helps the firm know its position exactly, links customer satisfaction with employee satisfaction amicably, which in turn reduces attrition and helps keep recruitment costs minimum. The half yearly (worldwide and hence expensive) survey performed by the company in order to award the employees exactly in line with the customer satisfaction, clearly demonstrates the commitment of the firm to be receptive of the customer preferences, the feedback from which helps the company re align faster than its competitors and last but not the least, maintain a high level of objectivity and causality in every decision that it takes.
REFERENCES:
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EXHIBIT 4: COMPENSATION
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