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I.

Background of the study


The Nokia Corporation was founded in 1865 and is currently based on Espoo, Finland. The

company has been associated with different types of industries in over 150 years of its existence,

such as a pump mill, rubber and cables. But in 1990s, the company started to focus on large-scale

telecommunications services where it has placed and cemented its name as one of the largest

companies in world. The multinational corporation has already produced about 102,000 jobs

across 100 countries. The rise of Nokia had brought about a large amount of economic

development throughout the world wherein its factories and manufacturing plants are located.

In the world of telecommunication and technological innovation, the name Nokia is already

a byword amidst a competitive field composed of aggressive players such as Apple, Samsung, LG

and Sony. It is one of the companies that has already established its foundation for the past decades

as one of the standards in the field of developing telecommunication devices that bridges the gap

between geographical space and time. It seems that no problems could bring havoc and shake the

strong foundation of the company which is strengthened by its clear and well stated values.

The success of Nokia as one of the worlds leading innovators in the field of communication

and technology has been associated with its strong organizational values and culture where it

highlights and gives importance to innovation and collaboration. This is a good foundation for a

company, because it allows employee’s to be emotionally attached to the company. Due to the

values and cultures established by the company to its employee’s, the results become very visible

as it stands out against its competitors and soar towards its vision. The established values and

culture of the company has been refreshed over time to be effective and efficient in the changing

world today.
The work environment and the behavior of the employee within an organization is very

much important, especially when we are inculcating and establishing a strong value into our work

forces. There are so many things to consider in order to achieve the desired outcome of having

employees that have the right values and culture which are aligned to the vision and mission of the

organization.

The world today continues to evolve. The culture of an organization needs to adapt to these

changes in order to succeed and achieve the desired outcome. We need to consider the importance

of determining the cultural backgrounds and perceived values of our workforce in order to build a

harmonious relationship between organization and communication. Having these relationships and

communicating these core values to employees will translate to more effective and efficient

business operation.

II. Statement of the problem

During the past decades, Nokia Corporation seems to experience a hardship in establishing

and communicating its core values to its employees. The company had succeeded due to this strong

values and cultures inculcated and practices by its employees but due to the changing environment

inside and outside the company it has failed to effectively establish its values to the employees.

The core values of the company had proved itself to be ineffective in the current situation of the

world. As the world continues to evolve and the culture and values of different individuals within

the company seems to be a misfit and unaligned to the organizational values of the company.
In the recent years, the core values of Nokia seem to be forgotten and taken for granted

within the work place of the company. The loss of importance of its core values is visible especially

in the performance of the company for the past few years. The revenue of the company has revealed

a deep slope that is due to loss and decrease in sales. For some reason, the motivation within the

Nokia employees has become one of the problems of the company. It fails to cope up with the

competitors in the field of innovation. This problem should never arise if the company had

successfully communicated its core values because it is clearly stated the word “innovation”.

Being a multinational corporation and having employees from all around the globe tend to

increase the possibility of cross-cultural miscommunication within the organization especially on

the work place wherein different individuals come from different places in the world having

different types of cultural backgrounds and perceived values. This phenomenon seems to disrupt

the flow of communication within the organization and miscommunication seems to increase

between employees.

III. Alternative courses of action

The core values of the company being the main driver of its success should be given more

focus and importance. As the company is continuously finding solutions on how to regain its reign

as one of the leading innovators of the world, it is very much important that the organization should

re-establish a clear and a well-defined core values that would help the employees to be motivated

and work harder towards the company’s established goals.

The process of communication between employees should be established by the

management in order to avoid miscommunication within the work place. The cultural and values
differences of everyone within a work place is an obstacle of the management and is a gap that

could divide the entire company. This faction between employees will not be a good sign if the

company is envisioning itself to succeed in a specific field again. Bridging the gap between

cultures can result to a harmonious operation of the company wherein everyone is in the same

page. When the communication process within the company is well established then the company

could start to communicate its core values to the employees, but it is also important that the

employees understand the values of the organization. Having employees that are personally

attached to the company could become an asset of the company during its rebuilding process.

IV. Recommendations

The Nokia corporation being one of the largest companies during the past decades and

established itself as one of the leading innovators in the field of telecommunication has the

resources and abilities required to rebuild and re-establish the company’s name and become a

competitor in today’s market in the field of telecommunication. Enabling to determine the

problems from within the organization’s communication process will be a big leap in the process

of rebuilding. The company should start to develop its core values that should be effective and

efficient if practiced in today’s generation. Time has passed by so fast that the management did

not recognized that they have left behind a big foundation of their company and proceeded to face

the challenges without a strong foundation to stand and lean on.

The company should give emphasis on how to establish their core values from the

employees up to the managerial level of the organization. If everyone is in the same page and have

the same vision to help the company to succeed once again and conquer the obstacles they faced

that shaken the very foundation of the organization. The management will play an important role

in this rebuilding process of the company. Having the right tools and communication process
wherein everyone can be reached by information that is important especially in the field of the

current position of the business could help the employees and the management to find their

motivation to double their effort and work harder for the company’s future.

The core values of Nokia in today’s generation should be adaptive because the workers in

today seems to have different views compared to the workers of the past decades. They need to

balance the operation of the company and give emphasis and importance to the employees.

Workers or the man power is a very big asset of the company and handling this magnitude of

people would require a very management skill. The company should also enforce an organizational

communication wherein the people on the lower level will have a voice in the management of the

business. They should apply upward communication in their day-to-day operation in order to

determine the problems from the lower levels of production. With this type of communication, the

employees will be the primary source of information that will empower and motivate them. This

will also give the management the opportunity to discuss to its employees what are the values and

culture of the company. Posting and telling the core values of the company to the employee’s will

not be very effective if the employee’s themselves did not understand the importance and positive

effects of these. The management should conduct seminars and workshops that could bring

opportunities to the employees to learn about the history, values and vision of the company.
Central Philippine University
College of Business and Accountancy
Jaro, Iloilo City

In partial of the requirements for the


BME

By:

Federico S. Seneres III


BSACTY-I

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