organizational structure of Nokia Telecommunications Company Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the general meaning of organizational structure and its various significances to an organization
- Understand the organizational structure at Nokia Telecommunications Company and how it has impacted the efficiency and productivity of the company
- Learn how to apply organizational structure to real-life organizations
1.0 INTRODUCTION
Nokia is a telecommunications company that was founded in 1865, dealing in the design, manufacture, and marketing of mobile phones headquartered in Espoo, Finland. It also specializes in network infrastructure, advanced technologies, and software services. The company also manufactures telecommunications network equipment for applications such as mobile and fixed-line voice telephony, Integrated Services Digital Network, and broadband access among others. The telecommunications giant was considered to be one of the leading telecom infrastructure companies. As of 2022, the company had an annual revenue of $26.21 billion and a market share of 15% in the service provider network infrastructure market.
Organizational structure refers to the various ways through which an organization's activities are organized and conducted. What are the 4 types of organizational structures? There are four types of organizational structure – matrix, functional, divisional, and flatarchy. Understanding these structures and how each work helps an organization in making informed decisions at the workplace.
A matrix structure is one where employees are divided into teams that report to both the product and functional manager, here the employee works under two bosses. Basically, it is a combination of both functional and divisional organizational structures. A functional structure is one where a company is divided into various departments such as finance, marketing, human resource, sales, and production among others. A flatarchy structure is one where there is little or no level of management. This structure is a combination of the hierarchy and flat organizational structures and it is common with start-ups and small organisations. Divisional structure is where various teams work alongside each other in order to attain a specific goal. This organizational structure is usually used in larger companies whose operations extend to wider geographic areas or organizations which have distinct smaller organizations within a larger group to cover several products and market areas.
What is Nokia's new organizational structure? Nokia’s Organizational Structure is divisional which means that it is divided into main divisions and the case hereunder includes; mobile phones, multimedia, enterprise solutions, and networks whereby each department has a specific directive to carry out in order for an organization to attain growth and development.