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Research in Closure of Nokia
Research in Closure of Nokia
A decade before, the Nokia was the market leader in mobile manufacturing and its sales in the international market that was retaining more than 80% of the market share alone. There were few competitors that were manufacturing cell phones, such as Motorola and Samsung. However, the market presence of competitors was limited, but Nokia was operating its business in more than 70 countries before 10 years. On the other side, when some other companies entered in this sector with some advanced technologies and features of the cell phones; competition started for the Nokia and gradually increasing competition reduced its global market share extensively that also created various problems in the organization. Presently, it has only 11% market share because of the increasing competitors. At this stage, Nokia took some decisions to improve its market value, but it was not sufficient. Therefore, it can be expected that the Nokia has organizational/human resource problems that need to be solved strategically to bring its reputation once again. Problems are the part of an organization that always tries to stop the continuous growth of the business in the market, such as less productivity and employees dissatisfaction etc. The main problem that can be seen in this organization is related to downsizing from the work. Further, the other problems that can also be imagined in this company are the lack of performance appraisal and reducing job satisfaction of the employees. Therefore, it can be expected that these three problems have specifically reduced the productivity of the company and its market presence at the global level.
The problem of the downsizing of this company occurred due to reducing earning. When competitive challenges faced by the company, downsizing strategy adopted by the management. Therefore, the company decided to cut down the workforce and save the company at the global level. The downsizing decision of the company increases dissatisfaction among employees and reduction of moral value. Further, downsizing decision of the company was also related to managing expenses of the company to tackle the competition in future with few employees. The downsizing decision gave an opportunity for other organization in the same field to recruit talented employees of this company and increase their market revenue. Thus, it is necessary to make an effective strategy to manage a workforce of the company.
On the other side, the lack of performance appraisal in this company has also reduced its value in the market. For several years, this company has not conducted performance appraisal on the regular basis. Therefore, the performance of the employees has been reduced and consequently the overall organizational productivity. In this scenario, the change in organizational strategy is mandatory to improve the performance of the employees and overall the company benefits. The regular performance appraisal can create a culture of satisfaction and loyalty of the employees for a long time and without any issue.