a). Explain the roles of organizational structure and culture in the formation of organizational strategy
Organizations are said to be very effective this is when the organization has a well planed culture and structure that help the organization to come up with the best strategy. The strategies will ensure that the organization is successful in its respective business field thus making it possible for the company to succeed in its operations. Organizational structure consists of vital objectives that include supervision, coordination and task allocation. These are all seen as some of the best aspects that will ensure that the company achieves its set goals and duties. These aspects also help the organization to relate well with the community that lives around the company (Mintzberg, 2010). Organizational culture is where the company’s develop a way that that is aimed at improving the relationship; this is by introducing shared duties, beliefs, norms and practices within the employees in the organization and the external environment. From these issues the company can generate its strategies that help the company to operate.
The roles of organizational structure and culture in formation of an organization strategy
The first objective of organizational structure and culture in an organization is the improvement of the organizations ways of operations (Mintzberg, 2010). This is because all the concerned parties will be well acquainted with their duties and responsibilities in the organizations; thus they will be in a position of delivering services without being destructed by any new development in the ways they conduct their duties.
The other role of organizational structure and culture is to ensure that there is effective room for communication and coordination between the organizations employees and the organizations environment. This is mostly experienced when there are improved channels of communication between the respective teams; thus making the flow of ideas and consultation between the concerned parties to be more easy and effective, thus making the organization to achieve in its strategy.
It will also result to an improvement of the decision making process; this is because the organization will be well structured in a way in which the hierarchal arrangement is well structured. As a result making it easy to make the necessary critical decisions much faster; this is because there is a well known channel that will be followed in the process of decision making (Mintzberg, 2010).
Organizational structure and culture has also helped in improving the strategy of the organization by arranging the different parts of organization in different aspects that are effective in offering the best quality of services to their clients of the organizations. Consequently it will improve the cooperation between the organization and its clients; thus improving the credibility of the organization towards its clients as they will feel more connected to the company more than they were initially.
b) How does the culture of Nokia contribute to and detract from the company’s mission?
From the information in the article it has been noted that the culture of Nokia Company is playing a very significant role in the development and competition of the company with the other rival mobile phone manufacturing companies (Johnson, 2011). This is clearly indicated when the company has stuck to its ancient ways of leadership and operations to the extent of enabling the organization to be a global leader in the mobile phone manufacturing industries, above companies like Apple and Google from America and China.
The culture of the Nokia Company is enclosed; this is where the heads of the company are in a position of making all the senior most decisions without involving the other stakeholders the company (Mintzberg, 2010). Despite the organization having different branches globally, the company makes only the decisions that have impacts on the company’s homegrown; while the decisions don’t have any significant impact on the other regions that the company operates. This means that the company management of each region is responsible for making sustainable business decisions for the region.
The culture of Nokia Company is also affecting the company’s mission this is when it has maintained its traditional way of producing quality products, while its competitors like Apple and Google have reinvented their mobile phone products thus by manufacturing smart phones that are also known as tablets. On the other hand, Nokia has stuck to its traditional products that can’t be compared to the products of its competitors thus resulting to the reductions of the company’s sales.
The company’s management has also maintained its culture whereby it’s Chief Executive Officers CEO, are shifted to other regions without consultations. For instance, the company transferred CEO’s from the company’s country of origin (Finland) without involving other CEOs (Johnson, 2011). The CEOs hence failed to understand the taste and preferences of the different markets and communicate to the head office on the difference that exists between the different customers. As a consequence, the company would not make customized products for their esteemed customers.
Overdependence of the company on the Finnish population has made it easy for the company to be manipulated by the demands of the people to the extent of the company failing to experience the expected profits (Johnson, 2011). These demands of the Finland citizens that are against the broadening of the company to capture the interests of the outsiders have made its easy for the company to fail in its duties; thus experiencing the failures in achieving the success in the mobile phone manufacturing industry. The long stay in office of the company’s management board has also resulted to the reduction of the company’s productivity; this is because the board lacks the better innovative ideas that will offer the company’s competitors with the stiff competition that will ensure that the company achieves its mission (Johnson, 2011).