Nokia has seen a big shift in the way that they conduct business, mainly due to recent advances in technology. These advances have primarily come from competitors such as Apple and Google, whom are developing smart phone technology that has taken off in recent years. This loss of high end market share leads into why Nokia has to change its strategy; and they must do it soon.
Stephen Elop, who took over as Nokia's CEO last autumn, is in the midst of a major change effort. A recent Wall Street Journal article has outlined that several senior managers within Nokia will be leaving the company. These people are leaving as part of the CEO's plans to revamp the company. This is one step in many that will lead to motivating the entire company to reach a common goal.
The path-goal leadership theory can be applied to this situation in the way that basic ideas of the theory are laid out in the few actions that the CEO has taken thus far. A defined goal is apparent in Nokia, to surpass their close competition in the smart phone industry. A clarified path has been outlined by Elop in the way of far-reaching goals and changes to current strategy, especially in the U.S market. Removing obstacles can be attributed to many top managers leaving the company, whom may have been complacent and resistant to change. Providing support is aided by a fourth-quarter report that posted falling earnings, analysts say that this gives Elop legitimacy to undertake such deep surgery on the company's structure.
The path-goal theory was developed to explain how leaders motivate subordinates to be productive and satisfied with their work. To do just this, Elop is using directive behaviors to map out instructions to subordinates about their task to regain market share within the smart phone industry. One way they will go about doing this is to hire experienced new heads of operating systems and R&D. This can also be seen as a participative leadership behavior because Elop is allowing executive recruiters to do this new hiring. He will support their decision, another leadership behavior, in hiring people to implement steady change. The last behavior of this theory is achievement-oriented, which deals with the leader challenging subordinates to work at their highest level. This will be seen by the CEO in the far-reaching goals and strategy changes he is to outline.
By: Jon Pieper
http://blogs.wsj.com/source/2011/02/07/nokia-ceo-is-a-man-in-a-hurry/?KEYWORDS=CEO+current+news
I have not heard anything lately about Nokia, which is a big sign that they are truly falling behind with new technology. Therefore, I think you are correct in that they need to do something quick. Although, I do not think that changing out many senior managers is going to help this case with such a big transition. Yes, it is going to be important to get new and fresh ideas, especially into the R&D department, but with Nokia trying to play catch up, too much change might put them even further behind. I think that both directive and participative leader behaviors are necessary in order to get what Elop wants done. The directive behaviors are going to be crucial in order to be able to get all the technical things done around the company. By telling different departments what to accomplish I think that they will be able to fill a lot of the gaps throughout the company. But, in this case, the participative behaviors are also going to be important to the subordinates because they like thinking that they have a say in what is going on. With the subordinate characteristics, it is going to be important to keep the employees thinking that with their efforts they have the ability to compete with companies such as Google and Apple. I think the task characteristics that come into play should be organized and made the primary work that the subordinates are working on. Because the subordinates will have clear tasks the leader will be able to focus on different aspects of the business.
ReplyDeleteI also think another theory that could be applied to this situation is transformational leadership. It will be important for Elop as a CEO to make sure that he is a strong role model (idealized influence) because if he believes in his company and begins to make positive changes, so will his employees. Secondly, with all the current changes taking place, communicating what his expectations are is going to be crucial (inspirational motivation) to the company’s progress. Nokia is also going to need to be informed with the newest technology by stimulating employees to be creative and innovative, which will help with the technology gap (intellectual stimulation). Lastly, Elop needs to make sure his follows are going to stick by him. In order to do this, he should listen to their needs and help them grow as employees (individualized consideration). Overall, I think they are both good theories to apply, approaching the situation in two different ways.
--Posted by Devan Pritchett
I believe that Stephen Elop should definitely use a directive leadership behavior during this new change. Since all of the new tasks are going to be unclear and complex, the subordinates will need a lot of guidance.
ReplyDeleteHowever, on a side note, I found this post to be every interesting. I heard a while back that Nokia was going to be making changes to compete with other phone companies, but I still have yet to see or hear anything about it. It will be neat to see a new competitor try and go up against Apple, Google, and Motorola.
Posted by: Genise Logston