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The role of HR in developing organizational capabilities in Nokia Nokia is Finland's best known cocnpany and its area of business reflects Finland a position as one of the world's leading ICT specialist counlries. Finland has been parnicularly adcpt at explaiting the intemet for e-commerce, having one of the highest internet connection rates globilly. The economy is underpinned by a well-educated and traincd work force. Since the mid. 1990 s adult cdecation and trainiag has become an increasingly important feature of national policy and is available in over one thousand institutions, although the majority of adult leaming takes place within organizations in the foras of training provision or workplace leaming. Finland has been able to realize the benefits of a knowledge-based economy, achieving excellent levels of productivity, innovation, and competitiveness. National Vocational Fducation and Training has been heavily influenced by the EU commitment to the development of a learning society and comperence-based training. Training practice in Finnish organizations has been regarded as being quite innovative, drawing upon a wide tange of leaming and development interventions incloding the insplementation of new types of training course, the facilitation of workplace learning and the utifization of organizational intrancts In 1999Nokin appointed a new head of HR, Hallstein Mocrk, who set out to design a global approsch to HRM. The first step imvolved putring in place some new basic HR tools and systeras (c.g. global recruitment and performance management systemts). The second step was to improve and maximize employee commitment and engagement throwgh a focus on development, recognition, and employee wellbeing. The third step was to begin the improvement of organizaticotal capabilities which entailed a great deal of time and effort. In the past Nokia was renowned for its ability to be innovative and flexible and now needs to be even mone so as global competition increaces, industry boundaries blur, and the pace of change becomes more intense. This means that as the company moves forward there will necd to be increasing cmphasis on finding new ways of working. The HR function is playing an important role in this process. For instance, there is a shift in emphasis from traditional training courses to action leaming settings Sources Wetherly, P. and Otter, D. (2008) The Business Enviromment: Themes and /sules. Oxiord: Ox ford University Press. Mankin, D.P. (2009) Hluman Resource Developenent. Oxford: Oxford University Press, Steinbock, D. (2010) Winming Across. Globcd Markets: How Nakfa Creares Siraregic Adixasage in a Fask-Clangang. World. San Francisco. CA: Jossey-Bass. hrtpilinvestors nokia com/phoenix zhtml?c=107224kp=irolncwsArticled ID 1527949 khighlight (accessed II March 2011). (e.g. Nokia's globol leadership development grogram): 'Nokians have discovered that learning comes from action, experiences, new jobs, living in a new cocantry, and participating in action leaming settings. +There is also an ermphasis today on HR peocesses and practices that atract taleat Worldwide to ensure diversity, the improvement of creativity and innovation, and the enhancement af consumer satisfaction with Nokia's peoducts and services. The company has been seeking to improwe retention of talented employees throogh the improvement of management skitls and teantwork. These changes have parallel the firm's decision to divest its non-core activities, such as paper, rubber, footwear, chemieals, asd cables, in order to focus on its eore business of telecoctmunications. In February 201I the company announced its new strategic direction, broadly covering the following arcast. - Plans for a broad strategie partnership with Microsott to build a new global mobile esosystem with Windows Phone serving as Nokia's primary smartphone platform. - A rencucd approach to capture volume and value. growth so connect 'the next bilion' to the isternet in developing growth markets. - Focused investments in neat-generution disruptive tochnologies. - A new leadership team and organizational structure with a clear focos on speod, resultu, and accountability. The firm's continued growth reflects its investment in research and development as well as its acquisitions and divestments. Currently, it is the world's largest manufacturer of phones and a globally rocognized brand. Case study questions 1. In terns of talent management, to what extent is it possible lo discem both vertical and. horizontal strategic alignment in this case study? 2. In what ways could the role of the HR function be changod in order to provide better support for Nokia's talent management strategy? 3. What might be the principal barriers to implement any changes identified in answering the second question? Souarces: Wetherly, P. and Otter, D. (2008) The Bacsincss Ervironuent: Themes and fosucx, Oxford: Oxford University Press, Mankin, D.P. (2009) futman Resource Developuent, Oxford: Oxford University. Press. Steinbock. D, (2010) Wisying Across Gilobal Markets: How Nakia Creales Strategie Advantoge. in a Fae- Chamging World. San Francisco, CA: Jossey-Bass. httpi/investors nokin.com'phoenix. htm|?c=10722.4dn irolnewstirticleke ID =1527949 Schighlight =( accessed 11 March 2011)