Nokia Hrm Practices

952 WordsMar 25, 20114 Pages
Question 1: Nokia applies specific HRM practices that focus on attracting and retaining good employees. Discuss the significance of this strategic approach to talent management that is adopted by Nokia making them a leader in the mobile phone and telecommunications industry. 1.0 Introduction Global competitiveness seems to be the biggest challenge that most businesses and organisations are facing in the field of management nowadays. Emphasis today is more on strategic human resource management. Success is most likely if personnel policies and procedures are in line with corporate objectives. The aim of Human Resource Management is “to ensure that the organization is able to achieve success through people.” (Armstrong, 2001:4).…show more content…
It is then that the employees will be motivated. There is also the need to measure and reward strong performers. To allow the strongest performers to stay in the organisation, they must be rewarded and promoted or else competitors might attract them. Nokia is mainly focussed on two aspects: financial compensation in terms of high salaries, bonuses and compensation in terms of variety of possibilities to create personal work-life balance. 1.4 Strategic approaches There is no doubt that whichever strategy is adopted, this will impact on the HR practices. The different strategies are; overall cost leadership, differentiation, concentration strategies, internal growth strategies, mergers and acquisitions and downsizing. Nokia has also witnessed different strategies which started with a merger of three businesses in 1967. Then, a major crisis in the 1970s and 1980s forced the company to revise their business activities. The company went through another transition in the 1990s to become a global player in telecommunications. However, Nokia also had to adopt a downsizing strategy in the spring of 2003. 1.5 Talent management Talent management is the use of an integrated set of activities to ensure that the organisation attracts, retains, motivates and develops the talented people it needs now and in the future. The aim is to secure the flow of talent, bearing in
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