What Form of Departmentalization Has Nokia Relied on

Question

1) What Form of departmentalization has Nokia relied on? 

Departmentalization plays a very vital role in defining how an organization carries out its activities. Organization structure, helps to show how activities in an organization are organised. The arrangement of activities is key in defining the levels of authority and responsibility. In this we grouped similar activities into the same department.

The organization structure is based on the size of the company, its products and services being produced, and the complexity of challenges which an organization is facing.

Nokia Corporation has been relied on product based organization structure in the past three decades. Product based organization structure is helpful in organizations which produce different ranges goods. It is ensured that for every product the manufacturing process is standardized resulting in supreme quality products.

Nokia started offering products such as televisions, audio equipment, and rubber tires. This structure have likely been adopted due to the differences in the products manufactured in each department and the associated specialist required to manufacture or develop each product. Nokia is departmentalized into groups and they joined with photography, games, music and other multimedia products and became a divisional structure based on multimedia divisions. In 2006, they merged with Siemens and became a network structure.

Nokia is making changes to focus on smart phones and smart devices to keep up with the times and market demand.

2) Evaluate Nokia's changing organizational structure.

External environment was changing from conventional products to high tech products. Nokia’s ability to adapt to changes in technology and the external environment has allowed them to continue to be successful. High tech products require greater attention and expertise. So the Nokia continues to focus its attentions on the product lines that are more successful and move away from what is not working Expertise can be obtained when there are individuals with similar specialities. Functional structure can enable the above. Therefore, this structure appears to contribute to the success of Nokia.