HUMAN RESOURCE PRACTICES OF NOKIA

Human Resource Practices of Nokia



Table of Contents

Introduction2

Literature Review3

Significance of HRM Practices for Achieving Organizational Goals5

Critical Analysis of Nokia's Human Resource Practices6

Human Resource Planning6

Strategic Human Resource Management7

Employee Relations and Collective Bargaining8

Career Planning and Development9

Conclusion and Recommendations10

References12

Bibliography14

Human Resource Practices of Nokia

Introduction

This paper intends to discuss the basic functions of the human resource management that are carried out by 'Nokia.' Nokia is multinational telecommunication equipment information technology firm and was founded in 1871 in Finland. Today, Nokia is selling its products across 150 countries by employing around 122,000 people. Nokia is assumed to be the world's second largest mobile phone company. Nokia is witnessing a global market share of 22.5% from the beginning of year 2012 (www.nokia.com). Running such a huge company requires a lot of effort and focuses on attracting and maintaining quality human resources. This paper will analyze the basic functions of Nokia's human resource department with a special focus on four main areas of human resource planning, strategic human resource management, employee relations & collective bargaining and most importantly career planning and development opportunities offered by Nokia to its employees.

Nokia apparently focuses on its human capital a lot but recent incidents of announcing huge cuts of about 40,000 jobs since September 2010 makes the human resource practices of this company questionable. Despite the fact, which the company is cutting on jobs because of financial losses, the question remains important that how such a big company can negate the significance of maintaining quality human resources. This paper will also provide appropriate recommendations based on the analysis on its human resource practices so to impact the firm's performance positively. Moreover, the significance of using the important practices of human resource planning, strategic human resource management, employee relations & collective bargaining and career planning and development facilitate organizations in achieving their goals and objectives will be analyzed.

Literature Review

Effective human resource practices are assumed to be one of the most important aspects of any organization that works for growing itself and its employees together. In today's competitive business environment, companies tend to gain competitive advantage through employing quality human resources (Amit & Shoemaker, 1993 PP. 33-46). Having unique and appropriate human resource strategies based on internal strengths and weakness in order to take advantage of external opportunities and avoid threats make companies to succeed. Strategic planning and management becomes the most important aspect in this context (Arvey et al 2006 Pp. 1-20). Starting with the human resource planning, it is the most important task that the human resource department of any company must undertake in order to plan for the future human resource requirements. Nokia has setup a completely different department of workforce planning and recruitment (www.nokia.com).

Strategic human resource management is the aspect of overall business strategy which works for making decisions about the employment plans and relationships. Strategic human resource management relates to the basic functions of planning, designing effective personnel systems, aligning the human resource strategy with the business strategy and lastly making human resources ...