Term Paper: Nokia in Romania

By | April 28, 2011

Sample Term Paper

  1. Identify at least three factors that are likely to contribute to the extrinsic motivation of those hired. Explain how these factors will contribute

As we have discussed before that Cluj is an area which is affected by poverty and unemployment. In such a situation extrinsic rewards are very important as this is the primary need of the people living there.  Also if we compare this situation with the Maslow’s hierarchy of needs it would show us that these people would get highly motivated by the extrinsic rewards. Keeping in mind this factor what Nokia has done is set up the wage which is $450 per month.

Now as we have stated before that most of the people living in Cluj earns as little as $180 this amount would be very substantial for the workers as its more than double of their previous wage. Similarly besides wages the working environment in the plant is such that the workers enjoy their job rather than considering it as a burden. The company offers cafeteria to its workers where they can get food free of cost, then there is a gym and playing fields where the workers can spend their leisure time. apart from all these factors Nokia has announced that they would handle over the plant to local managers within four years. This would motivate the workers as they would be willing to put up extra effort in order to become the plant manager (Ahtiainen, 2008).

  1. Identify at least two ways Nokia motivates global managers to cooperate with each other and share their knowledge and expertise.

One way Nokia motivates global managers to coordinate with each other is through giving them incentives to help each other. Their bonuses are tied together with the performance of all the manufacturing units. This technique creates the feeling of helping each other rather than competing and these collective compensation plans of Nokia are working very well for them.  in the same way they also promote managers to visit their assembly lines and plants in different part of the world. This also creates a feeling of team work where worker share their experiences.

  1. Update the case information by using at least two (2) data sources in addition to the text.

It could be said that it is a very smart move by Nokia to set up its plant in Cluj as the Transylvanian university is able to produce thousands of qualified graduates who are attracted by foreign cash and well paid jobs. The company believes that they would be able to attract the local labor force by paying them more than the local employers (Reuters Limited, 2008).

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