Groub B was part of the reason for Nokia's fall in mobile phones.
Nokia decided to develop incentive system package for key employees and it totally screwed up work atmosphere at the senior level.
Once Nokia stock skyrocketed, Nokia workforce was divided into two with system that was not all clear. Sudden multimillionaires and those who didn't get anything extra often working side by side. One group started to take it easy, or leaving the company. Others were bitter because they had to work with millionaire coasters who were suddenly more opinionated because getting fired was not an issue.
The most ironic thing was that MIT economist Bengt Holmström was a member of Nokia's board of directors when it happened. He received Nobel memorial price for economics last year for developing contract theory and researching incentive systems within companies. He knew it was overly complex and inefficient system, but nobody was interested to know what the number 1 guy in the field was thinking. http://mitsloan.mit.edu/newsroom/articles/in-nobel-prize-lec...
Nokia decided to develop incentive system package for key employees and it totally screwed up work atmosphere at the senior level.
Once Nokia stock skyrocketed, Nokia workforce was divided into two with system that was not all clear. Sudden multimillionaires and those who didn't get anything extra often working side by side. One group started to take it easy, or leaving the company. Others were bitter because they had to work with millionaire coasters who were suddenly more opinionated because getting fired was not an issue.
The most ironic thing was that MIT economist Bengt Holmström was a member of Nokia's board of directors when it happened. He received Nobel memorial price for economics last year for developing contract theory and researching incentive systems within companies. He knew it was overly complex and inefficient system, but nobody was interested to know what the number 1 guy in the field was thinking. http://mitsloan.mit.edu/newsroom/articles/in-nobel-prize-lec...