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Objectives 1. 2.

3.

Introduction Analysis of case

Who act as the Change Agent/leader ?

4. How the implement the training process? 5. 6. 7. Benefits of training Model related to case Problem in the case

Case Analysis 6 Sigma in Motorola


The Case is basically divided into 2 parts. The first part Motorola (A) is all about the leadership and the second part Motorola (B) is related to training. In this case of Motorola the depth of leadership and training has been critically described. This case is all about, What are the changes Robert Galvin (CEO of Motorola co.) trying to bring in the training style of his organization workforce?, What challenges he and his organization faced in implementing those change? & How the new style of changing the training style of Motorola brought revolution to train the workforce worldwide? After studying the history of the company the concept was crystal clear that What was the core reason of Motorola in becoming the most influencing player of its industry?. The short and simple reason was change. From the beginning of this organization the management belief was in change with the time. Motorola co. was started in 1928 and registered with the name of Galvin Manufacturing by Paul Galvin. Company made its bench mark in the year of 1930 by developing the car radios are affordable price. After that company developed two-way FM radio which was famous with the name of walkie-talkie. The company was very much famous for its car radio due to which it was later named as Motorola. Paul Galvin earn the trust and loyalty of his workforce when he issued IPO for the very first time in 1937 at the price of $8.50. He rewarded his employees who invest the annual bonus in the shares of his company. In middle of 1950s, Paul Galvin transfer his presidency to his son Robert Galvin & after the expiry of Paul Galvin his son Robert Galvin become the CEO of Motorola holds the position of CEO for three decades. Under the leadership of Robert Galvin Motorola developed the technology so far in the electronic industry. They developed many new products. Motorola was the first company who introduce the 8 tracks tapes, cellular telephones, television, remote paging. Motorola was the first company who provides the television in just $200 in late 1960s. Robert Galvin treats his workforce as his assets, he always encourages his workforce to improve the productivity and reduce the errors. At Motorola employees are not overloaded with memos and never deal with political environment because in Motorola employees are to do whatever is necessary to complete their task. After becoming international leader in the electronic market Robert Galvin focused was on give training to his employees. At that time the training opportunities was only for executive employees only who were already good at their work. Robert Galvin was disappointed because after the establishment of the Motorola the training scenario of employees was never changed. He was concerned about the training of the other workforce. Another reason for this step was increasing

competition in the market. To maintain the leadership in the electronic market it was mandatory of maintain the quality of the co. workforce. Robert Galvin was aware that during the training practices of Motorola workforce co. may lack behind for its competitors but for it would be benefiter for the company in long-term. The other board members of the company was not in favor of Galvins idea of training but he as a CEO & largest shareholder he decided to go for his training idea. Motorola started a MTEC (Motorola Training and Education Center) with the vision of near-perfect quality throughout the organization. Motorola name it Six Sigma quality. Six Sigma means continuous improvement. The motive to of establishing the MTEC was to create a culture of quality among all the employees. The investment of Motorola gets in $30-$33 return per dollar. By the 1989 the demand of training grown so significantly that Robert Galvin and the other directors decided to expand the MTEC into a corporate industry university. By the year of 1996 the university operated in 13 sites around the world with 900 courses in 24 different languages. Motorola established a new culture of training the employees among the organization in U.S. On average every U.S organization spend its one 1 percent of cost to train their employees. On the other hand Motorola was spending 3 times more in contrast of the other organizations. The great focus of Robert Galvins to make his workforce effective helps the Motorola co. to become first U.S electronic company to outperform its Japanese competitor. Also, in 1988 the first large corporation to win the Malcolm Baldrige National Quality Award. By this 40 hours training policy voluntary turnover decreased from 10% to 5%. It also built a strong relation and loyalty among employees. Motorola had learned from previous experiences that being ready for change was important in rest years as when profits were soaring.

Change Agent
A change agent is a person that acts as a catalyst for change. In business terms, a change agent is a person chosen to bring about organizational change. In this case Robert Galvin acts as a change agent. Moreover he acted as a good leader. He did not force his employees to change rather he cooperate with them and help them to reduce waste. Robert Galvin treats his workforce as his assets. He always encourages his workforce to improve the productivity and reduce errors.

How they implement training process?


1. They implemented their training program very beautifully. The main point is that they did not force any employee for training. Even after the objection of Motorola directors Galvin invested a big amount in training process. 2. Galvin also rewarded those workers who used their annual bonuses to purchase company stock.

3. By 1996, Motorola was spending $200 million per year teaching 142,000 employees around world. 4. The company also provide 5 days training program for employees and they also received salary and benefits during training. 5. Galvin always motivated his employees for more and better training. Because he knew without them his company cant compete.

Benefits of training
1. Employees become more loyal and quality of products improve. 2. Six sigma training provide employees with tools to significantly and continuously reduce manufacturing errors. 3. Training reduced their turnover from 10% to 5%. 4. Helps in increase the sales.

Model related to case


The case is divided into two parts. First one talks about leadership skills. The first part is related to Lewins three steps model. 1. Unfreezing :- Galvin felt a need of change in training system. 2. Change :- Motorola gave new ,better and different training to his employees. 3. Refreezing :- They made system to help and adapt this change brought by 6 sigma. The second part is related to training . In which we talk about six sigma and more technological aspects. So second parts is related to Porras and Robertson model. . This model states that OD is a practical application of the science of organization. Drawing from several discipline for its models, strategies and techniques, OD focuses on the planned change of human systems and contributes to organization science through the knowledge gained from its studies of complex change dynamics. OD interventions alter features of work setting causing changes in individuals and organization improvement. The work settings play a central role in this model and

consists of four factors, including: (a) organizing arrangements, (b) social factors,(c) physical setting, (d) technology.

Problems Identified In the Case


As such there is no any problem in this case. The basic problem was related to training. In 1970s, training opportunities were only for senior management. Motorola sent a handful of company executives to an intensive program focused on business administration skills. But Galvin was disappointed with results because that was more or less equal before training and after training. Galvin realized this problem. He knew that until or unless we did not train our employees we were unable to compete. To compete and prosper in technology sector worker needs more and better training. So they have to change the training process. Galvin considered his workforce as his assets. So he wanted to invest more and more in their training program. He knew if they wanted to achieve 6 sigma in technology they have to first improve their employees skills. Galvin did so well with its training program they got a huge no. of employees which forces them to open a university for their training program.

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