Motorola

Robert Galvin was one against 11 votes. Robert was the CEO and president of
Motorola, suggested an idea to the board of training all the employees, and
educating them to improve product quality. In the late 1970’s electronics industry
was on a boom, most of the knowledge had become common in just a span of 5
years. International companies were entering the US market as a competition to
Motorola. All the 11 board members were against Galvin’s suggestion for training
the employees. Being the chairman, he had the right to go against the board, as
training is something essential, he felt. But the question arrived was, is it worth
arguing for?
Motorola has sales worth $2.7 billion as a leading company for electronics in 1979.
The company designed and manufactured almost all kinds of electronics and
employed to nearly 75000 employees in 27 facilities around the world.
This company originated in 1928 as a battery company which Paul Galvin started
with his brother and was known as Galvin Manufacturing. It was in 1930 that the
made their 1st car radio which was affordable. Then he invented a walkie-talkie
which was the 1st product that he patented. There were 1st in all the products even
before the competitors knew about it.
The workers were like a family to Paul. The company when it was listed on stock
market at $8.50, he gave the workers the opportunity to purchase stock, he also
gave them bonus stocks and took care of the employees, which resulted in loyalty.
Then Paul retired from the post and handed the presidency to his son, who
expanded the business and took the company into various other products, including
TV, Radio, Pager, etc. Under the leadership of Robert, the company became an
international leader. Robert same as his father thought that the employees are the
greatest asset to the company.
Motorola was the 1st company to give leadership responsibility to employees and
allowed the workers to work on shop floor and fix the problem once they rose.
There was as open culture and the employees were free to do the work in their
way. There was no politics.
In 1970’s training was only for executives and was given as a reward. Galvin was
not happy with it as it didn’t make any changes in the organization, as the workers
were not trained.
In the 1970’s electronic industry was at a boom, new competitors from Asia and
Europe were entering the US market. The US companies like Texas Instruments,
General Electric and National Semiconductor were trying hard to increase their
share of market, and increase their exports. New communication products were
being used every year.
Galvin knew the workers needed training to improve their performance, but when
the board opposed him, he was in shock. He knew that not training the employees
would sound bad to the company and going against the board would create bad
atmosphere. Finally the decision was to be taken by him alone as being the CEO
and the largest share holder.