Abstract:

US based Motorola is the world's leading electronics and telecom goods company. It has been
adjudged as one of the top employee training companies in the world. Motorola gave utmost
importance to training right from its inception. This case describes how training, and a strong
learning ethic has been an integral part of Motorola's culture.

It explains in detail the various employee training and education initiatives undertaken by
Motorola University and examines how these initiatives helped in improving employees
‘productivity, performance, and quality of work. The case also describes Motorola's e-
learning initiatives and highlights the benefits of e-learning for employee training and
development.

Issues:

» Understand the best practices in training and development of employees

» Appreciate how the training and development process evolved over the decades at Motorola

» Analyse the role of Motorola University in offering high quality employee training and
education programs

» Study the method of designing the curriculum, instructions and learning modules at the
Motorola University

» Critically analyse the e-learning initiatives at Motorola and examine its benefits and
drawbacks.

"Training and a strong learning ethic are embedded parts of Motorola's culture...The
corporation learned some time ago that dollars spent on training programs not only
empowered their employees but provided the necessary skills for the company's marketplace
dominance.

Top Training Company in the World

For nearly eight decades, the US based Motorola Inc. (Motorola) has been recognized as one
of the best providers of training to its employees in the world. Motorola began training its
employees' right in 1928, the year of its inception, on the factory floor as purely technical
product training.

Training, at that time, just meant teaching new recruits how to handle the manufacturing
equipment to perform various predetermined tasks assigned to them. But by the 1980s,
Motorola had emerged as a model organization in the corporate world for employee
education, training and development.

The innovative training programs of Motorola turned training into a continuous learning
process. In the 1980s, the training initiatives of the company culminated in the setting up of
the Motorola Education and Training Center, an exclusive institute to look after the training
and development requirements of Motorola's employees.
The institute was later elevated to the status of a university - Motorola University - in 1989.
These training experiments became such a resounding success that employee productivity
improved year after year and quality-wise Motorola's products became synonymous with
perfection.

Leading companies all over the world visited Motorola's headquarters to study the high-
performance work practices of the company. They discovered that Motorola's success was
built on the strong foundations of corporate-wide learning practices and that Motorola
University was the cornerstone of corporate learning.

Human Resource Management

In recognition of its excellent training and development practices, the American Society for
Training and Development (ASTD)4 named Motorola the 'Top Training Company' and
conferred on Robert Galvin (Galvin), the former CEO of the company, its 'Champion of
Workplace Learning and Performance Award' for the year 1999. Speaking on Motorola's
training initiatives and Galvin's contribution, Tina Sung, President and CEO of ASTD, said,
"Galvin is a true champion of employees being an integral part of the organizational success.
He set the corporate standard for investing in education and has demonstrated that training
and development pay off in productivity, performance and quality."5

Background Note

Motorola was founded in 1928 when the Galvin brothers, Paul and Joseph, set up the Galvin
Manufacturing Corporation, in Chicago, Illinois, USA. Its first product was a "battery
eliminator," which allowed the consumers to operate radios directly using household current
instead of batteries.

In the 1930s, the company successfully commercialized car radios under the brand name
"Motorola," a word which suggested sound in motion by combining "motor" with "Victrola6."
In 1936, Motorola entered the new field of radio communications with the product Police
Cruiser, an AM automobile radio that was pre-set to a single frequency to receive police
broadcasts.

In 1940, Daniel Noble (Noble), a pioneer in FM radio communications and semiconductor

technology, joined Motorola as director of research. Soon, the company established a
communication division followed by a subsidiary sales corporation, Motorola
Communications and Electronics in 1941.

The Motorola trademark was so widely recognized that the company's name was changed
from Galvin Manufacturing Corporation to Motorola Inc. in 1947.

Motorola entered the television market in 1947. In 1949, Noble launched a research &
development facility in Arizona to explore the potential of the newly invented transistor. In
1956, Motorola became a commercial producer and supplier of semiconductors for sale to
other manufacturers.
The company began manufacturing integrated circuits and microprocessors in a bid to find
customers outside the auto industry. In 1958, Motorola opened an office in Tokyo, to
promote customer and supplier relations with Japanese companies.

By 1959, Motorola had emerged as a leader in military, space, and commercial

communications. It had built its first semiconductor production facility and was emerging as
a growing force in consumer electronics. Motorola expanded into international markets in the
1960s, setting up sales and manufacturing operations around the world' During the period
1967-1978, Motorola expanded its international presence by adding plants in many countries
including Australia, France, west Germany, Hong Kong, Israel, Mexico, South Korea,
Taiwan, and the UK.
In the 1970s, Motorola faced stiff competition from Japan, especially in consumer
electronics. The company shifted its focus from consumer electronics. It began to
manufacture watch batteries, and the first Motorola microprocessor was introduced in1974'
Early customers were from the automotive, communications, industrial and business
machines sectors. In the l980s, the company moved into communications devoted huge
amounts of time and money to the development of cellular phone technology. The efforts
resulted in the introduction of Dyna'TAC, the 28-ounce handheld phone in 1984. It also
developed a range of increasingly smaller and more efficient pagers.
The 1990s saw a period of rapid growth for Motorola. Faced with increasing competition,
the company formed the Messaging, information, and Media unit in l99l for the development
of a range of technologies for non-voice wireless messaging and multi-media' products. The
company's handsets became very popular due to the mobile communications boom. However,
during the late 1990s, the sales of the company were affected by problems in the Asian econ-
comes. Therefore, starting 2000, the company entered alliances and joint venturesl0 to
achieve a global presence.
By 2005, Motorola had emerged as comprehensive communication services provider offering
wireless, broadband, and automotive communications technologies and embedded electronic
products. The company's business segments were Personal Communications, Global Telecom
Solutions, Commercial, Government and Industrial Solutions, Integrated Electronic Systems,
Broadband Communications, and Other Products. Cellular products made up nearly 40 per
cent of Motorola's sales, and the company became the world's third largest manufacturer of
semiconductors. Motorola had operations in over 40 countries, and more than 50 per cent of
its sales come from outside the US. For the fiscal ending December 31,2004, the company
posted total revenues of US $3l ,323 Mn and net income of US $1532 Mn.
TRAINING AND DEVELOPMENT INITIATIVS
Motorola had started training its enrolee’s way back in the 1920s, and the importance of
training continued to grow. Till the early 1980s, Motorola had its own standard employee
development activities in which training was the key element. During those days, when
people were recruited for manufacturing, the company looked for three essential qualities in
the employees - the communication and computational skills of a seventh grader; basic
problem-solving abilities both in an individual capacity and as a team player; and willingness
to accept work hours as the time it took to achieve quality output rather than regular clock
hours. The quality of the output was the primary consideration for Motorola, and employees
were expected to make full efforts to achieve qualify. Most of the employees learned their job
through observing the seniors at work and leaming through the trial and error ' method. The
training lessons imparted to them involved techniques to improve their communication skills
and sharpen their calculation skills. Employees were hired to perform set tasks and were not
required to do much thinking. If they had a problem with one of the machines, a trouble-
shooter was called to fix it.
However, after World War II, technologies changed and so did manufacturing practices.
competition too became more intense. During the 1970s, Motorola’s human resource (HR)
department began to realize that the rules corporate training and education had to be rewritten
in tune with the changing times. Employee performing their defined tasks meticulously was
no longer enough for the company, the employees needed to understand their work and the
sophisticated equipment they handled in more detail. The senior management’s role now was
no longer limited to supervision; they had to learn new skills and technique and exemplify
them to subordinates.
Before modifying Motorola’s. employee training practices, the HR department conducted a
corporate-wide study in 1978 and tested the skills of employees. The tests revealed the
astonishing fact that a majority of the workforce was incapable of doing simple arithmetic
calculations like percentages and fractions; some of them could not even understand the
product related instructions on the package but identified the product by colour of its package
and dealt with it according to the established procedure.
These discoveries made the HR department think of going beyond improving the working
skills of employees to enter new areas of education that had never been touched upon earlier.
Instead of only technical skills instruction, training was now made two-pronged - teaching the
10th grade school basics at the fundamental training level, and introducing new concepts of
work, quality, community learning and leadership at the development level.
Gone were the days of calling an expert every time a machine developed a minor problem.
Even if the services of the expert were unavoidable, the workers were at least expected to
describe the failure clearly with all technical details. Apart from maintaining a high quality of
work, the employees were also expected to understand their equipment, anticipate and
analyse breakdowns in equipment, and begin the troubleshooting process before the expert
arrived.
In 1979, Galvin asked the HR department to design a five-year old training plan to upgrade
the skills of its employees. However, the plan focusing on new tools, technologies and
teamwork did not produce the desired results. New and sophisticated equipment was
deployed, but the plant managers did not change their working style. Galvin also established
the Motorola Executive Institute, borrowing faculty from leading universities across the
world, to take a course on management subjects to 400 executives in four weeks. The top
management was trained in international business issues such as economics, personnel and
international relations. The participants learnt a great deal but failed to implement what they
learnt, and the ultimate result of the program was disappointing.
Galvin realized that the training programs were not yielding desired results because the top
management was learning new things but was unwilling to change its old ways. He believed
that the top management would lead the change only if they felt a compelling need to change,
and if this need was also felt through all the levels in the company. It also meant that training
was required not just for executives but for workers as well. To carry out these training
programs, an employee education department named Motorola Training and Education
Center (MTEC) was established in 1980. The twin objectives of this programs were: to
expand the participative management process’, and to help improve the quality of products
tenfold in the coming five years. The programs were intended to educate Motorola’s people
as well as to be an agent of change. Initially, MTEC analysed the existing jobs profiles and
tried to anticipate how they might change in the near future so as to train people accordingly.
A five-part curriculum was designed with a thrust on product quality.
However, this elaborate program meant that at a typical plant with 2,500 workers, the MTEC
was using 50,000 employee hours -a lot of time away from the job for training program
which many skeptics called highly esoteric. The company initially considered the time worth
the investment, but soon the skeptics were proved right, Later evaluations showed that people
attended the program, took the courses went back to their jobs and reassumed their old
attitudes.
When the course was designed, the HR department thought that the people at whom it was
aimed at would sign up enthusiastically. However, the experiment showed that people resisted
formal classroom training. Therefore, MTEC developed self-help material which employees
could take home. But this attempt, too, failed as the workers did not consider the homework
packages as real training. They took home the study material and never bothered to open it.
The employees did not seem to consider training necessary, whether it was imparted in a
formal classroom or as a learn-at-home package.
The HR department was now in a fix It was not a case of people not being able to earn but a
situation where they were not willing to learn. So, now the challenge was to motivate the
people to overcome their complacency and make them learn, Motorola had always
emphasized employee loyalty and in its early days, people were hired for life. After ten years
of service, they became entitled to membership of the Service Club, which meant that they
would not be terminated except on the grounds of poor performance or dishonesty. The
management felt that the time had come when people had to be told that `poor performance'
included unwillingness to change. They made it clear that everybody would be retrained on
new technologies. If anybody refused to retrain, they would be dismissed.
Another challenge for the HR department was the conflicting behavioural patterns of
different levels of management. The top management always insisted on meeting the
deadlines; whereas the workers, who had been taught quality improvement techniques, were
eager to implement them, sometimes resulting in late deliveries. Workers wondered why they
were not being given time to implement the new quality improvement techniques and the top
management wondered why quality was not improving in spite of training. The middle
management was caught between the conflict between the top and bottom cadres.
By 1984, the department was disheartened by the discouraging results of the training
program. It decided that training was required for the top as well as the bottom management
levels, and that these two programs needed to be integrated so that bot levels would be aware
what training was being imparted to the other level. The HR officials wanted the different
management levels to realize that better quality could be achieved within the stipulated time
by integrating efforts across various levels. The top management was taught that simply
meeting the deadlines was useless unless quality standards were met, and the workers were
taught that production was a time-bound process, and they could not work for indefinite
periods to achieve perfect quality. This way both parties understood that quality and deadline
were equally important, and that absolute quality was to be achieved within the prescribed
time constraints.
In 1985, Motorola established a new cellular manufacturing facility in Arlington Heights, US.
The workforce in that plant had improved quality ten-fold in the first five years of training.
Since they were about to be given the greater responsibility of taking the company’s products
globally, a quick math test was conducted to assess the need for further training. The result
was shocking. Only 40 per cent of the employees knew 10 was what percent of 100. The
reason for this was that the immigrant Workforce found it difficult to comprehend English. It
meant that despite the improvement in quality, basic communication and arithmetic skills of
the workforce needed to be sharpened, and the employees needed remedial elementary
education to meet the business needs. However, MTEC was not equipped to provide remedial
education. They decided to ask some community colleges and other local institutions to help
out but were surprised to find that the community colleges were not equipped to meet their
training requirements. The course content often did not commensurate with the title.
After various experimental training programs, the HR department came to the conclusion that
occasional training programs and tie-ups with educational institutions and universities would
always leave learning gaps. Therefore, the company decided that only a full-fledged
educational institution of its own would be able to cater to the training and development
needs of the employees in the light of company’s global business strategy. The Motorola
University was born in 1989 to serve this purpose.
The Motorola University
After conducting various training experiments that spanned a few decades, Motorola came to
understand that training involved more than designing and implementing one particular
program for a set of employees. To keep improving performance, training should be a
continuous learning process involving each and every person in the organization. Normally,
training was an ad hoc measure, whereas education gave the recipient a vision. Education was
viewed as an investment rather than a cost. Therefore, Motorola decide to elevate MTEC to
the status of a university in 1989.
Motorola’s objective in having its own university was to provide education relevant to the
company, to the job and to the individual. Therefore, Motorola University could not operate
on the same lines as regular universities. It designed its own courses and method of imparting
training and maintained absolute autonomy. It was decided as he time of the launch of the
university that it would operate with its own board of trustees who were general managers of
the company. Their duty was to understand the training requirements of the company, design
a course to meet those requirements and impart training to employees to re-define their
responsibilities in accordance with the changing times. The responsibility of the university
was not just to educate people, but to operate as a change agent. It served as the link between
employee education and the company’s business strategy, whether the objective was reducing
costs in operations improving product quality or accelerating new product development.
The curriculum was designed keeping in view the requirements of the company. Emphasis
was laid on participative management, empowerment, motivation, individual dignity, and
ethics. Employees were taught various business-related topics ranging from the fundamentals
of computer-aided design t robotics, from communication skills to customized
manufacturing. Training instructions were offered in three broad categories – engineering,
manufacturing, sales, and marketing.
Each of these three disciplines was further divided into three parts – relational skills,
technical skills and business skills. Relational skills included customer satisfaction, effective
meetings, effective manufacturing supervision, negotiation, and effective presentations.
Technical and business skills included basic math, electronics, accounting, computer
operation, and statistical process control. The relational skills curriculum was designed and
developed by Motorola University whereas those of technical and business skills were
developed in cooperation with community colleges and technical schools.
Initially, Motorola University listed the courses in a catalogue and the employees were
required to take a certain number of courses. The University had appointed a Chief Learning
Officer whose role was to provide employees the required courses in a cost-effective manner.
However, this model changed in the 1990s, and apart from the three basic categories of
instruction, the University began to offer several other minor Motorola employees and to
outsiders who made a payment. “Managing The courses. Such course material, textbooks and
other instructional materials were offered to minor courses that took a short time to complete.
For instance, courses like “Managing the Software Development Process” took four days,
“Shor-Cycle Manufacturing” took just one day.
Instructions were also tailored to meet the unique needs of the company. Most of the
instructors in the university were not regular professors. Instead, the company relied on
outside consultants including engineers, scientists, and former employees of the company.
Their responsibility was to guide the employees in their thinking processes as well as helping
them remember what they had learnt. The instructors were also specially trained and certified
so that each instructor would not follow his/her own method of teaching but would stick to
Motorola’s method of participative instruction and learning. Commenting on this, William
Wiggenhorn, Corporate Vice-president for training and education and the President of
Motorola University in the early 1990s said, “We don’t want them to teach their version of,
say Effective Meetings, we want them to teach ours. Not everyone can deliver on those terms.
For example, few academics can do it our way. They’re used to interpreting material
independently, so after the first page, it tends to take on their own particular slant. It may
make a fascinating course, but we can’t have 3,000 people learning 35 different versions of
effective Meetings.
Learning at Motorola University did not mean employees reading countless manuals; nor was
it a monotonous and unilateral technical presentation by the instructor without entertaining
any discussion among the participants. The instructions delivery was highly interactive, and
the participants learnt by inventing and developing their own products as well. While all other
corporates offered some form of training to employees, Motorola University’s role was to
synergize employee education with business targets. For instance, the company would set a
goal to reduce product development cycle time; then it would ask the university to develop a
course on how to do it. Retired employees teaching at the university would know how to
teach such a subject with a practical orientation. Employees would attend the course and
develop their own methods and implement them. This way, the training would be completed
by achieving tangible results for the company.
Another unique feature of training at Motorola was that while most of the corporates
imparted training to selected employees such as the top management or technicians, Motorola
extended training to all its employees spread across the globe. Employee training had become
SO deeply ingrained at Motorola that every employee – from top management executive to
factory worker – had to identify courses he/she wanted to study each year. Each employee,
including the CEO, had to undertake a minimum of
40 hours of formal coursework each year (Refer to Exhibit Ill for the executive education
profile of Motorola in the 1990s).
If supervisors spotted performance deficiencies for a particular employee at annual
performance reviews, a special remedial plan was set up for him/her immediately. The
effectiveness of all the training programs was measured by using traditional Kirkpatrick
Level 1 and Level 3 measures (Refer to Exhibit IV for a brief note on Kirkpatrick evaluation
levels). However, the most important test was ‘whether the problem was solved or not.’ After
the completion of remedial training, the supervisor evaluated the performance of the
employee to determine whether the earlier deficiencies had been dealt with. In some cases, if
the deficiencies persisted even after the remedial training, the employee would be placed in a
different job that matched his/her skills. Terminating the services was not resorted to except
in extreme cases since employee loyalty was the touchstone of Motorola’s HR practices.
During the mid-1990s, Motorola introduced the Individual Dignity Entitlement’ program
which required all supervisors to discuss, on a quarterly basis, with their team members about
their training requirements. The discussion required the employees to answer six questions.
Then some follow-up action was designed based on the answers. The same questions were
asked 90 days after the implementation of the training program for evaluating the progress.
Not many companies invested as heavily in employee training as Motorola did. During the
initial days of Motorola University (when it was called MTEC) nearly 1.5 percent of payroll
was spent on training. The amount increased to 2.4 cent very soon and by 1999, the company
far above the one per cent average invested by the American industry. According to Galvin, in
the mid-to-late 1980s, training came to have the greatest single impact on the quality and
competitive performance of Motorola.
Each training program helped employees achieve a certain level of expertise. People who
earlier viewed the training programs with skepticism, too, changed their perception. The HR
experts around the world were of the opinion that training was fast becoming the strongest
variable contributing to higher returns for the company. Motorola’s performance proved that
continuous learning may be one of the smartest investments employers should ever make.
In a decade since 1987, Motorola reduced costs by US$ 10 bn by training its work force to
simplify processes and reduce waste. For the five-year period ending 1998, productivity
measured by sales per employee increased 139 per cent. Studies showed that in the plants
where senior managers and workers were trained in quality tools and process skills
respectively, the company was getting a return of nearly US$ 30 in three years for every
dollar spent on training, including the cost of wages paid while people took time off for the
training sessions.
Though initially the university concentrated solely on training Motorola’s employees soon it
started to utilize the in-house skills for profit-making enterprises like the sale of course
material to outsiders, offering consulting services, translation services, conducting seminars
to teach other companies how to start their own corporate universities, and evaluation
services where a team of experts measured how effective a company’s training and education
program was.
In the era of fast-changing technology in the late 1990s and early 2000s, Motorola was
compelled to train its employees in quick time so that they could produce new, better-quality
products faster. Meeting the challenge of producing technologically advanced products on a
continuous basis required employees to be more knowledgeable and efficient. However, this
could no longer be achieved solely with formal classroom training programs. Therefore, since
the late 1990s, Motorola University placed greater emphasis on e-learning where education
was imparted to the employees across the globe through the Internet and other digital media.
Focus on E-learning.
Motorola University created a new internal institute named College of Learning Technologies
(CLT) to develop educational delivery systems through satellite, internet and virtual
classrooms’6, his department was responsible for providing innovative learning via virtual
classrooms, online experiences, use of CD-ROMS and through multimedia such as video and
satellite conferences.
The university placed a large selection of courses and training materials on its intranet,
available around the world at any time to its employees. These included Interactive courses
that could be downloaded directly to an employee’s laptop computer, lectures broadcast by
experts and an online library of reference materials. By 1998, training was available on 23
servers across the globe.
E-Learning came to play such a significant role in the training process that by the end of
2001, Motorola employees received nearly 35 percent of the educational solutions
exclusively via web-based learning process, while the remaining 65 per cent percent was
through instructor-led classroom training and mixed solutions that combined the best of both
modes. Commenting on the role of e-learning in future, Fred Harburg, Chief Learning Officer
and President, Motorola University, said, “In the future, the percentage may not dramatically
increase. What will increase is the percentage of all the courses that will go to e-learning. You
ought to leave to the classroom what can best be done when you collect people together and
leave to the computer the passing of pure information that can be done most efficiently that
way.
After the introduction of e-learning, employees were no longer required to undergo the
compulsory 40 hour training every year. Commenting on dispensing with the traditional
practice, Jill Brosig, Director of Learning and Development of Motorola University, said,
“That rule was very appropriate at the time because it showed we invested in our people. But
now, with the advent of new e-learning technologies, including mobile learning, training is
based g ‘relevance, not hours. For us it’s not important that you finish a class. What’s
important is did you get the learning you needed? To ensure that the necessary learning was
taking place, employees were required to sign a ‘personal commitment` each year that was
reviewed by their managers on a quarterly basis. The commitment included a ‘strategically
driven’ educational plan that was directly tied to an employee’s performance review.
E-Learning was shaped as a self-directed learning process to enable employees to fulfil their
specific and unique learning needs. The benefit of this method was that rather than having a
group of 20 employees sit through the same three hours of training session to get to know the
10 minutes of learning that applied to each one at an individual level, the learners could
spend more time specifically on what they needed to learn. As a result of this, the training
session met the specific needs of each employee besides saving company time. Instead of
completely staying away from the course, now the employees had the option of excluding the
parts of the course they did not require (Refer to Exhibit VI for the highlights of Motorola’s
self-directed learning program).
Motorola’s e-learning training program was made accessible to more than 150,000 employees
across the world. The computer network enabled the employees to access as many programs
as they considered necessary. Later, the internal review showed e-learning, the 50 cycle per
time cent for and the distribution of learning had fallen by a third, actual that because of
training times were reduced by training materials was done virtually in real time. With over
100 offices in 24 countries in 2005, Motorola University delivered over 100,000 days per day
of training to employees, suppliers, and customers, through personal digital assistants,
Motorola employees could contact their personal coach, read tips of the day, learn about
collaborative team events and read news clippings all customized to the employees’ needs.
Commenting on the learning process at Motorola University, Richard Durr, Director at
Motorola University in Florida, US said, “A company’s mission is to make money. A
University’s mission is to make the world a better place. Motorola University’s mission is to
make the world a better place to make money.