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Motorola

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Case Study: “Bob Galvin and Motorola, Inc.”
Business
Leading Organizational Change BUSI 6132
October 2, 2012

Motorola: Macro/Micro - Problem and Causes

Motorola was a very large company with 75,000 employees and a huge organizational structure. (Jick & Peiperl, 2011) They covered the entire United States and 15 foreign countries. The macro issues in this case stem from having too many layers of management. There were nine to twelve layers between the first line managers and the executive level. (Jick & Peiperl, 2011) The average span of control was over five people or fewer in most cases. Thirty percent of leadership managed three people or less. (Jick & Peiperl, 2011) Another macro issue was the multilateral reporting structure between Bob Galvin, CEO/Chairman, William Weisz, Vice Chairman, and John Mitchell, President. (Jick & Peiperl, 2011) This reporting structure was complicated and viewed as the same through the eyes of lower level management. Motorola’s management wanted one single voice, style and direction. (Jick & Peiperl, 2011) Do away with three leaders with differentiated views, style and direction. Japanese competition was another macro issue that Motorola had to contend with. With Japanese technology expanding and trade practices relaxed or non-existent, all were considered a threat to Motorola. Japan was selling products at less than fair value to rapidly increase their market share. (Jick & Peiperl, 2011) To help alleviate the issue, Bob Galvin worked on a federal foreign trade committee to fight unfair trade practices and protectionism. (Jick & Peiperl, 2011) Due to Motorola’s huge structure and 75,000 employees, any relaxed working environment is going to be cause for some problems. From a micro analysis, one of the issues is that a relaxed atmosphere does not do well in regards to timely production

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