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the HR Lever
organization at the strategic,
functional or operational level
D
ressed in black jacket and denim, Abhishek Bachchan, the rising Bollywood1
star, was present at the function where he was officially declared as the
Motostar for Motorola cell phones. Abhishek fitted in as the iconic
“MOTOSTAR,” joining the elite club of tennis top seed, Maria Sharapova; soccer
player, David Beckham; and Bono, the pop star, as a brand ambassador for Motorola
globally. Motorola’s brand quotient of youthful spirit, courage, smartness, and dar-
ing-to-be-different approach, was in sync with Abhishek’s bold and adventurous
attitude, looks, and unconventional style. Both had a rich heritage. Yet this was no
mere celebrity endorsement. Before the stardom dawned on him, Abhishek was
declared a flop by the media. “Before he succeeded, he struggled for five years.
Seventeen of his movies were a box office flop,” quipped Sudhir Agarwal, Director-
Sales for mobile devices, Motorola India. Motorola struggled in the same way in
India before making a comeback in mobile devices in 2006.
The deal with Bollywood actor, Abhishek Bachchan, marked a relatively new
celebrity track for the company—teaming up with non-US stars who appeal to inter-
national markets, or even individual foreign countries. This was something which
Motorola had never done before. It took some convincing for the marketing team
under the leadership of Lloyd Mathias, Director-Marketing, Mobile Devices Busi-
ness (MDB), Motorola, India to win more dollars from Schaumburg2 to localize the
KEY WORDS flavour of advertising in India.
Strategic HRM Motorola started selling mobile phones in India in 1995 and was one of the first
telecom companies to enter the country. However, it failed to capitalize on its early
High Performance Work
mover advantage. That gave competitors like Nokia a near monopoly on the mar-
System
ket. According to Gartner India estimates, Motorola’s market share kept on falling
Talent Management and was very low, just 1.8 per cent, in early 2005. The company lost out completely
Employee Engagement before it realized it.
1 Mainstream Hindi film industry
India 2 Headquarters of Motorola Inc.
India is the fourth largest telecom market in Asia after China, opened for private sector and were later followed by the Na-
Japan, and South Korea. The Indian telecom network is the eighth tional Telecom Policy (NTP) in 1994 and 1999.
largest in the world and the second largest among the emerging Historically, the telecom network in India was owned and
economies. At current levels, telecom intensiveness of the In- managed by the Government considering it to be a natural mo-
dian economy measured as the ratio of telecom revenues to the nopoly and strategic service, best under the state’s control. How-
GDP is 2.1 per cent as compared to over 2.8 per cent in the ever, in the 1990s, examples of telecom revolution in many other
developed economies (CRISIL, www.ibef.com). countries, which resulted in a better quality of service and lower
The Indian telecom sector has undergone a major process of tariffs, led Indian policy makers to initiate a change process fi-
transformation through significant policy reforms. The reforms nally resulting in the opening up of telecom services sector for
began in 1980s with telecom equipment manufacturing being the private sector.
Exhibit 2: Team Structure at MDB Exhibit 3: Number of Basic and Mobile Phones in India
Specailist National
HR Service Manager
What Makes Me a MOTO VISION: Recruiting the best in the industry and
Customers creating a motivated, integrated, and skilled
I earn their businesses everyday organization to take the organization to a clear
# 2 position in the market.
Innovation
I celebrate the breakthrough idea MISSION: We are working together across our
Principles mobile devices, connected home and networks
I do the right thing and enterprise businesses to bring our custo-
mers closer to seamless mobility.
Performance
I’m here to win
One Motorola
I work for one company with a shared vision
EE Info
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Initiate:
My
Employees
Enter BRAVO! Recognition Award Information
Behavior Level: Choose One Result Level: Choose One
Initiate:
Other 3 - Outstanding 4,500 - 15,000 6,000 - 40,000 20,500 - 100,000
Employees
Behavior 2 - Significant 2,000 - 10,000 4,500 - 15,000 6,000 - 40,000
1 - Noteworthy 750 - 6,000 2,000 - 20,000 4,500 - 15,000
Initiate:
Multiple 1 - Noteworthy 2 - Significant 3 - Outstanding
Employees
Result
Inbox
1 - NOTEWORTHY : Demonstrated behaviour or accomplishment above and beyond normal
expectations
Status 2 - SIGNIFICANT : Reach-out performance or accomplishmnet that results in an identifiable and
measurable impact on Motorola goals.
3 - OUTSTANDING : Break-through perfromance reflecting recognizable impact on Motorola goals.
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Table 2: MDB- A Progression from Current State to Future State (discovered in an organization diagonostic)
Table 3: Eleven Best-in-Class Organizational Levers to Drive Strategy and Execution Success*
Lever Description
Strategy The extent to which each business strategy is thought through, what strategic decisions are executed and then
how each business is aligned with these decisions both at business and at a country level.
Leaders The extent to which each business has the quantity and quality profile of leaders needed to define and achieve its
strategy. It also determines whether the business has an effective process for assessing the performance of current
leaders, along with identifying and developing future leadership talent aligned to critical roles.
Customers The extent to which each business focuses on its customers, how value is created and evaluated so that overall
profitable revenue stream is established to support business and brand equity.
Process The extent to which the core organization processes are understood and leveraged. It also determines how value
is created and to what extent Six Sigma principles help optimize operational performance.
Business results The extent to which the business achieves its goals on key financial and performance metrics.
Structure The extent to which the business has an optimized structure that is aligned with its strategy and contains clear
lines of authority, accountability, and responsibility in terms of collaboration and spans of control.
Technology The extent to which the underlying technologies within the business that directly or indirectly support strategic
and customer facing activities are realized and optimized.
Innovation The extent to which the business has a desire to build capabilities and practices that foster a climate of imagina-
tive ideas which are well-grounded against risk and judgement principles.
Talent The extent to which the business possesses talent with the critical skills, capabilities, and mindset it needs to
achieve the strategy.
Engagement The extent to which the management team fosters a sense of alignment and how the core values, beliefs, and
behaviours impact the organization’s ability to deploy its strategy.
HR Alignment The extent to which the key HR activity is aligned with the key strategies of each organization and how connec-
tions are made.
* Discovered in one of the Diagnostics carried out by MDB-HR in August 2006.
January 2004 Edward J Zander became the Chairman and Chief Executive Officer of Motorola, Inc.
Second half of 2004 Motorola identified Africa, South West Asia, North Asia, and South East Asia as high growth markets
(HGM) for the company.
August 22, 2005 Zander, announced the establishment of India as the company’s headquarter for the High Growth Mar-
kets (HGM).
Nov 14, 2005 MDB announced joining forces with Bharti Teletech Ltd.
2005 Agarwal left local giant, Bharti Telecom, to run the sales for Motorola in India.
End of 2005 Motorola invited international consultants McKinsey to undertake a study to find India-specific features
for its mobile handsets.
March 10th, 2006 Announced an alliance with DCM Shriram Consolidated Ltd. (DSCL)’s Hariyali Kisaan Bazaar chain of
rural/semi-urban utility marts for sales and distribution of handsets.
March 13, 2006 Announced the establishment of a distribution agreement with ITC’s e-Choupal division for its Mobile
Devices business.
June 5, 2006 Bollywood star, Abhishek Bachchan, became the MOTOstar.
Second half of 2006 Slashed prices of its phones making them the cheapest.
End of 2006 The company was known among the top 5 brands in India; showed an eight-fold growth.
BACKGROUND NOTE The DoT has allowed cellular companies to buy rivals within
the same operating circle provided their combined market share
Policy Reforms in the Telecom Sector did not exceed 67 per cent. Previously, they were only allowed
Policy reforms in the Indian telecom sector can be broadly clas- to buy companies outside their circle.
sified into three distinct phases: (Source: http://www.iimahd.ernet.in/ctps/cellular.htm retrieved on
20.04.2007).
Phase I: The Decade of 1980s saw private sector being allowed
in telecommunications equipment manufacturing. Mahanagar Regulatory Structure
Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam
Limited (VSNL) were formed and a Telecom Commission was The lack of clarity in the regulatory structure has made it diffi-
set up to give focus to telecommunications policy formation. cult to predict the prospects for this industry. This uncertainty
has best been typified by the issuance of a fourth license and the
Phase II: In 1990s, the telecommunications sector also benefited controversies with reference to limited mobility players. The
from the general opening up of the economy. NTP 1994 was the cellular services was thrown open for third and fourth service
first attempt to give a comprehensive roadmap for the Indian providers in 2002. The number of service providers increased
telecommunications sector. from 42 to 68 in the year 2002-03.
• Availability of telephones on demand (targeted by 1997) Source: http://www.iimahd.ernet.in/ctps/cellular.htm retrieved on
• Universal service covering all villages and one PCO per 500 20.04.2007.
persons in urban areas at the earliest (targeted to be achieved
by 1997) Growth Drivers
• Telecom services at affordable and reasonable prices
• World standard quality of services. Opening up of international and domestic long distance te-
lephony services are growth drivers in the industry. Cellular op-
Phase III: NTP 1999 brought in the third generations of reforms erators now get substantial revenue from these services, and
in the Indian telecommunications sector. compensate them for reduction in tariffs on airtime, which along
with rental was the main source of revenue. The reduction in
(Source: http://www.iimahd.ernet.in/ctps/telecomsector.htm retrieved on
tariffs for airtime, national long distance, international long dis-
20.04.2007).
tance, and handset prices has driven demand. India currently
has one of the lowest telecom tariffs in the world.
Cellular Services According to Telecom Regulatory Authority of India, the
There are 25 private companies providing cellular services in number of mobile users in India is topping the charts and is
19 Telecom Circles and 4 metro cities, covering 1,500 towns steadily increasing; 67 million mobile phone users have been
across the country. Presently, there are five private service op- added to the list in the year 2007. There are now 207 million
erators in each area, and an incumbent state operator. Almost phone connections in the country.
80 per cent of the cellular subscriber base belongs to the pre- According to Mr. Dayanidhi Maran, Union Minister of Com-
paid segment. munications and Information Technology, Government of In-
Several GSM cellular service companies are climbing the dia, “We have proved to the world that you don’t have to have
EDGE bandwagon. Hutch has already started and Bharti has high tariffs to be profitable.” He refers to the surge in profits of
made test calls on the EDGE platform and the company is in mobile phone companies that came alongside a sharp decline
talks with Siemens for EDGE-enabling some of its circles. in tariffs.
Pallavi Srivastava is a Doctoral Candidate (HRM) at the Man- Jyotsna Bhatnagar, a Ph.D. from the Indian Institute of Tech-
agement Development Institute, Gurgaon, India. She has pub- nology (IIT), Delhi, is an Associate Professor in the HRM Area
lished paper at the 2nd World Conference on POM and 15th at the Management Development Institute, India. With over
Annual POM Conference¸ Cancun¸ Mexico¸ April 30 - May 3, 50 international and national level research writings to her
2002, and also presented a paper in APROS 12 Conference, credit, she is to present her paper on ‘Strategic HRM –Media-
MDI, Gurgaon, December 9-12, 2007. Her papers are under tor Variables in India” at the Academy of Management Con-
review/accepted for publication in reputed refereed interna- ference, USA, 2008. She is an Invited member of the Academy
tional journals. Her research interest lies in the areas of em- Of Management 2007-Carolyn Dexter International Best Paper
ployer branding, succession management, and innovative Award Review Committee and the recipient of Excellence in
practices in HR. Teaching Award, 2007-08, MDI and the MDI Best Faculty
Award-PG Students’ Choice, 2006.
e-mail: pallavisrivas@gmail.com
e-mail: jyotsnab@mdi.ac.in
Edmund Hillary