Boeing is a company that has grown exponentially in the past few decades. They have expanded their business to include many different fields, including construction and aircraft manufacturing. The boeing organizational structure essay will discuss boeing’s corporate culture, as well as the boeing organizational chart.
This paper is designed to examine the organizational structure of a firm like Boeing. This business may be characterized as a matrix organization, which has attracted the interest of many company executives. It’s critical to debate the reasons why management would select this method of organizing things. In addition, the effectiveness of this approach should also be evaluated.
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Overall, one may conclude that senior executives at Boeing pay close attention to the items and processes offered by the company. Despite some drawbacks of this approach, it is the most suitable option for Boeing’s requirements. This method may be used by other technological companies. These are the key issues that require deeper study.
Overall, Boeing may be said to have a matrix organization structure. This strategy means that employees are classified into management groups depending on the requirements of a specific project that must be completed. For example, a team might include individuals who specialize in design, engineering, or marketing. They represent different departments (Kates & Galbraith, 2010, p. 110). Also, if an employee works on several projects at once, he or she may be responsible to many bosses (Kates & Galbraith 2010 , p. 110.).
This method reduces the influence of various departments since workers can frequently change jobs (Kates, & Galbraith, 2010, p. 110). This approach may be compared to a flat organizational structure to some extent. It’s important to remember that both rigid hierarchical organization and divisional structure are reduced to their lowest levels. This is one of the primary benefits of this approach. In turn, it has been contrasted with divisional structure.
The divisional strategy implies that a firm is divided into several production units, which are typically quite autonomous from one another. In turn, Boeing’s management emphasizes the need for coordination between departments. As a result of this company’s organizational design, it can be distinguished from many other firms because to its approach to organization building. It’s important to remember that when Boeing needs to address a pressing issue, the organization is generally led by the matrix technique.
The company’s operations, according to some, may be considered the major force that determines this firm’s organizational structure. It should be noted that the business is involved with the design and production of several aircraft types at the same time. As a result, an employee’s talents might be required for the completion of various activities (Galbraith, 2008, p. 9). An aircraft designer, for example, may work on numerous projects including as well as but not limited to the design and testing of new models.
This is one of the things to consider since it has a bearing on Boeing’s functioning. This technique may be appropriate for this business’s requirements. Apart from that, the operations and marketing techniques of this firm are inextricably linked. In contrast, other parts of this firm, such as HR management and finance, have a lesser impact on the structure of Boeing. Their effect cannot be said to be definitive.
When studying Boeing’s organizational structure, one must first look at the company’s products. It is conceivable to argue that the production of aircraft necessitates collaboration among a variety of specialists. Certainly, designers and engineers should not be ignored. However, marketers who must decide whether a new model will be profitable for the firm should not be forgotten. This is one of the issues that can be identified.
The autonomous operations of various departments in this example do not fully fulfill Boeing’s needs. In contrast, a matrix approach helps this firm better deal with several issues such as the need to collaborate with numerous third parties based in various locations throughout the world (Kates & Galbraith, 2010, p. 110). This technique is particularly useful when an organization must perform an urgent activity (Doede, 2013).
When departments prevent communication, the performance of a company may be reduced. The major drawback of the matrix method is that certain personnel may find it difficult to work on several tasks simultaneously. This is one of the flaws that should not be overlooked. Overall, this analysis suggests that the organizational structure of this firm reflects its objectives or the type of goods requiring close cooperation among numerous experts. The matrix approach is ideal for Boeing, which must execute technologically sophisticated activities. Providing that company divisions communicate with one another, the operations of Boeing may be improved. The following are some of the most important concerns to consider.
Given the Boeing Company’s global presence and employees and links in 70 nations, it has established a management structure to ensure the efficient operation of its multi-billion dollar business. A matrix organization is used here, which effectively assigns a Senior Vice President to each of the company’s numerous department heads, who are in charge of all business activities as well as every employee within that division. W. is in charge of 13 departments, ranging from Engineering & Technology to Law to Human Resources to Business Development and beyond, all overseen by the CEO.
The Boeing Company is made up of four main divisions. The commercial organization, the military organisation, the space business, and the engineering business are all separate yet interconnected entities that work together to maintain Boeing as the world’s most efficient and secure company. Because it is continuously entering into long-term relationships with numerous airlines across the world while also requiring several specialized functional departments, matrix management is advantageous for the Boeing Company.
Following the completion of a project’s phases, several activities are assigned between required departments, who join together after the completion of these duties to construct the prototype. Employees and resources are shared across Boeing divisions for various projects based on their size and duration. The matrix organization, on the other hand, has some flaws. Employees may be tempted to ‘lean’ towards one side of the matrix or the other, resulting in delays and extension requests.
Boeing is a multinational corporation that produces commercial planes, military aircrafts, security systems, satellites, and defense systems. It was formed in 1916 and provided the United States with its first military aircraft during World War I. The company’s success is attributed to its long history of providing goods that meet client demands correctly. It has been able to integrate contemporary technology while also making it easier for consumers to arrange financing.
The corporation’s success is also attributed to its ability to tap into the talents of a highly trained workforce in all areas. The organization has more than 170,000 workers throughout the United States. Boeing has demonstrated its ability to value diversity and talent in order to promote innovation. Boeing commercial planes and Boeing defense, space, and security are split into two business units within the organization.
The two business units are complemented by Boeing Capital Corporation and Boeing Engineering, Operations, and technology (Yenne, 2005). The top leadership of the organization is headed by the president and Chief Executive Officer (CEO). They are in charge of the company’s strategic direction as well as ensuring that company policies strengthen its competitive advantage.
Furthermore, they help managers make long-term decisions for the company by linking the operations of the two business divisions and various departments. Communication is critical in decision-making and fulfillment goals of any business. The necessity of communication in sharing information within an organization can’t be understated, especially because employees will need to communicate with their bosses on a variety of issues arising from the working environment.
Managers must also convey the various rules that apply to their staff in the workplace. The shareholders of a company require constant and regular information on its performance. To assure timely and consistent dissemination of information at Boeing, senior vice presidents have been assigned roles in improving strategic communication with worldwide stakeholders. The government, international partners, workers, investors, consumers, and communities are among the many stakeholders who need to know what is going on inside the business (Hill & Jones, 2012).
The Seattle-based aerospace giant is divided into two distinct business divisions: Boeing Commercial Airplanes and Boeing Defense, Space & Security. Furthermore, these business units are complemented by global and local departments. The Boeing Capital Corporation, for example, finances the company internationally. Another international department is Boeing Engineering, Operations and Technology. It establishes corporate objectives to improve functional and technical efficiency through adoption of contemporary technology by defining and implementing corporate policies.
This department is responsible for enhancing health and safety, managing the environment, and assuring quality control. The company’s worldwide operations are also maintained by this division, which develops information technology systems around the world. This division, known as Shared Group Services, allows companies to concentrate on profitability by providing infrastructure services to support their global operations.
The group offers a range of services to the business units, including transportation, site preparation, and construction. It specializes in managing, selling, and acquiring real estate in the worldwide operations. Boeing’s policy of promoting employees has helped to develop executives; this was derived from their strategy of enhancing employee development and growth. Boeing’s management has embraced transformative leadership, which will boost employees’ trust in corporate business plans.
The improvement of the employees was aided through numerous capacity building seminars, trainings, and development possibilities. This improves employee performance and satisfaction. Transformational leadership at Boeing has boosted staff motivation, resulting in improved production and efficiency. Through breakthroughs, this management policy has attracted more skilled workers, which has enhanced company performance and competitiveness (Harris 2005).
Boeing’s Business Environment
As the world’s leading aerospace company, Boeing’s corporate culture is based on a drive to stay competitive and deliver goods that suit client demands. The business has an objective of creating models that will meet current aviation needs while also ensuring passenger safety and security. Any firm looking to expand its market share should embrace advancements in technology.
As a result, the birth of sustainable modern technology has aided Boeing in its competitiveness by allowing it to adopt sustainably modern technology. The company has likewise benefitted from government support, which has given it numerous possibilities. As a result of political goodwill between the firm and authorities, the business was granted access to information about current requirements in defense and space security.
The issue of air travel security has been a prevalent topic lately, owing to the increased terrorist activities that have disrupted airline travel. The use of the satellite by nations and businesses in information technology has motivated the firm to consider new development in space and information systems (Havaldar, 2005).
Because it is a multinational corporation, the global business environment is a major worry. The company must forecast future sales and potential areas where it may gain a competitive edge. The prediction of the company’s future corporate climate is based on current data on the worldwide economic situation. Various statistics regarding world freight demand and demand for the firm’s goods and services are evaluated by the organization.
Decision-Making and Communication Networks in Boeing
Despite all of this, the face-to-face interaction between individuals is still crucial for organizations in the globalizing economies. Organizations must rethink their decision-making processes and information management in light of the changing dynamic business environment. To create a competitive advantage for an organization, it must collect data and information and take decisions that will improve its competitive position.
Organizations help develop adoption of modern management information system, which will aid in the management of data and the availability of timely and consistent information for decision-making processes. To improve its competitiveness, an organization must make numerous decisions. Programmed decisions, non-programmed decisions, strategic choices, tactical choices, and operational choices are just a few examples of such judgments.
Boeing has improved the adoption of modern strategic management information system, which provide data on present trends in the global business and company performance in the worldwide market. The firm has also established an inclusive decision-making process that encourages workers to accept the company’s business plan. As a result, employee performance and output have improved, resulting in greater organizational efficiency.
Employees are primarily involved in operational, tactical, and programmed decisions. However, depending on their operations, each department is engaged in different decision-making. Boeing’s transformational leadership style allows employees to grow by allowing them to make decisions. The Chief Executive Officer at the launch of the Dream liner, which has been one of the world’s largest commercial planes, acknowledged everyone’s involvement, including that of the workers.
IT has made decision-making much easier (Mun, 2006). Strategic decision-making is led by the CEO, president, and senior executives. The long-term performance of the company in the global market is impacted by most of these choices. The introduction of a new product on the market, overseas branches acquisition, and worldwide long-term marketing strategy are all examples of strategic decisions.
However, these decisions are based on previous choices made in the regular operations of the business. Communication has been both vertical and horizontal within the company. Employees in different departments at the same level communicate to minimize disruptions to normal operations. Communication between executives and workers, such as a change in policy, is known as vertical flow of information.
Workers also have a voice in the decision-making process, which can include communicating to managers on issues that impact operations or employees in the workplace. Boeing has established global connections and branches around the world to provide critical data on industry trends. In making strategic decisions and policies, both globalization and internationalization face an external environment that is important for developing them.
To thrive in the competitive worldwide business environment, a firm must first identify its most important success factors for obtaining a comparative advantage in the global market. The transformational leadership style of Boeing has helped the company’s internal operations succeed. This has translated to external success, allowing Boeing to keep its aerospace industry competitiveness.
Risk management, Innovation and Technology in Boeing
Competition in the business world has increased as a result of globalization and internationalization. This has encouraged multinational businesses to improve their research in the global market and discover long-term viable technology and ideas that will help them compete on a worldwide scale. Boeing has enhanced its use of innovation and technology in military aircraft, security systems, and commercial planes manufacturing.
This has resulted in the Boeing 787 Dreamliner, which features improved security system monitoring, computer intelligence, and reconnaissance capabilities. After the terrorist attacks of September 11, 2001, there was a greater desire to enhance security and safety on aircraft. This has boosted the company’s international competitiveness since global demand for the Dreamliner 787 has risen.
By applying new technology and innovation to existing systems, a company can enhance its global competitiveness. The product that the firm has developed meets the demands of the client (Van Der Linden, 1991). Military security systems using cutting-edge technologies and ideas have been built. Intelligence on both land and sea assaults is provided by satellites and an integrated submarine communication system. These integrated solutions are constructed through integration of innovation and technology, which has aided in military actions.
The use of satellites has increased space-based surveillance since they enable 24-hour surveillance in space. The government’s contribution to technological progress and innovation has been vital. It has established contemporary laboratories where various tests are performed on new technologies for commercial usage. Subcontracting is another method the firm employs.
Furthermore, the company may diversify its risks among subcontractors and various suppliers where it combines the different components. When a danger occurs, the firm must share any losses with other suppliers. The company has also been able to link up with other firms that have technology it can use as a result of subcontracting (Office Of Technology Assessment Washington Dc, 1995).
Boeing Culture and Core Values
The success of Boeing has been built on strong cultures and fundamental values that the company has been able to maintain. The aerospace sector, in which the firm operates, is grounded in technologies, innovation, goals, and imaginings. The company has identified leadership as one of its key principles as a global leader in aviation. Leadership will embrace all areas of business and manufacturing throughout the world.
Boeing has also been founded on the basis of high ethics, with respect for commitments, and the implementation of fairness and respect in the workplace. It has also committed to product quality assurance. Employees training has been a valued practice at Boeing, with regard to developing skilled workers. Customer satisfaction has been an important cultural value for commitment towards client happiness.
The company has introduced new goods thanks to innovation and use of technology. The firm embraces diversity and promotes a strong commitment to teamwork in order to increase all employees’ involvement in the organization’s goals. The company’s management is concerned with the shareholders’ welfare. Management aims to improve the company’s profitability in order to raise shareholder profits (Mayer, 2008).
Boeing’s mission is to foster worldwide leadership in the aerospace sector through collaboration among employees. This will be achieved by running a health business, leveraging critical success factors, and developing new markets. Boeing understands the importance of end users in achieving their goals; as a result, it has an obligation to ensure that client needs are understood and met responsibly. The firm has gained competitive advantage via the use of large-scale integrated systems. As a result, the business understands that the development of sophisticated integrated systems will provide it with a competitive advantage in the worldwide market.
Objectives and Strategies of the Company
The Boeing mission is to address societal challenges through all-around development of society, which is guided by the company’s purpose. The business aims to improve product quality via design and production. This may be accomplished by maintaining a highly trained human resource and technical efficiency under the direction of a focused management. The firm is dedicated to maintaining honesty and high ethical standards while increasing operational efficiency.
The firm has been concentrating on entering new markets internationally. This will improve the company’s competitiveness in the global market and its success. It aims to develop a health business to increase profitability. To improve performance, it is important for people from all over the world to work together in a multinational business. The corporate also aims at capitalizing on key success factors to bring new items to the market that will enhance client happiness (Hill & Jones, 2012).
Boeing is one of the world’s most prominent aerospace firms. The company’s primary products include commercial planes, military aircraft, and security systems. The firm was founded in 1916 and supplied numerous military jetfighters during World War II. In order to enhance efficiency and increase coordination between departments, the firm has a central organization structure with top management making most decisions. Boeing commercial plane and Boeing defense, space, and security are two business units within the corporation.
Various departments in the company structure provide capital and other services as a backup. Inclusive leadership by the firm’s management and decision making promotes employee growth. Trainings and other leadership seminars have enhanced the development of workers through training and discussion forums. The company’s fundamental principles, among them integrity, responsibility, and care, encourage the organization to invest in all stakeholders’ development.