Boeing Organizational Culture Essay

1465 words - 6 pages

ORGANIZATIONAL CULTURE AND STRUCTURE 2Boeing: Organizational Culture and StructureJory AuthementMGMT312 Management Theory and PracticesProfessor Stephen StewartApril 22, 2014Before we can begin a discussion on the cultural dynamics within the Boeing Company, it is imperative that we define and briefly elaborate about the foundational structures of the company, and its core values. Both of which has a direct impact in the development of its culture.. Being that Boeing has remote multinational locations, and also has satellite locations throughout the United States; Boeing utilizes a combination of two organizational structures, the network structure and hierarchal structure.Logically, due to Boeing's global footprint, Boeing's overall corporate structure utilizes the network structure. The adhocracy of the overall network structure of the company allows the company as a whole to be outward focused, creative, and be responsive to market demands. In this structure's central core, the Chief Executive Officer, president and the senior managers are involved in the development and evolution of the company's vision through strategic decision-making. These decisions affect the projected long-term performance of the company in the global market. The strategic decision process involves, introduction of new products, sale or acquisition of assets and global long-term strategies. Under the network structure, this flow of information is normally both vertical and horizontal. The horizontal information is where the employees in the same department or different department but on the same rank communicate to facilitate smooth running of the operations. Likewise, these decisions are made based on decisions that have continuously been made in the normal operations of the organization. Outward of this central core in this network are the specialized divisions and predominantly have a more traditional hierarchal (vertical) structure.The divisional hierarchal design, which has a more rigid structure, is focused on stability of the internal processes. The vertical flow of information from the executive officers to the employees reduces interpretation and deviation. Vertical flow should not be interpreted as a "top down" only flow. It can also involve workers communicating to the managers' on factors affecting the operations or the employees in the working environment. This structure presents an optimal environment for technical processes; these processes must be accomplished efficiently, and effectively within a timely manner - repetitively. Boeing has uniquely amalgamated two different structures with each of their structures having its own environment. The binder of these unique structures is Boeing's set of holistically espoused core values. As a renowned and respected multinational corporation, Boeing found that to remain internationally competitive, it was imperative to establish and hone strong cultures and core values. The ever-competitive international...

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