Boeing - a Centralized Organization

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Boeing Organizational Structure - Presentation Transcript

Organizational Structure Presented by: Team D Ann Blasius, Jolene Cabazos, Julie Comeau, Ryan Scalmanini and Nora Trombley MGT/330 Management: Theory, Practice & Application Professor Darin Jones December 1, 2008

As an organization that utilizes the matrix structure of management, communication is the key to success

At Boeing the lines of communication flow more freely with this structure and thus allows for increased accountability both from the project teams and project managers.

Boeing's Organizational structure

Boeing uses the Matrix Structure:

- Each Department has a Senior Vice President

Business Development and Strategy

Communications

Engineering, Operations & Technology

Finance

Human Resources and Administration

Internal Governance

International

Law Department

Public Policy

Organizational structure cont.

Boeing uses Specialization:

- Different individuals in different units perform specific tasks

Executive council

Capital Corporation

Commercial Airplanes

Engineering, Operations, and Technology

Integrated Defense Systems

Shared Services Group

Organizational structure cont.

Boeing uses Corporate Governance :

The firm is overseen by its executive staff and board of directors.

The executive staffs and board of directors use integration to run the organization.

Boeing's use of integration, brings the Executive council, Capital Corporation, Commercial Airplanes, Engineering, Operations, and Technology, Integrated Defense Systems, and Shared Services Group together via the Senior Vice Presidents to make decisions about how to stay competitive and increase revenue.

Organizational structure cont.

Boeing's span of control is wide:

- 163,851 employees

- In 70 countries

Boeing is a Centralized Organization :

- high-level executives make most decisions and pass them down to lower levels for implementation.

Boeing's Organization Chart W. James McNerney, Jr. Chairman, President, and CEO Michael J. Cave, Sr. Vice President Business Development and Strategy Tom Downey, Sr. Vice President Communications J. Michael Luttig, Sr. Vice President & General Counsel Shep Hill, President Boeing International Wanda Denson-Low Sr. Vice President Internal Goverence Richard Stephens, Sr. Vice President Human Resource & Administration James Bell, Executive Vice President Chief Financial Officer John Tracy, Sr. Vice President Engineering, Operations, &Technology Timothy Keating, Sr. Vice President Public Policy

Vertical Structure

Has hierarchy levels where top supervisors make decisions for organization

Uses Differentiation - the organization is composed of many different units that work on different kinds of tasks, using different skills and work methods.

Uses Integration - the differentiated units are put back together so that work is coordinated into an overall product.

Authority trickles down organization from top to bottom

CEO and CFO and COO

President and Vice President

Department Heads

Horizontal Structure

Organization is subdivided or departmentalized into smaller units or departments.

Each Department has a Department head that oversees that division and all employees in the division.

Lower level management reports to department head who reports to CEO, CFO, or COO.

This structure works to create individual and specific divisions that oversee specific functions of the organization.

Analysis of Vertical and Horizontal Structure