Boeing Company: Mission Statement and Organizational Structure - Research Paper Example

Boeing Company: Mission ment and Organizational Structure Boeing Company Boeing is the world’s largest aerospace company that leads in producingcommercial and military aircrafts, satellites, weapons and space and security systems. It is also the leading provider of services including advanced information and communication systems, support systems, and performance-based logistics and training. The company started in 1916 which primarily focused on military jetliners. However, through merger and acquisition strategies, the company is becoming the largest and most diversified aerospace in the world. Through the years, the company strives to expand its product lines and services to continuously meet the needs of its customers. Merging with aerospace pioneers yielded Boeing a 70-year leadership in commercial aviation. The Boeing product, the 7-series family of airplanes, leads the current aerospace industry. Boeing’s Mission Statement The actions, culture, and direction of Boeing is clearly stipulated in its vision 2010 which states: “People working together as a global enterprise for aerospace leadership”. Towards the year 2016, Boeing strives to continuously become the world’s leader in aerospace industry. This mission is achievable with the strategic objectives of the company. The company’s strategic objectives include (1) run healthy core business; (2) leverage strengths into new products and services; and (3) open new frontiers. Run Healthy Core Business Healthy relationships among its employees and strictly following Boeing’s code of ethics have been the company’s milestones for success. The company has established criteria for ethics education, awareness and business conduct programs to instill Boeing values and standards of ethical business conduct to its employees. The employees undergo annual mandatory and educational activities to remind them of their commitment to Boeing’s ethics and business conduct standards. They go through annual activities including Recommitment to Ethics, Code of Conduct and the Ethics Challenge. Through these programs, employees are guided to resolve questions, seek guidance, report suspected violations and express their concerns regarding compliance with the company’s standards of conduct and the Boeing Values. Boeing ensures that in all its relationships, it demonstrates its commitment to the corporate values, namely leadership, integrity, quality, customer satisfaction, people working together, and a diverse and involved team. The most outstanding in relation to running a healthy business is integrity. This core value ensures the loyalty to conform to the ethical standards and commitments. Through integrity, employees will take personal responsibility for their actions; treat everyone fairly, with trust and respect. Boeing assures that in properly exhibiting these values, the company will conduct business fairly, impartially, in an ethical and proper manner. That way, employees play their part in running the business in good relationships and a much strong conviction from its customers. Leverage Strengths into New Products and Services The mission to be a global enterprise for aerospace leadership necessitates the Boeings corporate values to come up with innovations that will counter the needs of the customers. In order to arrive at new products and services, employees must focus and work together to generate ideas. This strategy is also possible through the diverse and involved team wherein the skills, strengths, and perspectives are being valued. Hence, fostering a participatory workplace that enables members to be involved in decision makings and to stimulate new ideas. Open New Frontiers The value of a leader depends on its values. To be the leader in global aerospace, Boeing’s corporate values should be demonstrated by its employees to be able to open new frontiers in aerospace industry. The value of leadership is very much applicable to this strategic objective. Boeing Company Structure and Organization Organization is one of the four functions of management. It is the management function where high level management assigns tasks to individuals that possess the appropriate skills. Boeing organizational structure is composed of two primary businesses, namely commercial airplanes and defense, space and security. These two primary businesses are supported by nine corporate functions as follows: Business Development and Strategy Communications Engineering, Operations and Technology Finance/Shared Services Group/Boeing Capital Corp. Human Resources/Administration International Law Office of Internal Governance Government Relations Each corporate is headed by an Executive Vice President. Boeings utilizes integration with the different corporate to make decisions on how to stay competitive and increase revenue. Since Boeing is a centralized organization, the high level executives are the one’s making most of the decisions and pass them down to lower levels for implementation. The management carefully chooses members to be assigned for a specific task, specifically the knowledgeable and skilled ones. This management strategy of Boeing is genuine compared to other management strategies wherein decisions are made at lower organization levels and employees are empowered to perform their tasks and are held accountable for their actions (Harrington, 1995). Vertical and horizontal structure works synonymously in Boeing. In the vertical structure, the top supervisors make decisions for the organization and pass it to the lower organization levels for implementation. Horizontally, the organization is subdivided into smaller units or departments. In this structure, the department heads oversees the people in the department. However, because of the high complexity in the tasks being undertaken by the company, the management structure is more or less mechanistic. The management is characterized by a rigid task definition, vertical communication, high degrees of formalization, authority-based influence, centralized control, complex differentiation, and high degree of coordination (Bombaci). The Boeing management operates in such a way that financial objectives are met for the growth and to enhance productivity of the organization, thus satisfying the consumers and for the company to be more competitive. Eventually, the later would lead to economic profit or increased financial performance which also has parallel effects on the stock price, employee accountability and stakeholders (employees, customers, shareholders, and communities). The Company Environment and Controls For Boeing, strength comes from their people and the company recognizes that management at all levels must continuously support the efforts of its team. People are vital assets in Boeing because business is being conducted by its employees, managers and corporate officers, spearheaded by the corresponding executive officers. Everyone is striving to improve at all levels. The company’s corporate governance principles and practices are periodically being reviewed by Board’s Governance, Organization and Nominating Committee. The Board and the corporate officers always see to it that the company is ever responsive to the concerns of the community, customers, employees, public officials, shareholders and suppliers. As mentioned earlier in the previous texts, the company has adopted a Code of Ethical Business Conduct to serve as guidelines for ethical and proper manners. Employees are annually renewed of their commitments. Since Boeing operates in the light of its corporate values, employees are constantly being educated to increase their awareness. For Boeing Company, the environment is focused to cultivate integrity because it is highly valued and is the foundation in making decisions. Boeing’s code of ethics also serves as basis on areas of ethical risks and on how to effectively identify and combat ethical issues. The company continues to enhance the mechanisms to foster and sustain a culture of honesty and accountability of its people. Because of the growing concern in preserving the environment, Boeing also strives to lessen the impact of its products to the environment. The company is also geared towards improving the environmental performance of its operations, products and services in environmentally responsible manner. Overall, Boeing is leading the worldwide aerospace industry because of its strategic management schemes toiled with the core values of the company. The core values are severely instilled in each and every employee of the company, from the high ranking executives to the lowest ranking employees. Boeing is always towards innovation, continuous quality improvement, and forward thinking, which is objectively achieved through a good corporate citizenship attributed to the company’s core values. Bibliography (n.d.). Retrieved February 4, 2011, from Boeing: http://www.boeing.com/ Bombaci, S. (n.d.). Learning Zone. Retrieved February 4, 2011, from http://www.hkiaat.org/images/uploads/articles/Management.pdf Harrington, J. (1995). The New Model for Improvement-Total Improvement Management. Business Process Re-engineering and Management Journal , 31-43. Read More