Boeing Company MGT 330 April 08, 2011 Organizing Paper One reason why so many organizations succeed and be able to sustain their long-term goals is their effective and efficient organizational ability.
The organizing function of management involves the allocation of the company resources. When the management of the organization allocates its resources with strategic planning and execution in mind, the organization can successfully satisfy the requirements of both internal and external stakeholders.On the other hand, when an organization fails to translate and execute the strategic action plans, the results will be irreparable and disappointing to the stakeholders. This paper evaluates and discusses the organizing function of the Boeing Company management pertaining to the allocation of resources (monetary and human resources) that enable the management to realize the optimal allocation of the inputs and resources. The Organizing Function of Management: The Boeing CompanyThe Boeing Company is the world’s leading aircraft manufacturer by revenue; it is also the world’s third largest aerospace and defense contractor, and the largest exporter of the United States of America. The company’s huge success factor lies heavily on the management’s methodical organizing function. The successful leadership of the senior management and their organizing abilities kept the company profitable and the prime employer in the current global marketplace (Boeing, 2010).
The organizational structure of the Boeing Company consists of the organizing concepts of differentiation and integration. The company subdivides its units by the division of labor while the integration of the various units (departments) cooperates collectively toward completion of the ongoing projects. The Boeing Company is a matrix organization which, at times, the functional and the divisional units overlaps in order for the employees complete the production development tasks and other collaboration team projects. MonetaryOrganizing monetary resource at the Boeing Company is one of the crucial functions the senior management engages through carefully plotted strategic planning. Boeing allocates its funds appropriately based on the explicately set budgets for each unit of the company.
The Boeing Company has several business segments that perform at different levels; thus, Boeing allocates its funds accordingly by the past practiced paradigm and the restructured strategic plans to bring in healthy returns despite of the current economic uncertainties.Specifically, the Boeing Company organizes and distributes its funds based on the products and services it offers to the customers. The company’s major segments include (1) commercial airlines, (2) defense, space and security business, (3) military aircraft, (4) Network and space systems, (5) global and support, and (6) capital corporation (BCC) financing segment (Boeing, 2010). In the commercial airlines sector, Boeing’s monetary resource allocation heavily depends on the effect of the suppliers, customers, and the unpredictable world economy (market).The monetary organizing function of the Boeing management in the sectors of the defense, space, and security business, the military aircraft, and network and space systems depends strongly on the United States government contracts and policies that can change or cancel the contracts of deliveries without any prior notices. The global service and support segment budget includes the engagement in the operations, maintenance, training, upgrades and logistics support functions for military platforms and operations (Boeing, 2010).
Boeing provides its financing services to both the commercial airplane customers and the government customers. The company funds are allocated to provide business economic solutions to the customers in the areas of the operating and finance leases, the receivables (notes and other unrealized income), and the assets managements. The Boeing Company has effectively and efficiently optimized its monetary resource allocation function of management in 2009. According to the certified annual report of the Boeing Company in 2009, the company revenue increased by $68. billion which reflected the solid earnings despite of 2008 labor strike where 57, 000 employees walked out.
While the commercial airlines business sector suffered a loss due to the setbacks of the 787 and 747 model airplanes, the defense, space and security business increased its revenue by $8. 5 billion (6%). The global and support sector business operation brought in 19% increased revenue. While the revenue of the financing sector in 2009 was down by 5% compared to the 2008, the sector successfully generated pre-tax earnings and returned the cash dividends to the company (Boeing, 2010).Human resources Managing human resources or capital in Boeing’s organizing function is a critical management factor. The Boeing Company human resources management organizes its human resources based on the strategic, ethical, legal, and financial values. With the strategically designed human resources management system, Boeing’s human resources managers actively and efficiently conduct their functions that include staffing the organization, developing the workforce, performance appraisal, designing reward system, and managing labor relations (Axia College, 2010).Boeing’s matrix form management places the employees where they can utilize their abilities to be the most functional and productive member of the team to manage successfully the human capital.
Since Richard Stephens, senior vice president of human resources and administration, took the position, he was determined to lead the employees by example and with strong ethics standard. He has improved the Leadership Center of the company in Saint Louis, Missouri and transformed it into a leadership development facility where the Boeing executives receive trainings that are integrated with its business ethics standards (Davis, 2008).Furthermore, the leadership development program also takes a place on the job for the non-managing employees: consequently, the employees receive the hands-on training to become supervisors and to improve their performance skills by communicating and demonstrating their strengths. To become a leading employer among the competition, Boeing’s human resources management strives to provide the employees a working environment competitive, inclusive, diverse, and supportive.To combat the challenge of shortages of high-tech workers due to baby boomers retirement, the Boeing talent managers foster strong relationships with 150 universities through curriculum development and scholarship awards to the worthy students. In addition, Boeing offers $100 million for tuition reimbursement annually and actively matches employees with technical fellows who also serve as mentors (Davis, 2008). Conclusion The organizing function of management translates and carries out the plans drawn by the senior management of the organization.The success and the sustainability depend heavily on how the management organizes the various functions of the different departments.
The Boeing Company’s strategic organizing function effectively and efficiently manages the resources in the ways to build the core competence and to be able to respond appropriately toward changing market environment. Consequently, the Boeing Company has optimized the monetary and human resources allocations that the company currently ranks as number two in the world aerospace industry.References Axia College of University of Phoenix. (2010). Human resources management. Retrieved from Axia College, Week Three reading, aXcess, MGT330-Management: Theory, Practice, and Application Course Web site. Boeing. (2010).
the Boeing Company 2009 Annual Report. Retrieved from http://www. envisionreports.
com/ba/2010/27525ja10e/document_0/Boeing_AR_3-9-10_Preflighted. pdf Davis, N. (December, 2008). Leading by example. HRMagazine, 53(12), 44-45, Retrieved from EBSCOhost database