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The Boeing CompanyOrganizational StructurePresented by Group Of Himanshu Shakyawar
Company Overview• Founded in 1916 William E. Boeing in Seattle, Washington, US.• Customers and customer support in 150 countries Total revenue in 2011: $68.7 billion• 70 percent of commercial airplane revenue historically from customers outside the United States• Manufacturing, service and technology partnerships with companies around the world Contracts with 22,000 suppliers and partners globally• Research, design and technology-development centers and programs in multiple countries• More than 170,000 Boeing employees in 50 states and 70 countries
Boeing’s Organizational structure• Boeing uses the Matrix Structure: - Each Department has a Senior Vice Presidento Business Development and Strategyo Communicationso Engineering, Operations & Technologyo Financeo Human Resources and Administrationo Internal Governanceo Internationalo Law Departmento Public Policy
Boeing Organizational Chart W. James McNerney, Jr. Chairman, President, and CEO Michael J. Cave, Tom Downey, Sr. Vice President Sr. Vice President Business Development and Strategy Communications John Tracy, James Bell,Sr. Vice President Engineering, Operations, Executive Vice President &Technology Chief Financial Officer Richard Stephens, Wanda Denson-Low Sr. Vice President Sr. Vice President Human Resource & Administration Internal Goverence Shep Hill, J. Michael Luttig, President Sr. Vice President & General Counsel Boeing International Timothy Keating, Sr. Vice President Public Policy
Boeing’s span of control is wide: -163,851 employees -In 70 countriesBoeing is a Centralized Organization:-high-level executives make most decisions and pass them down to lower levels for implementation.
Boeing’s hierarchy 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. CEO Human Manufacturing purchasing Marketing Finance Resources
Analysis of Vertical and Horizontal Structure• Vertical and Horizontal Structure often work synonymously.• Vertical Structure establishes top supervisors who make decisions about how to run the organization.• Horizontal Structure breaks down the organization into smaller divisions overseen by department head who report to top supervisors.• Vertical Structure dictates how authority is delegated (top to bottom)• Horizontal Structure dictates how each division is integrated into the organization.
Matrix Structure• Boeing uses the Matrix structure to runs its organization. - Different divisions run independently due to the diversity of Boeing’s products. - Boeing is an organization that has constant changes in technology, which means that collaboration amongst the divisions is essential for success. - Boeing is a network organization with independent, single-function firms that collaborate on a good or service. - Resource utilization is efficient because key resources are shared across several important programs or products at the same time.