beoing organizational structure
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The Boeing Company Organizational Structure
Presented 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 President
o Business Development and Strategyo Communicationso Engineering, Operations & Technologyo Financeo Human Resources and Administrationo Internal Governanceo Internationalo Law Departmento Public Policy
Boeing Organizational Chart
Boeing is a Centralized Organization: -high-level executives make most decisions and pass them down to lower levels for implementation.
Boeing’s span of control is wide: -163,851 employees -In 70 countries
Boeing’s hierarchy
• 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
Vertical Structure
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
Manufacturing purchasing Marketing Finance Human 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.