ORGANIZATIONAL CULTURE AND STRUCTURE 2
Boeing: Organizational Culture and Structure
MGMT312 Management Theory and Practices
Professor Stephen Stewart
April 22, 2014
Before we can begin a discussion on the cultural dynamics within the Boeing Company, it is imperative that we define and briefly elaborate about the foundational structures of the company, and its core values. Both of which has a direct impact in the development of its culture.. Being that Boeing has remote multinational locations, and also has satellite locations throughout the United States; Boeing utilizes a combination of two organizational structures, the network structure and hierarchal structure.
Logically, due to Boeing's global footprint, Boeing's overall corporate structure utilizes the network structure. The adhocracy of the overall network structure of the company allows the company as a whole to be outward focused, creative, and be responsive to market demands. In this structure's central core, the Chief Executive Officer, president and the senior managers are involved in the development and evolution of the company's vision through strategic decision-making.
These decisions affect the projected long-term performance of the company in the global market. The strategic decision process involves, introduction of new products, sale or acquisition of assets and global long-term strategies. Under the network structure, this flow of information is normally both vertical and horizontal. The horizontal information is where the employees in the same department or different department but on the same rank communicate to facilitate smooth running of the operations. Likewise, these decisions are made based on decisions that have continuously been made in the normal operations of the organization. Outward of this central core in this network are the specialized divisions and predominantly have a more traditional hierarchal (vertical) structure.
The divisional hierarchal design, which has a more rigid structure, is focused on stability of the...