This paper is aimed at discussing the organizational structure of such a company as Boeing. This corporation can be described as a matrix organization and this model attracts close attention of many business administrators. In particular, it is important to discuss the factors that prompt the management to choose this particular approach to design. Moreover, the efficiency of this approach should also be evaluated. Overall, one can say that the senior managers of this corporation pay close attention to the nature of products offered by Boeing and its operations. Despite some limitations of this method, it is the most optimal strategy for the needs of Boeing. This technique can be adopted by other technological enterprises. These are the main questions that should be examined more closely.
Overall, it is possible to argue that Boeing has the so-called matrix organization structure. This approach means that the management groups employees according to the needs of a particular project that should be completed. For instance, a team may incorporate people who have skills in design, engineering or marketing. They represent different departments (Kates & Galbraith, 2010, p. 110). Moreover, a certain employee can be accountable to several managers at the same time, if he/she works on several projects (Kates, & Galbraith, 2010, p. 110). This particular approach diminishes the role of different departments because employees can often move from one division to another (Kates, & Galbraith, 2010, p. 110).
To some degree, this approach can be compared to flat organizational structure. It should be noted in both cases, the rigid bureaucratic hierarchy is reduced to the minimum. In this way, businesses can achieve greater flexibility. This is one of the main advantages that can be attained in this way. In turn, this method can be contrasted with divisional structure. The divisional approach means that a company is divided into several production units that are usually relatively independent of one another. In turn, the management of Boeing lays stress on the cooperation between different departments. So, this corporation can be distinguished among many other businesses due to its approach to organizational design. It is necessary to keep in mind that the management of Boeing usually relies on the matrix approach at the time when the company has to resolve a certain urgent problem.
One can argue that the operations of the company can be viewed as the main force that determines the organizational structure of this company. It should be noted that the company works on the production and design of different aircraft models at the same time. Therefore, the skills of an employee can be needed for the implementation of various tasks (Galbraith, 2008, p. 9). For instance, an aircraft designer can take part in different projects such as the designing or testing of new models. This is one of the details that should be considered because it is important for understanding the functioning of Boeing. It is possible to argue that this approach is suitable for the needs of this organization. Apart from that, the operations of this company and its marketing strategies are closely tied with one another. In contrast, other functions of this company such as HR management and finance have a lesser impact on the structure of Boeing. Their influence cannot be called definitive.
While examining the organizational structure of Boeing, one should first focus on the nature of their products. It is possible to say that the production of aircrafts requires the cooperation of different professionals. Certainly, much attention should be paid to the role of designers and engineers. Nevertheless, one should not forget about marketing professionals who need to determine whether a new model can generate sufficient revenues for the company. This is one of the issues that can be distinguished. This example shows that the autonomous work of different departments does not fully meet the needs of Boeing. In contrast, matrix approach better enables this firm to deal with various challenges such as the necessity to coordinate the work of many suppliers that may be located in different regions of the world (Kates & Galbraith, 2010, p. 110). As it has been said before, this method is particularly valuable at the time when this enterprise has to perform an urgent task (Doede, 2013). Under such circumstances, the existence of departmental barriers can only harm the performance of the company. The main limitation of the matrix approach is that some employees may find it rather difficult to work at several tasks almost simultaneously. This is one of the drawbacks that should not be disregarded.
On the whole, this discussion indicates that organizational structure of this corporation reflects its goals or the nature of its products that require close partnership of different professionals. The choice of the matrix approach is quite suitable for the needs of Boeing that has to perform technologically-complex tasks. The operations of Boeing can be made more effective provided that the representatives of different business units interact with one another. These are the main issues that can be singled out.
Reference List
Doede, K. (2013). Management: A European Perspective. New York, NY: Routledge.
Galbraith, J. (2008). Designing Matrix Organizations that Actually Work: How IBM, Proctor & Gamble and Others Design for Success. New York, NY: John Wiley & Sons.
Kates, A., & Galbraith, J. (2010). Designing Your Organization: Using the STAR Model to Solve 5 Critical Design Challenges. New York, NY: John Wiley & Sons.