2. 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
3. Boeing’s Organizational structure
• Boeing uses the Matrix Structure:
- Each Department has a Senior Vice President
o Business Development and Strategy
o Communications
o Engineering, Operations & Technology
o Finance
o Human Resources and Administration
o Internal Governance
o International
o Law Department
o Public Policy
4.
5. 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
6. Boeing’s span of control is wide:
-163,851 employees
-In 70 countries
Boeing is a Centralized Organization:
-high-level executives make most decisions and
pass them down to lower levels for implementation.
7. 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
8. 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
9. 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.
10. 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.
