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.