Organizational

Structure
Presented by: Team D
Ann Blasius, Jolene Cabazos, Julie Comeau,
Ryan Scalmanini and Nora Trombley
MGT/330 Management: Theory, Practice &
Application
Professor Darin Jones
December 1, 2008

As an organization that utilizes the matrix structure

of management, communication is the key to
success
At Boeing the lines of communication flow more
freely with this structure and thus allows for
increased accountability both from the project
teams and project managers.

Boeings Organizational
structure
Boeing uses the Matrix Structure:
- Each Department has a Senior Vice President
o
o
o
o
o
o
o
o
o

Business Development and Strategy

Communications
Engineering, Operations & Technology
Finance
Human Resources and Administration
Internal Governance
International
Law Department
Public Policy

Organizational structure cont.

Boeing uses Specialization:

Different individuals in different units perform specific

tasks
o
o
o
o
o
o

Executive council
Capital Corporation
Commercial Airplanes
Engineering, Operations, and Technology
Integrated Defense Systems
Shared Services Group

Organizational structure cont.

Boeing uses Corporate Governance:
The firm is overseen by its executive staff and board of directors.
The executive staffs and board of directors use integration to
run the organization.
Boeings use of integration, brings the Executive council, Capital
Corporation, Commercial Airplanes, Engineering, Operations, and
Technology, Integrated Defense Systems, and Shared Services Group
together via the Senior Vice Presidents to make decisions about how
to stay competitive and increase revenue.

Organizational structure cont.

Boeings 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.

Boeings Organization Chart

W. James McNerney, Jr.
Chairman, President, and CEO
Michael J. Cave,
Sr. Vice President
Business Development and Strategy

Tom Downey,
Sr. Vice President
Communications

John Tracy,
Sr. Vice President Engineering, Operations,
&Technology

James Bell,
Executive Vice President
Chief Financial Officer

Richard Stephens,
Sr. Vice President
Human Resource & Administration

Wanda Denson-Low
Sr. Vice President
Internal Goverence

Shep Hill,
President
Boeing International

J. Michael Luttig,
Sr. Vice President & General Counsel

Timothy Keating,
Sr. Vice President
Public Policy

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

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.

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.

Boeings Organizational
Functions
Human Resources develop and implement company growth
activities.
Marketing Department leads strategic direction, revenue,
market share and brand development.
Operations Department responsible for purchasing, quality
control, logistics, evaluations, etc.

Boeings Senior
Management
Needs to:
Support matrix structure and only implement where it adds
value.
Remove barriers - cultural and others.
Supply clear direction.

Leadership and Innovation

At Boeing each organizational function has its own purpose
and place in the management of the company.
The company as a whole is ever striving to improve at all
levels.
They realize that their strength comes from their employees,
and that management at all levels must continue to support the
many ongoing efforts by its teams.

Boeings Culture
o Values
o Leadership
o Integrity
o Quality
o Customer Satisfaction
o Enhancing Share Holder Value

Organizational Design
Elements
Matrix Organization:
o
o
o
o
o
o
o
o
o

Geographic
Functional
Customer-Based
Product
Service
Hybrid
Matrix
Marketing channels
Departmentalization

Matrix Structure
Boeing uses the Matrix structure to runs
its organization.
- Different divisions run independently due to the diversity of Boeings
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.

Geographic's
Based out of Chicago, Boeing has customers all over the
world.
Boeing has sales offices throughout the world to cater to their
customers.

Boeings span of control is wide:

163,851 employees

- In 70 countries
This ensures customer satisfaction and proper communication
between both parties.

Product
Boeings products are very specific to each customer,
especially in defense systems for governments.
With a Matrix structure, Boeing is able to design and
manufacture products that are one of a kind while still
allocating resources very well.

Conclusion
We value the skills, strengths, and perspectives of our diverse
team.
We will foster a participatory workplace that enables people to
get involved in making decisions about their work that
advance our common business objectives (Boeing, 2008).

References
Boeing, (2008). Boeing; About Us; Retrieved on November 29, 2008 from
http://www.boeing.com/aboutus/culture/index.html#diver
Dumaine, B. (1994). THE TROUBLE WITH TEAMS. Fortune, 00158259, Vol. 130, Issue 5;
Retrieved on November 28, 2008 from
http://www.mph.ufl.edu/events/seminar/TroublewithTeams.pdf
Peters, T., Waterman, R. (2004) In Search of Excellence pg 307 p2. Retrieved from
http://books.google.com on November 29, 2008.
Almojuela, B. (2000). The Core of Planning Process. (1-5).
http://www.alignent.com/resources/benalmojuela-qa.htm
Galligan, M. (1998) Policy/Management Track: Strategic Planning. (4) Kansas Legislative Research
Development. http://www.ncsl.org/programs/lis/nalit/galligan1.htm
Bishop, L.A., (2001) Shaping the corporate ownership structure to build shareholder value.
Strategic Investor Relations 1.2 p 47(4) Retrieved on November 29, 2008 from General One File
UOP.