BOEINGCase Study

By :Augustine MerriskaFariRahmatullahIndriyanaDamayantiKristiaTiara NursyaniYandaEldiyana

Tutorial 3A

Diagnostic Model

Six Box Model, the organizational life in 6 facets including: Purposes Structures Relationship Leadership Rewards Helpful mechanism

Why we choose Six-Box?Six-Box Model focuses with an organization primarily by posing diagnostic question, which have to do with the fit between, what is, and what should be.

In this model:PURPOSE is about the business are we inSTRUCTURE refers to a way in which the organization is organized and which people and units interact is termed relationship.RELATIONSHIP is the way in which people interact with technology.REWARDS are the intrinsic and extrinsic rewards people associate with their work.LEADERSHIP refers to the typical leadership tasks, including the balance between the other boxes.HELPING MECHANISMS are the planning, controlling, and information systems that serve to meet organization goals.

The Boeing Situation in Six Box Organizational Model

Purposes℘Boeing is Aerospace Company manufacturer of commercial jetliners and defense, space and security systems.

℘The fast growth of Airbus in 1994 and The 1997 merger of McDonnell Douglas and is the main threat for Boeing and make Boeing lost its competitive advantage

℘The first area where Boeing is lagging behind is they create confusion for the staff, suppliers and investors.

℘So, they should clear their goals which directly relate to the mission and vision of the organization.

Structures℘ The structure in Boeing is outdated because

there is unnecessary processes in a company that had reportedly change little since world war II.

℘ The structure in Boeing is also not clear, for example, after Boeing merger McDonnell

Douglas, the company does not clearly define the future of the major markets, the mainly airliner or

the defense contract.

℘ They also didn’t delegate the work and empower employees properly, so that chaos have

been created from higher level to lower level in the organization.

RewardsThe Boeing entry into the space industry

was an erroneous move. It caused Boeing’s employee morale was at low because the process of diversification

and this issue needed to be addressed.

The employee need to be rewarded based on their performance to prevent demoralizing employee that will lead to

the condition of employees lack of moral for company.

Helpful Mechanism

The overall strategy was to update their technology system, downsize

their operation.

The mechanism employed by Stonecipher had tremendously help in meeting the organizations objectives.

Boeing had improve this situation through the implement a technological platform to regulate product lifecycles.

RelationshipBecause of the cultural diversify; the conflict must be happened in

the organization.

Lack communication within the organization appeared to have been

the source of this problem.

They should use the familiar technique and keep a sound

relationship in the organization.

LeadershipThe stock price had decreased by 6.5 % and the competitive pressures had increased while the company under Phil Condit leadership.

He is replaced by Harry Stonecipher, the past head of McDonell Douglas who had come in as the new COO in Boeing after the company was acquired.

He made important decision by produce the new 7E7 planes.

As a result, the company had repositioned itself on the top, the morale of its employees is high and they have a new market (7E7)