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Boeing is a United States company with a significant amount of export through sell of both goods and services to the over 90 countries around the world. It is arguably current world number one aerospace company. The Headquarters are situated in Chicago with an employment capacity of about 157000 in business, technology and technical fields around the world. This presents a pool of assorted, endowed and innovative labor force that can be beaten by very few industries in the world. It is the largest manufacturer of both the military aircrafts and commercial jetliners. Boeing is also a designer of manufactures rotorcraft, electronic and defense systems, launch vehicles, satellites, missiles and advanced information and communication systems. Boeing is a major partner of National Aeronautics and Space Association. On behalf of NASA it operates the international space station and the space shuttle. Additional services rendered by Boeing are commercial and military airline services (Boeing Corporation, 2007).
The business is conducted by its team of workers at different levels. There are corporate officers, managers and employees. The corporate officers are headed by a Chief Executive Officer supervised by a Board of Directors composed of eleven members. The company's principles of corporate governance are always the Board's Governance, Organization and Nominating Committee. The principles are coined to satisfy the needs of the shareholders, employees, customers, communities, public officials and suppliers. The board has a code of Ethical Business Conduct to help in ironing out unethical conduct to develop and sustain honesty and accountability. It helps the directors to quickly recognize and deal with ethical issues at their earliest stage (Boeing Corporation, 2007).
Management in the business circle can be broadly defined as an act of using all available capital both monetary and human resource to achieve desired objectives and goals. Management involves coming up with a practical plan mostly referred to as a blue print of how one intends to carry out a particular activity. Setting up the various infrastructures that will help in executing the plan, this not only ensure a continued process but also keeps the employees at per with the overall objectives of the firm. Staff is part of the required infrastructure and staffing sufficient personnel is part of management. Specialization is encouraged to ease the pressure on the whole process. Management is sealed by the ability to control all the other aspects of managerial functions. Controlling as a tool helps in detecting errors in the process and employing corrective measures to edit the mess to low levels. The different roles of management can be split to be done by various people such that there is one doing the planning, another one doing the budgeting of time and another one monitoring the whole process. Each sector of the Boeing Company is headed by a manager qualified in that field, who implements and monitors the company's policy. The policy of management is a simple model for scheduling, acting, analyzing and implementation to yield results. Boeing company has two unique business units tied together; The Boeing Defense, Space & Security and Boeing Commercial Airplanes. Supportive units for the two are Operations & Technology, Human Resources/Administration, and Public Policy Boeing Engineering, Boeing Capital Corporation, International, Law, Office of Internal Governance and the Shared Services Group.
The management of Boeing primary focuses on competitive growth measures in the global market, leadership development, financial goals, and compliance & ethics. It achieves its objectives by first defining its financial goals which should go hand in hand with the production of quality services and products with minimal side effects to the environment and user communities. They try to ensure balanced increased customer satisfaction and growth in production. The financial impact of increased production and growth of customer satisfaction are evaluated in accordance to the initial financial goal (Spindler, 2008).
According to Maccoby (2000), the word leadership is only applicable when there are followers. It's a social process by which one exerts influence on others to support his cause of action. It involves setting a new vision or direction for a given group to follow; it is therefore a relationship between the leader and the led. The major roles played by a leader are selecting talent, building trust, motivating, and coaching. Good leadership selects a team basing on the ability to work with others and excellence, basically finding great people is their accomplishment. They select responsibilities that employ a person's competencies stretching their thinking levels and are value adding. Success in leadership is judged by performance and therefore rewarding success is important in an organization. For effective results the leadership keeps people focused through motivation and developing competencies through coaching. Developing trust is also good by doing what they preach and walking the talk. The causes of following a leader are the excitement and expectation about the project or mission, trust in the leader, hope for success and at times fear of being a rebel Leadership can be either positive or negative. Positive leadership creates an aesthetic dream which inspires people with a model of what can be achieved. Negative leadership is charismatic and seduces followers into catastrophic adventures. Leadership does not take much into consideration of the measures to be taken to make the new direction get achieved. The success of the new way set depends on the input and the passion of the followers on the idea. On the other hand management ensures things are performed according to the already established plans. Management is more like referring a match. Organizational leadership recognizes two types of leaders; strategic leader and operational leaders. The difference between the two is that strategic leaders visualizes the company's future and encourages the investments necessary to create it while operational leaders have the skill of implementing the vision. Boeing Company has Boeing Leadership Centre (BLC) which brings all the leaders across the enterprise. It partners with all the business units to provide development opportunity by sharing their experiences, what they have learnt, exchange best practices and techniques that translate to success on the job.
The success in Boeing leadership has a lot of lessons that have been of interest to several other companies. It is attributed to envisaging the leadership dreams to personal development. Leaders at Boeing struggle to have their knowledge and skills meet the apex of growth areas to keep them in demand. It is stated pushing yourself out of the comfort zone is where you grow and learn the most unlike being in comfort zone which leads to stagnation. Experiences should be taken positively and reflected upon in future decision making. Reflections should help a leader understand whether he has achieved the required targets, what more input is required to make it better, other possible avenues that could have been taken and the challenges are of what importance to leadership (Spindler, 2008).
The major difference between leadership and management is the fact that leadership sets a direction or vision that others follow while the management is to supervise the functioning of the companies. Leaders are characterized by followers on the other hand managers subjects are characterized by subordinates. The roles of a manager are essential for the stability of an organization focusing on managing work while the leader is essential for a change in the institution and focuses on leading the people. Manager's tasks are mostly focused for a specific task for short term plans while leaders plan there on the long term. The charm of a leader to get followers depends on his public personality while managers have their conferred to them by authority. The driver force behind a leader is the passion for the activity that shapes the culture while manager is using his authority to enact the desired policy and control the whole process. The mangers use this for economic gains through the salaries being paid while a leader propels his project or activity for the love of the job. Leaders are ambitious and tend to create new avenues through which they achieve their objectives, any conflicts or short comings are used to build up stronger teams and gives credit to success. Managers on the other hand follow the laid down rules to get an end result and mostly the success of a mission gives credit to the manager rather than the workers (Maccoby, 2000).
Globalization is an ongoing process with lots of interest and perspectives leading to variable definitions from different authors. Globalization major concept is turning world into one political and economic unit regardless of the geographical and organization boundaries. Globalization began so as to satisfy a people's need in their own context and culture. Competition in all sectors increased and is still rising due to new comers in the market, inventions and innovations. Globalization is forcing organizations to change and step up their ability and structures to match the global demand. Major effects of globalization have been felt on the labor market taxing heavily on employment; unemployment and delocalization. There is massive job insecurity and manpower incomes depreciation that has resulted from collapse of institutions of social protection and the restructuring of both the economic and corporate structures. Employers now prefer hiring workers either with no contracts or less secure contracts since they have more flexible labor policies. Countries especially in the third world encourage the development of Export Processing Zones to increase employment. In restructuring operations most managers prefer to replace human labor to cut cost replacing by replacing them with automated machines. Most managers argue that machines are faster and reduce unnecessary inefficiencies. Despite the ability to duplicate technology, innovations staff management requires skills; different business strategies require different human management skills. It is therefore important to note that effective human resource management is a channel to raise and sustain the competition. This can be affected by attracting and retaining the best employees in the market. Dismissing of employees is at expensive taking into account the training costs, experience and terminal payments (Czenter 2002).
Globalization has led to significance changes on how organizations are managed to increase profits despite the stiff competition. The dynamic competition requires the management to not only focus on growth in production but also meet the public interest. This has made no single organizational structure in isolation can meet the international environment. Multi nationals are now being forced to integrate their activities in several countries to meet the market demand and this leads to the blending of organizational structure into culture. Management gurus argue that killing a company is easier than changing it, implying that it is hard decentralizing an organization even on the global scales. They warn that companies that plan their decisions for future problems based on the previous mistakes are likely to make grievous mistakes. Effects of globalization require leaders to understand the components of socio-technical systems in terms of the needs of the international markets, staying on top of technology, keeping tabs on the needs of global market, while optimizing the of the whole supply chain (Drator, 2006).
According to Jackson & Coolican (2003), the structure of a well organized institution is such that it meets the needs of the employees plus takes care of the employees, who will reciprocate by behaving in respectable and civil manner. Any organizational change process has significant impacts on the lives of the human beings who make up the organization. These creates favorable environment for healthy organizational growth and positive conflict resolution. People are said to spend at least five days a week at their work place, therefore the conditions promoted within the organization have high impacts on their social life. This is called the spillover effect. The characteristics of an employee are affected by his/her organization by means of instruction, punishment and rewards. This affects employees in terms of how he or she learns to think and behave. It is therefore important for management and leadership to give positive leadership in order to achieve positive results.
American College of Sports Medicine argues that strategies for a healthy organization should start with the organization itself before the health and well being of the workforce. This means a review of the organization structure, policies and the corporate practices and their impacts on the workforce. It helps in giving an insight of how good or bad the policies are and there negative or positive effects on the employee. It is from this point of view that management and leadership can start a clean up process bettering the organization and its workers welfare.
This paper discusses the management and leadership structure of the Boeing Company. It compares management to leadership comparing and highlighting their differences in terms of structure and implementation of their different roles. It hoes further to discuss globalization and its effect on management.