Boeing is one of the lading aerospace companies in the world. It is the largest player in manufacture of jetliners and military planes in the world. The company also specializes in designing and manufacturing of defense systems, launch vehicles, communication systems, and many others (Lind 2006, p. 169). Boeing also operates space shuttle and the International Space Station in conjunction with NASA. Boeing has a number of military and commercial airplanes with customers in about 90 countries in the world. With more than 158,000 employees in more than 70 countries, good management has been an important factor in success of the company (Boeing Corporation, 2007). This paper will look at the management function in Boeing and different factors that impact on management planning.
Management planning is central to success of the company. Careful management and planning has enabled the company to produce popular 7-series commercial airlines and conquer the space (Boeing Corporation, 2007). The company has many departments and therefore lack of planning would confine the company in a vulnerable position of failure in meeting deadlines and having unmotivated workers. In planning, the corporation has developed an unusual organization structure assuming two business solutions that are further tied to nine levels defining corporate functions. The two business solutions under which planning revolve include commercial airlines and the integrated defense systems. The planning function of management include business development, engineering, operations and technology, finances, human resources management, international operations, legal department, Internal governance, and public relations/environmental management.
Coordinating functions of all these departments is a real daunting task but the company employs simple and effective management actions for planning, acting, analyzing and emphasizing on methods that have positive results. Management planning in Boeing follows five close steps (Spindler 2008, p. 11). The first step is defining objectives which lead to production of high innovative products. The second step is initiative toolkit which balances and aligns customer satisfaction and growth. This includes customer satisfaction, productive growth through adoption of advanced technology, and others. The third factor is improvement in financial performance where there is evaluation of how profits are affected by steps taken to foster customer satisfaction and productivity growth (Spindler 2008, p. 10). The fourth factor is delivered results which are evaluated on stock prices and benchmarking performance to the laid down plan. The last step is the way in which the plan is executed and how this affects all stakeholders including customers, employees, shareholders, and the communities. However, there are different factors that impact on management planning in the company including legal issues, ethics, corporate social responsibility, and others.
What are legal, issues, ethics, and corporate social responsibility issues affecting management planning in the company? Legal issues, ethics, and corporate social responsibility have an impact on management functions in Boeing. Planning in the company is somehow complicated by legal issues which can sometimes confine the company into an awkward position (Spindler 2008, p. 9). For example in 2000, the company was sued by its employees in regard to differences in gender payment. A review of the payment records showed that there was differential in gender payment. However the hired attorney successfully defended the company from the liability and evidence presented was rejected by the court. The company settled the legal battle out of court saving it from a lot of public humiliation and saved millions of dollars. On issues of corporate social responsibility, the company is well respected for a number of activities that it has been undertaking in the community (Boeing, 2009). For example the company has joined Foundation for Corporate Responsibility which is one of the organizations fighting for philanthropic efforts and business ethics in business world. The company has participated in different activities including Chicago Air and Water Show and many others. Ethics is important for any business organization and Boeing has not be left behind in ensuring adherence to ethical policies. The company has developed an ethical policy which is aimed at protecting the company and its employees (Spindler 2008, p. 17). For example the company has a code of conduct which is supposed to be obeyed by all employees. The company has also set up a hotline which helps employees to report any violation of ethical policy. The company has been devoted to demonstrate leadership, integrity and customer satisfaction through adherence to ethical policies.
The above mentioned factors have a lot of influence on management planning in the company. These factors are sometimes an impediment to successful operation of the company. However, overcoming these factors is a tricky affair for management and hence the company has developed other factors which influence its strategic, tactical, operational, and contingency planning.
There are a number of factors that influence the company’s strategic, tactical, operational and contingency planning. With a huge size of operation, there are different factors that influence management planning. Three main factors which influence management include innovation, profitability, and environment (Lind 2006, p. 175). There are many other factors influencing strategic, tactical, operational, and contingency planning but the mentioned three factors have a lot of influence. Innovation is the bedrock of success for the company. Operating in such a competitive industry, Boeing has strived to cut an edge in adoption of competitive technology which has enabled the company to put in line 7 popular commercial airlines. This is mainly factored through staff development and investment in technology. The product chosen by the company affects its profitability. Commercial airlines and integrated defense systems comprise 97% of the earnings from the company (Spindler 2008, p. 14). The company has also strived to balance between developments in technology in different divisions to ensure constant profitability. Environment has been a major focus of the company’s growth. One of the strengths in the growth of the company has been is commitment to engage customers in planning and exaction phase of its operation. As stakeholders, the company has invested in designing products that are friendly to the environment.