Boeing and Organizational Behavior

Topics: Boeing, Boeing 787, Competition between Airbus and Boeing Pages: 10 (3051 words) Published: June 30, 2010

The Boeing Case Study

This Chapter examines the stress of change and the effect stress may have on ethical practices in the areas of resource management- Pay, Product, and the Environment. Citation is utilized from publically available information from The Boeing Company’s web site, Boeing’s 2007 Annual Report, Current Market Outlook 2009-2028, and the 2009 Environmental Report to examine internal and external factors, change, and current organizational practices related to The Boeing Company activities related to ethical author stipulated ethical practices in the areas of Pay, Product, and the Environment.

The Boeing Company is facing the economic complexities of a global recession, delivery of new technology to the market place, commercial aircraft models 747-8 and 787. This researcher contends The Boeing Company has an ethical responsibility to deliver safe products to the end-user with the corporate social responsibility to make ethical choices for the stakeholders- Product, Pay, and the environment to increase stakeholder confidence and add value to the organization by the ethical management of all resources. Change is a constant in today’s global enterprises. Change is reputed to induce organizational stress and influence an organizations ability to make clear choices. Balance is required between labor costs, investment in technology, the environment, and capacity to deliver a product to market that will generate sufficient demand, to support sustainable production, distribution, and sale. Ethical actions and policies are required in the management of labor relations, (compensation and diversity), technology, product, and the environment.

Inevitability of Change
New Directions in Systems Theory: Chaos and Complexity written by Warren, Franklin, and Streeter (1998), posit research starting as early as the 1940’s has been conducted with the purpose of constructing general principles applicable to ordered systems, theory of social behavior in systems or general systems theory. Warren, Franklin, and Streeter (1998) contend systems are dynamic, stable, but subject to change of two types, linear and non-linear. Linear change / straight-line change: characterized as predictable, expected result, simple proportional cause and effect. Non- linear / random change: defined as chaotic, non-proportional, and unpredictable. Complexity Theory stipulates feedback from system components provide comprehension and reactive response to chaotic change, feedback loops create sensitivity to conditions that result in response. Individuals comprise components of social organizations, interdependent with the whole, and subject to change, Warren, Franklin, and Streeter (1998). Warren, Franklin, and Streeter (1998) contend organizational reaction to change, the need to change to meet internal and external factors place stress on organizational components. It is this complex combination of change, the need to change, and stress associated with each that can influence the managerial decision making process. Ethical choices may not be as clear. Warren, Franklin, and Streeter (1998) contend organizational stress levels to be proportional to possible impact to ethical choices; the more stress the harder to make clear choices. Change, as a factor, is further defined by The Nature and Design of Post- Industrial Organizations written by George Huber in 1984 and stipulates the nature of post-industrial society will impose demands on Post-industrial organizations of which change will be required to cope. Huber 1984 contends: decision-making, innovation, information acquisition, and distribution may be of use to organizations to equip managers with skills necessary to manage industrial organizations in relation to the changes in society (diversity for one) that effect the operational environment of which business operations are conducted.

Huber (1984):
In summary, the...

References: Bédier, C., Vancauwenberghe, M., & van Sintern, W. (2008, June). The growing role of emerging markets in aerospace. McKinsey Quarterly, Retrieved June 8, 2009.
Boeing, (2009), About Us, The Boeing Company. Retrieved May 17, 2009
Boeing (2008), 2009 Environmental Report, The Boeing Company. Retrieved June 23, 2009.
Boeing (2008), 2007 Annual Report, Leading the Way, The Boeing Company. Retrieved May 17, 2009.
Boeing, (2008) Current Market Outlook 2009-2027, The Boeing Company. Retrieved June 27, 2009.
D’Intino R., Boyles, T., Neck, C. & Hall, J. (2008).Visionary entrepreneurial leadership in the aircraft industry: The Boeing Company Legacy. Journal of Management History 14(1), 39-54 (Copyright Emerald Group Publishing Limited) Retrieved May 19, 2009.
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