Organizational Culture
Essay by 24 • June 20, 2011 • 910 Words (4 Pages) • 1,253 Views
Boeing is the top aerospace corporation and the largest producer of commercial and military aircrafts combined, with abilities in missiles, electronic and defense systems, rotorcraft, satellites, launch vehicles and advance information and communication systems. Boeing supplies to 145 countries in the world and is the number one exporter in US sales. Boeing’s headquarters is in Chicago, IL (Boeing, 2007).
Planning Function of Management
Of the four functions of management, planning is the first function to be handled. There are different phases to planning such as Strategic planning, Operational Planning, and Contingency Planning. All of these different phases of planning play a vital part in the operation of a business.
Legal, ethical, and social responsibility
The knowledge of the legal, ethical and society responsibility issues is a requirement in management planning. These issues are important in implementing a strategic plan for an organization. Because Boeing is such a large company, it is not easy to handle regulations like anti trust. Boeing has to be conscious of foreign trade regulations also. A political factor that may harm business is external audits. Some factors are Tax Laws, economic laws, Import tariffs and quotas, foreign trade regulations, Climate and stability, copyright laws and patent laws.
Ethical and Social Responsibility
Boeing and Airbus are disputing with each other, along with the government and countries. Neither Boeing nor Airbus will admit to receiving assistance from the government. EU member states are donating to the producing of Airbus aircrafts and Boeing receives lucrative contracts from the US government.
Unethical conduct
Charges have been brought against Boeing employees for unethical conduct. One instances is the resignation of Boeing Chief Executive Officer Phillip Condit and the firing of Chief Financial Officer Michael Sears due to inflating the contract prices to favor employer and pass information on to Boeing’s competitor Airbus. In October of 2004 Condit and Sears were ordered to serve nine months in jail for corruption, also fined $5,000, and three years of supervised release along with 150 hours of community service. In March of 2005 Boeing mandated President and Chief Executive Officer Harry Stone cipher to leave the company due to the actions incompatible with Boeing’s Code of Conduct and the charges of espionage by Boeing competitors.
Social Responsibility
Social responsibility and business ethics are regarded as the same. Yet social responsibility is only one aspect of business ethics. Social responsibility movement came about in the 60’s because of heightened public awareness surrounding ethical practices.
The business, airlines, and airports, each face the challenges of starting anti-terrorism programs to prevent terrorist attacks. Governments continue to issue new and more rigid regulations that require airports to install certain kinds of technology (Sander, 2004).
Strategic tactical, Operational and Contingency Planning
Strategic planning decides the direction an organization is head with the year or more. The focus is often on the over all organization. Strategic planning is the preparation upper management does before introducing a new product or a new business venture. It is the SWOT of planning and answers who what where questions. SWOT means strengths, weakness, opportunities and threats. Strengths and weaknesses come from the internal environment of the firm. Strengths can be exploited, built upon and made key to accomplishment of mission and objectives. Strengths reflect past accomplishments in production, financial, marketing and human resource management.
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