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Company Organizational Structure

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Introduction
Two years ago, I had been working for the Boeing Company as an administration assistant for a period of three years. It is one of the largest aerospace companies and leading manufacturer of commercial jetliners and defense, security systems and space (Data monitor, 2000). The company has two business units which include Boeing Commercial Airplanes and Boeing Defense, Space & Security. There are also several support units which deal with the company’s capital corporations, engineering, operations and technology which help to develop, obtain, apply and guard innovative technologies and processes. The main companies business is handled by its employees, managers and corporate officers who are led by the chief executive officer and overseen by the board of directors. Companies’ practices and governance principles are then reviewed by the board’s governance and a nominating committee.
Organizational structure at Boeing
Communication at Boeing is a key factor in the success of the company and it also facilitates the organizational structure of the company. The company employs the matrix organizational structure where reporting relationships are set up as a grid rather than the traditional hierarchy and each department is headed by a senior Vice President. Organizational structure can be defined as the network of relationships that exists among various positions and position holders (Bhattacharyya, 2009). As employees, we had dual reporting relationships to the product managers and the functional managers. Through this type of organizational structure, different divisions run independently as a result of the company’s product diversity. Collaboration is essential for the success of the company since technology undergoes constant changes. Resources were been used efficiently because expertise, products, and equipment were been shared across different departments and projects. Flow of information was also efficient with the organizational structure since the information would flow both across and up through the organization. Employees were also motivated and decision making was efficient since working was autonomous and there was some form of self-management between the employees and the competing bosses at different departments.
Agency problem at Boeing
Agency problem refers to the conflict of interests which occurs between company’s management and the company’s shareholders. Normally managers act as the agents for the shareholders and are in charge of making decisions that enable shareholders to maximize their wealth. At Boeing, the production managers hid the problems that they had with their production departments. They did this because they wanted to keep the price of stock high to ensure that a merger that they were planning with McDonnell Douglas would go through (Holyoke, 1997). This caused friction between them and the shareholders to the extent that some shareholders sued the Boeing Co. Although it is quite difficult to completely avoid agency problems, it can still be controlled by the managers ensuring that they act in the best interests of the shareholders by allowing direct influence by shareholders.
Job designs at Boeing
Job dimensions refer to the specification contents and methods or relationships of jobs to ensure that the technological and organizational requirement of a company are satisfactory (Bhattacharyya, 2009). At Boeing, the overall categories that define the nature of a given job include the skill varieties of the different employees and autonomy which gives a description of the amount of individual choice and caution involved in a job. Basically, like all other companies, jobs at Boeing have lots of skill variety, task significance, and autonomy. The realities that people especially employers are faced with; however, make it difficult to design jobs which are highly motivating. This should nonetheless prevent managers from making changes whenever they deem possible. Incremental changes are the best way for improving job design at Boeing Company since lots of small changes add up to big changes over a long period of time.
Compensation packages for executives
A compensation package in a working setup consists of the sum of direct benefits like salaries, allowances, bonus, commission and indirect benefits like insurance, vacations, and pension plans that an employee receives from an employee. The Chairman and Chief Executive Officer at this company get a total annual compensation package of approximately $23,511,823 with the total cash take home being $16,479,231, Equity $6,272,517 and other packages amounting to $760,075 (Gates, 2015). The Executive Vice president earns a total annual compensation of $5,984,634 and the Vice chairman, president, and the chief operating officer earns around $7,880,991. Other employees like the system engineers earn around $98,900 with the software engineers earning around $83,115. Other short-term employees like interns earn an hourly compensation of $23.71 per hour (Gates, 2015). The company also offers other packages like the 401K plan which serves as a VIP retirement investment plan, besides vacation and paid time off compensations. Partly the compensation package is appropriate but the gap between packages is too wide. For instance, the gap between the CEO's package and the package for the executive vice president is too wide which should not be the case in any typical company.

Reference
Bhattacharyya, D. K. (2009). Organizational systems, design, structure and management. Mumbai. India: Himalaya Pub. House.
Data monitor (Firm). (2000). Boeing Company. New York, NY: Datamonitor.
Gates, Dominic. (2015). Boeing CEO’s compensation 29M, including $14 M bonuses. Seattle times. Retrieved, 29th June 2015. http://www.seattletimes.com/business/boeing-ceo-took-home-almost-29m-last-year/
Holyoke, Larry. (1997). Shareholders sue, say Boeing hid problems. St. Louis Business Journal. Retrieved, 29th June 2015. http://www.bizjournals.com/stlouis/stories/1997/11/10/story2.html?page=all

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