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Ch. 2 Management Theory
Transcript of Ch. 2 Management Theory
Essential Background for the Successful Manager
Boeing's 787 Dreamliner
How are the managerial practices being used at Boeing consistent with both a contingency and quality- management viewpoint?
Focusing on Boeing Corporation
Inputs are the customers, materials used to make the jets, a design, money etc.
Transformational processes would be planning and organizing, marketing and advertising Boeing's business.
Outputs would be transportation, entertainment, employee satisfaction, customer comfort.
Feedback would be returning customers and positive and negative reviews from customers.
Using figure 2.3 analyze the extent to which Boeing is using a systems viewpoint
To what extent is Boeing using evidence-based management? Are they overdoing it?
-Evidence-based management means translating principles based on best evidence into organizational practice, bringing rationality to the decision making process.
-Boeing makes managerial decisions based on evidence by understanding the importance of customer reviews and responding to them. Reviews became critical as they have helped mount one of it's biggest production increases in years.
To what extent are the managerial practices being used at Boeing consistent with principles associated with management science and operation management techniques?
To what extent does Boeing represent a learning organization?
Management science focuses on using mathematics to aid in problem solving and decision making.
Operation management focuses on managing the production and delivery of an organizations products or services more effectively
-Boeing uses science management by working with mathematics. For example using dimensions and architecture to design pivot bins that allow the average height person to be able to stand comfortably. They use operation management by adding special features such as lights, window shades, and dvd players to make customers experiences better, and there service more effective.
A contingency viewpoint emphasizes that a managers approach should vary according to- that is be contingent on- the individual and the environmental situation.
Quality management viewpoint includes quality control, quality assurance, and total quality management.
Boeing uses contingency viewpoint by deciding whether its safe for the passengers and staff to continue a flight in poor weather conditions. They use quality management viewpoint by hiring the best employees to make a high quality staff.
A learning organization is an organization that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge.
3 parts to a learning organization:
Creating and acquiring knowledge
-Boeing company is an example of a learning organization because with their 200 engineers and supply chain specialists the team is constantly visiting vendors and conducting evaluations.
Boeing is one of the worlds largest aerospace company and leading manufacturer of commercial jet lines and defense, space and security systems. They support air lines and U.S and allied government customers in 150 countries. They employ more than 170,000 people across the U.S and in 70 countries. More than 140,000 employees hold degrees in virtually every business and technical field from approx. 2,700 colleges and universities world wide.This represents one of the most diverse, talented, and innovative work forces anywhere. The company has nearly 12,000 commercial jet liners in service worldwide, which is about 75% of the world fleet.
By: Savannah King, Madison Carper, and Shannon Brown
Chicago-based Boeing aims to boost output by about 60% in the next three years- ordinarily 300 more jets a year
In the late 1990's, Boeing was forced to temporarily shut some of its assembly lines and took billions of dollars in charges, when bottlenecks and quality issues arose after they tried to expand production too quickly.
The number of part shortages at the 737 plant is the lowest in 5 years, according to company officials.
In 2008 inadequate training of new machines and supply-chain glitches lead to quality problems at its 737 plant.
One year ago the Boeing corporation faced a number of challenges. The 787 program suffered another setback when an electrical fire on a test plane grounded the companies Dreamliner flight-test fleet.
787 Dreamliner air plane is 20% more fuel efficient than similar sized airplanes
It's arch rival, Airbus is also aiming for record output, as airlines increasingly demand more fuel-efficient jets and air travel expands in Asia and the Middle East
Airbus has capitalized on some Boeing production delays. Airlines including Quantas Airways and Virgin Atlantic Airways decided to buy Airbus 330 jets in recent years because of Boeing's delays in delivering the 787 Dreamliner.
Boeing's goal is to achieve 90- 95 percent recyclability of the world's fleet by 2012 by taking advantage of industry expertise and new technologies.
To understand and to take advantage of market place changes, and to reduce waste and increase optimal usage of it's resources.
William E. Boeing
William E. Boeing left Yale University in 1903 to take advantage of opportunities in the risky, but financially rewarding Northwest timber industry.
Under his guidance, a tiny airplane manufacturing company grew into a huge corporation of related industries.
He lived until 1956, long enough to see the company he started enter the jet age.
5 Reasons for studying this chapter
1. Understanding of the present
-Understanding history will help you understand why some practices are still favored.
2. Guide to action
-Good theories help you make predictions and develop a set of principles
3. Source of new ideas
-Provide new ideas that may be useful when you come against new situations.
4. Clues to meaning of your managers decisions
-help you understand your firms focus.
5. Clues to meaning of outside events
-Allow you to understand events outside the organization.
Other Key Concepts from ch.2
Behavioral Viewpoint -Emphasizes the importance of understanding human behavior and of motivating employees toward achievement.
1. Introduce to Boeing Co. and William E. Boeing
2. Goals Boeing Co. Set
4. Issues Boeing has faced in past
5. Company Accomplishments
6. Tour of Boeing airplanes video
7. Discussion questions
8. Key Ch.2 Concepts
-It relies scientific research for developing theories about human behavior, that can be used to provide practical tools for managers.
-Is a set of interrelated parts that operate together to achieve a common purpose
In 1992 the passenger cabin of the new Boeing 777 Jet liner received the Industrial Design Excellence Award. This was the first time the award was ever given to an airplane interior.
In 1996 Boeing corporation was recognized specifically for "designing, manufacturing, and placing into service the worlds most technologically advanced airline transport."
Boeing is using a systems viewpoint, by using all four parts interrelated in order to keep their company running successfully.