Organizational Structure of Boeing: Analysis of Matrix Structure

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Fundamentals of Management

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Contents
Introduction...........................................................................................................................................2
The organizational chart of Boeing........................................................................................................2
Analysis of Matrix structure..................................................................................................................4
Disadvantages of structure.....................................................................................................................7
Suggestions to overcome disadvantages................................................................................................8
Conclusions...........................................................................................................................................8
References.............................................................................................................................................9

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Introduction
The Boeing is a multinational corporation of America. It is world’s leading aerospace
company. The company is the largest manufacturer of jetliners, defense, space and security
systems. Boeing has more than 3000 employees in 38 locations. The company has the
broadest portfolio in Australian aerospace including it’s employees, extensive supply chain,
support and training and unmanned systems. The company was established in 1916 and it’s
headquarter is situated at Brisbane. It is the largest subsidiary. This report includes the
organizational structure of Boeing. The analysis of matrix organizational structure is done to
understand why it is important for the organization’s growth. Further, the disadvantages of
the structure are explained. Finally, the suggestions are given to overcome disadvantages of
matrix organizational structure.
The organizational chart of Boeing
The above chart represents the organization structure of Boeing. The matrix organizational
structure is used by Boeing in the departments such as business expansion and strategy,

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communications, engineering, operations and technology, human resource and management,
international and public policy. The matrix organization structure is important towards
company’s growth as it makes efficient use of limited human resources, clearly defines the
objectives of the project and integrates the project and functional objectives (Boeing, 2018).
The matrix organizational structure enables information flow throughout the departments of
the organization. The line of communication flows more freely and allows increases
accountability for both team and managers. It develops team spirit and high morale. It saves
time in the distribution of resources and brings efficiency in the resource management. The
time of staff can be used for the different project which leads to efficiency in staff
management. The matrix organizational structure leads to morale difficulties with less
frequency as the employees attain the experience of regular working on major projects. It
overcomes the inadequacies of the company by combining functional departmentalization.
For instance, when the company wants to develop a new product then it can coordinate with
functional departments like research, engineering, production and marketing (Boeing, 2018).
The matrix organization structure comprises the vertical and horizontal structure. It uses
differentiation and integration in it’s vertical structure. In the differentiation, various units
work on the different units by using different skills and methods. The integration put back
together differentiated units to coordinate in overall products. The top supervisors make
decision in the vertical structure of matrix. In the horizontal structure of matrix, the
organisation is divided into smaller departments (Flynn, 2015). Each section has a head who
directs the employees and overall division. The lower level of management is liable to report
head departments. The head departments report to the CEO and CFO. The horizontal
structure creates separate and specific divisions to direct functions of the organisation.
The vertical and horizontal structure works synonymously. The vertical structure enables top
managers to take desired actions to run the organisation. It dictates how authority is passed