Organisational Behaviour Case Study: Boeing Dreamliner Analysis Report

This individual case study analysis report examines the organizational challenges faced by the Boeing Dreamliner, focusing on its complex structure and supply chain issues. The report identifies the use of matrix, virtual, and leaner organizational structures within Boeing, highlighting both their advantages and disadvantages in the context of the case. Key issues include difficulties in communication, lack of standardization, and accountability problems due to the complex structure. The analysis proposes alternative courses of action, suggesting a hybrid approach combining mechanistic and organic models to address the identified problems. Recommendations include short-term actions such as simplifying vendor relations and building responsive teams, as well as long-term strategies such as implementing TQM and Six Sigma concepts. The report concludes with a Harvard referencing style list of the sources used.

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Title: INDIVIDUAL CASE STUDY ANALYSIS REPORT
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INDIVIDUALCASE STUDY ANALYSIS REPORT
Typeyour responses in the boxes below:
Summary:Summarise the main issues identified in the case study that is relevant to the topic.
Organization name: Boeing Dreamliner
Matrix structure: It’s a kind of structure that forms parallel lines of authority, that takes into account both
product and functional departmentalisation.
Virtual Organization: In order to compete, the small business organization outsources major parts of its
process to other organization. In structural terms, such structure are strictly centralised with very minimal
departmentalisation or zero departmentalization.
Leaner Organization (Downsizing): The organization may bring more agility in their process by downsizing
or selling the units that are of no value addition to the organization. To concentrate more into their core
process the organization
Issues: Boeing Dreamliner is a big organization with 100 offshore business unit, and several supply chain
vendors to deal with that makes it a complex structure and non clarity reporting, higher span of control. The
offshore employee’s difficulty in understanding the multilingual format and provision for option in the making
airline parts for the vendors shows the lack of standardization of work i.e. mechanistic model. This is already
evident from the delay that was frequent in their work and the mechanistic fault that was occurring frequently
in the airline parts shows the lack of standardization of work.
Organizational Structure & Managerial structure used: The structures that are used in the Boeing
Dreamliner is a complex structure with a mix of organic, mechanistic and boundary less structure. The
complexity of supply chain further complicates this structure.
Currently wider span of control is used in the Boeing Dreamliner that makes it almost impossible to fix the
accountability of the team and the management. It is for such reason that McNerney believes that the
smaller span of control will fix the responsibility and accountability of the management in regard to
performance.
Advantages: Describe the advantages and explains how they are relevant to the topic.
Matrix:
Functional: Functional departmentalization helps enable forming of the entire specialist in a group. It also
facilitates acquiring and sharing of specialist resource around the product, while minimizing the workforce
required.
Product: The benefit is just the other way round of functional one, with some disadvantages. It helps in
bringing improved coordination between specialist so as to complete the task on time and within the
constrained budget. The matrix takes the advantage of both functional and product departmentalisation
while minimizing their weaknesses (Fahad 2019).
Virtual Organization: Each project is handled by the best talent that meets the requirement of the project.
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Apart from that the bureaucratic expenses are minimised as there is no long lasting organization to deal
with. The long term risk is minimised as the project is disbanded after the completion of the project. In the
similar way the bureaucratic overheads are minimised because of the no lasting organisation. The long term
risk is also discarded as the project is operational only for its completion. Then after the team disburse after
the project is over.
Leaner Organization: In order to improve the agility, flexibility and adaptability of the organization, they
close the business unit that don’t add value to them, they also trim the strength of the staff to make it more
agile or strategically sell the noncore unit so that they can focus on their core business.
Advantages in regard to case study:
The Boeing Dreamliner has a complex structure i.e. it is mix of different structure to serve its dynamic needs.
Since the organization is having a large chunk in it’s off shore operation apart from the domestic as well.
This organization is following the different structure at different levels. The domestic operation does have the
matrix structure that means it combines both form of functional and product departmentalisation, which
reduces the negative impact of both departmentalisations. Since matrix structure are more prevalent in
larger organization and Boeing being the one, follows the same structure at its domestic operational facility.
It also follows to some degree the boundary less organization by removing the barriers of vertical boundaries
and eliminating the chain of command. The functional department is replaced by the cross functional team
and all the activities are organised around process. If fully operational these organization tends to break the
geographical boundaries.
The format of the virtual organization are followed by the suppliers or vendors of the Boeing Dreamliners
given the project centric requirement from the Boeing specially if the requirement is unique and requires the
group of specialist to accomplish the project. This helps in minimizing the long term risk and bureaucratic
overheads.
The off shoring of many operations as has been the case in lithium ion battery manufacturing requires leaner
organization that instantly understands the requirements; remain focused and flexible enough to meet the
changing requirement which would skip any mishap that underwent in the form of fire.
Disadvantages: Describe the disadvantages and explains how they are relevant to the topic.
The organic structure is designed in a way of flat structure for the organization that means fewer managers
and seldom only one that manages all employees which affect the efficacy of managing. This may also lead
to the confusion for the roles amongst the employees that in turn affects the productivity of the organization.
The flaws in the direction of the management, lack of clarity in the roles may develop the drop in satisfaction
level of the employees that in turn would increase the employee turnover rate (Donohoe, 2019).
Mechanistic model
The structure inbuilt bureaucracy inhibits the organization from responding to the outside forces. Innovation
takes a back seat because of the red tape that also hinders employees in being creative in their approach.
Making employees only a yes man affects their morale negatively (Johnson, 2019).
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Options: Develop alternative courses of action for the manager and/or stakeholders could take
that arerelevant to the topic.
Given the complex structure being followed by Boeing Dreamliner, and the issues that has evolved in the
way of delay in delivery, mechanical problem in their after sales services, loose knitting connection with their
suppliers and lack of accountability of management and the team in terms of performance. The alternative
course of action that can be taken in order to be proactive to any requirement or change is that they should
follow the midway model of mechanistic and organic model. The reason to advocate this lies in the fact that
there are certain parts that needs to be of the repetitive type, which requires mechanistic model i.e. to say
highly specialised team to accomplish the similar type of function, that works well in the rigid chain of
command and departmentalisation, and has a centralised authority and given sets of rules and regulation for
standard work.
Whereas for the unit that are working on the innovative design or technology or R&D areas should have the
organic model with cross functional team, cross hierarchical team that ensures free flow of information,
should include wide span of control, decision making authority at the floor level and less formalisation of
work.
Recommendations: Evaluate the advantages and disadvantages and select the best option or
combination of options for to be takenin the short-term and long-term.
Short-Term (immediate action):
The immediate action that needs to be taken is simplifying the relation with the vendor’s organization and
building the team that are engaging, responsive and has the authority to decide. Management and different
team should have the clear goals and should be made accountable for those goals. There should be free
flow of communication, building of several high performance teams with clear objectives. All these can be
effectively implemented with the help of technology which will enable managers or floor supervisors to keep
a track on performance, quality and service. It would also be helpful in managing the supply chain and
building relationship with the different stakeholders (Leonard 2018).
Long-Term (training, policy etc.):
TQM, JIT and Six sigma concepts in the manufacturing facility to achieve zero defect or nearby to zero
defect process can go a long way in improving the performance. This may require building of a highly
specialised team, participative management, delegation of authority and relentless training on
implementation of such concept can have a viable impact on the working of an organization. Japanese has
already revolutionized several similar heavy engineering industries and is continuously growing with the
similar concept. Boeing Dreamliner would be a winner by following the similar footsteps as that of the
Japanese counterparts in bringing the desired change in the long run (Rouse 2019).
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References
Use the Harvard WesternSydU Style Guide to complete your reference list and type your
reference list in alphabetical order author’s LAST/SURNAME below:
Please ensure that you use the textbook to cite and reference the case
study as well as any theories used to support your arguments.
Fahad, U 2019, What is matrix organization structure. Viewed 27 September 2019,
https://pmstudycircle.com/2012/08/what-is-a-matrix-organization-structure/
Johnson, S 2019, Mechanistic organizational structure. Viewed 27 September 2019,
https://smallbusiness.chron.com/mechanistic-organizational-structure-58785.html
Leonard, K 2018, Organic structure of organizational design. Viewed 27 September 2019,
https://smallbusiness.chron.com/organic-structure-organizational-design-58657.html
Donohoe, A,. 2019, The disadvantages of organic organizational structure. Viewed 27
September 2019, https://bizfluent.com/list-6729190-disadvantages-organic-organizational-
structure.html
Rouse, M 2019, Total Quality Management. Viewed 27 September 2019,
https://searchcio.techtarget.com/definition/Total-Quality-Management
Scott, L 2016, Flat and Lean Organization: Why it matters in the strategy execution.
Viewed 27 September 2019, https://www.strategyex.co.uk/blog/pmoperspectives/flat-lean-
organisations-matters-strategy-execution-strategy-execution-series/
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