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ENG3003 Engineering Management
Case G- Boeing Company: Talent Builds a better Plane

Submission Date: 19 Mar 2015
Name Student ID
Mang Chi Yeung 12105743D
Chiu Tak Fung 12105713D
Li Tsung Ho 12104937D
(Tutorial section: Thursday 15:30 – 17:00)
Background
The original name of Boeing is Pacific Aero Product Company was built at 1916 by
William Boeing. In 1929, Boeing created the United Aircraft and Transport
Corporation then introduced the first all-metal airline. There was a challenge that US
government changed the airmail rules which stated that the manufactures are
prohibited from being the same corporate umbrella. The firm was forced to sell its
airline operations and concentrate on aircraft manufacturing. In World war ll, Boeing
introduced the model 314 clipper used by Pan Am, the Model 307 Stratoline, and the
B-17 bomber. It created the first jet airline and Jumbo747, Boeing 737 and 777 were
introduced between 1966 and 1994. Around 1996 to 1997, Boeing merged with
McDonnell Douglas and the space and defense division of Rockwell International.
The company closed down Boeing 737 and 747 production lines for a month so as to
gain control of its needs. In 1998, it hired and trained 41,000 new workers and
completed directly with Airbus Industries. Nowadays, Boeing has more than 60
percent of the world market share and is a major airline in the world ranging from
popular 737 to Jumbo747.
Problem Statement
Question 1: Interpret Boeing’s work design based on the core job characteristics of the
Job Characteristics Model
Question 2: Interpret “old” versus “new” trends in the workplace in regard to
Boeing’s shift away from 1940s methods to new, more modern work design
Question 3: Do environmental conditions assist or hinder Boeing’s attempts to
restructure its work force?
Theories
1. Five Core Job characteristics
a) Skill variety
The degree to which a job requires various activities to accomplish the job,
which involves the use of different talents and skills of the individual worker
b) Task identity
The degree to which a job requires the workers to complete and identify the
piece of work with visible outcome
c) Task significance
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The degree to which the job impact substantially on people’s lives
d) Autonomy
The degree to which the job allows the employee to have significant freedom,
independence, and discretion to carry out the work and decide the procedures
in the job
e) Feedback from the job itself
The degree to which the employee is provided with direct, clear information
about his or her job performance
Figure 1 Job Characteristics Model [1]

According to Figure 1, by finishing the core job dimensions, critical psychological
states can be fulfilled. It will then produce good personal and work outcome and
finally lead to job enrichment.
3. Environments condition of organization

a) General Condition
i) Economic
Making Things like overall health of economy in terms of financial
markets, inflation, income levels and job outlook are always important
ii) Legal-Political
Operating firm in Existing and proposed law and regulation,
government policies and the philosophy and objective political parties
iii) Sociocultural
Thinking for condition that as norms, customs and demographics of a
society or region, as well as ethics, human right and so on.
iv) Technological
Advancing as rapidly as our personal use
v) Natural Environment
Protecting the availability of those resources for the future
b) Specific Condition
i) Stakeholder and Value Creation
Having a stake in how an organization operates such as employees,
government, Customers etc.
ii) Competitive Advantage
Giving an advantages over competitors in the marketplace though
costs, quality, delivery and flexibility.
iii) Uncertainty, Complexity and Change
A lack of information regarding what exists in the environment and
what developments may occur
Discussion and Results
Question 1: Interpret Boeing’s work design based on the core job characteristics
of the Job Characteristics Model
Regarding to the job enrichment, there are five core job characteristics, which are
dimensions for core job.
Firstly, in the field of skill variety, Boeing’s operation requires many different skills
and talents. For example, in human resource management department, a human
resource recruiter requires negotiation, problem solving and communication skills to
advertise vacancies and accomplish the recruitment. In marketing development, the
marketing manager should have researching skills for identification and development
of new market segments for existing products. In design departments, creativity,
critical thinking, drawing skills are essential to a designer to design planes’
components, such as airline fuselages and passenger seat. In engineering department,
it is important for an engineer to hold either basic electrical or mechanical or
manufacturing skills. In Boeing, manufacturing engineers are responsible for produce
engineering drawing of components and tooling design for manufacturer, while
electrical and mechanical engineers are responsible for testing electrical components
and completion of aircraft structures respectively. To conclude, Boeing contains
workers with various skills and talents [2], which contributes to meaningfulness of the
job towards them. As workers are able to make good use of what they have learnt,
they are capable to solve challenges related to their skills easily and this therefore
makes the job meaningful.
Secondly, it is about the task identity. In Boeing, due to the complexity of building a
plane, tasks are always separated into identifiable sub-assembly, which is one part of
overall process. It is then joint into “whole” piece of work. For example, fuselage,
engine, wings and undercarriage are basic structures of a plane which are completed
by different professional engineers. Inside engine building group, manufacturing
engineers produce an industrial design while electrical engineers develop an electrical
system for operation of the engine. Finally, whatever they done will be assembled to
build an entire plane, where high degree of task identity is practiced. To sum up, high
degree of task identity in Boeing promotes the meaningfulness of the work. Based on
the definition of task identity, staffs in Boeing can complete the job from beginning to
end with a visible outcome [2] and they are proud of it. As a result, they find their job
meaning.
Thirdly, Boeing possesses task significance. Nowadays, as planes become an essential

transportation for people to travel all around the world, its safety must be first
concern. Using Boeing 747-400, it has a seating capacity up to 660 [3], a simple
failure can cause mortality of 660 people. Thus, any mistake in jobs of producing a
plane will directly influence the passengers. For example, material engineers are
responsible to select the materials for the body of plane. If they miss a potential risk
of the material selected, the failure of materials will lead to the aviation accident. To
summarize, Boeing’s job conduce to high degree of task significant. Workers notice
that their job has an obvious impact on the lives of the traveler and hence significant.
Thence, they find their job meaningful.
Fourthly, Boeing allows workers to perform scheduling work rather than assists it to
the supervisor. Although there is a deadline for every production in airplane
production line, there is not compulsory works assisted by supervisors to the workers
in every time. It means that workers are able to plan their schedules on the condition
that they can finish the work before deadline. Also, when designing a plane, the
company will only give the engineers requirements of the plane and let them to design
themselves without supervision. As a result, jobs with minimal inference from
supervision will increase the workers responsibility of the outcome of the work [2].
Finally, Boeing offers an open feedback channel for the workers. According to the
previous experiences, Robert Hammer, VP of production process reform, has provided
feedback on the manufacturing systems when problems occurred on aircraft structure.
Also, Yoshiki Iwata, a former Toyota engineer, has given feedback to the gross
inventory.
Therefore, it is obvious that Boeing is a company with high degree of feedback
mechanism. Workers know the actual results of the whole activities by having noticed
how effective his work is.
In conclusion, with the help of figure 1, core job characteristics results in critical
psychology states. Finally, it facilitates the personal and work outcome. Applying to
Boeing, the presence of skill variety, task identity and task significance contribute to
meaningfulness of the work while the presence of autonomy and feedback conduce to
responsibility of outcome work and knowledge of actual results of the work
respectively. At last, they all come out with high internal work motivation, growth
satisfaction, general job satisfaction and work effectiveness [1].
Question 3. Do environmental conditions assist or hinder Boeing’s attempts to
restructure its work force?
Regarding to Environments condition of organization, there are 7 condition to
restructure Boeing’s work force
Firstly is talking about the Economic condition. Boeing has face two financial crisis in
1997 and 2008, those give unfavorable factor to it. Since, the demand of airplane may
decrease at that time. However, it assist Boeing to bring out more business plan. In
1997, they merger different country and survive in the economic downturn. Also have
new promotion of airplane in that year. The President of Boeing Hill said that It is a
historic turning point, prompting a recalibration of economic, political and market
dynamics and public expectations.” The economic drop is shown that a company have
or do not have enough work force to conquer the difficulty. As Boeing is one of
famous airplane company around the world until nowadays, so that economic assist
Boeing’s attempts to restructure its work force.
In addition, in the field of Legal-Political Condition, Boeing is a Multinationals
company, their product are selling to different aircraft company, so they may face a
numerous country’s policies and law. Also, after the WWII, the invention of fighter
become less, so the funding from the government funding or others, may become less.
Although the policy may give benefit to Boeing, for example, Hong Kong is
discussing about the three runway system. However, Legal-Political condition hinder
Boeing’s work place. Since it may use more time to do the research and may more
different type of airplane to fulfill the country.
For the condition of sociocultural, the demand of airplane is increasing, because of it

is a fast transportation for people to travel around the world in different reason.
Boeing has invent 8 type of civil aircraft (707 -787). Although, some people may use
ship or High speed rail, but they are not the main transport for travelling. Thus, in
sociocultural condition Boeing may hinder its work force. If there are no technology
or transport that take place aircraft in the future.
Furthermore, Technological condition make a unfavorable factors for Boeing. Since

the new technology come fast. Boeing should have time to adapt the new technology
and design it to apply on their company. For example, e-mail is arise, they should
build up a server for receive e-mail. If they do not use though technology, they may
lose a part of customer. Thus technology may assist the Boeing’s work force.
Besides, Natural environment can assist the Boeing. Since plane may produce lots of
pollution during operate and production, such as sound and large waste. Also aircraft
are using unrenewable power source. It may affect the brand name of Boeing if the
pollution problem is happen for a long period. Therefore, this factor can encourage
them to promote a environmental friendly design aircraft or service.
Moreover, accept the opinion from stakeholder can assist work force of Boeing. For
example, the customer may want to have a low cost and high speed airplane.
However, the supplier said they could not produce in low cost, therefore Boeing
should satisfy the need of multiple stakeholders, by listening the voice of stakeholder.
The stakeholder may assist Boeing to restructure the work force.
As a competitive advantage, Boeing has different competitor around the world such as
Air France. When Boeing 747 is promoted to public, Boeing get lots of order of
Boeing 747 because of it can provide a larger amount of carrying passage and speed.
However after A380 is promoted, the demand of 747 become less. Since A380 can
carry 843 passages which more than 747 about 300 passages.[5] Thus, Boeing should
invent a new type of airplane that is better than A380. By compare the competitive
advantage, Boeing can assist its work force.
To conclude, there are different environment factor that affect Boeing’s work force,
we should use multi angle to find out Boeing is a good management. When they face
the change of environment, they should have method to conquer the bad environment.
It is impossible for a firm or team said they do not have ways to assist to restructure
work force.
Reference
[1] http://www.myrbopportunity.com/wp-content/uploads/ob12_07st3.jpg
[2] J.R. Schermerhorn, Introduction to Management. 12nd ed., John Wiley, 2013.
[3] Negroni, Christine (July 2014). "747: The World’s Airliner".Air & Space
Magazine. Retrieved January 2, 2015.
[4] S.Hll, A world of opportunities, Leadership Message, 2009
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ENG3003 Engineering Management

Case G- Boeing Company: Talent Builds a better Plane

Figure 1 Job Characteristics Model [1]

3. Environments condition of organization

Thirdly, Boeing possesses task significance. Nowadays, as planes become an essential

In addition, in the field of Legal-Political Condition, Boeing is a Multinationals

For the condition of sociocultural, the demand of airplane is increasing, because of it

Furthermore, Technological condition make a unfavorable factors for Boeing. Since

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