Control Mechanisms at Boeing free essay sample

Control Mechanisms at Boeing Controlling is an extremely important function of management. Manager’s use control to ensure that goals are met and to make the necessary changes if they are not. Several control mechanisms exist. Managers within companies use the mechanisms to achieve results. This paper will identify, compare, and contrast four of these control mechanisms as they relate to Boeing. It will determine the effectiveness of these control mechanisms, the positive and negative reactions within the company, and how these controls affect the four functions of management at Boeing. Four Control Mechanisms Control mechanisms, whatever their type, exist for the same reasons and same goals in mind: to increase employee production and performance, and to increase the sales, production, and profitability of a company. However, each control works in a different way to achieve these outcomes. Boeing uses many control mechanisms to regulate performance and increase production and profitability. We will write a custom essay sample on Control Mechanisms at Boeing or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Bureaucratic Bureaucratic controls use rules and regulations paired with close supervision to regulate performance. These control systems are designed to measure performance by setting standards, measuring progress and performance, comparing the performance to standards, and correcting mistakes while reinforcing successes (Bateman Snell, 2008). Boeing utilizes the bureaucratic control mechanism by monitoring the performance standards of the operations. Boeing and its competitor Airbus have been finding ways to expedite production and reduce cost. Boeing is working on speeding up production, and raising fuel efficiency of the 787 Dreamliner (Bateman Snell, 2008). Their airplanes are put through many tests to measure the production and efficiency against the standards. Concurrent Control According to Bateman and Snell (2008), concurrent control is a form of bureaucratic control that â€Å"takes place while plans are carried out† (Concurrent control, para. 1). The vision of Boeing was to increase customer knowledge, understand, anticipate, and responding to customers’ needs could be met in a timely manner. To meet these demands Boeing invests on the expansion of technical systems that assist in the integration of production. Boeing also cut cost by eliminating overhead on parts, and outsourcing. Production times have decreased while quality standards have increased (Boeing, 2011). Boeing uses concurrent controls to achieve these standards. Market Control Market controls differ from the bureaucratic controls in that market controls use economic forces and pricing mechanisms in controlling performance rather than performance standards (Bateman Snell, 2008). Boeing met with auto manufacturers to see how they could streamline the factories to make them more cost-efficient and more competitive in the airline market. The company overhauled factories and added individual parts bins that are more accessible and easier to manage. Boeing also reviewed auto maker assembly lines and matched those to increase production of planes by using moving lines (Bateman Snell, 2008). Boeing uses market controls to measure competitor performance and implement their own cost saving strategies. Clan Control Clan control goes beyond the use of bureaucratic and market controls and gives employees the power to make decisions and give suggestions while encourages correct and ethical behavior. The corporate management team at Boeing implemented into the hiring policy the importance of employees working together. The company encourages employees to share ideas and knowledge (Boeing, 2011). Boeing recognizes the need for employee input at all levels within the organization. Effect of Control Mechanisms The effectiveness of these mechanisms depends on how well they companies implement and monitor them. Employees may have both positive and negative reactions to the control mechanisms used. Control mechanisms will not only have an effect on the performance of the company and the emotions of employees, but also will affect each of the four functions of management. Effectiveness The bureaucratic mechanisms used by Boeing are productive and successful. Implementing tools such as employee incentive programs has a positive effect on the 160,000 people Boeing employs around the world. Exploring ideas for employees to contribute to the success of Boeing has boosted morale. The Mighty Students (2011) website state that the market control mechanisms that Boeing has put into place help Boeing strategize ways to capitalize on opportunities in the market and respond to market threats. Boeing also uses these tools to monitor competitor performance, enabling them to respond quickly changes in performance. The clan control mechanism encourages employees to participate with new ideas for the company and promotes innovative ideas that can help the company advance. Clan control also encourages team effort where everyone works together to achieve company goals. Boeing uses the concurrent control mechanism successfully to concentrate on customer satisfaction. Using concurrent controls to upgrade technology, Boeing achieved above average customer service in a timely manner while cutting costs of production. Positive and Negative Reactions Controls can have both positive and negative reactions. On the positive side an effective control system will amplify potential benefits and curtail dysfunctional behaviors (Bateman Snell, 2008). Boeing’s management has a control system that keeps the lines of communication open between employees and management. Establishing valid performance standards where the system incorporates all measures of performance creates positive reactions to the control mechanisms. Control mechanisms can also create negative reactions and lead to dysfunctional behavior. For control systems to work, management needs to keep in mind how their employees will react. Three responses to control exist: rigid bureaucratic behavior, tactical behavior, and resistance (Bateman Snell, 2008). Control systems are in place to uncover negative behaviors or actions that take place in an organization. Employees may think that their job is uncertain because of such controls. Affect on Management Functions The four functions of management can be seen at Boeing. Boeing goes through planning, organizing, leading, and controlling with all projects that they implement. Control mechanisms influence the planning function for new projects. According to Bateman and Snell (2008), â€Å"planning lays out a framework for the future and, in this sense, provides a blueprint for control. Control systems, in turn, regulate the allocation and use of resources and, in so doing, facilitate the process of the next phases of planning† (Chapter 16, p. 574). Through the effectiveness of the controls at Boeing future project planning will be more precise. Through the use of market controls, Boeing can apply cost saving measures from one project and apply them when planning future projects. Bureaucratic controls enable Boeing to leverage the knowledge of time it takes to meet the regulations to establish proper time-lines into new projects. The control mechanisms also affect how Boeing organizes resources. For instance, market controls affect how Boeing organizes their monetary resource among their different budgets. Leading is also affected. Managers can use the control mechanisms in place to encourage their employees to reach goals and achieve company standards. Conclusion Control mechanisms help companies monitor success, attain goals, and implement necessary changes. Several control mechanisms exist. Boeing has implemented control mechanisms successfully within their company.