Case discussion by Augustine Merriska, Fari Rahmatullah, IndriyanaDamayanti Kristia, Tiara Nursyani, Yanda Eldiyana From book Managing Organizational Change-Ian Palmer, Richard Dunford, Gib Akin

1. 
BOEING
Case Study
By :
Augustine Merriska
FariRahmatullah
IndriyanaDamayanti
Kristia
Tiara Nursyani
YandaEldiyana
Tutorial 3A

2. Diagnostic Model
Six Box Model, the
organizational life in 6
facets including:

Purposes

Structures

Relationship

Leadership

Rewards

Helpful mechanism

3. Why we choose
Six-Box?
Six-Box Model focuses with an
organization primarily by posing
diagnostic question, which have to
do with the fit between, what is,
and what should be.
In this model:
PURPOSE is about the business are we in
STRUCTURE refers to a way in which the
organization is organized and which people and
units interact is termed relationship.
RELATIONSHIP is the way in which people
interact with technology.
REWARDS are the intrinsic and extrinsic
rewards people associate with their work.
LEADERSHIP refers to the typical leadership
tasks, including the balance between the other
boxes.
HELPING MECHANISMS are the planning,
controlling, and information systems that serve
to meet organization goals.

4. The Boeing Situation in Six Box
Organizational Model


5. Purposes
℘Boeing is Aerospace Company manufacturer
of commercial jetliners and defense, space
and security systems.
℘The fast growth of Airbus in 1994 and The
1997 merger of McDonnell Douglas and is the
main threat for Boeing and make Boeing lost
its competitive advantage
℘The first area where Boeing is lagging
behind is they create confusion for the staff,
suppliers and investors.
℘So, they should clear their goals which
directly relate to the mission and vision of the
organization.

6. Structures
℘The structure in Boeing is outdated because
there is unnecessary processes in a company that
had reportedly change little since world war II.
℘The structure in Boeing is also not clear, for
example, after Boeing merger McDonnell
Douglas, the company does not clearly define the
future of the major markets, the mainly airliner or
the defense contract.
℘They also didn’t delegate the work and
empower employees properly, so that chaos have
been created from higher level to lower level in
the organization.

7. Rewards
The Boeing entry into the space
industry was an erroneous move. It
caused Boeing’s employee morale was
at low because the process of
diversification and this issue needed
to be addressed.
The employee need to be rewarded
based on their performance to
prevent demoralizing employee that
will lead to the condition of
employees lack of moral for company.

8. Helpful Mechanism
The overall strategy was to update
their technology system, downsize
their operation.
The mechanism employed by
Stonecipher had tremendously help in
meeting the organizations objectives.
Boeing had improve this situation
through the implement a
technological platform to regulate
product lifecycles.

9. Relationship the
Because of the cultural diversify;
conflict must be happened in the
organization.
Lack communication within the
organization appeared to have been
the source of this problem.
They should use the familiar
technique and keep a sound
relationship in the organization.

10. Leadership by 6.5 % and the
The stock price had decreased
competitive pressures had increased while the
company under Phil Condit leadership.
He is replaced by Harry Stonecipher, the past head of
McDonell Douglas who had come in as the new COO
in Boeing after the company was acquired.
He made important decision by produce the new 7E7
planes.
As a result, the company had repositioned itself on
the top, the morale of its employees is high and they
have a new market (7E7)