Control Mechanisms for Boeing Corporation
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What are the positive and negative reactions to the use of the following control mechanisms at Boeing Co.:
Budgetary Control
Environmental Control
Clan Control
Lean Six Sigma
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Solution Summary
This solution discusses the positive and negative reactions of Boeing Corporations use of various control mechanisms such as environmental control, budgetary control, clan control, and lean six sigma.
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Control Mechanisms
Control is a mechanism used by organizations to operate their business processes, which include production, distribution, finance, and other areas. Control mechanisms also help organizations to restrain and correct atypical behavior, and to reduce and prevent the spread of problems and errors. Businesses such the Boeing Company need control mechanisms in order to be more efficient in managing their organization.
The Boeing Company is in many markets and therefore, has to take into consideration the economical and consumer needs in its various locations. Being the Boeing is in the long-term market, budgetary control is very important especially when making a decision on a product line that is likely to be in service for more than a century. Its strict use of budgetary control helps to verify accomplishments and remedy differences. Boeing management uses budgetary controls to help them stay within the monetary limits with budgets ranging from one, three, and six months a year. Using a bottom-up process, top management within Boeing sets the general direction for budget, however, the middle and lower level management develop the budget and see that it is carried out ("Control Mechanism", 2011). The negative to budgetary control at Boeing Company has been the layoffs of employees at Boeing Wichita (Siebenmark, 2011). The layoffs were a result of revised business plans in order to ensure their future as well as significant shits in customer budgets and programs. Another negative reaction to budgetary control at Boeing is ...
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