People Resourcing (Boeing)
Boeing Company was founded in 1916 in Seattle, Washington State. It is a leading producer of military and commercial aircraft that and currently operates in 70 countries with a workforce of about 170,000 people. The workforce is innovative, diverse, talented, educated and with expansive experience in the aerospace industry. The Company designs, assembles and supports commercial jetliners, defense systems as well as satellite and launch vehicles. Additionally, the Company integrates and supports large-scale systems; creates networking technology and network-centric solutions; grants customer’s financial solutions that are based on their requirements and; comes up with advanced technology and systems that satisfy future needs of their customers (The Boeing Company, 2015).
Boeing Overall Strategy
The company strategies for the next five years are contained in its vision, mission, values and strategic objectives that help and guide it in performing its business functions and achieving its overall goals.
Boeing Company vision requires it to employ teamwork in becoming a global leader in the aerospace industry as well as positioning it as the future of the flight industry.
Boeing mission entails making the Company become a number one global aerospace company. This is in consideration of the prevailing concerns associated with the industry that include growth, quality services and profitability.
The Company has developed a certain set of values that define how its workforce behaves, carries out business within the organization and represents the Company business transactions. These values include; leadership in all aspects while conducting the Company business, integrity, satisfying customers, teamwork, diversity and teamwork, quality goods and services, good corporate citizenship and finally enhancing the value of shareholders (The Boeing Company, 2015). .
Boeing has specific strategic objectives that will assist in guiding the company activities. Firstly, the company considers human resource as its most essential resource. It strives to build and acquire a workforce that is highly skilled and motivated to design and build the Company’s products as well as provide service to customers. Boeing ensures its workforce has the necessary skills combination, training, environment, leadership and communication. This is to ensure that the employees attain the required productivity gains and quality to achieve overall objectives. Secondly, Boeing is committed to making sure there are long term continuous quality improvements in its processes and products. The improvements are very important in making sure the Company’s business strategy is successful. Thus, Boeing works continuously to improve the entire quality of its designs manufacturing processes, administrative functions and its support organizations. Thirdly, Boeing aims at having a capable and focused leadership to make sure technical and human resources are applied in with optimum efficiency in the Company’s functions and duties. Adequate care is practiced in selecting managers, training them and building a team among them to ensure long-term goals are achievable. The other strategy is ensuring technical excellence in the world where technology is fast changing and challenging. To be competitive enough, Boeing continuously refines and expands its technical abilities. In this strategy, Boeing aim is to deal and maintain contact with suppliers who make top high technological equipment (The Boeing Company, 2015).
Another strategy is to improve its internal and external communication problems that resulted in the delaying factors in coming up with new aircraft models. To do this, the Company aims at improving its Supply Chain Information System (SCIS) (DATAMONITOR, 2011). Next overall strategy is ensuring it has financial strength. Due to the cyclical and high risks associated with the airline business, the Company has to strengthen its financial base. This involves retaining enough capital resources that can meet prevailing commitments, make significant investments that will develop new technology and products for long-term purposes. It also safeguards the Company from financial challenges in periods of unforeseen economic downturns. Finally, Boeing is committed to ensuring integrity prevails in all its actions and relationships including those within the Company and those with their customers and suppliers (The Boeing Company, 2015).
Labour Market Analysis
Boeing estimated to create about 200,000 new jobs over a period of the next ten years from both the external and internal labour sources. Although a higher percentage of these jobs will be taken by low paying services jobs, there will be high demand for better-paid professional occupations such as in information technology (Bidwell, 2011). Boeing uses the Boeing Enterprise Staffing System (BESS) or Jobs@Boeing, to make the new company-wide opportunities visible. BESS is a Web-based hiring support system created to process both internal and external resumes received by job applicants. The system plays the role of streamlining the hiring cycle enhancing the process of hiring to acquire the best quality of internal and external candidates. The Company labour market is diverse and provides equal opportunities that are not based on things such as race, color, religion, nationality, disability, and sex.
Internal Labour Market Analysis
In internal labour markets, organizations fill senior level posts by promoting their existing employees in lower level jobs. Such employees are in a better position to understand and work with existing employees since they understand them more than outsiders do (Lee, 2014). Selecting ILM as a resourcing strategy assists in recruiting and retaining an organization’s staff. An internal labour market (ILM) is created through the process of developing and practicing internal standards for hiring, training, promoting and rewarding of employees. ILM involves a collection of organization practices that enhance the growth of certain human capital within the organization (Bozionelos & Polychroniou, 2011). It is comprised of a number of features that include rewards based on the level of seniority, provision of long-term employment to employees, on the job training of the workforce and promotion of employees within the organization.
Boeing mainly relies on organized labour to manufacture almost all its commercial aircrafts. The Company has very skillful and experienced workers, technicians and engineers who have accumulated and improved their skills and knowledge over many years. Boeing real core competency comes from this workforce. The skillful employees nurtured through generations have managed to develop and manufacture many successful models of airplanes. In the Dream liner program, they proved how competent they were by fixing all the uncompleted work outsourced from suppliers (Boudreau, 2010). However, Boeing workers union International Association of Machinists (IAM) affects the flexibility and adaptability of the workers. It represents about 45,000 of its employees in both California and Washington. It provides a certain degree of effects to its human resources practices due to issues of compensation, benefits and transfers to its various branches (Wang, 2010).
Nevertheless, the Company workforce is given a chance to improve itself and getting promotions through various human resource policies and programs within the organization. Employees are compensated based on a number of things including their performance, their peers pay, external labour market payments for similar jobs and total value added to the Company. The promotion process requires evaluation to be conducted. This evaluation is mainly based on assessing the duties and responsibilities of the job initially performed and the requirements for the new position to be taken. Most of the individuals holding senior positions in Boeing are promoted from within its workforce. The aspect of developing people is considered as significant as that of providing quality products and services to the customers (Boeing media, 2012). The leadership centre provides a chance to expand and intensify capabilities of the leaders within the Company. Present and future leaders’ companywide attend the leadership training at the centre to learn the skills that will propel the company into the next century. The senior leaders are involved in teaching other leaders through their challenges, experiences and discuss the best practices. Boeing has also realized that the advances in technology will translate to more changes in workforce needs in the future. Therefore, Boeing prepares its existing employees with the necessary skills and knowledge required for them to take part and prosper in the future working environment through the Learning Together program (The Boeing Company, 2015).
The Company contracts with employees are not about lifelong employment but lifelong employability. This strategy necessitates the Company together with employees to plan their training, education and assignments to increase continuously the workforce skills and levels of experience. This supports promotions within the company since the training enhances the eligibility of employees providing them a chance to get better jobs within the Company. Additionally, employees do not remain in the same career path like that of a scientist and engineer. The nature of business at Boeing allows employees to work in multiple careers within the Company because they have developed various skills sets in the training and education program. Currently, Boeing has a wide range of talents that are developed through training, education and experiences acquired while working. Thus, Boeing hires individuals internally to occupy various posts within it including the senior level posts (Yahya & Tan, 2015).
External Labour Market Analysis
In external labour market, human resources practices look for persons outside the organization to meet it labour requirements in the senior levels positions. This allows open competition and gives an organization a bigger choice for senior level appointments. Outsiders are also likely to bring new ideas to a firm. In the external labour market, an organization may outsource certain services for a given duration of for a specific project. On the other hand, a company can hire on persons from outside who become part of its permanent workforce (Lee, 2014).
Boeing has taken part in labor outsourcing as well as recruitment of talents on a permanent basis. Its intention in outsourcing was to enhance flexibility since the internal labour force was unionized. Boeing outsourcing took place in its latest 787 Dream liner commercial airplane program (Bureau of National Affairs, 2013). The Company abandoned its traditional internal design and manufacturing practices for practices they considered to be more cost saving. They outsourced 60% of the engineering and manufacturing activities globally to work on this project. Although outsourcing reduces costs, it may have negative consequences that include devaluing the Company’s traditional knowledge acquired in over a 50-year period. This knowledge is essential in the practical application of complex concepts in engineering that are necessary for developing an airplane. It also means it is possible to lose an opportunity to acquire additional skills that will be used in the future. In this case, the program experienced delays due to the Company’s inexperience in labour outsourcing. A lot of the work in the program had to be completed by the Boeing internal employees (Elahi, Sheikhzadeh & Lamba, 2014).
Due to its presence in different countries, Boeing hires staff members internationally to bring new ideas and diverse perspectives to the Company (Peterson, 2011). Boeing also considers the likely state of the labour market in the future. It has put measures to attract, develop and retain a generational workforce that will join the Company in the next two decades. One of the avenues to guarantees this is its continuous support of education by collaborating with high education institutions. About 40% of its philanthropic work is in education where Boeing focuses on investing in colleges and universities. Its aim is promoting excellence in academics and building up intellectual talents. It also provides internship for students, scholarship and faculty fellowships. All these aim at ensuring that the company has adequate external sources of labour in the future. However, the numbers of degrees being awarded in aerospace studies are decreasing. By the year 2000, only 2,175 people were awarded undergraduate and graduate degrees in aerospace in the U.S (Hampson, Junor & Gregson, 2012). To change this trend, Boeing has taken the initiative to make young people develop an interest in math and sciences as early as possible (Fu, 2013).
Although the competition for a talented workforce is likely to deepen in the future, presently Boeing has a substantial number of potential future recruits. Recent polls indicate that more than 6000 undergraduate students in engineering and science selected Boeing as their number one preferred Company for which to work. Another survey indicated that the highly on demand students in information technology ranked Boeing in the category of top twenty-five companies for whom they would prefer to work (Karatepe & Vatankhah, 2014).
Recommendations for human resourcing Strategy
In developing a human resourcing strategy, the goals of a business, skills of the managers and the adaptation to the prevailing changes in business are important. For this reason, Boeing should first examine its business objectives, equip managers with the right resourcing skills and examine the potential future changes in the business (Emanoil & Nicoleta, 2013). Skills in leadership will also be very critical and leaders will be required to come up and follow a strong vision to tackle the existing ambiguities. They will have to develop proper skills in communication and be able to provide inspiration and trust to dispersed teams (Buyar, 2015).
One recommendation is that Boeing should use data available in the labour market to plan strategically about its resourcing strategy. This involves a complex and systematic analysis of the Company’s current and future workforce needs. Currently, the emergence of huge data and analytics may be used positively in human resource practices. A firm can predict and plan for its talent requirements before they emerge by collecting data and information on a number of factors. These include the forecasted trends in the business and associated skills needed; demographics of the employees; levels of the jobs, age related to each level and appropriate retirement age. Others are any expected change in the national economy; policies related to the workforce such as growth or reduction or growth in the number of staffs, promotions and retirements; trends in employees’ retirement (Mitchell, Obeidat, & Bray, 2013).
Tracking and analyzing data on a company and the entire economy will assist in identifying crucial skills and scrutinize the existing demand for those skills both internally and externally. The company should look for data on the economy, education and employment from various external sources such as local employment services and U.S Department of labour to get a clear picture. This will help them in resourcing for both the tactical and strategic level. On the tactical level, data sources will identify where the specific skills are in high supply and on the strategic level the data will help in identifying where new plants or offices will be established and whether to train or hire and the pay. The challenge with this is the potential change in behavior likely to be experienced from the Company’s data and facts. Another challenge with this mode is selecting the specific type of data that will be essential in making decisions and what information will be discarded (Mitchell et al., 2013)
Another recommended strategy is outsourcing of only specific talents and technologies not accessible within the Company’s labour force or too expensive for external hiring (Bidwell & Keller 2014). Boeing should continue trying to access the best technologies and capabilities that can still be sourced from all over the world. In outsourcing, the Company should consider a number of factors that are likely to increase the costs. These include; the complexity of the products; the geographical accessibility concerning the distance; legal and cultural differences; differences in regulations. Others are; the clarity of terms of the contract such as means of measuring performance and the right and clear definition of the scope of the project; challenges and failure to monitor projects progress (Elahi et al., 2014). The challenge with this strategy is that Boeing may lose some of its competencies while outsourcing. This is because it may be required to share some of its intellectual talents to get the desired type of labour (Peterson, 2011). Additionally, Boeing may end up reducing its investments in research and development, and this will affect its growth in the future. For this reason, the strategy to use data from within the organization and outside sources for forecasting and planning future hiring requirements is a better strategy.
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