Consider the following description about Boeing32: The Boeing Company is an American multi-national firm that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. Boeing is the world’s largest aerospace company and the second-largest defense contractor in the world based on 2018 revenue. It is also the largest exporter in the United States by dollar value. In March 2019, the Boeing 737 MAX passenger
airliner was grounded worldwide after 346 people died in two crashes, Lion Air Flight 610 on October 29, 2018, and Ethiopian Airlines Flight 302 on March 10, 2019. Ethiopian Airlines immediately grounded the entire MAX fleet. The next day, the Civil Aviation Administration of China ordered the first nationwide grounding, and many other aviation authorities fol-lowed suit. The U.S. Federal Aviation Administration (FAA) also ended up grounding all 737 MAX planes on March 13 after an investigation determined evidence of accident similarities. These groundings became the longest ever of a U.S. airliner and included a total of 387 aircraft, which had served 8,600 flights per week for 59 airlines. However, this was not the first scandal for Boeing. Before the 737 MAX crashes, Boeing was having difficulties creating an aircraft that would meet
the demand for a midsized aircraft in between its sin-gle-aisle 737 and larger twin-aisle 787 planes. With the MAX crisis, the plans to launch an entirely new jetliner for this midsize market (the fastest growing market in the industry) have been abandoned. Those familiar with the company highlighted that
the severe problems that Boeing was facing were a con-sequence of a culture that consistently prioritized short-term rewards to shareholders over engineering-driven decisions and long-term strategy, including investments in R&D. Even Wall Street analysts were complaining that the board of directors was unable to provide the leadership the company needed. Imagine you are an HR executive at Boeing. The
board of directors just met and decided to prioritize the safety of the planes and promote R&D to ensure long-term sustainability. They are asking you to develop a new performance management system and ensure that these strategic goals are properly implemented in the next six months. Given the company’s new strate-gic orientation, what would you do to help align a new performance management system with this strategic direction? How would you explain anticipated benefits? What would you say and do to garner company-wide support for your proposed performance management system?
Given the company’s new strategic orientation, what would you do to help align a new performance management system with this strategic direction?How would you explain anticipated benefits?What would you say and do to garner company-wide support for your proposed performance management system?
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