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The jet-setters William E. Boeing, together with his friend Conrad Westervelt, built his first plane in 1916: a single-engine seaplane with a top speed of 75 mph. The next year, the U.S. Navy ordered 50 airplanes from Boeing, and the company has soared ever since. Boeing rolled the 737 off the assembly lines in 1967; the 737 is the best-selling jetliner in aviation history. The 747 is world-renowned as the first jumbo jet, and Boeing followed in the 1970s with the quieter and more fuel efficient 757 and 767. As successful as Boeing has been historically with its commercial jets, it has not rested on its laurels. The company has made some major acquisitions in recent years in an attempt to boost its space and defense business, most notably its $16 billion purchase of defense giant McDonnell Douglas in 1997. McDonnell Douglas was the world's largest military aircraft manufacturer. The company also made a major purchase in 1996 when it bought out Rockwell Aerospace. The recent acquisitions have made Boeing the world's largest aerospace company. Too big? Boeing's management and shareholders, however, have discovered that bigger isn't always better. In the past couple of years, the company has suffered through shrinking profits because of a price war with its European rival, Airbus, and because of clogged production lines that resulted in late deliveries and penalties. In 1997, the company actually lost money on nearly $50 billion in revenue. And in 1998, its profit margin was under 2 percent. Boeing was built on a strong corporate culture of trying to build the best jets and a sort of military culture that emphasized hierarchy, loyalty, and promoting managers from within. It is now faced with overhauling its culture: competition with Airbus requires that it focus not only on delivering the latest in technology with its jets, but also on delivering those jets more efficiently (cheaper). The company's troubles have also required it to become more bottom line-oriented. In December 1998, the company announced plans to cut 20,000 additional employees, bringing the total bloodletting to 48,000 workers by the year 2000. In the last quarter of 1998, about a half-dozen senior managers, including the chief financial officer and the head of the Commercial Airplane Group, were pushed out of the company. Still the tops, but questions even there It's not as if Boeing isn't the leader in commercial aircraft. In 1998, the company delivered a record 563 passenger planes. That whopping production figure was a 50 percent increase from 1997. However, analysts point out that because of poor efficiency, the record production did not translate into profits. And although Boeing plans on delivering 620 planes in 1998, it is facing some serious questions in its core commercial jet business. Because of global financial troubles, the company is cutting its 747 production rate to two or maybe one a month by 2000, down from the five a month it produced in 1998. And the 747 business, which is Boeing's most profitable is being threatened by the planned launch of Airbus' competing plane, the A3XX (although the introduction of that giant plane has been delayed). In early 1999, perhaps to wake the company out of its extended slumber, Boeing chairman Phil Condit told his top executives that the company was a possible takeover target. While that scenario is far-fetched, the combination of Boeing's problems makes such a takeover, which was unthinkable a few years ago, at least a possibility. Eyes in the sky In September 1999 Boeing won a $5 billion contract from the U.S. government to construct reconnaissance (read, spy) satellites. The classified deal was a major victory for Boeing's satellite department which beat out Lockheed for the contract.
Boeing's web site, located at www.boeing.com, includes a helpful employment area that allows job seekers to search for jobs, apply online, and peruse the company's campus recruiting schedule. The company also provides information about internships for students. Unfortunately, Boeing's troubles mean limited job opportunities at the company now. Says one insider: "It's not a good place to look for work right now." Says another: "Boeing is going through a period of downsizing right now, so unless you have a specific skill that they need, it's not the place to look right now." For those who send in resumes, "you will be called for a phone interview. If that is successful, you may be invited for a live interview." For this second round, "Boeing usually pays."
Big company culture Insiders agree that trying to sum up the work culture at Boeing is a near impossible task. "Being a very large corporation," explains one contact. "Boeing has many different cultures in its many different locations." As one insider says: "Asking how it is to work for Boeing is a bit like asking 'How is life in the United States?'" However, insiders also agree that no matter the division, work culture at Boeing is largely affected by the company's massive size. "It's a huge company and it's easy to get lost," reports one insider. Says another: "It's a lot like the military. You go up the chain of command to get anything done." Another agrees: "Being big, Boeing has a fair amount of administrative overhead. In other words, forms, chains of command, and so on." Some insiders take stabs at describing the company's culture. Says one: "As a wild over-generalization, the culture is that of an old, established manufacturing company, where the products are physical things you can see." Says that employee, a computer programmer: "This attitude can be uncomfortable for a 'knowledge worker' like a computer programmer." Another is critical of the company's management. "They mismanage their resources, people and materials, so frequently are overworked or have no work at all, requiring layoffs," says that contact. But Boeing insiders also note that though it may not always be successful, the company tries to be a good employer. "As big as it is, it places a premium on people," says one insider about the aerospace giant. "Its policies towards all employees are fair and equitable." Fair and equitable By "fair and equitable," Boeing insiders say that their employer is a good one when it comes to diversity issues. Reports one contact: "Sex and race are a non-issue." Says a former employee: "Having been a manager with Boeing, I can say that it's a good company as far as treatment of women and minorities. They are encouraged to take every opportunity for advancement - and there are many." Woe are us Boeing insiders are of course aware of the problems their employer is experiencing. However, most view the problems as simply part of the industry. "The aerospace industry is in a bit of a slump right now -- layoffs and stuff. This happens from time to time and should turn around," says one insider. Reports another: "It can never be said enough that the business is very cyclic." Varied reports on pay, dress Reports about the pay at Boeing range from "below average" for non-engineering personnel to "reasonable for the type of work you do to" to "above average." While work hours for factory workers are 40 hours a week, these employees are paid time-and-a-half for the "first two hours over eight hours a day" and "double time thereafter." Factory employees also receive "double-time for Sunday, and for any hours after eight hours on Saturday." "Above average" benefits include "dental, eye care, as well as a good health plan." Boeing also offers a voluntary savings plan that allows full-time employees to contribute from 1 to 15 percent of their salaries, with a company match up to 8 percent. Dress at Boeing depends on one's position, but leans toward the business casual side. Says a computer programmer: "We have a casual dress code - no jeans and sneakers, but no ties and suits either." Says another insider: "Dress code is business casual. This means dress is better than in school, but less than a lawyer's suit." Sums up one contact: "Out in the factory, it's dress in jeans and casual attire. But if you are in an office environment, you dress in a professional manner."
Human Resources
Commercial jet aircraft
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