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MGT 330 Week 4 Assignment Organization Paper

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Organization 1
The Organizing Function of Management
Test Laboratory, Sikorsky Aircraft
Sikorsky Aircraft is an aerospace company founded in 1925 by Kiev born engineer and
American immigrant, Igor Sikorsky. Today, Sikorsky Aircraft produces several models of rotary
aircraft that fill commercial and military roles both stateside and globally. Additionally, the
United States Presidential Transport Program contract currently belongs to Sikorsky Aircraft. Mr.
Igor Sikorsky founded a company that is now one of the leaders in helicopter design and
development. Sikorsky aircraft now owns several subsidiaries, including but not limited to
Helicopter Support Inc which handles after market support, and Schweizer Aircraft Corporation
which produces small helicopters, light planes, gliders, and U.A.V.s.
Speaking in terms of vertical structure, Sikorsky Aircraft is a robust organization that is
composed of several integrated departments and sub departments, which lead up through several
layers of delegation. At the top of the hierarchy is of course, a CEO, a board of directors, and
shareholders. Horizontally, Sikorsky Aircraft is somewhat of a "hybrid" organization in that it is
divisional, yet not every department has its own marketing sub division, for example. Sikorsky
Aircraft is composed of several departments because there are many facets that make up the
helicopter production business. Take for example, the internal paint shop. This area, in some
ways, operates as its own entity. The paint shop has its own chain of management, its own

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Organization 2
schedule, its own costs metrics. The paint shop handles painting aircraft from several different
programs within Sikorsky Aircraft, of which also operate as separate entities with their own
operations, engineering teams etc. Sales, marketing, and human resources are central
departments, so for example, the "S-76 Commercial Aircraft program" does not have its own
separate sales department.
The Test Laboratory located within Sikorsky Aircraft is a unique organization. The Test
Lab facilitates critical flight safety, stress, and electrical testing on all current flight programs as
well as developmental programs. For example, techs and engineers perform stress tests on
aircraft components using hydraulic fixtures. These tests are conducted to determine the
estimated amount of wear and tear the specific aircraft components can handle before critical
failure occurs. Additionally, the labs utilize on and off site storage for test fixtures, test
equipment kits, and tooling. At the highest level, the Test Lab would appear as a functional
organization, with a general manager that answers to upper management, and some lower level
managers with differing responsibilities below him.
Physical assets are the core of the Test Lab's functionality. In turn, most of the lab's
processes would be impossible to complete without such assets. Some of the material, and all of
the test subjects that end up passing through or being stored within the Test Labs are government
owned, or are under the jurisdiction of another department. However, the test lab owns a large
amount of equipment, or physical assets, that are used to facilitate tests, take measurements, and
compile data. The importance of these assets is well recognized within the organization,
therefore the responsibility of managing these assets is delegated to a specific manager, and
subsequently to a team of associates. This team works to inventory, store, request, and track the
Test Lab's physical assets using electronic and "hands on" techniques. This operation is very
much decentralized in that the associates actively make decisions on their own, while the

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Organization 3
manager issues status updates via e-mail and team meetings. In this particular case, the manager
delegates by setting goals and providing resources, but because the operation is quite tasking, he
must rely on his subordinates to make decisions on his behalf. This is an effective means of
managing the department's physical assets. This is a fine example of how delegation travels
downward through an organizational structure, yet inevitably it is up to a team of associates to
ensure success.
The Sikorsky Aircraft Test Laboratory faces many of the Monetary issues that divisional
organizations face regularly. All of the organization's functions must operate within both cost and
time restraints. Project budgets are granted to the department through government or company
sourced channels. If a test must meet a time constraint of "A", and a budget constraint of "B", it
falls onto the shoulders of the general manager and his team of sub managers to make sure
operations are not only successful, but also remain within such constraints. It has been said that
"a structure with fewer horizontal layers saves time and money (Thomas S. Bateman, 2009)."
The Sikorsky Aircraft Test Lab has only one general manager, and three frontline managers. The
general manager sees a snapshot of his organizational cost structure, while the three frontline
managers monitor the cost and schedule of their individual processes. Here we have an
organizational structure that would appear to be quite flat, and in fact, "Most executives today
believe that fewer layers create a more efficient, fast-acting, and cost-effective organization. This
also holds true for the subunits of major corporations. A study of 234 branches of a financial
services company found that branches with fewer layers tended to have higher operating
efficiency than did branches with more layers (Thomas S. Bateman, 2009)."
Streamlined processes, efficient delegation, and a generally flat hierarchy allows the
Sikorsky Aircraft Test Laboratory to remain a pivotal example in favorable organizational
structure. Thus, it continues to operate ahead of schedule and within budget constraints. The test

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