Isidore, Chris
CNN.com
Posted 03/25/2024
Key words and Definitions
Leadership – the act of leading a group of people in order to accomplish a specific goal.
NTSB – the National Transportation Safety Board.
Board of directors – a group of individuals elected by shareholders that is in charge of broad oversight of an organization.
Summary: Key Points of the Article
Quality issues continue to plague Boeing and now top management is fleeing the company. CEO Dave Calhoun announced he will vacate his role and leave the firm by the end of the year. Boeing's board chair also announced he would not seek reelection and the head of the firm's commercial plane division is retiring.
Boeing's customers, including the CEOs of both Ryanair and United Airlines, welcomed the announcement stating the aircraft manufacturer needed new leadership. The firm has battled quality problems for the past five years that resulted in two crashes that killed hundreds of passengers and crew members. The National Transportation Safefy Board (NTSB) has been investigating the aircraft maker for one issue or another almost nonstop for the past several years. The firm has also lost $31 billion due to the quality issues.
CEO Calhoun stated the decision to leave was his choice, but he has long been the target of the company's critics. And many of those criticisms come from major airlines that buy Boeing planes. The quality issues coupled with delivery delays are beginning to wear thin as passenger demand soars. Many critics suggest Boeing's new leader should come from an engineering background instead of accounting. The company needs to focus on quality before profits if it intends to survive in the long run.
News Topic
#17 Leadership
Exercise 1 Multiple Choice Questions
- Which of the following is NOT one of the three metacategories of leadership behavior?
a. Task-oriented behavior
b. Relations-oriented behavior
c. Change-oriented behavior
d. All of these
Answer: There are numerous behaviors and traits that leaders possess. However, some researchers have collapsed these behaviors into these three metacategories which are task-oriented behaviors, relations-oriented behaviors, and change-oriented behaviors. - ________ refers to the degree to which followers believe a leader to be honest and competent.
a. Trust
b. Credibility
c. Competence
d. none of these
Answer: Credibility refers to the degree to which followers believe a leader to be honest and competent. Trust refers to the belief that the leader possesses integrity and character. Competence refers to the leader's technical and management skills. - Boeing's CEO and its chairperson of the board will both resign in the wake of the latest quality scandal.
True
False
Answer: In addition to departing CEO Calhoun, Boeing's board chair (Larry Kellner) will not stand for reelection and the head of Boeing's commercial plane unit (Stan Deal) is retiring.
Exercise 2 Critical Thinking Questions
- Is departing Boeing CEO Dave Calhoun a scapegoat?
Answer: A scapegoat takes the blame for something they were not responsible for occurring. Calhoun is the CEO of Boeing and is ultimately responsible for all of the quality issues. The CEO sets the tone for the organization and his focus appears to have been on profitability and not safety and quality. - How are Boeing's clients reacting to the news?
Answer: Many airlines that purchase Boeing airplanes had already called the board expressing their angst with the declining aircraft quality and the firm's inability to deliver planes on time. The CEO of Ryanair stated that he welcomed "the much needed management changes in Seattle." United Airlines has also expressed disappointment with Boeing's quality issues and late deliveries. - Boeing CEO Calhoun stated he was leaving of his own volition. Do you think that is the case?
Answer: Given the fact that several CEOs of client airlines called the board I suspect that Calhoun's departure may have been a forced resignation. Many high profile individuals are given the option to resign before they are fired so they can save face. However, that information will not become public unless leaked.
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