Lockheed Martin Corporation

Lockheed Martin Corporation

Introduction

Organizational structure is the manner in which the operations within the organization are arranged and organized. This term paper focuses on the role of economics in decision making. This paper achieves this on the basis of the foundations of demand and supply, importance of market structures, economics of strategy, incentive conflicts, contracts, and organizational architecture. To achieve all these, the paper will focus on Lockheed Martin Corporation as a case example. This paper also brings to light the compensation packages for employees and employees in Lockheed Martin. This paper further provides a description of Lockheed Martin as well as an account of organizational problems and ways to improve the corporation’s job design.

Lockheed Martin Corporation

According to Terris (2013), Lockheed Martin is a multinational company involved in the making and development of rockets, missiles, space vehicles, and other related equipments in America. It is also involved in security as well as high-tech expertise all over the world. This corporation was created via a coalition between Lockheed Corporation and Martin Marietta. It was formed in March 1995 (Henning, 2005). The main clients of this corporation include section and various organizations within the American government. This corporation is also extensively renowned and acknowledged as a security service provider and freelancer. Organizational culture includes all the traditions and customs practices within and a particular organization in its operations. Organizational traditions and customs in Lockheed Martin are extensively and broadly absorbed in all aspects of the organization. Infact these directly affects the lives of the workers at all echelons. To understand the traditions and customs in Lockheed Martin, it is important to first of all focus on its chronological standpoint. In early 1990s, many of American corporations involved in security experienced a lot of shame and humiliation in the course of their operations. Therefore, the American government set up plans of actions that made it mandatory for these corporations to inculcate plans of actions in abid to ensure ethical standards are considered in their daily operations. Lockheed Martin management approach involves a system in which a central group of individuals gives instructions to its regional groups (“Lockheed Martin,”2013). This system of management deliberately and tactically permitted a number of set and equipped components of its operations to uphold and preserve previous literary traditions and customs.

According to “Lockheed Martin” (2013), organizational culture in Lockheed Martin is an example of the modern or recent traditions and cultures. In a bid to increase the client base, this corporation has been planned and structured in a client oriented manner. To represent or emulate the manner in which the corporation operations are accomplished as well as to reduce the clashes in the dual management structure of Lockheed Martin, this organization has clustered workers in form of sets that are mandated to complete particular operations or activities. Lockheed Martin is structured on the basis of space and security missions with different sets of workers. This corporation has also been involved in various projects that have had great benefits to the environment. All aspects of its operations in construction, information technology, as well acquisition natural energy have been in done in an ethical manner that upholds and maintains the natural environment.

 

Organizational problem

The major challenges in Lockheed Martin have been associated with performance such as security risks. It is of fundamental importance for timely identification of performance troubles and tribulations within an organization. In my opinion, these performance problems are caused by poor leadership. Lockheed Martin has been having problems in how the corporation chooses and evaluates managers. There has also been a challenge in how managers and other individuals in executive positions position and lay down their goals and ideas within the organization (Lockheed Martin, 2013). Performance problems can only be controlled and prevented through the creation of better risk management systems. Security management structures in a Lockheed Martin should recognize and analyze the possible safety risks. Consequently, the risks are ranked in order to evaluate the threat, and then appropriate measures are put into place to make the threat less serious. For the prerequisite of unrelenting security arrangements, the strategies put into exploited to reduce the risks are observed and controlled. Governing project well within the corporation and ensuring tactical leadership is important. This establishes boundaries in which a project functions and is realized within the procedures to examine performance, illustrate actions and behaviors and attain conformity, and at the same time offer flexibility to developing situations.

To put into practice a successful and effectual security risk management plan of action requires an official systems approach accompanied with designed, adequately considered, conscious, as well as set objectives that are held up and sustained by risk management (Viale, 1998). Security management systems technique must be identical in the entire business center of the corporation. It is important for Lockheed Martin to set desirable and comprehensible objectives that should be endorsed by the leaders of the corporation. Subsequently, these objectives should be passed down and are therefore designed into well set routine methods and practices (Anderson, 2007). These routines can lastly be judged by the board members. On the other hand, to attain a successful security management system free from frequent negative occurrences and responses calls for a production oriented security manager with distinct functions and responsibilities.

In combating the challenges of poor leadership, Lockheed Martin should encourage leaders to practice good and ethically considerate leadership. The roles of the security manager should also be clearly laid out. To attain maximum risk management, the security manager should be answerable to the managers of the organization, and he/she must have explicit and specific support from the management. The security manager should be viewed as an in-house advisor instead of being viewed to have attained an outfitted spot in the organization. The security manager is a factual manager and organizer who should function at a well planned and strategic rank (Wheeler, 2011). Lockheed Martin should therefore ensure that a clear and concise security risk management structure is laid out. An extent of intellect and aptitude should be incorporated well in identifying business risks in a bid to enlightening the risk procedure. The management should ensure that all members of staff are accountable in regard to safety matters of the organization.

In consideration to security strategies, Lockheed Martin is ought to concentrate on a number of issues including customer knowledge and understanding, strategies and processes, information technologies, bodily safety, as well as production permanence and stability. Organizing business and outfitted safety has turned out to be more and more serious due to the fact that business safety is varying according to considerable important hazards. There are two types of hazards concerned with safety risk management that require the deliberation of various bodies within the organization. These include business and competitive risks (Anderson, 2007). It is important to comprehend these two types of hazards in order to effectively direct and supervise the security risk that the business is exposed to. This is because the manager cannot be able to protect and guard the organization against a risk they don’t understand. Business hazards, on the other hand, are associated with the doings of the organization.

The role of the managers and other top executives in Lockheed is also important in the alleviation of these problems linked with performance. The role and responsibility of company management is to make certain improved and enhanced empowerment for the shareholders and structure a group of legal financial controllers (“Lockheed Martin,”2013). These should bestow fiscal credit reporting system and rules hence lessen exterior limitation and statutes of executive performances and calling for assessors to decide or pass judgment on the matters exposed. The Risk Assessment is also important as it is authorized with the power of approving all business dealings and accords. All business transactions require consent and endorsement from Lockheed Martin’s Board of Directors. The Board of Directors in this corporation should be concerned with making certain that the attainments and undertakings of the members of staff correspond with the strategic and calculated aims and ambitions of the organization. It is important for organizations to have good leadership especially from the Board of Directors and other top executives.  Management and control in organizations is significant to ensure the formation and preservation of customs and traditions in an organization.

Emotional intelligence spotlights largely on individual skills involved in consciousness, consideration and administration of individual feelings as well as those of other people with an aim to familiarize oneself on the requirements and difficulties of life. There are also qualities that ensure effective management of security within the organization. Leaders with a high echelon of emotional intelligence optimistically relate collective abilities to control and manipulate others, generate tough associations with customers and human resources, and are also effectual stimulators through the management of their feelings and appreciating their faults (Anderson, 2007).

Design of operations

As mentioned earlier, it is evident in organizational culture that Lockheed Martin operations are accomplished through team work. Workers are structured in form of teams that are mandated to complete particular organizational operations in regard to space operations and security missions. This aspect is appropriate in my opinion as team work ensures the involvement and inclusion of all individuals in the operations of the corporation. The operations of the corporation are also designed in a manner that safeguards the interests of all the employees in all aspects of its operations including safety issues. Its inventive and modern production advances are designed to enhance long-standing competence and affordability of all its products (“Lockheed Martin,”2013).

Suggestions for the improvement of the job design

One of the most significant ways of improving the current job design in Lockheed Martin is ensuring proper comprehension of the business model that has been created (Goolsby, 2008). Understanding and comprehending business models is important as it offers important assistance to identifying with the events, actions, and activities in a business, and also enables patent imagination of the business procedure and how information is passed, not involving the business constitution. A business model is also a medium through which modern project managers enlightens and demonstrates their ideas to other business stakeholders in a simple and straightforward way. A business model is a foundation for drawing attention to meticulous ideas such as the incoherent nature of the procedures that slows down useful actions and processes and cuts short the flow of information, as well as elevated charges. A business model is also a fundamental method of identifying and assessing actions and problems aimed at planning development prospects. It is also a way of pointing out the range of relevance and for naming potential structure for design.  Business models should also be understood by modern project managers as they are methods for planning existing uses beside the procedures they sustain.

It is also important to comprehend and understand business models as they are the foundation for clarifying the benefits of having similar conditions in an organization. Many businesses have in the past had similar comprehensions of distinct conditions used within a particular business. For instance, the head of business in Lockheed Martin could have several groups within the business offering distinct results to a specific problem regarding trade. The branch of business concerned with manufacture could have manufactured a definite amount of commodities for trade and hence this is the amount intended for sale. However the branch concerned with advertising and selling of the commodities could be having a different figure of commodities for selling, which could have been resulted separately from their advanced selling projections. As a matter of fact, the branch of selling had a figure determined in accordance to the commands and instructions of the clients. On the other hand, the figure determined by the finance branch was in accordance with the real and tangible demanded commodities. In this case, each of the branches of business had what they considered and contemplated as similar information, but in real sense there are evidently distinct sets of figures. Business models are also the basis for recognizing and classifying sophisticated redundancies.

Business models are also a basis in which modern project managers can determine the kind of leadership behavior to use. Leaders might either be autocratic, democratic, or a combination of the two styles. It is important to consider the fact that the degree or level at which a leader in an organization should be autocratic or democratic depends or different conditions and situations within the association especially the business model, hence leaders may amend their conduct and performance to fit certain conditions. This can be demonstrated by an example where a project manager may use the autocratic style of leadership if the business model allows limited time for the completion of a certain task or else results to junior staff members taking lengthy time in gaining the necessary skills and knowledge for the formulation of credible judgment.

Understanding and comprehending business models is important to modern project managers as it ensures effective risk management (Bass & Bass, 2008). To achieve an effective security risk management, the project manager is ought to have certain skills in the management of risks.  It is the kind of business model that makes project managers effectual in managing risks in organizations. As a result, four behavioral patterns for risk management have been recognized. These concepts include deliberation, organization, emphasizing on productivity, as well as sympathy or compassion. Deliberation involves acquaintance, belief, affection, and admiration for others. Organization is the process of preparation and putting in order actions and behavior in the sustenance of managerial objectives. Highlighting on the productivity means getting the work completed successfully. Sympathy for others involves been conscious of communal dealings and demands. Deliberation and initiating organization are the issues that distinguish successful from unsuccessful risk management performances.

The supply chain organization and control is deliberately and purposely clustered or grouped by associated products; these products include aspects of theory and practice of using computers to store and analyze information, connectors, among others. The objective of clustering by products is to harmonize and orchestrate spending and other overhead costs and performance of dealers and other traders linked to the corporation when buying operational equipments. Therefore, this organization is helpful.

The job design in Lockheed Martin can also be improved through observance of ethics in its operations. A great deal of members of staff in international organizations or corporations observe organizational legal and ethical set of laws. It is important for workers to observe the organizational rules. Furthermore, it is the responsibility or obligation of the individuals in Lockheed Martin’s leadership to support and convince members of staff to account for and offer information on any activities within and outside the organization against the legal and ethical rules. Accounts from eye witnesses and scholars have elucidated the fact that practically half of members of staff in American corporations have witnessed or experienced morally wrong or dishonest and criminal behavior within the workplace and about more than half of them reported these actions to the management. Having a string sense of protection and commitment towards the corporation is important as this will make certain offering testimony on disobedient activities and manners of conduct.

Compensation package

According to Lipman & Hall (2008), Executive gains in many cases comprise of advantage accessible to member of staff in a corporation or company. These may include flexible job timetables and plans, delayed recompense and rewards, training recompense plans or courses of action, and fitness unions and association. In some cases, these gains for top executives may be increased to include travel allowances. Benefits to other workers within the organization may include allowances to make frequent calls to family members and friends. Executives in various positions may have particular privileges that are aimed at relieving pressure and avail sumptuousness. Some of these privileges may include preferences in buying shares, stipends for private trips, monetary guidance, interest free advances, and being availed with personal drivers by the company (“Lockheed Martin,”2013). These are some of the privileges enjoyed by executives and workers in Lockheed Martin though some of them were eradicate by the owners of the company.

The salaries in Lockheed Martin are viable and is decided and established by inclusive and wide ranging reviews and assessments on the basis of individual abilities, self control, as well as rank. The corporation’s advances are established in a way that ensures incessant and unremitting evaluations for appropriate and suitable positioning in all aspects of the product promotion. The privileges for the workers and top executives include fitness and wellness benefits. These include remedial, teeth and eye checkup allowances, perks for encouraging better lifestyles, availability of internet services all days of the week free of charge, vaccinations against common ailment such as flu at no costs, medical screening allowances, free management of serious illnesses such as kidney failure, and availability of free programs for improving physical fitness. The retirement packages for employees include privileges such as free continuing monetary guidance and indemnity cover. There are also paid leaves in Lockheed Martin for holiday breaks, funerals, when an individual is going for court hearings, as well as sick leave. There is also a long-standing retirement contributions program and a savings strategy that ensures that individuals are offered financial assistance for the amplification of individual retirement plans of action (Reed & Bogardus, 2012).

This compensation package for the executives and workers of Lockheed Martin is effective. The only recommendation is that the corporation should include rewards for top performers within the organization. Rewards are important as they help in motivating the workers. This is also important as rewards establish a lively and brisk organizational customs and traditions in instances that it is incorporated together with other aspects of operations within an organization. This also helps to involve the workers in daily operations hence guarantees the use of smaller quantities of resources for the organization.

Conclusion

In conclusion, organizational structure involves the methods and approaches in which activities within the organization are arranged and organized. Lockheed Martin is a cosmopolitan corporation involved in the making and development of rockets, missiles, space vehicles, and other associated equipments in the United States. Lockheed Martin is also concerned in security contracts as well as state-of-the-art know-how all over the world. This corporation was created via a coalition between Lockheed Corporation and Martin Marietta in March 1995 and its major clients include section and various organizations within the American government. In a bid to augment the client base, this corporation has been designed and structured in a client oriented manner. Lockheed Martin has been linked with performance problems; for instance security hazards. It is of essential significance for opportune recognition of performance troubles and tribulations within an organization. These performance problems are caused by poor leadership as is evident from the fact that this corporation has been having problems in choosing and evaluating managers. This corporation has also been having a challenge in how managers and other individuals in executive positions position and lay down their goals and ideas within the organization. These hazards can be controlled and prevented through the creation of better risk management systems.

One way of improving the current job design in Lockheed Martin is ensuring proper comprehension of the business model that has been created. The privileges for the workers and top executives in Lockheed Martin comprise fitness and wellness allowances. These consist of remedial, teeth and eye checkup allowances, perks for encouraging better lifestyles, availability of internet services all days of the week free of charge, vaccinations against common ailment such as flu at no costs, medical screening allowances, free management of serious illnesses such as kidney failure, and availability of free programs for improving physical fitness. Business models are an important foundation through which modern project managers can establish the kind of leadership manners to use. Leaders might either be autocratic, democratic, or a combination of the two styles. The degree or level at which a leader in an organization should be autocratic or democratic depends or different conditions and situations within the association especially the business model, hence leaders may amend their conduct and performance to fit certain conditions.

 

Reference

Anderson, M. A. (2007). The Process of Risk Management. Norderstedt, Germany: Druck &        Bindung. New York, NY: John Wiley & Sons.

Bass, B. M., & Bass, R. (2008). The Bass Handbook of Leadership: Theory, Research, and           Managerial Applications. New York, NY: Free press.

Goolsby, K. A. (2008). Historic Grand Praire: An Illustrated History. Hobokken, New Jersey:      John Wiley & Sons.

Henning, T. (2005). Memoirs of a Defense Contractor. New York, NY:iUniiverse.

Lipman, F. D., & Hall, S. E. (2008). Executive Compensation Best Practices. Hobokken, New

Jersey: John Wiley & Sons.

Lockheed Martin Corporation. (2013). Retrieved October 5, 2013,

http://www.lockheedmartin.com

Reed, S. M., & Bogardus, A. M. (2012). PHR/SPHR: Professional in Human Resources    Certification Study Guide.

Terris, D. (2013). Ethics at Work: Creating Virtue at an American Corporation. Lenanon, New     Hampshire: UPNE Press.

Viale, J. D. (1998). New Product Introduction: A Systems, Technology, and Process Approach.     Hobokken, New Jersey: John Wiley & Sons.

Wheeler, E. (2011). Security Risk Management: Building an Information Security Risk        Management. Waltham, MA: Elsevier Publishing.

 

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