W James McNerney Jr. Believes That Internal Rivalry Between

W Jamesmcnerneyjrbelieves That Internal Rivalry Between Managers

W. James McNerney Jr. believes that internal rivalry between managers at Boeing and former rival McDonnell Douglas, formed when the two companies merged, are at the root of numerous ethical scandals. He states that "not only is it at the root of the company's ethical scandals but also has prevented managers from cutting costs and sharing good ideas effectively." Boeing seems to be going from one ethical problem to another and even McNerney says that the "rot" has set in. Students with this topic will review McNerney's assertion that it is the merger that is at the root of Boeing's ethical problems. One student will argue that the merger is the primary issue, while another will argue that no matter how well intentioned McNerney is, the merger cannot be undone, and the question becomes whether McNerney, as an individual, can change a giant corporation's culture. Students are asked to convince the class of the correctness of their position, either supporting McNerney's assertion or arguing against it by emphasizing the complexity of corporate culture and root causes of ethical issues.

Paper For Above instruction

Introduction

The debate surrounding the root causes of ethical scandals within large corporations, particularly Boeing, hinges significantly on the influence of organizational culture and structural changes, such as mergers. W. James McNerney Jr., the former CEO of Boeing, attributes much of Boeing’s ethical challenges to the internal rivalry formed after the merger with McDonnell Douglas. This paper argues that McNerney's assertion is accurate—that the merger significantly contributed to the ethical decline—and discusses whether individual leadership can indeed transform corporate culture.

Analysis of McNerney’s Position

McNerney’s claim that internal rivalry derived from the Boeing-McDonnell Douglas merger fosters unethical behavior aligns with organizational behavior theories. Mergers often aim to create synergies but tend to induce cultural clashes (Krug & Taylor, 2012). According to Schein (2010), corporate culture is deeply rooted in shared assumptions and values. When two firms with disparate cultures merge, the resulting conflict can weaken trust, impede communication, and hinder the shared commitment necessary for ethical conduct (Brewster & Chung, 2018). McNerney’s perspective understands that internal competition, if unmanaged, can lead to cutthroat behaviors, secrecy, and ethical lapses.

Empirical studies support his view; for example, research by Cartwright and Cooper (2014) has shown that company culture deterioration post-merger often correlates with increased misconduct and scandals. The internal rivalry at Boeing, fostered by the merger, may have made managers more focused on outperforming each other rather than adhering to shared ethical standards, thus contributing to a cycle of scandals, including issues related to safety, compliance, and transparency.

Furthermore, McNerney emphasizes that this rivalry hampers the sharing of good ideas and collaborative problem-solving, which are critical in an engineering and safety-focused enterprise such as aerospace manufacturing. The fragmentation of organizational units and unhealthy competition may impede ethical decision-making, as managers prioritize individual or departmental success over collective corporate integrity.

Counterargument: Complexity of Corporate Culture

Critics argue that McNerney oversimplifies the causes of ethical misconduct by placing too much emphasis on the merger and internal rivalry. They posit that culture is multifaceted, influenced by leadership, industry pressures, regulatory environment, and broader societal values (Schein, 2010). Focusing solely on internal rivalry neglects these external and systemic factors.

Moreover, corporate culture is historically entrenched and resistant to rapid change (Schein, 2010). While leadership initiatives can influence culture, transforming a large, complex organization like Boeing requires sustained effort over many years. Ethical scandals may stem from operational failures, misaligned incentives, or inadequate oversight rather than internal rivalry alone (Klein, 2019).

It is also essential to recognize that many successful mergers have fostered positive organizational change, especially when driven by strong leadership committed to cultural integration and ethical standards (Choi & Pang, 2020). Therefore, the root cause is not necessarily the merger itself but perhaps how it was managed post-merger.

Can Leadership Change Corporate Culture?

The central question is whether McNerney, as an individual leader, can alter Boeing's extensive cultural issues. Research indicates that transformational leadership can significantly influence organizational culture (Bass & Avolio, 1994). Leaders who articulate a clear ethical vision, model integrity, and implement structural changes can foster a culture of accountability and transparency (Liu et al., 2018).

However, transforming a corporation's culture is a long-term process involving consistent reinforcement of desired values, restructuring incentives, and establishing rigorous compliance mechanisms (Schein, 2010). McNerney’s attempts to stem ethical lapses and promote a more collaborative environment demonstrate that leadership can make a difference but cannot single-handedly overhaul entrenched cultural traits.

Given Boeing’s size and complexity, change must be ingrained throughout the hierarchy and operational processes. McNerney’s leadership, therefore, is necessary but not sufficient; broad systemic reforms involving organizational structure, employee engagement, and accountability are required.

Conclusion

In conclusion, McNerney’s assertion that the merger was a primary driver of Boeing’s ethical problems holds considerable merit. The post-merger rivalry created an environment ripe for misconduct, impeding effective collaboration and ethical decision-making. While it is true that corporate culture is multifaceted and influenced by numerous factors, the internal rivalry stemming from the merger played a significant role in weakening Boeing’s ethical fabric. Furthermore, leadership initiatives are crucial but insufficient alone; transforming such a vast organization demands comprehensive, systemic efforts. Ultimately, change is possible, but it requires persistent, strategic, and culturally sensitive leadership efforts over time, emphasizing the importance of alignment, shared values, and accountability.

References

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2. Brewster, C., & Chung, C. (2018). The impact of culture on organizational mergers and acquisitions. Journal of Business Ethics, 152(4), 897–911.
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4. Klein, J. (2019). Ethical failures in corporate management: Causes and cures. Journal of Business Ethics, 154(4), 919–934.
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7. Schein, E. H. (2010). Organizational Culture and Leadership (4th ed.). Jossey-Bass.