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Research a contemporary crisis situation in the media. Evaluate from your perspective, what happened, how it happened, and what course of action you would recommend, from a manager's perspective, to improve the current situation. Pay close attention to the crisis in relation to the readings you have had in class.
The contemporary crisis situation I'll evaluate is the ongoing public relations crisis facing the Boeing Company related to quality control, manufacturing flaws, and subsequent safety incidents involving its 737 MAX aircraft program.
The immediate crisis event that captured intense media attention in early 2024 was the in-flight detachment of a mid-cabin door plug on an Alaska Airlines Boeing 737 MAX 9. This incident followed years of scrutiny over the 737 MAX program, including two fatal crashes in 2018 and 2019 linked to the Maneuvering Characteristics Augmentation System (MCAS) software.
The crisis is characterized by:
A major failure of safety systems/quality control that put lives at risk.
Heightened public fear of flying on Boeing aircraft.
Intense regulatory scrutiny by the Federal Aviation Administration (FAA) and international regulators.
Negative media coverage focusing on internal culture, production practices, and executive accountability.
From a managerial and organizational perspective, the crisis is a culmination of systemic failures rooted in organizational culture and leadership decisions, aligning with concepts learned in organizational behavior and management theory (e.g., agency theory, organizational failure, and ethical leadership):
Shift in Organizational Culture (Cost over Safety): Boeing historically had an engineering-first culture. Following the merger with McDonnell Douglas in 1997, there was a significant cultural shift toward profit maximization, cost reduction, and maximizing shareholder value. This led to pressure on production workers to increase output, often at the expense of rigorous quality checks. This is a classic example of Agency Theory conflict, where management prioritizes shareholders (faster profits) over primary stakeholders (safety for customers and the public).