Lockheed Martin Organizational Environment Essay

Organizational Culture and Environment As one of the only major defense contractors, one would think that Lockheed Martin has a different organizational culture and environment than most companies, but in reality they run like any company would but in a unique industry. They specialize in four different business segments including Aeronautics, Space Systems, Electronic Systems, and Integrated Systems and Global Solutions. Their vision statement says, “Powered by Innovation, Guided by Integrity, We Help Our Customers Achieve Their Most Challenging Goals”. Lockheed Martin, 1) This company works toward maintaining their lead in global security through innovative research and development. Lockheed Martin’s internal environment is based around three guidelines: “Do What’s Right, Respect Others, and Perform with Excellence”. These values are known among every employee and Lockheed expects them to be carried out every day. Employees are encouraged to use their creativity and skills to challenge themselves to work toward innovation. A major source of the organizational culture is the behavior of the top management.

The director of human resources, Max Beal, at Lockheed Martin in Phoenix expressed the importance of employee retention. He asks his employees to give suggestions on how to improve employee retention through things like work flexibility. He has implemented many perks like a sick-child program, an on-site fitness facility, interest-free computer loans, and many career and development opportunities. Beal also manages on a “9/80” schedule where employees work nine-hour work days Monday-Thursday, eight hours on Friday, nine hours the following Monday through Thursday and then they get to enjoy that Friday off.

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This means that employees get a three day weekend every other week. These perks and improvements are a contribution to the company’s low employee turnover. In addition, Lockheed’s external environment is what makes it unique among other companies. Lockheed Martin’s specific environment is solely at the mercy of the government. One major external factor that Lockheed works around is the recent increase in terrorism. They must be able to quickly respond to any threats to our nation’s security. They are firmly on the defense and government side of aeronautics.

Considering that 85% of their sales derive from the United States Department of Defense, Lockheed Martin is directly affected by the government’s military spending cuts. (Hoovers, 1) So, this company thrives off of the government’s budget and specific needs. Lockheed Martin’s 2007 revenue was $41. 9 billion which shows that the current economic situation has not affected them that much which is probably because their products and supplies are being used in the war in Iraq. Their products are in high demand here in the United States and around the world due to recent terrorism and turmoil.

One good thing about working closely with the government is that job stability is not a problem. Lockheed Martin rarely lays off employees and can supply them with good benefits. However, other factors affect the way that the company runs such as its focus on the environment and “going green”. Lockheed is creating programs that will help make their products more environmentally friendly. Considering 90% of Lockheed’s greenhouse gas emissions derive from energy use, they created an energy program which operates with the Environmental, Safety and Health organization.

This energy management program tracks the corporation’s usages and costs so that it can monitor energy efficiency and find ways to improve it. As for suppliers, Lockheed has quite the buffet to choose from. Companies are constantly trying to sell their products and create a buyer-seller relationship with Lockheed. Lockheed’s choice of suppliers must be of the very top quality. Working with 75 different countries, Lockheed states, “We endeavor to treat all suppliers uniformly and fairly.

In deciding among competing suppliers, it is our goal to objectively and impartially weigh all facts in making an award decision and to avoid even the appearance of favoritism. We strive to follow established routines and procedures in the procurement of all goods and services. We strive to make our purchasing decisions on best value, which may include factors such as price, quality and delivery. ” (Lockheed Martin, 1) They run off of a supplier dependent relationship which gives them the privilege of diversified products when choosing within their goals. However, this makes the supplier database very complicated. With more than 35 shipping and receiving facilities along with more than 1,000 suppliers, Lockheed Martin is constantly looking for solutions to help manage and optimize their complex distribution environment. ” (Reuters, 1) As for the affect of technology advancements, Lockheed surpasses almost every company in the world in the importance of technology innovations. Among the everlasting list of amazing technology advancements, two of them took the spotlight when researching Lockheed’s environment. One of them is the use of Global Visualization Services, also known as “Global Vise”.

In an effort for managers to scan the environment, they use one of Global Vise’s resource tools called time bound analysis. Time bound analysis is a sliding time bar that allows the manager to see how an area of interest has changed over time, watching for trends or significant events. This information is then passed on to research and development so that they can adhere to customer demands. Another big technology advancement within Lockheed Martin is Visual SlickEdit. The company selected Visual SlickEdit to improve the direct routing of its advanced air traffic system’s complex environment.

This technology perceives possible conflicts with aircrafts up to twenty minutes in advance and can determine if pilot-requested changes to a flight plan are free of disagreement with other aircrafts. Jill Maurer, SlickEdit chief executive officer, said, “We all understand the importance of air traffic safety, and we are very pleased that SlickEdit has earned the confidence of Lockheed Martin to increase their development productivity in such a critical and complex project. ” (BNET, 1) These advancements in technology are what keep them ahead of the game in the industry.

In conclusion, Lockheed Martin’s internal culture and environment works toward employee retention while maintaining their focus on doing what’s right, respecting others, and performing with excellence. Their external environment thrives off of their number one customer, the United States Department of Defense. In an effort to preserve their excellence, they research and develop new innovations while also taking the environment’s health into consideration. Lockheed Martin’s unique industry gives it opportunities that many other international companies are not offered, however, its overall function is like any normal company.


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