The fall of Melenberg -

The fall of Melenberg

The delayed dismissal of the head of Boeing revealed imbalances in the personnel culture of America.

The fall of Melenberg

Head of Boeing Dennis Melenberg fired. The company's board of directors decided that "leadership changes are needed to restore confidence." Against the backdrop of the enormous crisis in which one of the largest aircraft manufacturing corporations is located, this formulation looks more than logical. But how long and reluctantly Boeing took this step was evidence of obvious distortions in the personnel culture of America.
Melenberg led Boeing in 2015, and at first he was praised for tripling the company's value and record profits. But then, under his leadership, the corporation found itself in a deep crisis. The starting points were the crash of 737 MAX airliners in Indonesia and Ethiopia. Killed 346 people. After the second crash, rumors began to multiply that the problem was errors in the latest MCAS control system installed on these aircraft. 737 MAX flights were banned worldwide. Contracts with airlines for the supply of these airliners began to break down. A large-scale investigation began, during which it turned out that the matter was not in an oversight or mistake, but in Boeing's deliberate attempts to turn a blind eye to security problems that arose during the testing of aircraft systems. It would seem that it could be worse for the reputation of an aircraft building company than publicly accusing its management of a careless attitude to passenger safety. Against the backdrop of failures with the 737 MAX, Boeing in the second quarter came to a loss.
Moreover, problems have emerged on other fronts. The latest disappointment was Friday's launch from Cape Canaveral, Florida, to the Starliner ISS capsule, developed by Boeing to send astronauts into orbit. There was a failure, and the docking did not take place, which once again threatens to delay the return of the Americans to the manned space program.

And Melenberg was still sitting in his chair. In 2018, he even received an annual bonus of $ 13 million. Recently, he spoke at hearings where congressmen were reporting to him, but the general director replied that he “would not run away from challenges” and promised to “correct mistakes”. What clearly did not succeed, the situation was only getting worse. Nevertheless, not a single member of the Boeing board of directors has publicly called for a change in CEO, clearly trying to get by with half measures. Earlier, Melenberg said that this year he would refuse the prize, but at the same time he kept his salary in the millions of dollars.

Only after Boeing took an unprecedented step last week and suspended the production of the 737 MAX indefinitely, Melenberg's board came to an end. It should be understood that the suspension of production of such airliners is a difficult step that violates the long production chain, disrupts contracts with hundreds of suppliers of parts for aircraft, resulting in huge losses. The HIS Market believes that due to a decrease in the production rate of these airliners, US GNP this year was missing $ 10 billion, and a complete suspension of production, according to various estimates, could cost 0.6 percent of the country's GNP only in the first quarter of next year.
How long Melenberg has stayed afloat amid these catastrophic events for the company seems at least strange for the United States, where in recent years many CEOs have lost their jobs much faster for the wrongdoing with much less tragic consequences.

The list of executives dismissed due to surfaced memories of harassment in their office or at a student party 20 or 30 years ago is more than a dozen names. Moreover, by modern standards of American morality, even accusations of harassment are not necessary, the fact of a novel at work is already considered an indelible spot on the reputation. For example, the same Boeing in 2005 dismissed its head, Harry Stonesifer, for an affair with an employee. Last year, CEO of Intel microprocessor manufacturer Brian Krzhanich was suddenly fired for having entered into a relationship with one of his subordinates. For a similar misconduct, the board of directors of McDonald s fired CEO Steven Easterbrook a couple of months ago. This is despite the fact that Easterbrook was single and did not rape anyone, the relationship was voluntary. But, as explains, "the problem is that the subordinate may feel compelled to relate, fearing otherwise losing his job." It turns out that one such logic is enough to dismiss the head of the company.
And, for example, the CEO of one of the Olympus-owned companies was fired in 2014 for recording how he kicks a dog.

Often, such dismissals occur under the powerful pressure of activists and human rights activists, which is presented in the press as an increase in staffing standards. wrote of Easterbrook’s dismissal: “The dismissal demonstrates how stringent companies have become in relation to work novels amid rampant sexual abuse in corporate America.”

All this is not to downplay the significance of the problems of violence against women or animals. But the deaths of hundreds of people in two plane crashes due to obvious miscalculations of the Boeing looks no less a significant mistake. Nevertheless, no one has deployed any large-scale campaign with demands to change the head of the corporation in the United States. Melenberg remained in his post for more than a year after the first crash and, judging by the fact that his resignation was announced only after the suspension of production of 737 MAX, he lost his job more because of the financial losses of the company, and not because of human casualties. All this creates questions regarding what priorities are set in the modern personnel culture in the United States.
On October 29, 2018, the Boeing 737 MAX of Lion Air Airlines crashed into the waters of the Java Sea 13 minutes after departure from Jakarta. Killed all 189 passengers and crew.

On March 10, 2019, the same Ethiopian Airlines plane crashed in Ethiopia. The accident occurred 6 minutes after take-off and claimed the lives of 157 people.

Source: Russian newspaper

25.12.2019 06:21:42
(Automatic translation)

Dennis Melenberg

American businessman.


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