Figure 18.docx - Figure 18 A model of new technology...

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Figure 18: A model of new technology, drivers, and outcome indicators The second recommendation is that Boeing and other manufacturing companies need to put emphasis on employee development in knowledge as a driver of performance. The market is dynamic and an informed workforce can work through the dynamic market to improve performance. The Boeing Company has not exploited the potential of employees in transforming their knowledge and training into superior performance. Effective commercialization of knowledge capabilities is indispensable in transforming breadth and values of employees’ knowledge into performance, and drive improved competitive performance. The model below demonstrates the relationship between employee capabilities and superior company performance through market dynamics. Figure 19: A model of Employee knowledge, Market dynamics, and Company performance The model demonstrates to main paths to company performance with confounding factors The performance of a firm depends on several factors, employee knowledge (EK), market dynamics (MD), and company performance (CP), and each variable has a path towards the improved performance of a company. Path 1; MD – CP Path 2; EK – MD Market Dynamics Employee Knowledge Acquisition Company Performance
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Employee’s knowledge cannot influence company growth directly, but through market dynamics. The Boeing Company can use this model to exploit the latent factors in improving or driving the performance of the investment. Company performance (CP) is dependent on sales growth (SG) and expected sales growth (ESG). Employee fianancing; 42; 23% Charitable donations; 66; 37% business donations; 71; 40% Pie Chart showing Employee financing as a proportion of Boeing's community involvement expenditure (2012) Figure 20: A pie chart demonstrating proportion of employee financing in 2012
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