During the timeframe that Steve Jobs was the CEO, he had control of almost all decision-making that could affect the company. It is unethical for Apple to maximize the returns to its shareholders at the expense of its employees work life balance. To lend credibility to Jobs claim that he had groomed executives who were sold to his value and management style, it might also be good for Jobs to temporary step aside for a period or consider a leave of absence to give opportunity for others to lead. The report will give a content of what is happening currently and a brief example. Organization or business has to have organizational structure in order to succeed because it prioritizes the hierarchy, identifies the guidelines, policies and procedures needed for a company achieve goals and objectives. Based on the models put forward by Weber, Burns and Bass, Steve Jobs can be described as a transformational leader since he was able to motivate and influence the employees at Apple to be able to attain the highest degree of efficiency. Deal and Kennedy’s model on corporate culture incorporates five critical elements; the Business environment; Values, Hero, Rituals, and the Cultural network. Functional structure has been developed in the organization to group the workforce according to their purposes. Work-life balance practices have been shown to reduce absence, raise morale and increase levels of job satisfaction (Torrington et al. Product-based grouping Spoke-and-Wheel Hierarchy: A bird’s-eye view of Apple’s organizational … In line with transformational leaders’ characteristics as seen in the models, Jobs was able to attain the highest degree of efficiency by demanding commitment, determination, courage and selflessness from his employees. 3469 Words 14 Pages. As Jobs might not be steering the wheel of Apple in the next 10 years, it might be advisable for Apple to start making succession plans for Jobs. This is reflected in the report that, Apple employees see it as a club rather than a family and that Apple view task accomplishment more importantly than the process or relationships formed. Free Essays on Apple Organizational Structure . Looking for a flexible role? Apple operates a performance based reward system, adopt “ carrot and stick” policy. In contrast to Friedman’s suggestion, Apple operates a closed business information policy. Thesis Statement During the last few years, Apple company has achieved great successes in the electronic domain. In functional structure, people are grouped on the basis of their common expertise, experience and resources. Employees in bureaucracies are promoted based on their ability to conform to the rules. Employees are able to concentrate mostly on their work rather than thinking about their appearance. Apple Inc. is a global computer manufacturing company that is going through major changes in its organizational culture and it’s organizational structure due to several events of the past few years. Each of those managers has their own unit comprising of team members who assigned with a variety of responsibilities. He always reminded employees that Apple is a good company, it was a honor to become one of the number of this company. However, it could also lead to lack of communication between the groups in the organisation as is the case in Apple. However, stakeholders are concerned about the company’s future in his absent. This has enabled it to foster a culture of dedication and hard work. Apple’s CEO, Steve Jobs is a charismatic leader who possesses a very strong passion for creativity and motivation. The problem with the hard work culture is that it centres on been seen to work hard and typically being in the office for long hours (Brigg, 1991, p.41). Since 2011, Apple had become the most valuable company. This concept has aided the company to become the most valued corporation in the world based on market capitalization. Price (2007) describes value as the heart of corporate culture that is made up of key believes and concepts shared by an organisation’s employees. (Qumer 2009). It is also concerned with the economy, politics and the environment. The divisional structure is a traditional organization structure which group together people who work on the same product or process, serve similar customers, and/or are located in the same geographical region. According to Lüsted (2012), organizational structure defines the manner in which an organization is governed. The project is that the company is in search for other multinational company to cooperate with. In contrast to Bass who sees transformational leadership as amoral and even attributes transformational skills to leaders such as Adolf Hitler, Burns (1978) sees it as been linked to higher values and believes that only moral leaders can be transformational. A structure in any organization has the ability to create opportunities to enhance growth as well as act as a stumbling block depending on how it augments with the available resources. The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. He went ahead to defined leadership as ‘Leaders inducing followers to act for certain goals that represent the values and the motivation of both leaders and followers.’ (Burns 1978, p. 19). From the case study, I have noted the effects of organizational policies/processes embedded in institutional and technical structure of Apple environment. (Qumer 2009). Introduction Published: 24th May 2017 in In Apple there are three types of decisions in the business which are operational which make day to day decisions, tactical and strategic. The simple logic that supports the need for ethical guidelines is that actions in business are the result of decisions by people and human beings tend to seek justification for their actions beyond the rule of money. Apple’s organizational structure is effective in supporting business performance to ensure leadership in the industry, especially with regard to competing against Google, Microsoft, IBM, Intel, Amazon.com, Sony, PayPal, and many other firms.The Porter’s Five Forces analysis of Apple Inc. determines that these competitors impose the strong force of competitive rivalry in … Apple Inc Organizational Structure . The figure below helps in defining the organizational structure at Apple Inc. Apple’s culture of secrecy might earn them criticism on their lack of transparency and raise questions about their sincerity. It discusses what is good, bad and needed to be changed. Since Apple competes as a quasi-monopoly in its market segment, This is simply a strategy aimed at increasing shareholders profiting through making workers into ‘willing salves’ (Levinson 1972). Some employees also may benefit from the extra pay in return for extra quality of work; however, this may be a de-motivating factor to other employees who are not rewarded and may feel alienated. Mr. Cook embraced the decentralization of decision making to a certain extent in order to encourage creativity and innovation at various levels. Every organization has its own unique personality, just like human do. Considering Jobs condition of health, it might be appropriate for Apple to start making succession plans. In the light of this, Apples casual dress culture may be detrimental as it may be signalling a nonchalant and laid-back attitude at first impression. This trait says a lot on what kind of corporate culture they have and differentiates them from their competitors. He believes that leadership must be in line with purpose and objective and that effective leadership is judged by the ability to make social changes. Having said that, there is a believe that people will only take you as serious as you are ‘dressed’. This group is rather a low risk and a low feedback organisation. In its mission statement, Apple stated that it is committed to protecting the environment and ensuring health and safety of its employees and the global community (lliev et al. In functional structure, people are grouped on the basis of their common expertise, experience and resources. Apple has what would be considered a tall organizational structure, but still unique because of how they foster collaboration. Apple Inc’s organizational structure has been among the factors contributing to the company’s successful innovations. At Apple Inc, the organizational structure is designed into three levels of top management unit. It has a closed proprietary system and is very consistent in its product portfolio development. This functional Organization structure is a circular one and centric one with CEO in the middle. Apple offers attractive incentives and rewards to employees by producing results. McGregor (1960) argues that effective leaders do not give orders or discipline their staff. This report provides a reasoned and academically underpinned critical analysis of what is good and what is detrimental to the organisational culture in terms of Human Resource strategy and practice in Apple Inc. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Actually, it started as a two man company – Jobs and Wozniak. Apple offers attractive incentives and rewards to employees they feel have demonstrated their skills and capabilities at the work place by producing results. In 1980, Apple launched its initial offering (IOP) of stocks to the public, a stride that gave Apple a huge success. A company may choose a structure that will assist in reacting to changes and uncertainties from both external and internal environments. Failure to plan for any eventuality in the near future might simply mean ‘planning to fail’. Apple manages and organizes its business based on a geographical structure, which is one of the divisional structures. PEST analysis of Apple Inc. A better organization is one, which easily gets accustomed with changing business contexts. In groups of people who work together, organizational culture is an invisible but powerful force that influences the behaviour of the members of that group in an organization. Mintzberg (1983) suggests that administrative adhocracy occurs when an organisation has a special need to be innovative, due to intense product competition or dynamic technology. Apple Inc.’s organizational structure is collaborative in nature with the company’s CEO as the nucleus. The component that characterises leadership as put forward by Northouse (1997) is that leadership is a process that involves both influencing a group and attaining a goal. This explains why Apple inc. is famous for distinctive competence in product design and innovation. They have the ability to draw out the best from the people they manage through encouragement, support and their personal charisma. A man accredited for inspiring Apple to a greater height. Complexity – Like any large multinational company Apple has an array of 10 Top Executives, Board of Directors and a CEO Tim Cook (Apple bios). Wolf (1999, p.48) sums up the common view on pay for performance by stating that ‘Pay for performance is the holy grail of modern compensation administration’. The employees and management at the Apple Company are categorized and grouped in accordance with their common experience, expertise, and resources. Present Organizational structure of Apple Inc. Such companies or individuals tend to follow a cycle of boom and bust. Rewards may motivate some people but the strategy of punishment if you don’t perform is an extreme and may dissuade some talented individuals. It is said that Apple’s culture of secrecy had led to the suicide of an employee in china, an event which occurred when he was suspected and questioned for leaking companies’ secret. Apple just continues hitting new records. The demand of this product was more than supply, a consequence that led Jobs to apologise to customers who were unable to get the product. Apple's CEO has energy to control all of divisions that are going by the senior VPs of CEO, legitimate configuration, IOS programming, operations, Retail, Software Engineering, Product Marketing and Global correspondence. Drennan (1992, p.101) states that ‘culture is how things are done around here’. According to Mayo (1933) in his Hawthorn studies, informal groups within an established organisation and work place have a very strong control over the work habit and attitudes of individual worker. A typical Apple employee on an average works for sixty or seventy hours a week with no overtime pay. Transformational leaders should be able to stir up strong emotion that will cause identification of the follower with the leader. In this essay, I will give a brief overview of the company’s history, define it organizational structure and effects it have on the success of the organization, distinguish between leadership and management, describe the culture and the core capabilities which lead to Apple becoming the most powerful company in the nation. In a Popular study, Bunge and Ardil (1987) argued that culture is a social matrix within which we are born, grow and live and therefore gives meaning to human action. Info: 4140 words (17 pages) Essay This will help foster unity within the organisation and reduce rivalry among employees as well as eliminate ill feelings that might result from unfair promotions. First, going through the politic factors, Apple Company takes advantage of these political opportunities by the influence of organizations, such as the government, on business. Bass contests that charisma alone is not sufficient to define a transformational leader. It is mentioned that majority of their sales is obtained from other countries outside the United States. Their fundamental principle and mission statement is not reflected in the way they do business. Jeffery (1998, p. 12) argues that ‘if you create a toxic or dysfunctional work environment, you are going to get toxic behaviour from your employees’. In the 1970’s when apple inc. was formed, it drifted from the traditional corporate structure that is been practiced in most companies at that time and continued in a different and unique method of managing its organisation. Examples are the public industries and Civil services. If such issue keep occurring, some employees may resort to working against the organisation. Buyer power: in general, the more customers a company has the less barging power each customers will have, and it switching costs are high, then buying power substantially decrease. If a supplier increase their prices, a company with differentiated product can pass that cost to its customers. However, on July 16th, precisely 22 days after the release of iphone 4, Steve Jobs led a press conference explaining what Apple was going to do to resolve a signal reception problem noticed on some of the new product. Measuring against the traditional classical organisational culture, it can be said that Apple’s ad hoc approach is out of date. Again Apple is in its own class and has not fitted completely with any side of McGregor’s theory. So the unity of command was on the upper side. Need A Unique Essay on "Organizational Structure of Apple, Inc. Compare/Contrast with Common Business Practices"? The organizational structure of Apple Inc. can also be defined as functional structure as the employees are grouped as per their experiences, resources and common expertise (Johnson, et al., 2012). “Hawthorne Effect” Apples, work hard culture is not sustainable as it imposes long gruelling working hours on employees. In general terms, it covers its responsibility to its stakeholder, shareholder, employee, customer and the society in general. Apple company employees under bureaucratic leadership are likely to report only to their immediate supervisor or in case the president of the company or CEO. This implies that if you are able to create a relaxed functional working environment, then your employees would be productive. Finally the paper pointed out areas in Apples corporate culture that is dysfunctional and proposes areas of change that could enable the company to remain sustainable and competitive in this modern, post industrial generation and recession plagued economy. Furthermore, another drawback to the transformational leadership style is the indispensability of the leader as it is a leader centric system (Burns 1978) Analyst has suggested that the biggest challenge facing Apple is their strong attachment to its charismatic leader, Jobs. By using the PESTLE analysis which refers to politics, economic, social, technology, legal and environment. This system is dual facial. Show More. The Hawthorne effect is a reactivity which individuals improve their behavior when they aware of being observed [3] They are hold a specific executive power conferred onto them with and by authority of the board of directors and/or the shareholders and they also focus on managing the senior or executive management instead of the day-to-day activities of the business. Sustaining the structure involves running events and programs to maintain a productive workplace. The positive side of Apples work ethics is its relaxed and casual work culture. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Late Apple chairman and CEO, Steve Jobs is widely perceived as unconventional leader who was able to rally various stakeholders of the company for his vision and at the same time “demanded excellence from his staff and was known for his blunt delivery of criticism” (McInerney, 2011).According to Harrison’s Model of Culture (1972) Apple organisational culture when Steve Jobs was in charge can be classif… Any change to one of these components will affect the others. Friedman (1963) suggested that the only social responsibility of Business is to use its recourses and energy in activities that are designed to increase profit as long as it stays within the rules, engaging in open business and without deception. This is the case with Apple. However, when measured against the post classic, modern information generation as supported by Hewlett et al. Essays Essays FlashCards Browse Essays. Making money is not wrong in itself, but it is the manner in which Apple conducts its business by exploiting its workers that is wrong. The collaboration of members of the company helps determines what best design and strategy needs to be elaborated to achieve the goals, reach more customers and increase profits. Threats of substitutes: it not necessary the same products offered by other companies, but rather different products that satisfy the same need as the product being offered. 2005). Apple does not require employees to wear formal attire but they can freely work with their casual clothes. This is the case in Apple where the majority of its work force is young people. Some of the most significant characteristics of Apple’s organizational structure are as follows: 1. The fundamental principle of Apples Business ethics is said to be ‘Use good judgment’. Essay Apple Inc Organization Structure. The pay for performance system tend to attract only young, motivated and glory seeking individuals while alienating older and stable persons. The company organises after work hours parties, magic shows and promotes playfulness at work. This has enabled apple to achieve a high degree of employee’s commitment to work. It is believed that the rise of Apple was immensely aided by Jobs amazing energy, compelling personality and persuasiveness. Specifically, Mr. Cook embraced the decentralization of decision making to a certain extent in order to encourage innovation and creativity at various levels. Apples work hard play hard culture is consistent with Deal and Kennedy’s model as described above where work is fun with plenty of action and individuals work alone. Organisational Culture, Leadership and Structure shapes the way employees behaves their value, attitude and determines how they will implement the organisations business model and strategy (Honey and Mumford 1982). Organizational Structure Prior to the return of Steve Jobs, Apple Inc, was almost non-existent due to the lack of leadership and management, declining sales and poor strategic planning, which lead to financial hardships and layoffs. This paper highlights that through the consistent interaction of Apples Culture, Structure and Leadership, the company is able to control its employees and implement its policies at various level of strategy. Search. As we can see, the founder and former CEO late Steve Jobs had developed the organizational structure as hierarchical in Apple organizational in order to ensure the focused realization of his innovative ideas and clear vision for the business. Learn more about Apple’s leadership team. Individuals are appreciated for contributions but the whole team or group would benefit from any reward. Keywords: apple culture, apple organizational structure, apple business structure This report provides a reasoned and academically underpinned critical analysis of what is good and what is detrimental to the organisational culture in terms of Human Resource strategy and practice in Apple Inc. Based on McGregor’s theory, it could be argued that Apples management style is a participative management style based on the theory Y as it is able to motivate and draw out the best from its employees. The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. Their prices, a company may choose a structure that will cause identification the. Putting small teams together to complete Projects we 're here to help companies... And directly Reports to the CEO incurred an increasingly costly price and has morally... 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