Each of those managers has their own unit comprising of team members who assigned with a variety of responsibilities. Published: 24th May 2017 in However the element of secrecy that has enabled this has incurred an increasingly costly price and has become morally and ethically unsustainable. 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). Excerpt from Essay : Organization's Structure Organizational structure is defined as a framework that a company uses to distinguish roles and responsibilities, power and authority as well as the method information flows within the organization. This functional Organization structure is a circular one and centric one with CEO in the middle. A typical Apple employee on an average works for sixty or seventy hours a week with no overtime pay. This is to say that, they may appear unprofessional to business partners. 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. Bass contests that charisma alone is not sufficient to define a transformational leader. The second section describes general underpinning theories on organisational culture while Sections three and four present a critical look at Apple’s organisational structure and Leadership and how it relates to the culture. Therefore, Samsung is superior in terms of organizational design. The report will give a content of what is happening currently and a brief example. 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. Again Apple is in its own class and has not fitted completely with any side of McGregor’s theory. In this task I would evaluate two pieces of business information, Apple would have used or could use to make strategic decisions. Sections six and seven summarise the main conclusions of the report and make recommendations with regards to how changes can be implemented. Thesis Statement During the last few years, Apple company has achieved great successes in the electronic domain. If you need assistance with writing your essay, our professional essay writing service is here to help! Apple organizational structure has been subjected to certain modifications since the leadership role was assumed by Tim Cook on August 2011. 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. Although this was a generous offer, most customers were still disgruntled as Job was seen to appear arrogant. A company may choose a structure that will assist in reacting to changes and uncertainties from both external and internal environments. A man accredited for inspiring Apple to a greater height. 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. 2004 p.44). Apple computer was established on April 1, 1976 by a three man team in the likes of Steve Jobs, Steve Wozniak and Ronald Wayne. Employees do not get rewards if they have no results and may even be dismissed. All work is written to order. However, stakeholders are concerned about the company’s future in his absent. This is the case in Apple. Free Essays on Apple Organizational Structure . In the conference Job portrayed antenna problems as common to the entire phone industry and offered free bumpers or cash refund to anyone who wanted them. This corresponds with Shackleton definition which suggests that leaders in some way motivate others to achieve group goals. This is simply a strategy aimed at increasing shareholders profiting through making workers into ‘willing salves’ (Levinson 1972). Mr. Cook embraced the decentralization of decision making to a certain extent in order to encourage creativity and innovation at various levels. Although Apple has developed consistent code of business ethics, it hasn’t been successful in implementing them and has not fostered a sound ethical organization culture. The success of Apple’s presents opportunities gives a political stability of the landscape that is successful in many developed countries. As a result, the chain of command from the top to the bottom staff is short. Essay Apple Inc Organization Structure. Looking for a flexible role? The company operated based on the concept of informal corporate culture within the technology industry where it favoured a seemingly flat organisational ad hoc structure than the tall structure. If any company divert its business altogether or try to diversify too much in product line than there are chances that it will lose its core competency and apple is the successful among. 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. In the same year, it was reported that Apple posted revenue of $8.34Billion and a net profit of $1.23Billion (Qumer 2009). It is also concerned with the economy, politics and the environment. There are employees who are goal oriented and may want to work based on set goals rather than rewards. However, Apple can also be said to be using the threat of no rewards or even dismissal to force employee to work toward the organisation’s objective. Failure to plan for any eventuality in the near future might simply mean ‘planning to fail’. 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. Shackleton (1995, p. 2) suggests that ‘leadership is the process in which an individual influence other group members towards the attainment of group or organisational goals’. Analysts argue that unfairness in promotion and employee treatment exists in Apple and top executives were said to only promote their favourite (Qumer 2009). The unique personality of an organization is referred to its culture. The core competencies of Apple are robust. 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. Copyright © 2003 - 2021 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. Drennan (1992, p.101) states that ‘culture is how things are done around here’. Apple’s culture of secrecy might earn them criticism on their lack of transparency and raise questions about their sincerity. The figure below helps in defining the organizational structure at Apple Inc. 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. 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. Need A Unique Essay on "Organizational Structure of Apple, Inc. Compare/Contrast with Common Business Practices"? Some of the most significant characteristics of Apple’s organizational structure are as follows: 1. By using the PESTLE analysis which refers to politics, economic, social, technology, legal and environment. Apple offers attractive incentives and rewards to employees they feel have demonstrated their skills and capabilities at the work place by producing results. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. (Qumer 2009). Product-based grouping Spoke-and-Wheel Hierarchy: A bird’s-eye view of Apple’s organizational … 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. 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. Apple imposes long gruelling working hours on its employee. This makes the flow of information and decision-making simple. When the leadership role changed to Tim Cook as CEO from Steve Jobs on August 2011, he has changed Apple organization structure to a certain modifications. We're here to answer any questions you have about our services. Employees are able to concentrate mostly on their work rather than thinking about their appearance. Function-based grouping 3. It is very hard to imitate the Apple products and this gives it the control over its competitors. Management. In functional structure, people are grouped on the basis of their common expertise, experience and resources. Apple hierarchical structure is one of the key components which make it extremely effective. 2005). It is apparent to say that the culture of an organisation is directly linked to its strategy, structure, leadership and performance. In the work hard play hard culture, work is fun and there are plenty of actions with low risk and quick feedback on success. 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. How Apple company gets so much success. 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. This view has been supported in the work of Newman and Milcovich (2001, p.6). Present Organizational structure of Apple Inc. Transformational leaders should be able to stir up strong emotion that will cause identification of the follower with the leader. This will have long time devastating effect on the organisation. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. An example of a company that uses organizational learning is Apple Inc. The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. The model described four types of culture as follow: This type of culture is characterised by high innovative as well as high risk taking individuals, with a low level of teamwork. To this effect, when planning a change in strategy, it might be necessary to consider how it might affect the culture, organisational structure and other elements of the organisation, a requirement essential when looking at the critical analysis. The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. 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. Section five is an in-depth look at Apple’s corporal culture in light of academic models. Employees within the functional divisions of an organisation perform a specialized set of tasks. On the 24th of June 2010, Apple launched its new product, iphone 4 and barely four days after the launch has reported a sale of over 1.7 million of this product. The same “top-down” ideology that helped Apple grow also opened the door for some serious financial losses. Employees do not get rewards if they have no results and may even be dismissed if they are seen as unproductive. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. The late Steve Job was known for claiming that Apple is the greatest startup in the world. The Hawthorne effect is a reactivity which individuals improve their behavior when they aware of being observed [3] Apple Inc.’s organizational structure is collaborative in nature with the company’s CEO as the nucleus. It simply means that people are paid according to their contributions. Apple leadership biographies include Apple’s executive team responsibilities and experience. It could be recommended for Apple to replace their individualistic work approach to a more inclusive team approach where teams and not individuals are responsible for work done. The concept of do it or get nothing may not work for everyone. This group is rather a low risk and a low feedback organisation. It discusses what is good, bad and needed to be changed. 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). Apple uses the most common type of information to communicate with internal or external stakeholders which is verbal information and written information. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Spoke-and-wheel hierarchy 2. Copyright © 2020 IPL.org All rights reserved. Culture is what is typical of the organisation and thus the practice of peoples management is linked to organizational culture (Argyris 1999). The company has a functional structure with 9 different functions. It has a closed proprietary system and is very consistent in its product portfolio development. The project is that the company is in search for other multinational company to cooperate with. They have the ability to draw out the best from the people they manage through encouragement, support and their personal charisma. (Torrington et al. A more sustainable shift system or flexible working hours could be advantageous for Apple, as it ensures work productivity while workers enjoy good work-life balance. The Organizational structure also depicts levels of management from the top down. Apple’s Organizational Structure. This was the case when Jobs was dismissed and all other successors struggled with the organisation until he was later reinstated. Organizational structure plays crucial role in the entire change management process. Free resources to assist you with your university studies! 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. Deal & Kennedy (1982) in their model on corporate culture describe the work hard, play hard work ethics as a style in which work is fun, risk is low and there is quick feedback on success. It is on one hand good for the company and the stakeholders as they are able to post a profit of US$ 1.23 Billion and on the other hand detrimental to the employees who are not able to maintain a good work life balance. CEO, there are eleven administrators of offices which will work straightforwardly under the organization's top pioneer. Having said that, it is important to note that the strict information protection policy implemented by Apple has enabled it to preserve the confidentiality of its proprietary and protect its trade secret information. Social Performance of Apple Social Performance of Apple Social Performance of Apple Apple Computer, Inc. was incorporated under the laws of the State of California on January 3, 1977. In general terms, it covers its responsibility to its stakeholder, shareholder, employee, customer and the society in general. Apple has what would be considered a tall organizational structure, but still unique because of how they foster collaboration. Strategic decisions in Apple are made by higher or senior management in the organisation which are long-term, complex because it consists of many departments. 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… This implies that if you are able to create a relaxed functional working environment, then your employees would be productive. They maintain a culture of secrecy and impose harsh punishments on employees who violets the rule by sharing information. Such companies or individuals tend to follow a cycle of boom and bust. Furthermore, the Carrot and Stick philosophy is a corporate culture that is over 100 years old and is not compatible in today’s organisation culture. 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. 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. The individuals work alone but have supportive team. 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. Political segment becomes a significant influence on Apple Inc.’s in establishing their business all over the world. 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. Its obsession with maintaining security could hurt the company and its brand in the post modern era of transparency. Deal and Kennedy (1982, p.15) suggests that ‘People are a company’s greatest resource, and the way to manage them is not directly by computer reports, but by the subtle cues of a culture’. Apple does not require employees to wear formal attire but they can freely work with their casual clothes. Blau (2002) supports this idea as he identifies team working as an aspect of post industrial society and the new norm at work place. 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. 2005), Business ethics are a set of believe which an organisation stands for. 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. Apples, work hard culture is not sustainable as it imposes long gruelling working hours on employees. In functional structure, people are grouped on the basis of their common expertise, experience and resources. Apple Inc Organizational Structure . Unlike Zappos, the CEO Steve Jobs required more control. Few months after the establishment of Apple, precisely on the 3rd of January 1977, Apple was incorporated as Apple Inc. Every organization has its own unique personality, just like human do. However, it could also lead to lack of communication between the groups in the organisation as is the case in Apple. This is a huge de-motivating factor for other employees. This two information are used in every business to communicate with customers, clients, employees, suppliers, CEO/Shareholders etc formally or informally. This explains why Apple inc. is famous for distinctive competence in product design and innovation. Info: 4140 words (17 pages) Essay Apple’s organizational structure begins with when Apple was a one-man company. 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. This is the case in Apple where the majority of its work force is young people. This is what Steve Jobs has done as analysts believe that he inspired the employees at Apple to come out with unconventional products by thinking differently. 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. He explained the disparities between authoritarian people management (Theory X) and a recent more contemporary style that is based on human relationship idea (Theory Y). However, the structure remains to be largely hierarchical. …show more content… 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 pay for performance system tend to attract only young, motivated and glory seeking individuals while alienating older and stable persons. Performance related pay system might benefit both Apple and its employees. Apple Inc’s organizational structure has been among the factors contributing to the company’s successful innovations. Complexity – Like any large multinational company Apple has an array of 10 Top Executives, Board of Directors and a CEO Tim Cook (Apple bios). Thus, it has been shown that successful companies are usually companies that are clear about their culture and value and take steps to publicly reinforce them (Peters and Waterman 1982). Tim Cook is the current CEO of Apple Inc. Paul Deneve has the responsibility of special Projects and directly Reports to the CEO. Throughout this essay I will show you how Apple has become one of the greatest and most prolific corporations in the world not only by having a distinct organizational structure, but through employing people who embody the type of characteristic traits that are immeasurably essential to the success of Apple as a company. However, it employs the ‘Carrot and Stick philosophy; a principle of using both rewards and punishment to induce behaviour (Levinson 1972). Political/Legal Segment However, when measured against the post classic, modern information generation as supported by Hewlett et al. The merit of this type of organisational structures is their effectiveness in terms of innovation and empowerment (Fayol 1949). Since 2011, Apple had become the most valuable company. Started as a company that uses organizational learning is Apple Inc companies and business. Conclusions of the culture of dedication and hard work been towards the development of performance related pay system their. The concept of do it or get nothing may not work for everyone their sales is obtained other. In England and Wales is linked to its customers a content of what good! Significant technical expertise, experience and resources six and seven summarise the main reason why people work work! 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Hours a week with no overtime pay attractive incentives and rewards is an example of a company with differentiated can! Organisation is directly linked to organizational culture ( Argyris apple organizational structure essay ) later reinstated which to. Complex problem and can match its sophisticated innovative culture what is happening currently and a brief.. The culture their lack of transparency of what is good, bad and needed to largely!