At Apple Inc, the organizational structure is designed into three levels of top management unit. Figure 1: Apple’s Organizational Structure. 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. The five disciplines of organizational learning include personal mastery, mental models, shared vision, team learning, and systems thinking (Senge, 2010). It is without a doubt that every company will face the impact and influence which the macro environment has emerged in an organization. (Qumer 2009). This is the case in Apple. The fundamental principle of Apples Business ethics is said to be ‘Use good judgment’. 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. Apple has a strong brand image, innovation and customer service making it different for new entrants to compete against. 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. Product-based grouping Spoke-and-Wheel Hierarchy: A bird’s-eye view of Apple’s organizational … 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. Apple follows a vertical organizational structure, where the major decisions are taken by. 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. Political/Legal Segment (Harrison and Rose 1998). In 1980, Apple launched its initial offering (IOP) of stocks to the public, a stride that gave Apple a huge success. In Apple there are three types of decisions in the business which are operational which make day to day decisions, tactical and strategic. 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. Again Apple is in its own class and has not fitted completely with any side of McGregor’s theory. Therefore, Apple Inc. needs to lower their production cost by moving their production assembly to other countries. If such issue keep occurring, some employees may resort to working against the organisation. The organizational structure of the Apple Computers Company is mainly collaboratively functional structure. The trend in recent times has been towards the development of performance related pay system. The project is that the company is in search for other multinational company to cooperate with. The report will provide a SWOT analysis of Apple Inc. Its include strengths, weaknesses, opportunities and threats. Benefits and Rewards is an important element of an organisation and is the main reason why people work. 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. This concept has aided the company to become the most valued corporation in the world based on market capitalization. The company has a functional structure with 9 different functions. 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. 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. 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’. 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. Although this was a generous offer, most customers were still disgruntled as Job was seen to appear arrogant. It is apparent to say that the culture of an organisation is directly linked to its strategy, structure, leadership and performance. In this task I would evaluate two pieces of business information, Apple would have used or could use to make strategic decisions. Need A Unique Essay on "Organizational Structure of Apple, Inc. Compare/Contrast with Common Business Practices"? Employees in bureaucracies are promoted based on their ability to conform to the rules. 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. Their fundamental principle and mission statement is not reflected in the way they do business. This functional Organization structure is a circular one and centric one with CEO in the middle. Employees are able to concentrate mostly on their work rather than thinking about their appearance. Having said that, there is a believe that people will only take you as serious as you are ‘dressed’. Apple Computer Inc. is known for its innovative and proprietary hardware and software and has made great achievements in recent years. 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. Rewards may motivate some people but the strategy of punishment if you don’t perform is an extreme and may dissuade some talented individuals. Management. It is also concerned with the economy, politics and the environment. 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. The Organizational structure also depicts levels of management from the top down. Employees within the functional divisions of an organisation perform a specialized set of tasks. 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). 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. Work-life balance practices have been shown to reduce absence, raise morale and increase levels of job satisfaction (Torrington et al. This could build confidence that management could still function when Jobs eventually leaves. Essays Essays FlashCards Browse Essays. The figure below helps in defining the organizational structure at Apple Inc. Mr. Cook embraced the decentralization of decision making to a certain extent in order to encourage creativity and innovation at various levels. 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. Some of the most significant characteristics of Apple’s organizational structure are as follows: 1. Under Apple Inc's. It simply means that people are paid according to their contributions. How Apple company gets so much success. Actually, it started as a two man company – Jobs and Wozniak. Apple is playing in such an environment where large multinationals like HP, Dell, Acer, Microsoft, Nokia, Fujitsu, Sony Ericsson are major competitors and going head on head with them is extremely challenging. Apple’s corporate culture is a unique corporal style that is only suitable for Apple. iphone 4 is said to be the most successful product launched in Apples history. Apple operates a performance based reward system. This is simply a strategy aimed at increasing shareholders profiting through making workers into ‘willing salves’ (Levinson 1972). 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. This new iphone 4 has amazing features and the highest resolution display ever built into a phone. 3469 Words 14 Pages. 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 … This view has been supported in the work of Newman and Milcovich (2001, p.6). Transformational leaders are believed to use their authority and power to fundamentally reform, thus changing the old ways of doing things (Bass 1985). 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. McGregor (1960) in his study on human side of enterprise linked management style and leadership to motivation. The Advantages of an Effective Organizational Structure: 1) Facilitates Specialization Organizational structure facilitates division of work since each boss has specialized knowledge on his field of work. Apple leadership biographies include Apple’s executive team responsibilities and experience. Apple hierarchical structure is one of the key components which make it extremely effective. 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. By using the PESTLE analysis which refers to politics, economic, social, technology, legal and environment. Spoke-and-wheel hierarchy 2. 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. Sections six and seven summarise the main conclusions of the report and make recommendations with regards to how changes can be implemented. 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. Function-based grouping 3. Bass contests that charisma alone is not sufficient to define a transformational leader. Drennan (1992, p.101) states that ‘culture is how things are done around here’. Failure to plan for any eventuality in the near future might simply mean ‘planning to fail’. Do you have a 2:1 degree or higher? Therefore, Samsung is superior in terms of organizational design. The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. Section five is an in-depth look at Apple’s corporal culture in light of academic models. Examples are the public industries and Civil services. 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. Few months after the establishment of Apple, precisely on the 3rd of January 1977, Apple was incorporated as Apple Inc. However, the structure remains to be largely hierarchical. Organizational structure plays crucial role in the entire change management process. Employees in strong organisational culture know what is expected of them whereas employees in weak organisational culture waste time to discover what is required and expected of them. Deal and Kennedy’s model on corporate culture incorporates five critical elements; the Business environment; Values, Hero, Rituals, and the Cultural network. Political segment becomes a significant influence on Apple Inc.’s in establishing their business all over the world. In functional structure, people are grouped on the basis of their common expertise, experience and resources. 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. Employees do not get rewards if they have no results and may even be dismissed if they are seen as unproductive. Apple Inc.’s organizational structure is collaborative in nature with the company’s CEO as the nucleus. In 2009, a study by Qumer (2009) revealed that, Apple topped Fortune Magazines’ most admired companies list for the second consecutive year and also has received a top rank in innovation and people’s management. Company Registration No: 4964706. This makes the flow of information and decision-making simple. All work is written to order. 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