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Employees within the functional divisions of an organisation perform a specialized set of tasks. The same “top-down” ideology that helped Apple grow also opened the door for some serious financial losses. (Torrington et al. We're here to answer any questions you have about our services. It is very hard to imitate the Apple products and this gives it the control over its competitors. This is consistence with the authoritarian management style of theory X. Apple’s corporate culture is a unique corporal style that is only suitable for Apple. Use Promo "custom20" And Get 20% Off! A man accredited for inspiring Apple to a greater height. 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. 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. 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. Drennan (1992, p.101) states that ‘culture is how things are done around here’. This will have long time devastating effect on the organisation. It is also said that he inspired the employees to ‘change the word’ (Qumer 2009). 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. Political/Legal Segment The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. Looking for a flexible role? The project is that the company is in search for other multinational company to cooperate with. This was the case when Jobs was dismissed and all other successors struggled with the organisation until he was later reinstated. It is mentioned that majority of their sales is obtained from other countries outside the United States. They have been successful by putting small teams together to complete projects. This two information are used in every business to communicate with customers, clients, employees, suppliers, CEO/Shareholders etc formally or informally. It discusses what is good, bad and needed to be changed. Show More. Performance related pay system might benefit both Apple and its employees. The concept of do it or get nothing may not work for everyone. Unlike Zappos, the CEO Steve Jobs required more control. 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. 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. 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 new iphone 4 has amazing features and the highest resolution display ever built into a phone. Since Apple competes as a quasi-monopoly in its market segment, A typical Apple employee on an average works for sixty or seventy hours a week with no overtime pay. Registered Data Controller No: Z1821391. Every organization has its own unique personality, just like human do. However, a major drawback is that if there is a change in leadership or culture, they may be faced with damaging repercussion as other aspect of the strategic structures may not fit. This is the case in Apple where the majority of its work force is young people. 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. 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. 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 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. 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). 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 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. Apple was a centralized business, similar to a single party or an authoritarian rule type because the all departments of Apple reported to Steve Jobs for approval. It simply means that people are paid according to their contributions. This functional Organization structure is a circular one and centric one with CEO in the middle. Bass contests that charisma alone is not sufficient to define a transformational leader. The Organizational structure also depicts levels of management from the top down. Examples are the public industries and Civil services. 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. 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 … 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. Sign in. VAT Registration No: 842417633. In contrast to Friedman’s suggestion, Apple operates a closed business information policy. The individuals work alone but have supportive team. 2004 p.44). The unique personality of an organization is referred to its culture. Measuring against the traditional classical organisational culture, it can be said that Apple’s ad hoc approach is out of date. Apple computer was established on April 1, 1976 by a three man team in the likes of Steve Jobs, Steve Wozniak and Ronald Wayne. This is a company that grew extremely fast in little time, that their management found themselves not being able to keep their operations and finances under control. Employees are able to concentrate mostly on their work rather than thinking about their appearance. 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 contrast to the tall hierarchical structure, a flat organizational structure is characterized by relatively few layers or just one layer of management. In general terms, it covers its responsibility to its stakeholder, shareholder, employee, customer and the society in general. This corresponds with Shackleton definition which suggests that leaders in some way motivate others to achieve group goals. 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. (Qumer 2009). 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. Apple Computer Inc. is known for its innovative and proprietary hardware and software and has made great achievements in recent years. This is the case with Apple. Analysts argue that unfairness in promotion and employee treatment exists in Apple and top executives were said to only promote their favourite (Qumer 2009). 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. Benefits and Rewards is an important element of an organisation and is the main reason why people work. 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. An organisation is described as one with both informal and formal entity and cannot be based on its structure alone (Bakke 1950). 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. Apple follows a vertical organizational structure, where the major decisions are taken by. 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. The introduction contained a brief on Apples background from inception to its position in present day. Apple offers attractive incentives and rewards to employees they feel have demonstrated their skills and capabilities at the work place by producing results. However the element of secrecy that has enabled this has incurred an increasingly costly price and has become morally and ethically unsustainable. The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. Figure 1: Apple’s Organizational Structure. 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. The trend in recent times has been towards the development of performance related pay system. 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. These people are very well organized and pedantic. Essay Apple Inc Organization Structure. Function-based grouping 3. 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). Each of those managers has their own unit comprising of team members who assigned with a variety of responsibilities. Its obsession with maintaining security could hurt the company and its brand in the post modern era of transparency. Employees do not get rewards if they have no results and may even be dismissed if they are seen as unproductive. 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’. As a result, the chain of command from the top to the bottom staff is short. Considering Jobs condition of health, it might be appropriate for Apple to start making succession plans. 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. During the timeframe that Steve Jobs was the CEO, he had control of almost all decision-making that could affect the company.
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