Spoke-and-wheel hierarchy 2. 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’. Considering Jobs condition of health, it might be appropriate for Apple to start making succession plans. CEO, there are eleven administrators of offices which will work straightforwardly under the organization's top pioneer. Apple imposes long gruelling working hours on its employee. The fundamental principle of Apples Business ethics is said to be ‘Use good judgment’. Apple Inc’s organizational structure has been among the factors contributing to the company’s successful innovations. If you need assistance with writing your essay, our professional essay writing service is here to help! Their fundamental principle and mission statement is not reflected in the way they do business. Complexity – Like any large multinational company Apple has an array of 10 Top Executives, Board of Directors and a CEO Tim Cook (Apple bios). He believes that if people are treated as responsible and self motivated, they will act in a responsible and motivated way. Learn more about Apple’s leadership team. The unique personality of an organization is referred to its culture. Apple Inc Organizational Structure . They have the ability to draw out the best from the people they manage through encouragement, support and their personal charisma. 2005), Business ethics are a set of believe which an organisation stands for. In the same year, it was reported that Apple posted revenue of $8.34Billion and a net profit of $1.23Billion (Qumer 2009). Section five is an in-depth look at Apple’s corporal culture in light of academic models. Copyright © 2003 - 2021 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. This view has been supported in the work of Newman and Milcovich (2001, p.6). 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. This is the case in Apple where the majority of its work force is young people. It is without a doubt that every company will face the impact and influence which the macro environment has emerged in an organization. Order Now. This new iphone 4 has amazing features and the highest resolution display ever built into a phone. This makes the flow of information and decision-making simple. The late Steve Job was known for claiming that Apple is the greatest startup in the world. The same “top-down” ideology that helped Apple grow also opened the door for some serious financial losses. 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. Since the company competes as a quasi- monopoly in its market segment, there is a reduction of the buyer's. 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. Info: 4140 words (17 pages) Essay This could build confidence that management could still function when Jobs eventually leaves. At Apple, Steve Jobs was firmly believed that it is essential to encourage the employees and make them show the best. 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. If a supplier increase their prices, a company with differentiated product can pass that cost to its customers. 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. It is a return in exchange between an employer and his employees as an entitlement for a job done. Sign in. Every organization has its own unique personality, just like human do. …show more content… However, stakeholders are concerned about the company’s future in his absent. 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. Employees were made to feel that their experience in Apple is a guarantee for employability when eventually they are laid off by Apple. 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). Essays Essays FlashCards Browse Essays. Apple employs only people who are hard working and committed. Apples, work hard culture is not sustainable as it imposes long gruelling working hours on employees. Alternatively, a company such as Apple thrives in a tall organizational structure with centralized decision made from the top down. 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. (Qumer 2009). Published: 24th May 2017 in However, some concerns may arise between the United States and those countries, such as bad international relation, public issues, and others. Study for free with our range of university lectures! 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. 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. There are intentionally no committees within the walls of Apple. 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. Culture is what is typical of the organisation and thus the practice of peoples management is linked to organizational culture (Argyris 1999). From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. The core competencies of Apple are robust. 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. 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. PEST analysis of Apple Inc. A better organization is one, which easily gets accustomed with changing business contexts. 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. Employees do not get rewards if they have no results and may even be dismissed if they are seen as unproductive. He always reminded employees that Apple is a good company, it was a honor to become one of the number of this company. One word to sum up Apple’s organizational structure would be simplicity. However, as a company, Apple Inc. is not able to regulate the political segment. This has enabled it to foster a culture of dedication and hard work. Political By using the PESTLE analysis which refers to politics, economic, social, technology, legal and environment. The organizational structure of the Apple Computers Company is mainly collaboratively functional structure. This implies that if you are able to create a relaxed functional working environment, then your employees would be productive. Our academic experts are ready and waiting to assist with any writing project you may have. Such companies or individuals tend to follow a cycle of boom and bust. Home Page; Apple Organizational Structure Analysis; Apple Organizational Structure Analysis. Employees within the functional divisions of an organisation perform a specialized set of tasks. Any change to one of these components will affect the others. 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. Therefore, Apple Inc. needs to lower their production cost by moving their production assembly to other countries. The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. 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. Having said that, there is a believe that people will only take you as serious as you are ‘dressed’. 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. Use Promo "custom20" And Get 20% Off! At Apple Inc, the organizational structure is designed into three levels of top management unit. 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. VAT Registration No: 842417633. A typical Apple employee on an average works for sixty or seventy hours a week with no overtime pay. In Apple, the expendability of employees is justified for the “great merit” in a free market system. This was the case when Jobs was dismissed and all other successors struggled with the organisation until he was later reinstated. How Apple company gets so much success. In contrast to the tall hierarchical structure, a flat organizational structure is characterized by relatively few layers or just one layer of management. 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. Again Apple is in its own class and has not fitted completely with any side of McGregor’s theory. Higher unity of command – As mentioned before, Steve Jobs made sure that all the decision passes through him. We're here to answer any questions you have about our services. Based on an earlier work by Weber which was later developed by Burns and extrapolated by Bass, Bass (1985) suggests that transformational leadership should be defined based on how the leader influences or affects his followers. Apple’s Organizational structure begins with the Board of Directors who oversees the Chief Executive Officer and other senior management in the competent and ethical operation of Apple on a day-to-day basis and assures that the long-term interests of shareholders are being served. 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. Apple computer was established on April 1, 1976 by a three man team in the likes of Steve Jobs, Steve Wozniak and Ronald Wayne. 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