Apple Inc. has followed different organizational structures and the changes that came depending upon the time frame and when situations called for it. Our objective is to find out the advantages and disadvantages of different organization structure that Apple Inc. has implemented till now.
Apple Inc. has followed a flat structure of organization. Basically this flat structure has encouraged employees to contribute to the decision making process by directly participating in it.
For Example – Steve Jobs always welcomed different idea from his employees.
He rewarded his employees for their out-of-the-box thinking.
The following are the functions that came under CEO:
This segregation is majorly …show more content…
Higher unity of command – As mentioned before, Steve Jobs made sure that all the decision passes through him. So the unity of command was on the upper side.
Present Organizational structure of Apple Inc.
The company has a functional structure with 9 different functions. Tim Cook is the current CEO of Apple Inc. Paul Deneve has the responsibility of special Projects and directly Reports to the CEO.
This functional Organization structure is a circular one and centric one with CEO in the middle. (Figure – C) Figure C – Functional Organizational structure of Apple Inc. (2011)
Each and every function of the company caters around the Chief executive officer, Tim Cook.
There are Various Advantages of this kind of Organizational structure that are as follows:
1. High degree of responsiveness of between various functional head and CEO.
2. Inter department decision making is smooth i.e. the functional heads can make decision based on other functions smoothly.
3. Centralized controlling system.
4. Influence of traditional hierarchy gets reduced.
5. Tim Cook has the ultimate decision making power on all the department functions.
Disadvantages of the current functional organizational structure are as follows:
1. There are 9 functional departments for Tim Cook to handle. Too many to handle …show more content…
2. EMEA (Europe, Middle East and Africa)
5. APAC (Asia Pacific)
6. Subsidiary FileMaker
Apple Structure – Mechanistic or Organic?
Mechanistic structure is featured by the following things:
1. Stable environment
3. Low differentiation of tasks
4. Standardization and formalization
While mechanistic structure induce people in predictable, accountable ways with centralize decision-making, organic structure on the other hand encourage people to take initiatives and is found to be very flexible. Apple cannot be clearly defined as purely organic or purely mechanistic.
Apple manufactures its products through Foxconn industries that is located in CHINA. Apple outsource this as they can focus on their core competency. Foxconn is found using performance appraisal and organizational structure in pyramid style bureaucracy. Foxconn even landed up in controversy for threatening employees using performance appraisal. So it can be noticed that whatever functions may require mechanistic structure have been outsourced.
More over, Apple Inc. has applied this structure though:
1. Mass Production
2. Top management’s style of leadership
3. Creating stable and certain
This is an example of flat organisational structure as there is no middle management. The organisational structure of Macmillan Is split up into 6 different sections. The first and most important sector is the chief executive whose job it is to make the big decisions and to manage the major operations and resources of the company and finally acting as the main communicating point between board of directors and corporate operations, and then there is a board of trustees that the chief executive rely on to help them with the important decisions.
CEO COMPENSATION STRUCTURE FOR CXS CORPORATION Prepared for CSX Stock Watch Group Jacksonville, FL Prepared by Amanda N. Morales Senior Stock Analyst CSX Corporation February 22, 2018 CSX Corporation CSX Stock Watch Group CSX Corporation 500 Water St. Jacksonville, FL Dear Group Members: The attached report, requested by the CSX Stock Watch Group members in a meeting for proposed pay cuts for many employees, describes the types of compensation structures for CEOs and gives a recommendation for the compensation structure for the CEO at CSX. I believe this analysis will be useful financially.
Apple states in their Form K-10 Report (2017, p.1) they are “committed to bringing the best user experience to its customers through innovative hardware, software and services.” In an Industry where profit margins are low, technologies are constantly evolving and competition is high it is essential that Apple continues to offer innovative and simple products that increases customer experience (Heracleous, 2013) so to maintain a competitive advantage. A variety of tools have been used to evaluate Apple’s external and internal environment, including the PESTEL (Appendix 1), Porter’s Five Forces Analysis (Appendix 2), SWOT (Appendix 3). It is envisaged that the information derived from these tools and the associated analysis will support Apple’s CEO to make strategic decisions that addresses the challenges ahead in the short term, ensuring Apple can be competitive in the long term (Rothaermal, 2017).
During his era, which was 1997 to 2011, he followed an autocratic leadership, in which, he micro-managed a wide range of business procedures. All decisions went directly through him. However, as Jobs’ hand-picked successor, stepped into shoes, the scenery shifted into another focus. Tim Cook, current CEO, was well-known as an unapproachable character. However, what set him apart so much from Jobs was the way he closely worked with his subordinates and was involved directly in operation processed.
magine a small start-up based in a small, crowded and old garage, employing a mere handful of workers and individuals who are working long hours without pay due to their boss’s inability to pay their salaries. Now imagine, a massive, gleaming newly built building owned by one of the world’s largest and most recognizable brand which employs thousands of individuals world wide who all partake in the immense wealth of the business. What is the difference between image A and image B? Image A is what Apple was when it started its business in 1976, while image B is what Apple currently is in 2015, approximately 40 yeas later. How did such a company rise from such humble beginning to become the world’s most profitable company?
Kristina Isabelle D. Bello Entrepreneurial Behavior 2TE-4 Triumph of the Nerds 1. What were the key strategic decisions made by the following large companies: • Intel - Their microprocessors today power 85 percent of the world's computers. • IBM- Tom Watson and his son Tom Jr developed what they are called Big Blue into the top computer company. They make mainframe computers for companies. They require strong sense of loyalty, strict dress code and rules to be followed.
Apple Inc. embraces diversification strategy as a means of promoting its viability in the market. Largely, the creation of the three products lines compounds the sources of the company’s income. In fact, the company does not rely on a single source of income because the product design belongs to different categories. This strategy cushions the business from suffering risks of associated with depending on a single business. According Hitt, Ireland, and Hoskisson (2014, p.135), the benefit of handling many products is that when one product fail or does poorly in the market, the business is would shift its attention of the best performing products.
Do you know the importance of having a hierarchy structure within any given work space? Without structure there would be no clear line of communication between workers. Having a structure in a workplace establishes communication skills, defuses conflicts, and also provides awareness of leaders who are in charge of you.
Ford motor company 's organizational structure is based on business requirements under the condition of different markets around the world. Enterprise organization structure defines the components and their interaction system configuration. In the case of ford, the organization structure is directly related to the status of the global auto industry. Ford 's international operations also decided against competition and the key structure components required for market risk. In this respect, as the second largest U.S. automakers ford is to show the effectiveness of its organisational structure to support continuous business growth and high performance.
Apple Inc., an American multinational corporation was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 197. The headquarters of Apple is located in Cupertino, California and it designs, manufactures and sells consumer electronics, computer software as well as personal computers. (Reference for Businesses) The company's wide range of products and services include the iPhone, iPad, Mac, iPod, Apple TV, a variety of consumer and professional software applications, both the iOS and OS X operating systems, iCloud and several other product accessories. Apple not only offers a variety of mobile communication, media devices and portable digital music players but they provide a variety of related software, services, networking solutions
Apple Company Apple Inc. is a private company, and it is one of the world 's most famous technology and computer companies, located in the United States of America. It is a multi-national company. Its main business depends on specialization in manufacturing, producing, developing, improving and selling software, smartphones, computers; It has a series of electronic devices, such as iPad, iPhone and Mac. The origin of Apple Company Founded by Steve Jobs and his co-pilot Steve Wozniak, Apple Computer was able to design a computer in the form of the beginning of Apple computers in the time period Between the years 1981 to 1985; since 2005 until now, Apple has seen many developments; successive successes.
Executive Summary On April 1, 1976, Apple Company was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne. Apple headquarters is located in Cupertino, California. Apple Inc. designs, produces, and sells various media devices (apple.com, 2014).
The different type of structures (1) Functional – each portion of the organisation is grouped according to its purpose. (2) Matrix - ‘’ creates project teams that cut across traditional functional departments, instead of highlighting the role or status of individuals, it gathers together a team of specialists with the objective of completing a task or a project successfully ‘’ . (3) Divisional – It is the grouping of workers on the basis of products being produced, followed by the functional structure. There are two types of divisional structure , (a) Product structure (b) Process structure (4) Geographical – It is the grouping of workers on the basis of regions, followed by the functional structure and , (5) Hierarchical structure which has been adopted by Ritz Carlton. It shows the different levels of hierarchy, span of control and chain of command.
It acts as an operating manual that defines the way the jobs are distributed and how individuals interact within the company to achieve their goals (Distelzweig, 2004). A detailed study on organizational structure relates organizational structure to the way information flows through the hierarchical arrangement. There are basically two types of organizational structure; centralized and decentralized. In a centralized system the highest layer of hierarchy is responsible for decision making and controlling departments and division.