Apple Inc. – Rational System

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Apple Inc. – Rational System
Apple Inc. was formerly known as Apple Computer Inc for about 3 decades, but removed the word "Computer" in 2007, to show the company's ongoing progression into the consumer electronics market, in addition to its traditional focus on personal computers. Apple Inc is a corporation that designs and markets consumer electronics such as the iPod, iPhone, iPad, computer software such as the Mac OS X operating system, and personal computers such as the Mac Book and Mac Book Pro. Apple Computer was founded on April 1, 1976 in Cupertino, California, and incorporated on January 3, 1977 by Steven Jobs and Stephen Wozniak, college dropouts who conceptualized a personal computer that could be operated easily by anyone. The company went through many changes from microcomputer industry to a business market and then eventually a consumer electronic market. The external environment within the company helped Apple Inc along with Steve Jobs who used charismatic leadership to create a mechanistic and bureaucratic organization. Apple’s structure and cultural values also created a successful, creative and highly innovated company.

The theories I will apply to Apple Inc are Fayol’s administrative theory and Weber’s bureaucratic theory that derives from the rational system perspective. I decided to apply these two theories to Apple Inc, because the administrive theory helps establish specific guidelines of how to formalize organizational structures and relationships within the organization. Along with the bureaucratic theory because Apple Inc has an administrive structure that has been developed through rational legal authority. I would like to talk about why I consider Steve Jobs a charismatic leader and how he has lead the company to great success. I will also apply the Open system perspective to Apple Inc; I would like to talk about the companies’ external environment and how it affects the organization. One of the main reasons why Apple Inc has been a leading company in the consumer electronic market is because of the relationship they have with their customers and the companies need to strive to be creative and innovated.

I will like to examine how authority, leadership, and structure influence how the company operates and performs in regards to Fayol’s administrive theory. Apple is a company that conveys their purpose and intent to its employees. Apple Inc is considered a formal organization in that it has specific rules, regulations, hierarchy, responsibilities and guidelines that employees must follow in order for the company to manage successfully. Apple Inc is clearly a mechanistic organization. The company is a vertically integrated business model, where all the hardware and operating system software comes from one company. The company has their own corporate governorate guideline and an official statement of reporting relationships, rules and regulations. The company is structured with the highest authority being given to the Board of Directors, the CEO, and senior management. The structure of the company is designed to be a working makeup for decision-making, and proper monitoring of compliance and performance. The culture of the company is very influential and derives from the company’s structure and strategies. (Media Corporate) In John Sculley’s, Odyssey: Pepsi to Apple, A Journey of Adventure, Ideas, and the Future stated that “When he first joined the company as a member of the executive staff that there was not a common understanding of the goals within the company and staff. He found people all scattered around the company doing the same thing, there were multiple groups assigned to one task. He also stated that their was no structure within the company which also meant their was no accountability.” (Sculley [1987]: 142-43) Divisions were created within the company instead of groups assigned to one project. They were responsible for the work within the division and were to manage as...
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