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Principle and Practices of Management

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Principle and Practices of Management

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FACULTY OF BUSINESS MANAGEMENT AND PROFESSIONAL STUDIES

PRINCIPLE AND PRACTICE OF MANAGEMENT
DMG1013

ASSIGNMENT 1

Prepared by
MOHAMAD HAZIF BIN FIJASRI
012012110239

Submission date
14TH DECEMBER 2012

THE MANAGEMENT OF STEVE JOBS

In 1976 Steven P. Jobs sold his Volkswagen van, and his partner Steven Wozniak sold his two programmable calculators, and they used the proceeds of $1,350 to build a circuit board in Jobs’s garage. So popular was the circuit board, which developed into the Apple II personal computer (PC), that in 1977 Jobs and Wozniak founded Apple Computer to make and sell it. By 1985 Apple’s sales had exploded to almost $2 billion, but in the same year Jobs was forced out of the company he founded. Jobs’s approach to management was a big part of the reason he lost control of Apple. Jobs saw his main task as leading the planning process to develop new and improved PCs. Although this was a good strategy, his management style was often arbitrary and overbearing. For example, Jobs often played favourites among the many project teams he created. His approach caused many conficts and led to fierce competition, many misunderstandings, and growing distrust among members of the different teams. Jobs’s abrasive management style also brought him into conflict with John Sculley, Apple’s CEO. Employees became unsure whether Jobs (the chairman) or Sculley was leading the company. Both managers were so busy competing for control of Apple that the task of ensuring its resources were being used efficiently was neglected. Apple’s costs soared, and its performance and profits fell. Apple’s directors became convinced Jobs’s management style was the heart of the problem and asked him to resign. After he left Apple, Jobs started new ventures. First he founded PC maker NEXT to develop a powerful new PC that would outperform Apple’s PCs. Then he founded Pixar, a computer animation company, which...