MGMT Essay 2 REV 1 Word doc
Organizational Efficiency
Jeremy Roberts
ID #: 2911785
Athabasca University
The following is a description of Apple Inc.’s organizational structure and processes.
Although it is argued that Apple has relied on innovation and design to become a major competitor in the technology sector, their success is largely due to its ingenious organizational structure, authority, and job design utilized within the company. Steve Jobs, Apple’s Chief Executive Officer, changed the organizational structure (Appendix 1) of Apple Inc. to functional departmentalization in the late ’90’s (Wikipedia, 2014). Functional departmentalization allows work to be done by highly qualified specialists, lowering costs and reducing duplication. This efficient structure has significantly contributed to the corporation’s emergence as one of the most powerful technology companies in the world. Employees have similar backgrounds in this structure; Therefore, the work experience, training, communication and coordination are relatively similar for most within the group. These similarities limit inter-organizational problems and provide a positive work environment (Williams, Zondra, & Vibert, 2008). Using this type of departmentalization allows Apple to have a focused approach throughout their projects. There is no co-ordination with other groups, and the company can keep their products a secret until launch dates. These functions, as well as others, are why Apple has chosen the most advantageous organizational structure of which to choose from. The other structures Apple could have chosen are product, customer, geographic, or matrix departmentalization, each of these have their own advantages and disadvantages. Product departmentalization divides company areas based on product lines. This structure allows for development of broader skill sets and better performance evaluation of product divisions (Williams, Zondra, & Vibert, 2008). The downfall of the Cupertino, California based
Jeremy Roberts
ID #: 2911785
Athabasca University
The following is a description of Apple Inc.’s organizational structure and processes.
Although it is argued that Apple has relied on innovation and design to become a major competitor in the technology sector, their success is largely due to its ingenious organizational structure, authority, and job design utilized within the company. Steve Jobs, Apple’s Chief Executive Officer, changed the organizational structure (Appendix 1) of Apple Inc. to functional departmentalization in the late ’90’s (Wikipedia, 2014). Functional departmentalization allows work to be done by highly qualified specialists, lowering costs and reducing duplication. This efficient structure has significantly contributed to the corporation’s emergence as one of the most powerful technology companies in the world. Employees have similar backgrounds in this structure; Therefore, the work experience, training, communication and coordination are relatively similar for most within the group. These similarities limit inter-organizational problems and provide a positive work environment (Williams, Zondra, & Vibert, 2008). Using this type of departmentalization allows Apple to have a focused approach throughout their projects. There is no co-ordination with other groups, and the company can keep their products a secret until launch dates. These functions, as well as others, are why Apple has chosen the most advantageous organizational structure of which to choose from. The other structures Apple could have chosen are product, customer, geographic, or matrix departmentalization, each of these have their own advantages and disadvantages. Product departmentalization divides company areas based on product lines. This structure allows for development of broader skill sets and better performance evaluation of product divisions (Williams, Zondra, & Vibert, 2008). The downfall of the Cupertino, California based
References: Apple Inc. (2014). What is iOS8?. Retrieved 09 10, 2014, from Apple: http://www.apple.com/ios/what-is/ Collelo, B. (2014). Investment Thesis. Retrieved 09 10, 2014, from Morningstar: http://analysisreport.morningstar.com/stock/research?t=AAPL®ion=USA&culture=en-US Fiegerman, S. (2012). Why Working At Apple Is A Dream Job. Retrieved 09 13, 2014, from Business Insider: http://www.businessinsider.com/heres-what-employees-really-love- about-working-for-apple-2012-6?op=1 Reuters. (2012). Tim Cook stamps his authority on Apple with management overhaul. Retrieved 09 12, 2014, from NDTV: http://gadgets.ndtv.com/mobiles/news/tim-cook-stamps-his- authority-on-apple-with-management-overhaul-286256 Wikipedia. (2014). History of Apple Inc. Retrieved 09 10, 2014, from Wikipedia: http://en.wikipedia.org/wiki/History_of_Apple_Inc Williams, C., Zondra, A. Z., & Vibert, C. (2008). Management (2nd Canadian Edition, pp. 1-86). Nelson Education Ltd. Yarow, J. (2012) Apple Management Lessons Every Company Should Steal. Retrieved 09 13, 2014, from Business Insider: http://www.businessinsider.com/how-to-run-your-company-like-apple-2012-2?op=1 APPENDIX Apple Inc.’s Organizational Structure (2011) ______________________________________________________________________________