Principle of Organisational Management

Topics: Smartphone, Apple Inc., IPhone Pages: 6 (2415 words) Published: February 15, 2013
In recent years, the world’s smartphone market has become one of the fastest growing businesses and, as a result, has been extremely competitive. Of about 1.4 Billion phones sold this year, only 35% are smartphones of which more than 80% is captured by Apple and Google. In the first quarter of this year, Google’s Android obtained 59% of the smartphone market globally, up from 36.1% and Apple had 23%, around 5% increase. Nokia’s Symbian OS, fading out as Nokia changing its direction to a software from Microsoft, fell dramatically from 26% to around 7%, resulting in a 10,000 job-cutting action by the end of 2013, whereas RIM dipped to 6.4% from 13.6%, causing its new chief executive to review the company’s strategies after losses have risen and the stock has fallen. However, the market leaders, Google and Apple, has predicted that the market of smartphones can grow up to 75% in the next 5 years. This leads them to fight for continuing their market shares over the growth of the market that has been expected. Therefore, this essay will identify the management methods that Google and Apple employ as a tool to fight against each other in order to expand their market shares and will also explain the organisational and management concepts and theories that are related to each method. A Definition of Organisation

Before discussing about managing methods and strategies of each company, we first should consider a company as an organisation and realise some of the definitions. An organisation can be defined as “Social units (or human groupings) deliberately constructed and reconstructed to seek specific goals” (Etzioni, 1964: 3). Another definition is “a consciously co-ordinated evolving social entity, involved in some sort of industry; it is meant to be goal-directed, with a conscious structured activity system and a relatively identifiable boundary within a dynamic environment” (Robbins & Barnwell, 2002: 6). However, this text will use the word organisation and company (or other synonyms) interchangeably according to the context. Organisational and Management theories

To begin with, there are three main types of Organisational structures, which are Tall structures, which have many different levels of hierarchy from lower to operative managing levels, narrow spans of control, and is slow for decision making and commination. Flat structures, having fewer levels in hierarchy but wide spans of control, resulting in a faster decision making, flexibility and quicker responses to customers and competitors. Matrix structures, are a temporary structure that involves people from any department and level to temporarily work together to achieve a goal. Both Apple and Google have a flat organisational structure. They divide their organisations into many divisions, but not many layers. Each division runs on its own with its own leadership. In a large and complex organisation, work cannot be held by only one person, so the work has to be divided into smaller tasks and separated to people according to their specialisations. This concept was described in ‘Differentiation and integration’ by Lawrence and Lorsch (1967). For instance, with his extraordinary vision in the final decade of his life, Steve Jobs, the former CEO and Co-founder of Apple, has taken Tim Cook, previously Apple’s Chief Operating Officer, to become a new CEO after him. With Cook’s 13-year outstanding performance, remarkable talent, Tim Cook was previously responsible for all of the company’s worldwide sales and operations, including end-to-end management of Apple’s supply chain, sales activities, and service and support in all markets and countries, according to Apple’s press contacts (Apple, 2011). Another point to consider is that the new lower price Google’s Android tablet which is developed with Asustek Computer Inc. to gain some market shares from the Apple’s iPad. Because Google is a software maker, not a device maker, by its nature, the company rely on...
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