Apple Inc Assessment - Case Study Example

Running Head: COMPANY ASSESSMENT Company Assessment Name: Course: University: Lecturer: Date: Background Apple Inc is an American Corporation with its headquarters in California state. The firm deals with the design and production of electronic products, computer programs as well as online services. Apple Inc is one of the renowned companies in the world. According to Forbes Magazine, the firm has been listed as one of the most profitable firms on a global scale. However, despite the reputation that the company has gained plus her successful innovative strategic management, the company faces stiff challenges that are worth a solution. Problem Definition One of the biggest problems facing Apple Inc is the ‘current and potential staff turn-over’. The effect posed by this challenge is enormous and has not been brought into the limelight for years. It is important to understand that the majority of staffs working at Apple are university graduates who are well trained, possesses high-leveled skills and are very talented. According to the company’s reports, the company has lost some of her best employees. Ironically, a number of these staffs have rejoined the company after sometime but the issue is yet to be resolved. If an urgent and amicable solution is not obtained, it is feared that the company will lose a sizeable number of her workforce (Need, 2006). One of the most devastating things that a company like Apple would face is losing her workforce. The aftermath of the events would ‘see’ Apple ‘bleeding’ talent. According to the reports, the employees who have left the company are not recruited by major firms like Android. Rather, these employees are taking the opportunity to come up with new and interesting products. These products could have been incorporated into the product line of Apple and therefore poses a great external threat (Now & Huge). Exploration of Apple Inc Apple Inc has experienced rapid growth in different aspects ranging from infrastructure, market, diversification and internal operations. The size assumed by the company, make it prone to a variety of other different problems as discussed below. Innovation Problem – this is a big problem that the firm needs to overcome. According to research, Apple’s existing customer-focused mission has acted just like a dehydrator within the firm’s idea closet. The company is operating with too much cash flow that needs to be consumed in the ideas generation. However, Apple is faced with narrow definition on her operations making it ‘impotent’ to utilize the available finance (Shepherd & Ahmed, 2000). The firm’s creativity is seen as dwindling. According to scholars, a company’s innovation is supposed to revolve around three major levels; that is, innovate on a daily basis, long-term innovation and innovation at the process of wealth creation, with an aim of changing the whole picture of the company (Shepherd & Ahmed, 2000). Throughout her operations, Apple operates lean innovation programs which fine tunes and improves her internal processes. However, the company misses the overall mission by concentrating on narrow products as well as brand focus. Apple Inc need to position herself as the global leader; that is, the leader in technology (Need, 2006). Lack of Weaknesses Recognition – a highly performing business pinpoints her weaknesses and utilizes her strength to curb the weaknesses. The culture of Apple is tremendously secretive. The company has got real talent. However, the ‘DNA’ of the firm is working in silence away from others. The company operates in the hub for a period of seven years and then reveals her results dazzling the public with a new experience. If the company makes a mistake, the resultant effect would be gross. Moreover, the company has not been well featured on cloud computing, internet services as well as in the social platform, which are gaining base in terms of source of consumers. Apple has been a follower in this area instead of assuming a first mover position (Now & Huge). The conduct of internal affairs and disclosure of information at Apple was broken. According to research, the staffs go through business conduct line and ethics line which is should be anonymous. However, when the system reaches the managers, it loses its confidentiality making it corrupt and broken (Schoemaker, 2005). The above discusses problems are a supplementary of the main problem. Therefore, focus is given on the main problem of staff turnover which seeks to find an amicable solution. Genesis of the Problem The work environment within Apple circles has largely being blamed for staff turnover. In April 2016, an employee of Apple committed suicide at the company’s headquarters. According to the insider information of the company, mental health issues are more widespread within the firm’s ecosystem. The workforce of Apple describes the internal environment as ‘toxic’. In previous cases, these issues have been raised to the human resource personnel as well as other managers but it was faced with either retaliation or abject silence (Shepherd & Ahmed, 2000). Apple is well known for its reward schemes that it carries out to motivate her employees. Moreover, the company’s vision is to have a workforce that is motivated geared at achieving the main goals. The highlighted problems often lead to massive turnover rates of staff. However, the problems are not so endemic to Apple. The growing pattern shows employees who are alleging that there is a system within the company that views mental health cases as a major weakness as well as threat, which eventually is embraced as punishable offense. This means that instead of a clear and decisive response to the employees’ complaints, the response is met with retaliation especially by the senior managers (Now & Huge). There have been reports linking Apple with work-life imbalance. This arises when a talented employee who has been responsible of a number of duties leave the organization. The work is then subdivided among two or three employees making the workload strenuous. What results is longer hours as well as weekend work, which forces the staff to choose either work-life and or personal life. Quite often than not, the system does not augur well with the younger workforce (Need, 2006). Solutions to the Problem High employee’ turnover does not augur well with the firm’s bottom line. According to research, it normally cost double employee’s salary to find, train and eventually replace the employee. The whole issue reduces the morale of the remaining workforce. This issue is well curbed by the discussed ideas. The company (Apple in this case) should hire the right cadre of staff. This is termed as the single best way to deal with the turnover problem in future. The company should perform straightforward interviews to vet the candidates carefully. This ensures that the firm obtains the right staff with both skills and aspirations to fit the company’s culture, stream of managers as well as co-workers (Schoemaker, 2005). Setting the right and flexible compensation schemes creates the much-wanted environment. The company should work in cahoots with human resources department to obtain data surrounding industry’s pay package. The key thing in this instance is for the firm to be creative as possible. It would then generate benefits, flexible job schedules as well as bonus structures. The firm should make major review of compensation as well as benefits packages for at least once annually. Moreover, a shift should be made to the market to analyze how it is performing (Schoemaker, 2005). Employees’ personal needs are a key issue for the firm. It is the duty of the managers to pay close attention to the emerging personal needs of the staff. The company should then offer flexibility. Moreover, the firm should consider offering telecommuting, much compressed schedules and or back-up day care (Shepherd & Ahmed, 2000). Employees Engagement is very vital in boosting the morale of staff. Employees require social interaction. Moreover, they need respect as well as recognition from managers. They require a more challenging space to learn and climb the ladder. Simple emails to praise an employee due to a project completion, monthly memos detailing achievement by a team to the entire division as well as peer recognition strategies are some of the ways of injecting positive feedback into the workforce. This should be followed up by reporting and recognizing achievements up the chain (Now & Huge). Quite often, line managers overlook how vital positive work environment is for the entire workforce. They also overlook the extent to which meaningful recognition as well as praise can achieve that. This means that awards, recognition, respect as well as praise might turn out to be the most cost-effective way of maintaining a happy as well as productive workforce. More Creative Ideas People Management: managing the employees is very important for the firm’s success. This entails managing the staff expectations, motivations, problems and particularly their joys. Instead of a manager raising queries on how hard the employees will work for the firm, the manager should find out how the employees will balance their work-life and personal life. Balanced and contended workforce will turn out to be productive and loyal (Schoemaker, 2005). Open line of Communication: it is important to ask what the employees want and expect on a regular basis. The aspirations by majority of employees should be implemented by the firm. However, it is important to comprehend that not all suggestions are viable; though it is vital for the employees to know that they are valued. Open communication gives an advanced warning when things are not right. It acts as a signal when a particular employee is unhappy with an issue making him think about leaving the organization. The managers can hence address the issue beforehand. Feedback Mechanisms –the organization should engage in regular feedback mechanisms. Employees are often ‘hungry’ for feedback which makes them better. The setting up of weekly keep-doing, the start-doing as well as stop-doing sessions is often fast and effective. This makes the staff feel valued and appreciated (Shepherd & Ahmed, 2000). Unusual Employee’s Benefits: in regard to a number of firms, standard employees benefit schemes are not well recognized. The company should therefore provide programs that are not so ordinary with examples of pet insurance and job-sharing days. The employee’s appreciation and mutual attachment to the firm may grow. Advantages of People’s Management In this type of management, employees are given the opportunity to impact decision making, accept feedback as well as inputs from each individual. The major advantages are that employees are energized. The employees develop a feeling of being empowered and meaningful within the firm’s circles. Job satisfaction parameters rise whereas employees believe to have a say in the overall decision making as well as workplace efficiency (Need, 2006). Disadvantages of People’s Management If employees are given much responsibility in absence of the management, the decision-making role may turn out overwhelming. Moreover, this type of management may result to confusion among the staff, ineffective decisions as well as ultimate job dissatisfaction (Now & Huge). Advantages of Open line of Communication This cultivates an open and honest culture. There is often a clear and open avenue of raising questions, concerns as well as opinions. Disadvantages of Open line of Communication Conflict –open communication may be used by some employees to wage attacks amongst their colleagues and senior management. Confidentiality – the system does not conceal privacy of information. This means that confidential information may be leaked. Advantages of Regular Feedback Mechanisms The system keeps the organization of its toes to maintain and provide up-to-date data and information. Feedback mechanism makes the employees feel valued and appreciated. It creates a united workforce (Schoemaker, 2005). Disadvantages of Regular Feedback Mechanisms Costly – maintaining feedback structures requires the firm to invest heavily in machinery. Up-to-date data is required quite often. The employees may turn out to be demanding particularly on ‘petty’ issues. This may result to loss of company’s resources (Now & Huge). Advantages of Employee’s Benefits The unusual benefits breed a more focused and motivated workforce. This result from the growth and satisfaction derived from the benefits. The benefits boost self-esteem of the employees. The employees tend to undertake their work roles seriously. Disadvantages of Employee’s Benefits Cost Ineffective – the scheme is normally costly to both the firm and the employees. Large companies find it costly since they have to pay for each an employee’s portion. Legal Concerns – some policies are often broken either intentionally and or unintentionally. This creates squabbles and legal cases that are expensive follow suit. This is presented by the below matrix whereas x represents the merits and d the demerits.   People Management Open line of Communication Feedback Mechanisms Unusual Employee’s Benefits Employees Empowerment x x x x           Open and Honest Culture   x               Up-to-date data     x             Cost Ineffective d d d d           Lack of Confidentiality   d               Harbours Conflict   d d d Implementation of the Solution The major problem that is prevailing in this case is staff turnover of Apple Inc. This is a problem that is bound to affect the company since it is losing her valued employees. Curbing the employees’ turnover will be protecting both the firm and the employees. The right of employees will be shield whilst the firm will be protected from incurring losses (Shepherd & Ahmed, 2000). The bigger plan herein is to deal with the most pressing issues that are causing the staff turnover. This includes the following: 1. Lack of employees’ recognition and respect. 2. Increased Workload. The major solutions to these challenges are obtained through the following: Open line Communication: this will give a clear communication of the challenges that the employees are facing as a team. If the employees are dissatisfied with a certain pressing issue emanating from the conduct of the staff, they will be compelled to communicate in advance via the open system. The adverse effects that would have resulted will then be eliminated from the system (Now & Huge). Employee’s Benefits: the unusual employee’s benefits will have a far reaching effect of boosting the morale of the staff. However, this will call for additional finances to cater for these needs. The management will therefore need to consider for additional sources of finance including retained reserves, current profits and bank loans (Shepherd & Ahmed, 2000). Stakeholders’ Analysis: the application of the solution will face resistance from some major stakeholders. For instance, the shareholders will protect their resources at all cost. Therefore, any additional cost in regard to the proposed solutions will be resisted by the stakeholders (Schoemaker, 2005). Timeline: a concrete time-frame will be ideal to implement the proposed solution. References Need, W. C. D. H. P. (2006). Human resource management: Gaining a competitive advantage. Shepherd, C., & Ahmed, P. K. (2000). From product innovation to solutions innovation: a new paradigm for competitive advantage. European journal of innovation management, 3(2), 100-106. Now, N. Huge rise in violence speeds staff turnover. Nursing Standard, 5(2). Schoemaker, P. J. (2005). Scenario planning: a tool for strategic thinking. Sloan management review, 36(2), 25. Read More