Human Resource Management in Apple Company - Case Study Example

Human Resource Management in Apple Company Introduction “Apple was founded in Cupertino, California on April 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne to sell the Apple I personal computer kit” (Apple Inc. History, 2008). Since the introduction, Apple Company faced many ups and downs in its business history. Microsoft was the prominent competitor of Apple from tis beginning itself. In 1980’s and 1990’s Apple struggled to counter the competition faced from Microsoft. Microsoft pushed Apple yards behind with the introduction of their Window based operating system. However, Apple was able to bounce back at the beginning of twenty first century with the help of their innovative “i” series products such as iMac, iPhone, iPad, iPod, iTunes etc. Kim (2010) has pointed out that Apple Inc, is currently the second largest company in the world in market capitalization, second only to Exxon Mobil. Moreover it is believed to be the most valuable technological company in the world at present, again pushing Microsoft far behind (Kim, 2010). (Warren, 2010) Even though Apple succeeded in achieving top spots in international market, many people believe that their organizational culture and human resource management needs drastic changes to maintain their top spot in the market. Even though Apple employees are getting competitive salaries, increased workload, lack of work-life balancing, lack of motivation, prejudices and biases in deciding promotions etc are some of the major complaints of the employees. Moreover, Apple’s success and failures revolve around the charismatic leadership of Steve Jobs. This paper critically analyses Apple’s human resource management policies at the individual level, group level and organizational level. Individual Level Work Motivation The topic of employee motivation in Apple Company is a controversial one. On one side, Apple is able to motivate the employees and on the other side some of its HR strategies are demotivating the employees. It is a fact that Apple provides ample opportunities to the fresh employees to grow under the wings of experienced employees (Qumer, 2009, p.3). The above strategy is a big blessing for the fresh employees to take advantages of the immense experience and talents of the experienced ones. The above work culture helps Apple to blend fresh and the experienced hands in a judicious manner so that neither the employees nor the organization faces any problems in completing their works. Fresh employees may bring new ideas to the organization which will be critically analyzed with the help of experienced ones. Thus the fresh people will get immense support from the experienced hands in shaping their ideas and concepts useful to the company. The compensation and benefits offered to employees of Apple are very competitive and it includes product discounts, vacation time, healthcare, training courses, casual dress codes on jobs etc. In 1995, Apple created the Apple Fellows Program in order to recognize its best employees who had made extraordinary contributions to the company. Funny, brilliant, relaxed co-workers and modern spacious beautiful offices filled with comfortable equipments etc are some of the major benefits of working in Apple Company. Apple workforce includes diverse employees from different countries which enable them to utilize the expertise from different regions. It provides equal opportunities to its diverse employees irrespective of their ethnic background (Qumer, 2009, p.3-9). In short, Apple is keen in recognizing outstanding performances with rewards which is definitely a motivating factor for the employees. At the same time there many complaints also about some of the controversial HR policies of Apple. Employees often forced to work overtime and thereby they are facing troubles in achieving proper work-life balancing. Moreover Apple provides no information about the new products which are going to be developed in the company. The above policy demotivated the employees since no organization can capture the employee trust and loyalty if it does not take the employees in confidence. “Apple maintained an organizational culture which was sometimes opaque to even its employees. Secrecy has given more importance in Apple’s work culture and the violators were severely punished” (Qumer, 2009, p.3). In 2005 Apple won a legal case that forced Bloggers to name the sources of information that pre-empted the launch of new Apple products. It was suspect that Apples own employees had leaked confidential information about their new Asteroid product. The three individuals prosecuted, all owned Apple tribute sites, and were big fans of the companys products. The blogs had appeared on their sites, and they were forced to reveal their source. The ruling saw commercial confidentiality as more important as the right to speech of individuals (SWOT Analysis Apple, 2010). “The company revealed to its employees that it believed in employability security rather than employment security” (Qumer, 2009, p.10). The above strategy is definitely a demotivating strat3egy for the employees. The threat of losing job is always hanging at the top of the employees just like the sword of Damocles. Peaceful mind is essential for the employees to maximize their performance and productivity. However, Apple seems to be having other ideas. Group Level Leadership “Each employee forced to safeguard their interests and career options and the managers often show no interests in such matters. Unfairness in promotions and overall treatment is a common complaint in Apple Company” (Qumer, 2009, p.15). A kind of totalitarian management approach is implemented in Apple Company. Middle level managers are biased and prejudiced. White employees often get priorities while deciding promotions in Apple Company. In other words, racial discrimination is often accused against Apple Company. An employee who previously worked in a democratic organization may find extreme difficulties while working in Apple Company. “The work culture in Apple is demanding and the employees forced to work for 60-70 hours per week. In other words, in Apple there was always more work to do than the employees and hence Apple encourages workaholics” (Qumer, 2009, p.7). Team work is not much encouraged in Apple Company. After the initial period of service, most of the Apple employees are forced to work independently and subsequently their stress levels are more than anybody else in other organizations. While working in a team, each team member will get assistance from other team members in executing their work successfully. Mullins (2007) has pointed out that “group exists in all organizations and is essential for the efficient working and performances in the current organizations. He also argued that everyone in an organization will be a member of one or more groups “(Mullins, 2007, p.6). Current business gurus are of the view that team work is the best way to increase the productivity and improve the performance of the employees, however Apple thinks in the opposite direction. Organizational Level Organizational Control “Apple’s performances were attributed to a one man show of its charismatic leader Steve Jobs. If Steve leaves apple, probably the stocks of Apple may down by 25%” (Qumer, 2009, p.4). Steve Jobs once resigned from Apple in order to give way for others. However, Apple suffered major setbacks during this period. Apple forced to recall Steve in order to save the company from total destruction. Steven came back and rescued the company with the help of innovative product ranges such as iMac, iPod, iPad, iPhone etc, which were introduced in the beginning of twenty first century. It is impossible for Apple like big organization to rely so heavily on individuals for its future success. It is necessary for Apple to develop a top management team to succeed Steve Jobs. Nobody can predict what will happen to Apple, once Steve decides to quit permanently. Till 2007, Apple Computer Inc was the official name of Apple Company. However, Apple entered the consumer electronics ,market at the beginning of 2000 and they changed their name from Apple Computer Inc to Apple Inc in order to send the message to the customers that Apple is no more a mere computer company alone. Apple has changed its multicolor logo to a single color one in order to boost its image and brand value in the consumer electronic industry.. (The Evolution and History of the Apple Logo, 2009) Apart from computers and operating system, Apple is currently marketing mobile phones, portable multimedia players and a wide variety of other consumer electronic goods. “With the release of the iMac on August 15, 1998 Apple was able to put to rest some its past failures” (Dougherty, 2010). The “i” series products brought unbelievable returns to Apple company. Followed by iMac, iphone, ipod, ipad etc were also introduced in the market successfully by Apple. Conclusions Apple’s HR strategies at individual, group and corporate level need drastic changes in order to sustain its growth and maintain its top spot in the market. Apple should encourage team work more in its workplace and it should give more respect to the work-life balancing of employees. Apple should show more trust towards the employees and it should avoid any prejudices or biases while deciding promotions of the employees. Currently, Apple’s relies heavily on the abilities of its leader Steve Jobs while deciding its corporate strategies. Apple should develop an efficient top management team in order to succeed Steve and to maintain its growth. References 1. Apple Inc. History. (2008). [Online] Available at: http://www.ipodtopctransfer.com/news/apple-inc.html, [Accessed on 31 May 2011] 2. Dougherty, M. (2010). The History of Apple, Inc. [Online] Available at: http://www.brighthub.com/computing/mac-platform/articles/65346.aspx [Accessed on 31 May 2011] 3. Kim R (2010) Apple Passes Microsoft As Top Tech Company, [Online] Available at: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/05/26/BUDJ1DL0IU.DTL [Accessed on 31 May 2011] 4. Mullins L J. (2007), Management & Organizational Behavior, Publisher: Financial Times Management; 8 Pap/Pas edition (September 28, 2007), 5. Qumer S.M, (2009), Apple Inc’s corporate culture: The good, the bad and the ugly, ICMR Center for Management research, www. Icmrindia.org 6. SWOT Analysis Apple (2010), [Online] Available at: http://www.marketingteacher.com/SWOT/apple_swot.htm [Accessed on 31 May 2011] 7. The Evolution and History of the Apple Logo. (2009). [Online] Available at: http://www.edibleapple.com/the-evolution-and-history-of-the-apple-logo/ [Accessed on 31 May 2011] 8. Warren, C. (2010). Apple Passes Microsoft As Most Valuable Tech Company [Online] Available at: http://blogs.forbes.com/velocity/2010/05/27/apple-passes-microsoft-as-most-valuable-tech-company/?partner=yahootix [Accessed on 31 May 2011] Read More