Structural or Managerial Control of Apple Inc - Case Study Example

Structural or Managerial Control of Apple Inc Executive Summary In the contemporary world, the scope and scale of operations for almost all organizations in the industry have turned out to be highly complex in nature. Since globalization, the prevalence of giant firms across different marketplaces has significantly increased. This paper will concentrate on the managerial structure of the organization, Apple Inc., which is a giant multinational organization based in California. It engages in designing, developing and retailing of electronics, personal computers and computer software. In 2013, the firm had earned revenue worth U.S. $170.9 billion and the net income was US $48.9 billion. Such financial returns could be achieved by the organization only with the help of an organized managerial structure. The human capital of the company is highly efficient and the latter constantly undertakes strategic business initiatives to enhance the skills of its workers. This paper will investigate ways through which the company manages its workforce and also, will discuss the impact of such management on the organization. Contents Contents 3 Introduction 4 Theoretical Base 4 Qualitative Research 5 Department of Facilities Management in Apple 6 Work Allocation and Work Load Planning 7 Recruitment Process 7 Retaining and Motivating Staffs 8 Enhancing Employee Skills 8 Disciplinary and Grievance Procedures 9 Impact on Apple 9 Conclusion 10 10 Reference List 11 Appendix 13 Introduction In the contemporary world, the scope and scale of operations for nearly all organizations in the industry have turned out to be highly complex in nature. Since globalization, the prevalence of giant firms across different marketplaces has significantly increased (Stoica, 2010). It has been commented by analysts in the market that such high degree of internalization in business is feasible by firms, only with the assistance of a good managerial structure and technological development. This paper will concentrate on the managerial structure of the organization, Apple Inc., which is a giant multinational organization based in California. It engages in designing, developing and retailing of electronics, personal computers and computer software. Since its inception in 1976, the organization could achieve such high brand value among all its business stakeholders, only through efficient managerial expertise (Apple, 2013). Theoretical Base Giant multinational companies possess a vast organizational structure for operating all its business branches across various nations. Figure 1 in the Appendix explains the general form of organizational structure that exists in every multinational company. However, there are five main types of structure: Simple Structure Machine Bureaucracy Professional Bureaucracy Divisional Form Adhocracy According to the views of Mintzberg, there are five ways through which the structure of an organization can turn out to be highly efficient. These are: Mutual adjustment Direct supervision Standardization of input Standardization of the work process Standardization of output Qualitative Research In order to understand the managerial structure of Apple Inc., the researcher had conducted a qualitative research work. The main techniques adopted for this research were: Closed-ended Questionnaire Survey Focus Group Interviews The researcher conducted these surveys and interviews at the headquarters of the company in Cupertino, California (Muijs, 2010). The closed-ended questionnaire survey was circulated among all the employees (including board managers) in the office. It contained 10 questions (questionnaire given in the Appendix) (Kumar, 2005). The researcher conducted 10 focus group interviews, (each for a period of 30 minutes) with the help of a mediator in each session (Mertens, 2005). However, ethical issues in research were given high value by the researcher. All the personal information and data collected from each of the employees were, thus, highly confined and were not disclosed in public (Mukherji and Albon, 2009). The research results showed that the company followed a Machine Bureaucratic form of management structure, where regular operations of the firm are carried out by middle line managers. The company uses the standardized work process approach to attain good coordination in operations. The researcher was more interested in learning about the Facilities Management division in the managerial structure of the company (Bratton, et al., 2010). Thus, a small section of activity to be studied in course of this research paper is Facilities Management (Silverman, 2004). Department of Facilities Management in Apple The department of Facilities Management in Apple Inc. looks into matters of space, infrastructure, organization and people coordination. Many researchers claim that within the entire structure of management in a company, Facilities Management is the underlying driving force, stimulating the success of all other managerial segments. The department of Facilities Management in Apple Inc. look into matters like: Communications Emergency attentiveness Business continuity Corporate social responsibilities Finance and operations Human factors Strategies Property Management According to the researcher, among all the facets in corporate facilities management, the most crucial component is managing human factors. Human capital is the most crucial aspect in an organization. If human capital of an organization is efficient and productive, then all other business segments would improve automatically. The focus group interviews and closed-ended questionnaire survey of the paper were also conducted for the purpose of investigating the facilities management department of Apple Inc. It was found by the researcher that success of the organization in the global market is solely dedicated to its efficient facilities management department. The company enjoys a big learning curve and skilled workforce, only with the help of active contribution of its Facilities Management department. Work Allocation and Work Load Planning As a giant multinational company, Apple Inc. needs to accomplish tasks and its aggregate work load is huge in business. Nonetheless, with efficient work allocation and work load planning, the company has become successful in accomplishing most of its crucial business objectives. In the initial phase, middle line managers of the company undertake the task of work load planning. In this process, these managers estimate the annual workload and workforce of the organization (Hertel, 2003). Following that, these officials enumerate the various gaps and current competencies of the organization in the market. This is crucial because, due to strong impact of externalities in the industry and new developments in business, the organization’s core competences constantly change with time. The company uses modern manual as well as statistical estimation techniques to assess the optimized work plan. This can be done with the help of a Gantt chart or non-linear regression models, thereby providing the most optimal strategic work plan, considering asymptotic distribution (Greene, 2010). After the optimal plan is achieved, the next task that the company accomplishes is conducting appropriate work allocation. While allocating work to the respective employees, managers consider special attributes, such as, skills of workers and task deadlines (Levitt, 2012). For example, more efficient employees across the specific departments are given the duty to accomplish tasks, which are complex and need to be completed in less time. In certain situations, workers are appointed by the company in contractual agreements (Spangler, 2008). Recruitment Process The senior managers of the company feel that cost of operation in their business can significantly fall with efficient work of skilled employees. Apple is well-known all over the world for innovating special technical gadgets and software in the market, with an aim to make lives easier. The company can only sustain this image with the help of its skilled workforce (Hollnagel, 2010). The recruitment process of the organization is highly competent in nature. Employees of the organization are not only highly educated and knowledgeable, but they also come from various cultural backgrounds. Versatile culture in the organization facilitates a workplace that is united and harmonized. Moreover, the employees are professionals from different academic backgrounds and the versatile work culture helps them to enhance their skills through amalgamation of assorted talents. However, it should be noted that the company avoids the process of recruitment through walk-in-interviews. Apple Inc. enjoys good business contacts with several renowned consultancy firms. It primarily conducts interviews for candidates that are recommended by these famous consultancy firms. Some employees of the organization are also recruited through referral interviews and business school campus interviews (Smith, 2005). Retaining and Motivating Staffs The managers of Apple consider that recruiting skilful workers is an important task of facilities management. Nonetheless, they also realize that working process of the company would be adequate, only if these potential employees are well-motivated at the workplace. Staff retention is also a factor that significantly depends on the extent to which staffs of the organization are motivated at work (Kushal and Sunitti, 2010). The human resource department of the organization secures that equal work opportunity is offered to all its employees, besides maintaining a workplace that does not discriminate between employees on the basis of caste, creed, religion or sex. The company also provides good promotional schemes to those employees, who prove to work excellently over time. Thus, the company’s employees conduct their work with complete motivation, for achieving progress in their work life as well for enjoying financial and non-financial rewards (Messmer, 2011). In order to motivate the employees, the company conducts several award ceremonies to acknowledge the hard-working employees in its workplace. Furthermore, several incentives, in form of cash and kind, are also provided to competent employees. The salaries and compensations paid to employees are also high. For example, the company offers special discounts, while selling the products to its own employees. Through such effective staff motivational schemes, the company has been able to maintain high staff retention thresholds. Enhancing Employee Skills A company may possess skilful and motivated employees at its workplace. However, it should be noted that a company would be able to consistently progress in the market, only by enhancing the skills of its employees. Apple conducts regular knowledge sharing sessions for employees at its workplaces. In such sessions, employees interact with each other over several business issues that are relevant in the market. Moreover, the company has a long learning curve. Old and newly recruited employees can often upgrade their business perceptions through such interactive sessions. Employees are also trained with newly invested technical tools, like, SAS, that help them to conduct operations most efficiently, within least possible time (Sabharwal and Wali, 2013). In certain occasions, the company appoints professional academic trainers to augment skills of its workers and enhance their productivities at workplaces. Disciplinary and Grievance Procedures The company offers several special incentives to employees, but disciplinary measures of the organization are very rigid. If any employee is found to breach lawsuits of the organization, then he or she is immediately penalized for it. Employees might even be fired, if they are found to conduct unfair practices in the workplace. The company takes feedback of all its business stakeholders in order to assure that all employees in its workplace suffice their allocated work by following the required rules, within desired time and effectiveness. Any grievances of the employees are scrutinized in details and the human resource department of the organization ensures that justice is always attained in all such cases. Impact on Apple The company of Apple Inc. shares high brand value in the market and also, enjoys a wide base of potential employees at its workplace. The above analysis indicates that the organization considers its employees as one of its vital stakeholders in business. From the qualitative research, results of the survey were: The office had employees who had recently joined the organization and at the same time, most of its senior employees had joined long back. About 50% of the employees were recruited through referral interviews, 10% through campus placements and the rest 40% were recruited through consultancies (Pannerselvam, 2004). Nearly all workers liked the workplace of the organization. They claimed to have good relations with their junior as well as senior employees. Majority of the workers agreed that the firm is highly disciplined and they sincerely would like to continue working in the house. They claimed that motivational (financial and non-financial) schemes of the company were good too. The employees stated that the work allotted to them is interesting and they would surely learn more from the firm, in future. The scope of growth in the house is excellent. However, many of the employees stated that certain disciplinary measures of the organization create problems for its workers. For instance, its time tracking software (used to check employees’ entrance and exit in workplaces) is found to exhibit several technical problems. The senior managers of the company often pressurize employees to work more than that assigned to them (Patently Apple, 2013). Conclusion The organization of Apple Inc., as recorded in 2013, earns revenue of US $170.9 billion. The net income of the organization is US $48.9 billion (2013) (Apple, 2013). Such financial returns could be achieved by the organization, only with the help of its organized managerial structure. The human capital of the company is highly efficient and the organization constantly undertakes strategic business initiatives to enhance skills of its workers. From the qualitative research work, it would be correct to conclude that Apple’s employees are quite satisfied to work in the workplace and in future, with use of good strategic initiatives, the company would eradicate the grievances of its workers (Riley, et al., 2000). Reference List Apple, 2013. Happy Birthday Mac. [online] Available at: [Accessed 30 January 2014]. Bratton, J., Sawchuk, S., Forshaw, C., Callinan, M. and Corbett, M., 2010. Work & Organizational Behaviour (2nd Edition).  Basingstoke: Palgrave Macmillan. Greene, R. J., 2010. Rewarding Performance: Guiding Principles; Custom Strategies. London: Routledge. Hertel, F., 2003. Motivation in the Workplace. Munich: GRIN Verlag. Hollnagel, E., 2010. Handbook of Cognitive Task Design. Florida: CRC Press. Kumar, R., 2005. Research Methodology: A Step-by-Step Guide for Beginners. California: SAGE. Kushal, S. J. and Sunitti, A., 2010. Business Communication. New Delhi: FK Publications. Levitt, G., 2012. Team Planning for Project Managers and Business Analysts. New York: CRC Press. Mertens, D. M., 2005. Research Methods In Education And Psychology: Integrating Diversity With Quantitative And Qualitative Approaches (2nd ed.). California: SAGE. Messmer, M., 2011. Motivating Employees for Dummies. New Jersey: John Wiley & Sons. Muijs, D., 2010. Doing Quantitative Research in Education with SPSS. California: SAGE. Mukherji, P. and Albon, D., 2009. Research Methods in Early Childhood: An Introductory Guide. London: SAGE. Pannerselvam, R., 2004. Research Methodology. New Delhi: PHI Learning Pvt. Ltd. Patently Apple, 2013. Apple Store Employee Files Class Action Lawsuit over Lost Wages. [online] Available at: [Accessed 30 January 2014]. Riley, M., Wood, R. C., Clark, M. A., Wilkie, E. and Szivas, E., 2000. Researching and Writing Dissertations in Business and Management. Connecticut: Thomson Learning. Sabharwal, N and Wali, P., 2013. Cloud Capacity Management. New York City: Apress. Silverman, D., 2004. Qualitative Research: Theory, Method and Practice. California: Sage. Smith, L., 2005. Effective Internal Communication. London: Kogan Page Publishers. Spangler, R., 2008. Learning Curve. New York: Bold Strokes Books Inc. Stoica, M., 2010. “Occupational Stress Management.” Management in health, 14(2), pp. 7-9. Appendix Figure 1; Organizational Structure (Source: PPT) Questionnaire Survey Questions When did you join the company? What was the process through which you were recruited? How is the working ambiance of the house? How do you think is the discipline of the workplace? Are you satisfied with the work allocated to you? How do you thing are the staff motivational programs of the company? For how long do you intent to work in this organization? If “yes” (from the previous question), do you see scope for progress in this firm? How much did you learn in this organization? Do you have any grievance against the company? (Source: Author’s Creation) Read More