Sei sulla pagina 1di 12

Running head: ORGANIZATIONAL ANALYSIS ON APPLE

Organizational Analysis on Apple Incorporation:


Description, Personnel, and Reward System
Alissa Santiago, Joely Ramos, Phillip Bowers, Chiante Reid
Florida International University

ORGANIZATIONAL ANALYSIS ON APPLE

Abstract
The topic of this paper is organizational systems. The purpose is to choose an organization to
analyze and describe its different attributes and functions it. The choosing of the organization
was conducted in a group setting where many organizations were discussed before a final
selection. Upon further meetings, it was decided that the organization of interest would be Apple
Incorporated. Along with the companys many products, the organization is well known for its
innovative and creative ideas. This paper will further discuss and describe the various qualities of
this organization such as its goals, structure, some processes in which they take part in, attributes
that the organization holds, as well as their personnel, and reward systems. There will be a
deeper comparing and contrasting of the information gathered to see if what the people working
for Apple Incorporated are actively doing matches up with the companys mission statement.
This analyzation will essentially determine if the company is effectively accomplishing their
goals and customer satisfaction.
Keywords: organization, Apple, analysis, structure, management

ORGANIZATIONAL ANALYSIS ON APPLE

Organizational Analysis on Apple Incorporation:


Description, Personnel, and Reward System
Organizations are useful in many ways because they allow a gathering of people to come
together and discuss issues or come up with events and ideas that can help better society. What is
an organization? According to Chelladurai (2014), an organizations are simply mechanisms for
the exchange of products. Others would argue saying that an organization is so much more but
can be purely put as a structured body of people with a particular purpose or goal to accomplish.
For example, a business, company, non-profit, or an association can be considered different
types of organizations. In a sense, organizations help people attain specific purposes, objectives,
desires, or goals by using a means of differentiated functions and intentional coordination. In
most cases, a lot of organizations have similar end goalsthat is assuming these organizations
have customerswhich would be consumer satisfaction. This is true for Apple Inc. being that it
sells a variety of technological products, such as iPad, iPods, Mac laptops, and much more.
Overall, we see that regardless of the organization, it will have nine base attributes: an identity,
instrumentality, program of activities, membership, clear boundaries, permanency, division of
labor, hierarchy of authority, and formal rules and procedures (Chelladurai, 2014).
A Classical View: Attributes & Classification
Apple Incorporated is well-known for its high quality products and advanced technology
trends. Apple Inc. is an American technological company, founded by Steve Jobs, Steve
Wozniak, and Ronald Wayne, that designs, develops and sells consumer electronics, computer
software, and online services. Some of the products include, iPhone smartphones, iPad tablet
computer, Mac computer, iPod media player, Apple watch, Apple TV, software, Apple SIM, and
electric vehicles. In April, the iPad went on sale, and the public got its chance to try it out. It

ORGANIZATIONAL ANALYSIS ON APPLE

sold 300,000 units on the first day. By the end of the first week, the total was 500,000. In less
than a month, one million iPads were shipped, twice the volume of the iPhone at its release.
(Castelluccio, 2015). This image shows just how much Apple wants to fulfill their message of
having the latest and best technology out in the market. Apple Inc.s mission statement, what it
stands for, is as follows,
Apple designs Macs, the best personal computers in the world, along with OS X, iLife,
iWork and professional software. Apple leads the digital music revolution with its iPods
and iTunes online store. Apple has reinvented the mobile phone with its revolutionary
iPhone and App store, and is defining the future of mobile media and computing devices
with iPad (Investopedia, 2011).
Within this statement, there are a lot of ideas that allow the spurring up of competition. It states
that Apple Inc. views itself as the best products out there when that might not be the factual case.
It is slightly different from the statement made by one of its founders, Steve Jobs, To make a
contribution to the world by making tools for the mind that advance humankind. (Investopedia,
2011). This conveys a broader and more concise perspective while maintaining a sense of
humility, stating the primary purpose of Apple Inc. is to further advance the technology that is
used.
After an organization comes up with their mission statement, members who run the
organization must come up with a process on how to attain those goals using the resources they
are limited to. These various processes create a sense of structure in the organization. In the same
way, Apple Inc. has many processes, for instance, just to state two there are product development
processes as well as design development processes. Apple claims that their design and products
development processes are the most successful processes ever implemented (Kellingley, n.d.).

ORGANIZATIONAL ANALYSIS ON APPLE

However, how do you give the designers the freedom to design and ensure that the products they
produce fulfill their visions? Apple Inc. is the type of organization where design is at the
forefront, meaning the design of their products and logo is one of the most important aspects of
the company. These creative ideas have to go through a thought out process where the idea is
presented, or pitched to higher members of the company to then decide whether or not the
company chooses to go with that design idea. According to the Interaction Design Foundation
(n.d.), some of the steps in Apple Inc.s development process include, R&D, Concept Testing,
Pre-Launch, Launch, and Quarterly Review. This process along with others help the organization
stay updated and alive as the times for technology advances.
In every organization, there are certain attributes that help differentiate each organization
based on their various goals and processes. Apples identity is how innovative and advanced
their technology is. Apple Inc. is also known for its great customer services provided in stores,
where the product can be brought back for repairs and upgrades. Instrumentality is an attribute
that Apple Inc. demonstrates well in the developmental processes of its products. Granted, the
products are designed and thought up by one person, but the task of analyzing and discussing the
management of the product takes an assembly of people working together to achieve that goal of
producing a product that best matches the idea the first designer had. Since Apple Inc. is not an
organization where it provides activities for the consumers to engage in, such as, a recreational
or sport organization would provide, the attribute concerning a program of activities, is limited.
However, that does not mean that Apple Inc. fails to provide the customer with any activities or
things to do. With the purchase of an Apple product, the consumer is able to access different
types of activities with the product. For example, with the purchase of an iPhone, consumers are
provided with an App store where you can download any application, either free or purchased,

ORGANIZATIONAL ANALYSIS ON APPLE

and have an endless amount of activities right there on the device. To be an employee and work
for Apple, one must be highly skilled in computer engineering, while maintaining an inventive
and original style to help advance the company. Membership of this organization isnt as easy as
signing up to become a member of the YMCA club, there are qualifications and a hiring process
for a person interested in working for Apple. Like most organizations, Apple Inc. experiences
many limitations that could potential keep the business from running if not addressed properly.
There are clear boundaries for Apple that state their restrictions. Money is a substantial issue in
the sense that, if designers have groundbreaking ideas but dont have the money to support these
ideas, the company would eventually downsize. This would have an effect on the inventory,
provided there wouldnt be enough money to purchase new items. Consequently, if there is no
money or inventory then there would be no revenue, so the customers would be directly affected
as well.
With a company that has been around for almost forty years, there has to be a sense of
permanency. It cannot just be all the employees that have stayed for forty years, or only the
customers who have been faithful, it is the organization as a whole, which includes the
employees as well as the customers and even the ideas themselves that keep the business going.
Along with permanency, there is a division of labor that happens within Apple Inc. This allows
the company to maintain a status of equality of labor as well. As a result, there are different
teams and sub teams that work on projects together to get assignments done more efficiently. For
example, there is a design team, a production team, a technical team, and a customer service
team. There are also overseers of these individual teams who are also supervised by managers
above them. This exemplifies the attribute hierarchy of authority. With the division of labor,
there are different levels to which each employee is a part of and different titles that, depending

ORGANIZATIONAL ANALYSIS ON APPLE

on skill level, seniority, etc., hold a higher position. In each position, however, there are more
responsibilities, as one goes up in authority, more responsibility is added to the position held.
Finally, Apple Inc. has a system of rules and procedures to help keep the employees as well as
the managers on task. By knowing the dos and donts of a position, it would help employees
improve their skills and desire to stay. All in all, we see the internal and external attributes of
Apple come together to make up its stakeholders and customers visions.
Personnel: Responsibilities & Hiring Procedure
Apple is a diverse corporation that believes in giving an equal opportunity to all
applicants. According to the law, which Apple strictly follows, anyone who applies for a career
with apple, should be given a chance no matter their race, religion, disability, or age (Apple,
2015). Apple has a corporate and retail section, which both have different, yet similar
responsibilities and duties. Interestingly enough, Apples hiring process is very secretive due to
how competitive it is and not letting their competitive companies know. The corporate jobs are:
human resources, finance, information systems and technology, legal, hardware engineering,
software engineering, marketing, design, operations, real estate & development, sales, home
advisor, product management, customer service, and administrative positions (Apple, 2015). The
retail job has roles labeled as specialist, experts, inventory specialist, business specialist, and
business managers (Apple, 2015). There are also customer service opportunities such as, genius,
creative, and special services (Apple, 2015). The leadership opportunities are the senior manager,
store leader, business leader, market leader, and apple store leader program (Apple, 2015).
The steps of the hiring process include recruiting, selecting and hiring, which we see a
more detailed description of in Managing Organizations by Chelladurai (2014). It is important
to note that it is up to the person interested in working alongside to Apple to complete the job

ORGANIZATIONAL ANALYSIS ON APPLE

application online which is always available because Apple is always looking to expand their
company and seek new ideas, creativity, and talent. Retail positions are often advertised online
or in stores because many of them are located in popular shopping malls. A prospective
corporate employee of Apple will be included in the selection process which consists of 3 phone
screens in which the questions are very rigorous, solving technical coding questions, and they
will be flown to Cupertino for a full day in person interview with several managers (Edible
Apple, 2013). However, for those who would like to seek a job at a retail store they will only be
doing one on one interviews with each manager, a written quiz, and technical coding questions
(Business Insider, 2015). After being hired, all new employees will have to attend core training
called Apple boot camp for ten days in which they learn about the history of apple, benefits,
stocks, achievements, and mission statement (Smith, 2015). After that the retail employers will
undergo traditional training, where they will shadow a veteran employee for ten days and learn
hands on daily duties, interpersonal skills, personal skills, and technical skills (Business Insider,
2015). Moreover, the corporate employers will do technology-based methods and traditional
methods as training learning of business skills, mandatory skills, and personal skills.
In a sense, Apple uses both person-task fit and person-organization fit. They use both of
these staffing perspectives in order to provide the best services possible. Apple uses person-task
fit because it is important that each technician employed by apple should have some type of
technical, problem solving, or mathematical skills in order to be considered the position. The job
is a technical job in which it deals with only technology; repairing, selling, expanding marketing
and updating it. Although these skills will be enhanced through training, it is important for the
employers to have some prior knowledge. On the other hand, person-organization fit is also a
perspective for Apples company because it is important for the employees to know the mission

ORGANIZATIONAL ANALYSIS ON APPLE

statement, provide sales, and most importantly provide the best customer service possible. These
skills are skills based on personality and the employers understanding of what is expected from
Apple in order to remain the best.
Reward Structure & Motivation
As one of the largest and most innovative corporations in the world, Apple has thousands
of employees working under their employment. Organizational and individual effectiveness of
each employee is evaluated by each employees ability to complete tasks individually or in a
team. Apple links its compensation and payment related schemes to employee performance so
essentially youre only getting back whatever effort you put in. Apple does this to seed out the
low end workers from the high end workers. In a giant pool of workers it may be hard to
distinguish which employees are actually putting in the most work if theyre all being
compensated the same amount. The employees who provide the greatest amount of production
for the company are typically rewarded with higher salaries and greater benefits. The chief
reward can be said to be when a manager at a particular level decides for candidates to be
promoted to higher positions (Chelladurai, 2014).
One of the interesting things about Apple is that they operate under a cafeteria reward
system. Basically this allows employees to create incentives for themselves by selecting their
own benefits as rewards. The company offers an extensive amount of benefits to managerial staff
and all other employees under a reward system model termed Maslows Hierarchy of Needs
(Chelladurai, 2014). This pyramid themed chart hones in on the five stages of needs amongst
managers and employees. The first level of the chart deals with employee needs at a
physiological level. Apple fulfills this category by offering refreshment breaks while on the job
from its in-house cafeteria and state of the art facilities allowing the workers to be in top notch

ORGANIZATIONAL ANALYSIS ON APPLE

10

working environments at all times. The second stage deals with safety and security. All
employees love to feel like their jobs are secure as well as knowing they have other benefits from
the job. Apple offers job security, health and life insurance, and long term care insurance. After
safety, apple believes its employees enjoy a sense of belonging. In recent years allegations of
poor employee treatment in apple workplaces has risen. In an attempt to change this, the
company is working now to improve manager/employee relationships. The demands of the
company on its employees are often times very tough so workers are always made to feel as if
they are part of a much bigger picture and revolutionizing the industry. The fourth and fifth
levels of the hierarchy of needs are esteem and self-actualization. Esteem deals with Apples
ability to provide its employees with numerous benefits, discounts, deals, and other incentives.
Self-actualization is associated with the companies motivational techniques and personal
trainings to help employees reach their full potential. Workers who have expressed their
displeasure with apple have often spoken about how great the perks of working for the company
are.
Summary
With such a big company comes many challenges and mistakes. However, although these
obstacles are true in Apple Incorporated, they have shown themselves to have a strong sense of
consistency when it comes to the quality of their products and in keeping their customers
satisfied. Apples place right now is way higher than it was in its first five years (Castelluccio,
2015). With time and an open-mind to diverse ideas and people, Apple has been able to
overcome negative comments and blending in with other companies. Apple stands out from its
competitors and is accomplishing its goals by continuously coming out with something new yearly,
showing the importance of always making room from improvement. The hiring procedures and reward
systems play a huge rule in the person-organization/person-task fit for Apple and its mission statement.

ORGANIZATIONAL ANALYSIS ON APPLE


Not only are we looking at great quality products, but also great quality customer satisfaction. In
conclusion, Apple Incorporated is an company that stands as a tall example of what a successful
organization looks like.

11

ORGANIZATIONAL ANALYSIS ON APPLE

12

References
Apple. (2015). Jobs at Apple. Retrieved from: https://www.apple.com/jobs/us/retail.html
Castelluccio, M. (2015). Apple iPad: The first five years. Strategic Finance, 96(9), 55-62.
Chelladurai, P. (2014). Managing organizations for sport and physical activity: A systems
perspective (4th ed.). Scottsdale, AZ: Holcomb Hathaway.
Edible Apple. (2011, September 13). The hiring process at Apple, sample questions and insight
from real applicants. Retrieved from: http://www.edibleapple.com/2011/09/13/the-hiringprocess-at-apple-sample-questions-and-insight-from-real-applicants/
Investopedia. (2015, April 23). What is Apple's current mission statement and how does it differ
from Steve Job's original ideals? Retrieved from: http://www.investopedia.com/ask/answ
ers/042315/what-apples-current-mission-statement-and-how-does-it-differ-steve-jobsoriginal-ideals.asp
Kellingley, N. (n.d.). Apples product development process: Inside the worlds greatest design
organization. Interaction Design Foundation. Retrieved from: https://www.interactiondesign.org/literature/article/apple-s-product-development-process-inside-the-world-sgreatest-design-organization
Smith, J. (2015, July 15). Here's what it's really like to work in an Apple store. Business Insider.
Retrieved from: http://www.businessinsider.com/what-its-really-like-to-work-at-anapple-store-2015-7