I170515 Obprojectpart1
I170515 Obprojectpart1
I170515 Obprojectpart1
Project Part 1
SECTION C
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April
1976 to develop and sell Wozniak's Apple I personal computer, though Wayne
sold his share back within 12 days. It was incorporated as Apple Computer,
Inc., in January 1977, and sales of its computers, including the Apple II, grew
quickly. Within a few years, Jobs and Wozniak had hired a staff of computer
designers and had a production line. Apple went public in 1980 to instant
financial success. Over the next few years, Apple shipped new computers
featuring innovative graphical user interfaces, such as the original Macintosh in
1984, and Apple's marketing advertisements for its products received
widespread critical acclaim. However, the high price of its products and limited
application library caused problems, as did power struggles between executives.
In 1985, Wozniak departed Apple amicably and remained an honorary
employee,[9] while Jobs and others resigned to found NeXT.[10]
Apple can be a tough place to work.
Employees have to put up with excessive levels of secrecy, crazy hours and
non-stop pressure to perform at the top of your game.However, working at
Apple isn't all bad. We went through hundreds of reviews from current and
former Apple employees on the job site Glassdoor.com. While there definitely
seem to be more complaints than compliments about the company, we did find
plenty of things that employees love about working for Apple.
Employees feel like their work has a big impact on the world.
The biggest perk of working at Apple, at least based on the number of reviews
that mentioned it, is a feeling that your work really matters and has an impact on
the world. We saw this point made in dozens of reviews from current and
former Apple employees from departments throughout the company.
"Engineers at Apple get to make real contributions that will benefit tens or
hundreds of millions of people everyday. That's awesome," one software
engineer wrote. Likewise, a store manager said, "I joined Apple because I
wanted to be part of something bigger than myself."
Others described the thrill of being part of the cutting edge and the pride that
comes with doing meaningful work. Apple, for its part, clearly tries to hammer
this point home for employees starting on day one by handing out this
inspirational quote about doing meaningful work.
While some retail workers complained about their salaries, many praised Apple
for providing them with benefits - even if they only worked part-time. At the
moment, Apple offers all employees who work 20 hours or more a week with
health and 401k benefits
Apple may be the most valuable company in the world, but that doesn't mean it
functions like a big company. Several employees wrote that one of the best
things about Apple is that it operates more like a cluster of startups under the
umbrella of a larger company. As a result, you get the job security of a big
company with the career flexibility that comes from working at a smaller
operation.
"Apple is run like a bunch of small companies (work groups)," one senior
software engineer wrote. "When your job gets old and boring - and they all
eventually do - it is easy to move within the company to get a fresh outlook
without having to change employers completely. Likewise, if you need to
stretch or improve your skill set, there are plenty of opportunities for
advancement."
The culture at apple :
Apple Inc.’s organizational culture is a key factor in the continuing success of
the business. A company’s organizational or corporate culture establishes and
maintains the business philosophy, values, beliefs, and related behaviors among
employees. This business analysis case shows that Apple has a corporate culture
that enables human resources to support various strategic objectives. For
example, the company’s cultural traits are aligned with the drive for innovation,
which is a major factor that determines business competitiveness in the
information technology, online services, and consumer electronics industries.
Based on the organizational culture, this business condition facilitates the
fulfillment of Apple Inc.’s corporate mission and vision statements. Through the
leadership of Steve Jobs and, now, through the leadership of Tim Cook, the
company continues to enhance its cultural characteristics to maximize human
resource support for business relevance in various markets around the world.
Apple shapes its corporate culture and uses it as a tool for strategic management
and success.Through its corporate culture, Apple Inc. strengthens its
competitive advantages against other firms in various industries. The company
competes against information technology firms like Samsung,
Google,Amazon.com, Dell, Lenovo, Sony, and PayPal, as well as IBM and
Intel. These competitors impose a strong external force that influences strategic
management among firms in the industry, as illustrated in the Porter’s Five
Forces analysis of Apple Inc. As a result, cultural traits must reinforce necessary
competitive advantages through the workforce. The company partially achieves
this strategic objective through its organizational culture.
Apple Inc. has an organizational culture for creative innovation. The company’s
cultural features focus on maintaining a high level of innovation that involves
creativity and a mindset that challenges conventions and standards. The
business depends on cultural support and coherence, which are determinants of
competitiveness and industry leadership, especially in addressing aggressive
and rapid technological innovation and product development. The following are
the main characteristics of Apple’s corporate culture:
1. Top-notch excellence
2. Creativity
3. Innovation
4. Secrecy
5. Moderate combativeness
Top-notch Excellence. Apple’s organizational culture comes with a policy of
hiring only the best of the best in the labor market. Steve Jobs was known to fire
employees who did not meet his expectations. This tradition continues under
Tim Cook. Such a tradition maintains and reinforces a corporate culture that
promotes, appreciates, and expects top-notch excellence among employees.
This cultural trait is institutionalized in Apple’s organization. For example, the
company has programs that recognize and reward excellence among workers.
Excellence is emphasized as a critical success factor in the business, especially
in product design and development, which is a major growth strategy
Creativity. This cultural characteristic pertains to new ideas that help improve
the business and its products. Apple’s management favors creativity among
employees’ knowledge, skills, and abilities. This characteristic of the corporate
culture enables the company to ensure sufficient creativity, especially among
employees involved in product design and development processes. Such
creativity is observable in the design and features of iPhones, Macs, and iPads,
among other products included in Apple’s marketing mix or 4Ps. In this regard,
the organizational culture helps maintain the company’s capacity to satisfy
customers’ expectations and preferences.
Motivation
Apple are able to motivate their employees to not only do they're job effective
and efficiently, they also make sure the employees enjoy doing it. To achieve
this, Apple uses both Intrinsic and Extrinsic rewards .
“Our goal and what gets us excited is to try to make great products” said Sir
Jonathan Ive, the man attributed with the creation of iPad and iPhone. Apple
makes sure that all their employees are proud and in love with the brand so the
employees would feel inspired in delevoping Apple to be the best instead of
feeling forced.
Apple makes sure their employees are given jobs that are not easy, instead they
give them challenging ones. The employees are pushed to their maximum
potential so that they could improve and have better performance. The
employees will feel respected because they are believed that they have the
potential to achieve challenging task and thus strive for good performance
results.
When Apple hire excellent people, they will give them a part of the business
and make them run it by themselves as this allows them to make good
decisions.If they fail, they can learn from their mistakes and plan better
decisions. To achieve this, Apple makes sure that all the employees understand
and know everything about the business. Every Monday, Apple review how
much they sold for the week before. They review all their products that are
under development, products that they are having difficulties with and products
with demands greater than their production rate. They do this to make sure their
employees know how is their business doing and how to improve and makes
sure the employees are in the same page. The employees will feel respected and
wont feel left behind.
Extrinsic motivation uses external rewards such as money, gifts and recognition
to motivate the employees. Apple are able to attract and also gain loyalty from
their employees through these types of rewards.
For extrinsic motivations, Employees are given free iPod shuffle or iPhone and
are given product discounts. It is also cheaper to give the employees products
rather than a raise. Apple has give recognition bonus of 3 percent for the salary
of their executive despite not achieving their target on a project. Apple do this
because they assert their team efforts. Apple also motivates they worker by
giving life insurance and increase their length of vacations in 2014.
"When people use the right motives it creates far higher levels of customer
experience and bottom line performance,"
-THEORIES AT APPLE :
One of the process theories which are the “goal-setting theory” applies to the
firm, focuses on the motivational properties of task goals. Employees within the
company are highly motivated to attain task goals, which provide direction to
employees in their work. The proper framework & management of goals within
Apple helps clear out performance expectations in the organization. They
provide a base for behavioral self-management, which helps employees to
improve their performance and be motivated on their job.
Apple applies to the reinforcement theory of motivation because it focuses on
the external environment and the consequences it holds for the individual. The
organization mostly applies to the positive reinforcement strategy which
strengthens or increases the frequency of desirable behavior by making a
pleasant consequence contingent on it occurrence. Examples of positive
reinforcement at Apple include the rewards given by Jobs as mentioned above
(opening champagne, vacations, company parties). All employees are motivated
to do their best work to accomplish goals because of the rewards they can
receive.
Incentive compensation system is another method that Apple uses to motivate
employees. This includes bonus pay, which provides payments on
accomplishing the targets or goals given to specific employee during a
particular period. They also have an employee stock ownership plan as
mentioned earlier. The performance incentive and ownership’s share of one’s
employment is directly linked to each other. Employees who hold stock of the
company are self-motivated to work hard and perform better to raise the market
value of the organization.
Apple Inc. tries to keep a balance between both financial and non-financial
motivators. Although many a times its clearly indicated that Apple uses
monetary terms more for the welfare of the employee mainly because, then the
employee can use it the way he likes it. The organization also uses non-
monetary means to keep their employees pumped up on a frequent basis but
Apple obviously prefers to use financial incentive. This could be in wages/
salary form, bonus (executives paid 3-5% of their base salary), paid leave, to be
able to buy stocks at a cheaper value, different insurance policies, etc. All put in
a nutshell, Apple is definitely doing a lot for its employees as present, whether
at corporate level or for the workers, be it for full time employees or part time
workers. Before people did have complaints regarding the motivation, salary,
incentives, bonus, working hours, etc. but as time is passing by Apple is
learning the tricks and trade of it and also is making sure that it brings into
action the most suitable and the right motivational strategy for its employees to
perform better and make sure Apple stays real strong in the market. The
backbone for any company is its employees and so is for Apple. After the death
of Steve Jobs, people talked within themselves whether Cook will be able to fit
in Steve Jobs shoes or not? And all the critics were onto it in a flash. Keeping
all this in mind and the fact that many people believed that Apple may see a
downfall due to Jobs death, but from the time Cook has taken charge Apple
hasn’t looked back. In fact Tim Cook has 97% of Approval rating in comparison
to Steve Job’s 95% of Approval rating.
When we are analyzing Apple Inc., we found that the working environment in
Apple Inc. is less comfortable and relaxing compared to the insane perks that
are provided by Google. For instances, Google provides freedom in the working
area, free food, transportation and on-site care. However, Apple Inc.’
management paid less attention in the degree of comfort of their employees and
did not equip the company with advanced facilities. As a prove, an engineer in
Apple Inc. said that there were no gym or free lunches and a software engineer
complaint about the perks were incomparable with those provided at Facebook
or Google. (Fiegerman, 2012) This shows that, Apple Inc. is not providing
enough safety needs for the employees according to Maslow’s Hierarchy of
Needs as well as dissatisfaction of employees with hygiene factors for working
conditions in Herzberg’s Two-Factor Theory.
On the other hand, Apple Inc. created a culture of secrecy which served well in
many areas. However, the adoption and adaptation of the culture have its pros
and cons. The pros are there will be no leakages of company high-profile
information to the public and protects the company from the huge competition
as well as generate creativity. The disadvantages are tight controls of
information and keeping their privacy as well as confidential caused many
employees to feel stress in keeping company’s secrets. For example, Apple Inc.
strictly limits the number of employees with the privilege to know about their
new product. Apart from these employees, the rest of the employees will only
know about the new product when it is launched. (Lashinsky, 2012) There are
also some cases happened that many talented workers tend to leave the
company because they cannot adjust themselves to adapt a unique culture of the
company. We can conclude that this happens due to the employees’ social needs
and esteem needs in Maslow’s Hierarchy of Needs Theory are not being
fulfilled.
While according to Herzberg’s Two-Factor Theory, the employees are
dissatisfied with the hygiene factors for company’s policies and administration.
Besides, Apple Inc. is more focus on the hard work and commitment from the
employees rather than building the social relationships in the workplaces. The
employees who are working in Apple Inc. have to be task-oriented where they
have a strict deadline to accomplish their works. Apple Inc. is more focused on
expertise and individual performance as compared to the position and roles.
Besides, the employees are free to express their opinions and suggestions at
Apple Inc and they can also gather information from various sources for
decision making purpose. Nevertheless, the task-oriented culture is difficult to
achieve economies of scale. )\ So we conclude that, even though Apple Inc. is
successful in implementing the goal-setting theory and fulfilled the employees’
self-actualization needs but they ignore the social needs of employees which are
more important compared to self- actualization needs according to Maslow’s
Hierarchy of Needs. Furthermore, according to Herzberg’s Two-Factor Theory
the employees will have satisfaction with motivating factors for achievement as
well as creative and challenging work but they will have dissatisfaction with
hygiene factors for interpersonal relations and personal life.
Managers are asked to do different tasks other than their working area. Many of
the multinational firms are adopted cross functional activities in order make
their employees multitask oriented and to broaden up their abilities. Many
mangers in Apple Inc, stated that they have often asked to cross functional
activities which are out of their working area. For instance according to case
study, an input manager commented that he is involved in many of the cross
functional activities, one day he may asked to involve in industrial design,
another day he may asked to involve in the product design and software
engineering. These kind of cross functionality will make the employees to work
and enhance knowledge in different fields, also they may not be stick in position
they will always be creative and active. At the same time the organization will
allocate a smooth operation in regards human resource management, it may not
stuck if one or more employees are off or on holidays, someone can easily cover
up the situations.
Dysfunctional culture
There are assumptions many times that Apple Inc’s corporate culture moved to
dysfunctional. There are cases reported that many talented people they left the
company because they could not adjust and adopt the unique culture of the
company. According to the case study vice president is enjoying a greater power
in the company. Analysts pointed out that the company has less feeling towards
relationship with the employees but they strictly focused on the jobs. An
incident reported that vice president hired people and assigned a pay scale twice
than the senior employees working the firm.
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