Management and Operations | Apple

Management and Operation

OPERATION 1
Contents
Introduction......................................................................................................................................2
Description of Organization............................................................................................................2
Define Management.........................................................................................................................2
Management Theories.....................................................................................................................3
Management Functions, Roles and Resources................................................................................5
Compare and contrast Managers and Leaders.................................................................................6
Leadership theory and their application..........................................................................................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

OPERATION 2
Introduction
Management is the procedure of dealing or controlling things or people in an appropriate
manner. Management plays the important role in the organization in terms of organizing the
efforts of its employees to attain the objective. In this paper, the discussion is based on the topic
of “Management”. In this paper, Apple has been taken into consideration to evaluate its
management procedure. The management theories and functions of Apple will be discussed in
the report.
Description of Organization
Apple Inc. is a multinational company of technology of America which headquarters is in
Cupertino, California. The corporation designs, grows and sell computer software, consumer
electronics and offers the online services to consumers for their facilities. It is recognized as one
of the big four technology companies like Microsoft, Google, and Amazon. The company’s
hardware product includes iPhone smartphone, AirPods wireless earbuds, Mac personal
computer, iPod portable media player, Apple TV digital media players and many other items
(Apple, 2018).
Define Management
Management is the administration of the firm, whether it is a business, a not-for-profit firm or
government body. Basically, the management of the company handles or maintains all the
activities that helps to operate the business smoothly. There are many functions of management
which makes its important in the organization such as organizing, planning, directing and
controlling. Harnessing physical, financial, human and informational resources are the

OPERATION 3
application of the principles which efficiently and effectively helps to attain the objectives of the
organization goals.
Management Theories
There are various management theories that an organization implemented to perform their duties
effectively such as MBO, Max Webber, F.W Taylor, Henri Fayol and many others.
Classical Theory: Classical theory is the traditional theory which mainly focuses is on the
organization instead of employees working (Sivaramakrishnan, 2018).
F.W. Taylor theory is also known as the classical theory. As per this theory, the employer has to
gives the rewards on productivity instead of scolding employees for every minor mistake
(Management Study, 2019). There are four principles of this theory which is directly design the
company structure in order to helps the employees to perform well in their duties and
responsibilities (Busines, 2018). It is observed that Apple provides the training to employees
instead of leaving them to train themselves. The Apple trains the employees as per the five words
that directly walk towards the customer satisfaction (Gallo, 2018).
Max Webber theory believes in bureaucracy theory which states the most efficient way to set the
organization. Organizational structure of Apple is highly contributed in effective and rapid
innovation which is a major success factor for the business. It shows that Apple design its
organization structure appropriately in order to operate the business smoothly. The company also
represents the bureaucracy theory of Max Webber.
Behavioral Theory: Behavioral theory is mainly focuses on behavior of employees.

OPERATION 4
Elton Mayo describe the employees are highly motivated far more by relation factors instead of
monetary factors and environmental factors such as humidity, lightening and many other
environmental issues. As per the Angela Ahrendts, Apple’s Senior Vice-President, Apple unite
and collaborate the workforce. The company treated all the employees same those are especially
on same position. According to her, they do not see them as retail employees; they see them as
the executive who are touching the consumers with the company products which is difficult for it
to build. As the company build the relations with the employees due to which it is easily operate
the business successful in long terms.
Henri Fayol is a behavior theory as it simply states that how management interacts with their
personnel. The company has to interrelate with the workers in five basic techniques in order to
regulate and plan production. In terms of operation, it is observed that the company has to
provide the rewards and appreciation so that they can easily interact with the management. Apple
is a brand that provides the rewards and appreciation to employees.
Contemporary Theory: Contemporary theory states the organization structure is based on
internal and external situation. The best way to lead the company or to make the decision is
totally relies on the internal and external factors. Motivation is also a factor of this theory that the
organization has to follow to manage the team effectively.
McGregor’s Theory X and Y is a theory of human work motivation and management. According
to the theory X, the managers have to motivate the employees by providing them rewards and
promoted in terms of position. According to the theory Y, the managers have an optimistic
thought towards their people due to which they follow the decentralized technique to motivate
them (Mind Tools, 2019). As per the above discussion, it is observed that the company always

OPERATION 5
treats their employees as the executive instead of workers that directly helps to motivate them to
perform their performances effectively.
Maslow’s Hierarchy of Needs is a motivational theory in terms of psychology. As per this
theory, there are five-tier model of human needs which is shown in the hierarchical levels. Apple
is also one of the companies that implement the theory of Maslow’s Hierarchy of Needs. It
satisfied all the needs and wants of employees in order to encourage them for the work. The
company always aimed to produce self-actualization. The company builds all of the stages of
Maslow’s hierarchy and creates an interactive product or service for each stage, removing cash
all the way down. In terms of fulfilling the basic needs, there are several expenses that the
company fulfills such as cab expenses, internet expenses, health expenses and many other daily
routine transactions (Meyer, 2015).
Management Functions, Roles and Resources
There are various functions of management like planning, directing, staffing, leading, organizing,
and controlling an organization. Apple divides the work of top management according to the
position and their duties and responsibilities such as market leader, top manager, store leader,
first line managers, and manager. The company implements the same hierarchy in terms of
management and these also have different duties and responsibilities.

OPERATION 6
(Source: Investor Relations, 2019)
The roles and responsibilities of the management states that they follow perform the services as
per the management functions such as top manager perform the planning and directing function,
first line manager and store leader also implement the controlling functions to control the duties
in order to provide the quality of services to consumers.
Compare and contrast Managers and Leaders

OPERATION 7
(Source: Investor Relations, 2019)
Tim cook is the CEO of Apple who plays the role of a leader as he creates the vision. Apart from
it, the other members of the organization those are considered as the manager they create the
goals. It states the difference between manager and a leader. Tim Cook has the ability to take
their own decision but manager or the other executive members of the company have to make
their decision as per the goals set by Tim cook (Arruda, 2016).
Leadership theory and their application
Democratic Leadership Theory gives the opportunity cost to members in the decision making
process (Parés, Ospina, and Subirats, 2017). As discussed above, Apple implements the

OPERATION 8
decentralized business structure in which the supervisors and managers have the authority to take
decision. It is beneficial for the company as the supervisor can control the conflicts and quality in
urgent cases by taking decision.
Authoritarian Leadership Theory is leadership theory in which the leader takes the decision
and creates goals that the team members have to follow (Shen, Chou, and Schaubroeck, 2019).
Tim Cook as the CEO of the company has the authority to take decision while setting goals and
targets of the organization.
Lassez Faire Leadership Theory defines that the leader has to provide the tools and resources
needed to group so that they solve their own problems (Cherry, 2019). This leadership theory is
implemented when the members face some personal issues or environmental related issues in
that case; they can change their groups or seats of work (Meyer, 2019).
Hersey and Blanchard’s Situational Theory believes in leader decision making skills rather
than a group approach. In Apple, Tim Cook is the leader who takes decision regarding the
mission and vision of the company. It states the individualistic approach in making decision
instead of group approach.
Transformational and Transactional Theory are the opposite leadership styles as the
transaction leader focus on supervision, organization and group performance and
transformational leadership theory focuses on changes within the business (Ingram, 2019). It is
observed that Apple majorly implements the transactional leadership approach as it mainly
focuses on supervision and group performance.

OPERATION 9
Conclusion
At the end of the paper, it is concluded that Apple is effectively operate the business by
implementing the management theories those are design by the famous personalities. Apart from
it, the management of the company also performs the different functions as per their duties due
to which it operate smoothly. It is also observed that management of the company implements
the leadership theory that helps to motivate the members to perform.

OPERATION 10
References
Apple. (2018) We bring amazing people together to make amazing things happen. Available
From: https://www.apple.com/jobs/us/about.html [Accessed 9/3/2020].
Arruda, W. (2016) 9 Differences Between Being A Leader And A Manager. Available From:
https://www.forbes.com/sites/williamarruda/2016/11/15/9-differences-between-being-a-leader-
and-a-manager/#5a754bef4609 [Accessed 9/3/2020].
Business. (2018) Management Theory of Frederick Taylor. Available From:
https://www.business.com/articles/management-theory-of-frederick-taylor/ [Accessed 9/3/2020].
Cherry, K. (2019) Pros and Cons of Laissez-Faire Leadership. Available From:
https://www.verywellmind.com/what-is-laissez-faire-leadership-2795316 [Accessed 9/3/2020].
Gallo, C. (2018) Apple's Secret Employee Training Manual Reinvents Customer Service in Seven
Ways. Available From: https://www.forbes.com/sites/carminegallo/2012/08/30/apples-secret-
employee-training-manual-reinvents-customer-service-in-seven-ways/#3d33414864fd [Accessed
9/3/2020].
Ingram, D. (2019) Transformational Leadership Vs. Transactional Leadership Definition.
Available From: https://smallbusiness.chron.com/transformational-leadership-vs-transactional-
leadership-definition-13834.html [Accessed 9/3/2020].
Investor Relations. (2019) Executive Profiles. Available From:
https://investor.apple.com/leadership-and-governance/default.aspx [Accessed 9/3/2020].

OPERATION 11
Management Study. (2019) Contribution by F.W. Taylor – Scientific Management. Available
From: https://www.managementstudyhq.com/taylor-principles-of-scientific-management.html
[Accessed 9/3/2020].
Meyer, G. (2015) Apple is Building Maslow’s Hierarchy of Needs. Available From:
https://medium.com/information-maven/apple-is-building-maslow-s-hierarchy-of-needs-
f03d7e348201 [Accessed 9/3/2020].
Meyer, P. (2019) Apple Inc.’s Organizational Structure & Its Characteristics (An Analysis).
Available From: http://panmore.com/apple-inc-organizational-structure-features-pros-cons
Mind Tools. (2019) Theory X and Theory Y. Available From:
https://www.mindtools.com/pages/article/newLDR_74.htm [Accessed 9/3/2020].
Parés, M., Ospina, S.M. and Subirats, J. (2017) Democratic leadership: the work of leadership
for social change. In Social Innovation and Democratic Leadership. Edward Elgar Publishing.
Shen, Y., Chou, W.J. and Schaubroeck, J.M. (2019) The roles of relational identification and
workgroup cultural values in linking authoritarian leadership to employee performance.
European Journal of Work and Organizational Psychology, 28(4), pp.498-509.
Sivaramakrishnan, R. (2018) Classical theory of arithmetic functions. Routledge.