Analysis of Apple Inc.'s HRM Strategies and Organizational Behavior

This report provides a comprehensive analysis of Apple Inc.'s Human Resource Management (HRM) strategies, examining key aspects such as job satisfaction, reward systems, group cohesiveness, and leadership roles. The research includes primary data from interviews with managers and employees, alongside secondary research from corporate websites and academic journals. The report presents a SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats. The analysis delves into each of the four key organizational behavior concepts, offering insights into the current practices at Apple Inc. and proposing alternative strategies to address potential issues. The report concludes with recommendations for improving employee satisfaction, particularly addressing concerns about extended working hours, and enhancing the overall effectiveness of HRM practices within the company. The research emphasizes the importance of aligning HRM policies with organizational vision and values for long-term sustainability.

ORGANIZATIONAL BEHAVIOR

Table of Contents
1.0 Executive Summary.........................................................................................................................3
2.0 Introduction.....................................................................................................................................3
3.0 Organizational Overview.................................................................................................................3
4.0 Research Questions..........................................................................................................................5
5.0 Interview and Background...............................................................................................................5
6.0 SWOT Analysis...............................................................................................................................6
7.0 Analysis and Discussion..................................................................................................................6
7.1 OB Concept One: Job Satisfaction...............................................................................................7
7.1.1 Analysis................................................................................................................................7
7.1.2 Alternative............................................................................................................................8
7.2 OB Concept Two: Reward System..............................................................................................8
7.2.1 Analysis................................................................................................................................8
7.2.2. Alternative...........................................................................................................................9
7.3 OB Concept Three: Group Cohesiveness.....................................................................................9
7.3.1 Analysis................................................................................................................................9
7.3.2 Alternative..........................................................................................................................11
7.4 OB Concept Four: Leadership Role...........................................................................................11
7.4.1 Analysis..............................................................................................................................11
7.4.2 Alternative..........................................................................................................................11
8.0 Recommendation...........................................................................................................................12
9.0 Conclusion.....................................................................................................................................12
References...........................................................................................................................................13
Appendices..........................................................................................................................................15
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1.0 Executive Summary
The paper provides a detailed analysis of HRM strategies of Apple Inc, and its various loopholes that
the management may need to consider while formulating future strategies in the HR horizon. The
researcher has conducted mixed research in the paper where 3 managers and 6 employees of the
company have been interviewed based on the close-ended questionnaire. In addition, the researcher
conducted secondary research through corporate websites, journal articles, and web references to
identify the relevant data. Based on the analysis, finally, the recommendations have been provided
with respect to the stretched working hours of the company which may be considered to be one of the
biggest flaws in the HR policy of the company, as alleged by many researchers' time to time.
2.0 Introduction
Analysis of the Human Resource Management (HRM) strategy of a business is one of the most
significant aspects in the corporate study as the process of HRM involves one of the most Critical
Success Factors (CSFs) of a business organization that is its human resource or manpower. An
efficiently managed workforce may contribute towards the operational excellence of a firm and
therefore HR managers may need to prioritize efficient strategy making and policy formulations with
respect to the workforce of the company (Mogensen, 2018). The instant paper delves into such an
analysis of few key aspects of human resource management of Apple Inc., the US-based mobile and
telecommunication company known for its excellent products, value offering and a large number of
satisfied customer bases across the world. In the report, the researcher has identified four key aspects
of HRM strategy of the company and inherent limitations of the same. Simultaneously the respective
alternatives have also been provided in the backdrop of the relevant theoretical framework. Based on
the discussion, finally, recommendations have been made to the management of the company for the
long-term sustainability of the business.
3.0 Organizational Overview
 Name of the company – Apple Inc (hereinafter may be referred to as “Apple” or the
company or the business, as the case may be).
 Activity – The company is involved in designing and manufacturing and distribution of
smartphones, computers, related accessories and also a number of related services such as
digital content, iCloud, licensing, etc. Established in the year 1977, the US-based company
has a wide world presence across several countries in the globe with a considerably growing
number of satisfied customer bases for several years since its inception ("Annual Report
2019", 2020).
 Products and Services – The company is involved in the manufacturing and distribution of
products like iPhone, Mac, iPad, Wearables & Home Accessories like Apple TV, Apple
Watch, etc. On the other hand, services include digital content stores (Apple Store), streaming
services, Apple Care, iCloud, Licensing, etc.
 Major Country of Operation – US, Canada, Europe and across the world as well
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 Customers – The company has an installed base of the device to the extent of 1.4 billion for
the year 2019 and out the same, 900 million customers solely use iPhones only (Clover,
2019).
 Revenue Growth and Financial Performance – The company has been growing
significantly for years in terms of revenue as well as net profit. Apple is known for its cash
richness and the overall business has been running under the efficient leadership of Tim
Cook, Chief Executive Officer (CEO), focusing on shareholders' satisfaction through
dividends for years.
Figure 1: Revenue and Key Performance Indicators of Apple for 2015-2019
(Source: "Annual Report 2019", 2020)
 Stock Performance – The stock of the company has been listed in several stock exchanges
across the world including renowned indices like NASDAQ etc. The figure below shows the
stock price performance for the last several years in NASDAQ and the figure depicts a
growing stock depicting a positive and consistent performance of the company.
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Figure 2: Stock Performance of Apple
(Source: "Apple - Stock Price", 2020)
 Employees – An insight into the annual report for the year ended 2019 may reveal that the
company has 137,000 Full-Time Equivalent (FTEs) employees as of 28th September 2019
("Annual Report 2019", 2020). However, the employee base of the company has been
consistently growing which may be shown in the figure below.
Figure 3: Number of employees (FTEs) in Apple
(Source: "Apple: number of employees 2018 | Statista", 2020)
 Corporate Vision and Values – The company inculcates certain values towards the
environment, suppliers, employees, and customers. The inclusion and diversity policy, for
example, has been designed towards employees' values and suppliers; the responsibility
manual has been designed for maintaining a suppliers' code of conduct and enriched value
culture for the suppliers, etc. ("Apple - Apple Values", 2020).
4.0 Research Questions
The research question will be as below:
"How the HR manager of Apple may reduce employee dissatisfaction prevalent in the
business?"
5.0 Interview and Background
 Primary research has been conducted and departmental managers, as well as employees, have
been interviewed.
 3 managers and 6 employees have been interviewed.
 The interview has been performed through a questionnaire of close-ended questions. 5
questions have been asked to managers to 10 questions that have been asked to the
employees.
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 The background of the research revolves around the analysis of information and data as found
from the interview and questionnaire survey as well as the secondary researches so
conducted.
6.0 SWOT Analysis
STRENGTHS WEAKNESSES
The company’s one of the first and foremost
strength may be conceived to be its widely
known brand value. The company ranks in the
top list of worlds’ one of the most valued
brands for several years.
The company has its widespread presence
across several countries in the world
successfully for several years (Jing, 2018)
The company has been using the latest
technology in its offering and therefore may
be considered to be updated with the changes
in the technological market at any time.
The company has been able to maintain a
sufficient profit margin and pay a cash
dividend to the stockholders for several years
("SWOT Analysis of Apple", 2020).
The major weakness of the company is the
fact that the products are highly-priced and
therefore customers for a premium
segment may only but the same.
The company does not rely much on
promotion and advertisement and rather
keep faith in the customer's expectations
and demands only.
The company maintains a limited
distribution network through which the
products are distributed.
The company has been planning to enter
into the non-competent market such as
digital content where players like Netflix
have been dominating the market for years
("SWOT Analysis of Apple", 2020).
OPPORTUNITIES THREATS
The customers’ growth of the company has
been consistent for several years
The leadership of the business has been
efficient and known worldwide for their
disruptive and charismatic style of controlling
and running the business.
The company may have the opportunity to
increase its distribution network later on.
The company has not yet been in the field of
“green technology” and therefore opportunity
lies in the given area to explore as well
("SWOT Analysis of Apple", 2020).
The market the company operates in is
highly competitive with a cut-throat price
war and extensive presence of product
differentiation strategy.
The sudden and recent outbreak of
coronavirus and its impact on China may
adversely affect the supply chain network
of the company to a certain extent.
The company has been facing several
lawsuits filed by customers from tot time
which may prove to be costly in the court
order turns in favor of customers ("SWOT
Analysis of Apple", 2020).
7.0 Analysis and Discussion
Four key concepts may be as below:
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 Job satisfaction
 Reward system
 Group cohesiveness and
 Leadership roles
Reference to the corporate website for "inclusion and diversity policy" will be made. Also, secondary
research will be conducted from different websites and research journals, etc.
7.1 OB Concept One: Job Satisfaction
7.1.1 Analysis
Apple has been considered to be one of the best places to work for several years. As shown in the
survey of various researchers and publication houses, the company's management is extremely
focused on human resource and the HR policy sets are aligned to the organizational vision. The
interview data also suggests that the employees are satisfied and motivated to the extent possible
through the company’s various employee engagement strategy and it has often been observed that
employees work freely and bring about innovation and change in the work process. There has been a
fair degree of control under a given hierarchy structure of the business; however, there are “pod”
concepts in which employees may share disruptive ideas on new techniques to the authority for their
approval and subsequent implementation (Arocha, 2017). In addition, these "pods" may allow the
employees to group informally for a business meeting as well. In other words, the management may
promote innovation and employee participation strategically through efficient workplace designing
which, in turn, affects employee morale to a significant extent. As a result, the workplace and work
culture of Apple may be considered to be employee-friendly (Mollah, 2015).
Figure 4: Apple Ratings and Trends in Glassdoor by Employees
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(Source: "Apple Reviews", 2020)
The survey of 17,146 employees on the Glassdoor website shows that the average and overall rating
of the company as an employee is almost 4.8 depicting a high degree of job satisfaction by the
employees. The figure herein shows the rating given in the context of work-life balance, management
control, and compensation as well and the same have been increasing over the years establishing the
company's consistency in maintaining an efficient work-life balance and employee motivation level
within the business.
7.1.2 Alternative
The allegations that Apple’s employees are pressurized to work in stretched working hours may
adversely affect job satisfaction as may be exhibited through various salary reviews and job review
websites like Glassdoor. It may also be observed that the company's employees are suffering from
strict regulation and control imposed by the higher authority. The company maintains a strict code of
conduct with respect to workplace privacy and anyone who breaks it gets fired. It is needless to
mention that such phenomena may need to be construed to be adversely effective on the employee
morale level. In addition, it may also be observed that Apple maintains a strict performance appraisal
policy that may not be in line with employees’ individual needs and preferences at times and therefore
grievances have been revised a number of times against the management of the company. Therefore,
it may be recommended that the company should structure its HR policy effectively so that there is no
such grievance raised by the employees with respect to strict work culture and stretched working
hours ("We don't waste time with the dumb.", 2020).
7.2 OB Concept Two: Reward System
7.2.1 Analysis
In terms of reward system, it is stated that the company has been known as a good paymaster among
the employee fraternity. One of the principal objectives of the business is to attract, retain and develop
a pull of talented resources across the industry through developing a structured performance appraisal
process. The company’s corporate website may reveal that the company offers a competitive salary
and efficiently designed compensation package to meet the financial need up employees. As per the
media report, the last year 2019, the company provided restricted stick units option plan to more than
100,000 employees across the world ("Employee Rewards: who would you rather work for – Amazon
or Apple? - Employee Benefits", 2019).
Also, the workplace is congenial to the employee providing refreshment facility and one of such
facilities is “Caffe Macs”, an in-house cafeteria maintained by the company offering a variety of
foods and snacks and drinks in the campus ("Dining and Food Services - Jobs at Apple", 2020).
In terms of job security, it may be stated that the company’s compensation package comes with health
and life insurance and long-term car insurance as well. Such a security offering is of utmost need for a
compensation package to be market competitive and efficient for employees. The interview data
shows that there have been various schemes for employee assistance programs; for example, flexible
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working hours are provided for sick people for pregnant staff. Also, the company promotes a sense of
belonging within the work culture and employees are provided the opportunity to provide solutions
for innovative ideas by participating in the management decision making process to an extent. Also,
the company provides personal and family counseling as well and the employees feel inclined towards
corporate management and operational excellence increases as a result (Thao & Tsanthaiwo, 2017).
The aforesaid discussion reveals that in terms of Maslow’s need hierarchy model, it may be stated that
the company provides solutions for not only the psychological needs of the employees but also for the
safety and social needs of the staff. Most importantly, in the workplace, there is scope for generating
innovative ideas and thereby attain encouragement that, in turn, may develop the self-esteem of the
employees as well.
Figure 5: Maslow’s Need Hierarchy Model
(Source: "Maslow's Hierarchy of Needs Explained", 2020)
7.2.2. Alternative
However, taking reference from the previous point, it may be stated that the company provides scope
for the employees to participate in the management decision-making process. However, the corporate
responsibility framework of the business does not exhibit initiative by the management to develop
entrepreneurship through structured planning. There may have been initiatives by the management to
inculcate entrepreneurship among the employees so that the future leaders may be nourished and
cultivated through a sustainable workplace policy (Mollah, 2015).
7.3 OB Concept Three: Group Cohesiveness
7.3.1 Analysis
The company maintains an efficient work culture in the operation as may be explained and
substantiated from its diversity policy manual. It has been observed that almost 53% of the new hires
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in US territory are from historically underrepresented groups such as Black, Hispanic, Native
American and other Pacific Islanders, etc. as shown herein.
Figure 6: Underrepresented minorities in the U.S
(Source: "Inclusion & Diversity", 2020)
Inculcating a group cohesiveness may require consideration of the social aspect and a people-centric
attitude by the HR department of the company and it is needless to mention that the company’s
diversity policy is efficiently designed to motivate the employees across the department of the
company. In terms of being an equal opportunity employer, it has been observed that the women
representation has been fairly on the higher side of Apple. Also, in leadership, 45% of leaders are
women under 30. The last few years data shows that women represent an average one-third of the
entire employee segment in the company as may be shown in the graph below.
Figure 7: Women at Apple
(Source: "Inclusion & Diversity", 2020)
In the context of reward system as well, it may also be interlinked to the gender pay score and it
shows that in the last year, the company received at the top rank in gender pay scorecard in the
technology industry by Arjuna Capital ("Inclusion & Diversity", 2020).
The company is considered to be a multigenerational company with employees aging from 18 to 87.
Finally, it may also be stated that in terms of human rights corporate equality index, the company
scores perfect for the last 16 years and all these factors cumulatively contribute towards an efficient
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group culture and cohesiveness within the workplace of the business ("Inclusion & Diversity", 2020).
The interview data also substantiates for group cohesiveness within the workplace.
7.3.2 Alternative
The company has been fairly able to devise a workplace anti-harassment policy in place. However,
there have been certain allegations that the male-domination continues and the HR department may
not be proactive in handling such cases (Fried, 2016). As a result, it should be recommended that the
company should devise an efficient anti-harassment cell supported by the relevant workplace policy
so that the harasser should be identified on an immediate basis and should be punished irrespective of
gender, especially in the context of both “MeToo” as well as “MenToo” movement (Fried, 2016).
7.4 OB Concept Four: Leadership Role
7.4.1 Analysis
The company has been fairly known for its leadership under Tim Cook, the Chief Executive Officer
(CEO) of the brand. The review shows that the Tim Cook has been known as world's one of the most
influential leaders for last several years (Mishra, 2017). As per Glassdoor, Tim Cook was in the list of
world's highest-rated CEOs from the year 2012 and this has been the seven consecutive years where
Cook has been able to retain the position within top 100 leaders across the world with an approval
rating of almost 92% in the year 2019 (Lovejoy, 2019).
In this context, it may be noted that the company has been ranked as one of the best places to work in
the world as an employer and the same may primarily be attributable to the market disruptive
leadership of Tim Cook. The information gathers from the interview denotes that the company has
been efficiently maintaining strong corporate governance within its operation through several
governance policies including suppliers related policy, employee-related policy, environmental
manual, risk management manual, audit committee and several other committees dedicated to
maintaining an efficient operational flow within the business (Kahney, 2019). In terms of leadership
style, it may be stated that the Apple founder and earlier CEO Steve Jobs was known for his highly
autocratic leadership style as contrary to the present CEO Tim Cook's democratic leadership style
(Perry, 2016). Under Tim Cook's leadership, the employees may feel the sense of inclusiveness in the
workplace which enables them to get motivated and contribute towards innovative ideas that may, in
turn, enable the management in the decision-making process (Lovejoy, 2019).
7.4.2 Alternative
Though Tim Cook has been widely known for his charismatic leadership style, the same has been
criticized by several types of research as well at times. Some of the researchers have argued that
leaders at Apple generally tend to set a high standard of financial performance which may, at times,
not be able to meet (De Ruiter, Schaveling, Ciulla & Nijhof, (2018). In other words, the performance
metrics may not be practically feasible to achieve due to their high standards as the same may cause
work pressure. In this context, it may be stated that the HR department of the company should
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carefully review such allegations and revisit such performance metrics if needed, department wise
(Mollah, 2015).
8.0 Recommendation
Out of the aforesaid recommendations, it is stated that stretched working hours and allegations around
work-life imbalance are one of the most crucial allegations for the HR department of the company. In
this context, the leaders should consider the fact that targets are to be set in such a manner that the
same is achievable by all. There may be instances where an underperformer may not be able to
achieve the same and therefore effort should be undertaken to develop the persons' ability. It may also
be observed that the allegation for Apple's stretched working hours are not new and therefore the
company should prioritize the same in their strategic framework while designing business policy for
the future.
9.0 Conclusion
On the basis of the above analysis and evaluation, it may be finally concluded that strategic HRM
requires consideration of several business-related factors and in the case of Apple, the management
has been able to design the same for years. Though there have been certain allegations with respect to
HR policies of the company, the overview shows that the company has been performing reasonably
well in the HR segment as well as may be corroborated from the job review websites and other
stakeholders' version in this regard. Finally, it may be concluded that a well-designed HR policy
supported by efficient leadership will significantly contribute towards the attainment of sustainability
goals of the company in the long-run in the most time and cost-efficient manner (Uysal, 2019).
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References
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Appendices
Sl. No. Questions for Managers Yes No
1
Do you perceive any challenge in managing subordinates in terms
of their grievances? 1 2
2 Do you think that you enjoy working at Apple? 3 0
3
Do you perceive any resistance from employees for implementing
something new in the operation or workplace? 1 2
4 Do you think that your teams' group cohesiveness is high? 3 0
5
Do you find it challenging to conduct a performance appraisal
process at your event with your subordinates? 1 2
Sl. No. Questions for Employees Yes No
1 Do you enjoy working at Apple? 5 1
2 Do you consider Apple as an efficient employer? 4 2
3 Do you subscribe to the company's HR policy as a whole? 5 1
4 Do you prefer recommending your friends to work at Apple? 3 3
5 Do you consider CEO Tim Cook as an able and efficient leader? 4 2
6 Do you get the facility of working from home if needed? 6 0
7 Do you get the scope for refreshment at the workplace? 6 0
8
Do you think that the leave policy of the company has been
employee-friendly? 5 1
9 Do you think your immediate boss is compassionate towards you? 3 3
10 Does working at Apple hamper your personal life? 3 3
3 Managers and 6 Employees from Apple have been interviewed
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