Organizational Structure of Apple: Analysis and Evaluation Report

This report provides a detailed analysis of Apple's organizational structure, exploring the factors that have influenced its design and evolution. It begins by examining the causes that have shaped Apple's hierarchical structure, emphasizing the roles of size, technology, environment, and strategy, as well as the application of contingency theory. The report then describes the features of divisional, functional, and matrix structures within Apple, highlighting how each contributes to the company's operations. Furthermore, it investigates the dynamic processes that enable Apple managers to foster growth and evolution, focusing on the relationships between organizational culture, leadership, and innovation, including the application of Edgar Schein's theory and diffusion of innovation theory. The report concludes by summarizing the key findings and insights into Apple's organizational dynamics.

Organisation Theory
(Assessment 2)

TABLE OF CONTENTS
INTRODUCTION..........................................................................................................................3
1- Analysing the cause that have influenced the organizational structure of Apple...................3
2- Describing the features of divisional and functional and matrix structure of Apple..............4
3- What are the dynamic processes that helps Apple managers to shape their growth and
evolution. ....................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Organisation theory is related to defining company relationship, structure and design. These
also refers to the set of definitions and concepts that explain the behaviour of the individual
groups who interact and performs the activities to achieve the common goal. The present report
is based upon case study of apple it designs, develops and sells computer software, online
services and consumer electronics. The report will include various factors that have influenced
the composition and design of organisation that is related to size and environment. Further it will
also include dynamic process which will light upon the relationship of cultural, innovation and
leadership in organization and that shape their growth and evolution Along with this it will also
evaluate the features of divisional, functional and matrix structures of the apple.
1- Analysing the cause that have influenced the organizational structure of Apple
The organizational structure of Apple is hierarchical organizational structure which is the
traditional feature in business organization (Schlathölter and et.al, 2020). Apple organization
structures focuses on innovating the things in effective and rapid manner. They performs various
factors that are related to the success of the company that include online services, consumer
electronic industry and information technology. In Apple there are around 147000 employees
working with them at their workplace to achieve the goals. Size is the important factors that are
related to delegating work and responsibility to the employees under the company. All the
important decision related to the company are taken by the head or leaders who address need in
terms of functional areas. This structure helps in supporting strong management control in the
organization. Contingency theory says that there is no best way to lead a company or to make
decision and organize a corporation. For example as per the case Tim Cook's the leader of the
Apple has made some changes in their structure that will be comforatbel for their demand and
global markets.
The various factors that influence the organizational structure of Apple are:
 Size and technology: As per the contingency theory Apple is large organization which
have more rules and regulations, vertical levels, work specialization, etc. Size affects the
organizational structure as it determine how tasks will be divided into separate jobs.
Technology have influenced the business as it is major part that is used by organizations
in their daily routine. It encourages the company to make new roles as new technology

needs and demands for new tasks and skills from workers in workplace (Shao and et.al,
2018).
 Environment: By the contingency theory this factor have influenced the organizational
structure of apple in form of global competition, knowledge management, increase
demand from the customers and innovations by all competitors. This factors affect the
structure of the company because the general trends keeps on changing on the daily basis
to fulfil all the neds of the customers.
 Strategy: With the help of contingency theory are the strategy that affect the
organizational structure of Apple. If the company changes its strategy then they have to
change their structure also which will influence the organizational structure. Change in
strategy will result in involvement of terrific new products and innovative business
modals. Contingency theory is used by the Apple leaders that is flexible in adapting and
choosing strategies which will cause any situation any time at the time of running the
business.
2- Describing the features of divisional and functional and matrix structure of Apple
Divisional structure: In other word it is known as product structure. It is the type of structure in
which all groups under organization functions into a division (Pietrzak and et.al, 2020). All the
functions performed by the Apple are related to the marketing mix that manages the components
and specific product that are related to their target costumers. From the example of given case
corporate structure of the organization allows hardware team to collaborate with software team
in company. The structure carried by the Apple are related to maintaining the innovation process
that will support the development of the brand and their pricing strategy.
 It is useful for the business as failure of one division doesn't affect the other divisions.
 They are related to parallel divisions
 Apple is responsible for product, services location and customer group.
 All divisions function independently with its own resources.
 Divisional structure provide excellent coordination among the employees of the
company.
 This structure allows the top management to perform all the functions that are related to
controls and division of work.

 Structure also result in creating support function related to performing different
activities.
Functional structure: This is the structure in which organization is divided into smaller groups
based on different areas that are finance, IT and marketing. The major role in this structure by
the company is all the employee under the workplace are grouped according to their capabilities
and skills that have focus on common objective to achieve the organizational goals. It is used by
the company for increasing complexity of business operations. Group alliance are being creted
by the Apple among the employees that have similar interest of working.
 All the task in the organization are divided into different functions.
 All the functions under the company are performed by specialist (NARAYAN and
RAMU, 2018).
 Each functions works under the direction of leadership.
 In this structure all the workers are grouped according to thei skills and knowledge.
 In this functional structure all the employees are grouped according to their knowledge
which will help them in achieving high performance for the organization.
 By facilitating easy accountability of work that will decide what are the role and duty
given to its workers. The functional structure helps to reduce the communication between the departments.
Matrix structure: This type of structure there is more than one line for the employees to report
their managers. It means that the employees have more than one boss in company. Under this
structure organization have to work under two authorities that is functional manager flows
downward and project manager flows across that means side wards. In this structure organization
is divided into different function that is promotion, purchase, research and development etc.
 In this structure there are two major chains of command that is used for the employees
 The design of structure is not fixed.
 In this it includes two type of managers that are project and functional managers.
 The roles of managers under this structure are fluid not fixed.
 Employees under this structure are generally accountable to more than on boss (Larson
and Foropon, 2018).
 In this structure the project manager have fill authority over financial and physical
resources which is used by them for completing the project.

3- What are the dynamic processes that helps Apple managers to shape their growth and
evolution.
Dynamic process are the structure and parameters that can change any time between the
operation of the business.
Relationship between cultures of organization and their growth & shape: In organization
culture defines the proper way in which people have to behave in the company. It consists of
values, beliefs way of thinking, and experiences. Apple uses Edgar's schein's theory for
organizational culture for their growth and shape (Edgar Schein Model of Organization Culture,
2021). The basic assumption of this theory is shape, practices and behaviour which is the visible
part of culture. Organizational culture helps in supporting the companies' leadership. Cultural on
the other side means collection of expectations, practices and values. With the example of above
case study Apple organizational culture helps to protect the business from the corporate alliances
and the negative effects of employee track down various reward feature among workers that are
related to growth and development of the company or designing the product. By this culture the
employees know about their and the goals which will create a positivity among them. In the
organization culture are not adapted from the single day or from the past it is formed by the work
of workplace. In this theory there are three levels that are:
 Artifacts: It is related to the language that are the important culture of the organization
which includes various modes that are speaking, level and special expressions. Cultural
also includes technology which have major role in shaping the business in the form of
materials, operations and knowledge (McDougall, 2020). Values: This helps the employees to share opinion and classify the situations and actions
in desirable and undesirable manner. In this model cultural consist of the values in the
employees that are important to perform at the time of growth and development of the
business.
Relationship between leadership of organization and their growth & shape: Leadership is the
important function which is used by organization to achieve goals of business and helps to
enhance productivity. Ledger put their best efforts for the growth and shape of organization.
Apple uses autocratic leadership which helps business to face any situation that are related to
change and crisis. All the employees of Apple complete their tasks on time with full efforts
when they receive the order or information from their leaders. By using this leadership style the

leaders of Apple can take quick decision for the tasks that are performed by the employees in
organization. Leaders shape the organization in their action and works every day to achieve the
targets of company. From the example of above case study Tim Cook's leadership company have
changed its corporate culture to less combative one and more sociable. It helps in improving the
productiveness which is useful for development as leaders are able to deliver all information
within organization. Leaders make the strategy or takes the decisions according to the operation
which will help them to increase the growth and development of the business and which can
shape the business in good way. The various function that are performed by leaders like
guidance, motivation, team leading, group discussion and direction will help in growth and
shaping the organization (Gunasekaran and et.al, 2018).
Relationship between innovation of organization and their growth & shape: For growth and
shaping of the organization apple uses diffusion of innovation theory (Diffusion of Innovation
Theory, 2019). The motive of this theory is that it explains why new ideas and theories are
adopted for growth of business. Such that in Apple the leaders know how to motivate their
employees to perform the tasks ij an innovative manner to achieve the targets of the company
This is the best way that is used by the organization in promoting their new product. Different
strategies that are used to appeal to various adopter categories are:
Innovators: They play an important role at the time of innovation because they want to try what
is the new thing and their reviews will help in growth and development. They are the people who
take the risk and first person to develop the ideas.
Early adapters: This are the people who performs as opinion leader. They change the
opportunities and enjoy leadership role. They know what are the changes needed for the
company for the growth and development by adopting new ideas and strategies.
Early majority: They are the people who see how innovation works and before they want to try
it. This is done mainly by the leaders (Edeh and et.al, 2019).
Late majority: In this the people only adopt the innovation when it is tried by the majority of
people and they have given positive reviews about that product.
CONCLUSION
By summing up the report it can be concluded that Apple is multinational company that deals in
designing, selling and developing consumer electronics, online services and computer software.
The above study reflected that size environment and strategy are the factors that determinant the

structure of Apple. By the evaluation of above report characteristics of divisional it assists
employee to coordinate effectively between the departments. Further, in the functional structure
all the department under the company are performed by specialist and matrix in this there are
usually two separate chains of command for the employees structure of Apple. From above
analysis it has been identified that dynamic process has contributed to shape their growth and
evolution.

REFERENCES
Books and Journals
Edeh, F. O., and et.al, 2019. Organisational culture dimensions and employee performance in
Nigerian fast-food restaurants. GIS Business. 14(6). pp.1070-1096.
Gunasekaran, A., and et.al, 2018. Bridging humanitarian operations management and
organisational theory.
Larson, P. D. and Foropon, C., 2018. Process improvement in humanitarian operations: an
organisational theory perspective. International Journal of Production Research. 56(21).
pp.6828-6841.
McDougall, M., 2020. Organisational culture in sport psychology: myths, deficiencies and the
broadening of cultural horizons (Doctoral dissertation, Liverpool John Moores University).
NARAYAN, S. V. and RAMU, M., 2018. A STUDY ON ORGANISATION CULTURE OF
APPLE COMPANY. International Journal of Pure and Applied Mathematics. 120(5).
pp.3797-3808.
Pietrzak, M., and et.al, 2020. Information Asymmetry as a Barrier in Upgrading the Position of
Local Producers in the Global Value Chain—Evidence from the Apple Sector in
Poland. Sustainability. 12(19). p.7857.
Schlathölter, I., and et.al, 2020. A multi omics approach to detect unintended effects of a
cisgenic modification in apple. In 10th Rosaceae Genomics Conference (RGC10 2020)
(virtual).
Shao, Y., and et.al, 2018. Ambidextrous activities of internet-based entrepreneurships in Apple
App Store: two sides of user feedback. Technology Analysis & Strategic
Management. 30(10). pp.1210-1225.
Online
Diffusion of Innovation Theory. 2019. [Online]. Available through:
<https://sphweb.bumc.bu.edu/otlt/mph-modules/sb/behavioralchangetheories/
behavioralchangetheories4.html>
Edgar Schein Model of Organization Culture. 2021. [Online]. Available through:
<https://www.managementstudyguide.com/edgar-schein-model.htm>