Managing Organizational Structure at Apple Inc

1521 WordsJul 10, 20187 Pages
Introduction Apple Inc. was established by Steve Jobs and Steve Wozniak on April 1, 1976 as a computer designer, developer and seller company. However, the company shifted its focus from only personal computer to include other consumer electronics such as portable media player and mobile phone in 2007. Apple Inc becomes one of the most popular makers in its field since it seems that its popularity has increased according to a report on www.statista.com that Apple Inc’s products sales was generally increasing throughout the first quarter of 2006 to the first quarter of 2014. On the one hand, it has increased its revenue from about 14 billion US dollars to more than 170 billion US dollars in 2013. All in all, the company is highly…show more content…
Organisational design decisions Mechanistic or organic organisation Apple Inc can be considered to be more mechanistic organisation than organic one. It is high specialisation; employees are working based on their skills. The company has quite rigid departmentalisation as it consists of 15 different departments: finance, legal, software engineering, marketing, retail and online stores, hardware engineering, industrial design and human interface, internet software and maps, operations, special projects, sale and service, Apple university, human resources, international sales and North American sales. And these departments have over 40 sections in total under their controls. Apple Inc is managed through chain of command, information flow from the top to bottom line of command. This company is fairly high formalisation with some strict rules and procedures. It is also centralised company as most decisions will be made from upper level management. However, the company has wide span of control which is a characteristic of organic organisation as there are high number of employees under managers in the chain of command, over 80,000 worldwide employees are in charged by 15 departments, over 40 sections. As a result, Apple Inc will be more rigid and tightly controlled. Contingency variable 1. Strategy Three dimension: - Innovation As it is mentioned on www.businessinsider.com.au, when
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