Apple: Organizational Culture, Structure, and Leadership

Apple’s Organizational Culture: Introduction

Apple is one of the most famous companies that revolutionised the consumer electronics industry. After the death of its charismatic leader, Steve Jobs, Apple could see really dark times, and many people did not believe that Tim Cook, with his quiet and modest character, could ensure the further development of the organisation (Lashinsky 2015). Nevertheless, the corporation displays positive dynamics and increases its revenue. Apple is characterised by a strong organisational culture and quite a rigid hierarchical structure (Schermerhorn et al., 2019). One of the most considerable changes the company has undergone during the past years is associated with the democratic leadership style of its CEO. Collaboration and communication are seen as the major approaches to achieve established goals and improve the company’s performance.

However, the organisation still lacks flexibility, which is one of the most influential obstacles to innovation. This paper includes a detailed analysis of Apples’ organisational culture and structure as well as existing strategies to implement the necessary changes. Some recommendations regarding the methods to be utilised are provided at the end of the paper.

Organizational Structure

Mintzberg’s Framework

An organisational structure is one of the factors that can ensure companies’ competitiveness and considerable share in the market. It can be referred to as “the system of tasks, workflows, reporting relationships and communication channels that link the work of diverse individuals and groups” (Schermerhorn et al. 2019, p. 237). An organisational structure defines the functions, processes, procedures, as well as values and beliefs utilised at an enterprise (Vlcek 2016). Several types of structures exist and are widely used by different organisations operating in diverse business environments.

One of the typologies commonly utilised when evaluating companies’ structures is Mintzberg’s framework. According to this paradigm, structural organisations can be divided into a simple structure, machine bureaucracy, professional bureaucracy, division listed form, and adhocracy (Kumar 2015). These types of organisational structure differ in terms of prime coordinating mechanisms, decentralisation type, and the key part.

Apple: Organizational Structure

Apple structure has evolved into a highly hierarchical organisation with the elements of simple structure, strong divisional form, and a certain degree of adhocracy (see Appendix A). Initially, all major strategic decisions were made by Steve Jobs, who articulated his vision and insisted on the implementation of his projects, ideas, and plans (Schermerhorn et al., 2019). This type of leadership is a characteristic feature of simple structures where one person holds complete control over all decisions and operations. Small companies and enterprises with a small number of employees are often characterised by this type of structure. Under the leadership of Tim Cook, the organisational structure of the corporation under analysis has undergone certain changes.

The company’s executives have more autonomy when making decisions as compared to the initial years of Apple’s history. During the era of Steve Jobs, every procedure and decision were subject to his approval. This rigid control is now non-existent as strategic plans and decisions are developed in the course of discussions, but Tim Cook has the final word (Schermerhorn et al., 2019). At the same time, although some features of a simple structure remain, Apple has transformed into a new structural configuration.

Divisionalised form has become more viable in the new environment and under new circumstances. Companies with this kind of structure are divided into semi-autonomous divisions (Kumar 2015). The executives of different divisions of the company focus on the needs of the market, as well as the industries or sectors they are responsible for, and react accordingly. Apple has product-based divisions that concentrate on specific products (for example, iPhone, Mac, iOS, iPad, to name a few) (Apple leadership 2019). This configuration is more flexible than a simple structure and is regarded as more appropriate for innovative organisations, such as Apple (Kumar 2015). At the same time, truly innovative companies tend to choose adhocracy as their organisational structure.

Apple can be characterised by a certain degree of adhocracy, but it is rather minimal. Numerous cross-functional teams are formed to attain various goals and numerous complete projects (Schermerhorn et al., 2019). The communication and collaboration within these teams are characterised by horizontal hierarchy. Employees have a consid