2. Article Overview
Apple’s Organizational Structure is a structure that has helped
it maintain its name as one of the most innovative companies
in today’s world. The structure is mostly a general hierarchy,
but another role that plays in its success is the innovation and
mind of Steve Jobs (CPU in machine metaphoric terms).
3. Introduction of Systems Theories.
- Ludwig von Bertalanffy, a theoretical biologist was on of the
key founders of the systems movement. Being interested in
the studies of living systems, bertalanffy started to argue
that system concepts could be applied to not just natural
sciences, but social sciences as well.
4. What is the Systems Metaphor?
- A concept that views organizations as self-contained and
sufficient machines, along with complex organisms that
interact with their environment in order to function
properly.
5. What is a System?
- A system is an assemblage of parts. In terms of biology,
cells and organs are considered the components. In terms
of an organizational system, the components are the
people along with the departments within the organization.
6. Characteristics of System Components
Hierarchical Ordering - System parts are arranged in a very
complex way. These include Super systems and subsystems
which make the hierarchical order. Within Apple there are
different departments that include software developers, and
hardware developers. These departments (Subsystems) are
composed of smaller work groups, and individuals.
7. Characteristics of System Components
Cont.
Interdependence - This concept implies that one system
component relies on other components to function. In regards
to Apple, Ipods rely on Itunes software to function, and
Iphones, along with Macbooks rely on Mac OS X/Safari to
function optimally.
8. Characteristics of System Components
Cont..
Permeability - Permeable boundaries enable a system to
allow information, along with materials to flow fluently
throughout the system. In terms of biological permeability, the
human body allows air, and food to flow throughout it for
survival. In regards to an organization (Apple), they must be
open to consumers, along with outside resources to create
their well known products.
9. Characteristics of Apple’s Structure
Spoke & Wheel Hierarchy - Since the change in leadership
from Steve Jobbs to Tim Cook Apple has slightly changed
in terms of communication. Before, everything had to make
its way through the office of Steve, but now there is a
substantial increase of collaboration within the business.
10. Characteristics of Apple’s Structure (Cont.)
Function Based Grouping - A structure that is incorporated
in the upper levels of the corporation. For every portion of
the company, there is an SVP that reports to the CEO of
the company. This creates an opportunity for business
leaders to discuss ways to improve the company in certain
areas.
11. Characteristics of Apple’s Structure (Cont..)
Product Based Grouping - Under the SVP’s there are many
VP’s within the company. These VP’s are in charge of
different outputs for products. This characteristic enables
specific products or components to be addressed within
meetings of the corporation.
12. Cons of Apple’s Organizational Structure
Limited Flexibility - Due to the structure of Apple’s
organization, it is hard for lower levels of the organization to
get ideas across to the higher command in regards to
market demands and other business needs. Although Cook
has started to make changes within the company,
everything still has to make its way through his office, along
with the Senior VP’s
13. Pros of Apple’s Organizational Structure
Strong Control - The hierarchy within their organization
allows Cook, and other senior VP’s to control work flow
throughout the company. Function, and product based
grouping enhances this idea of control.
14. System Properties
Equifinality - This is the idea that a system can make its
way to a solution from many different paths. There are
many problems that arise within the company of apple, and
it is the job for the lower levels to bring these solutions to
the attention of the Senior VP’s.
15. System Properties (Cont..)
Negative Entropy - The idea of entropy is for closed
systems to run downward. Open systems (Apple) is
characterized by negative entropy. Information, and ideas
is constantly flowing on a regular basis and allows for
innovative ideas to be processed.
16. System Properties (Cont...)
Requisite Variety - This calls for the organization to be as
diverse and complex as the environment it is held in. This
allows the organization (Apple) to process information
accordingly, whether it’s a problem, or a new innovative
idea someone has brought to their attention.
17. System Input - Throughput - Output Processes
Exchange Processes - For input and output within the
company, exchange in regards to the system along with the
environment is needed. In this case, a product is given to
the public, and money is given in return.
18. System Input - Throughput - Output Processes (Cont.)
Feedback Processes - For a system (Apple) to be
maintained to its optimal level, feedback is extremely
important. When positive feedback is given in regards to a
product, this serves the idea of changing or transforming a
system. In regards to negative feedback, this serves for a
system to stay on a steady but weary course.
19. Complementing the Metaphor
Apple has many different departments within the
corporation whom all depend on one another to prosper in
the long run. There isn’t one person or department that has
greater value than another. This is one of the
characteristics that makes Apple such an innovative
prosperous corporation in today’s world.
