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Impact of Organisational Structure and Culture of Apple.inc on its
                               Performance


Introduction

         The culture and structure of organisation plays a vital role in the success of the
organisation. It is essential for organisations to compete with the culture and keep on performing
well, but most of the organisations fail and get into trouble. If the organisation is not able to
focus on the problems faced by itsorganisational structure and culture, then they reduce the
ability of expanding their business. The impact of organisational culture is based on the
employee’sbehaviour. If the employees of organisations are skilled and well, then that
organisation faces difficulties. Employees are the basic key towards the organisational
effectiveness, so they need to be trained in a way that they behave well and follow all the
policies. If employees are not habitual of behaving well, then the internal culture and values of
an organisation can be easily destroyed (Swe and Kleiner, 1998).



         The organisational structure is the framework, which organisations adopt to perform their
strategies and objectives. It helps in providing the clear guidelines to employees through which
they can determine the differences. It also connects the members of organisation together to
build a team. Moreover, the organisational culture is the practices, which are done by the
organisation. It helps in maintaining the internal strategies in order to achieve organisational
goals.    It also helps management to avoid unethical practices and gives direction to new
employees for improving their behaviour (Nicotera, et al, 2003).


         The aim of this essay is to understand those factors of organisational culture and
structure, which influence the performance of the organisation. The culture followed by top
managerseffect on the internal and external environment of the organisation. It focuses on the
policies and practices which ensure the organisational stability.
The objectives of this essay are as follows:
 To identify the practices done by management
          The impact of culture over the employees performance
          To recognize the consequence of culture over the performance of the organisation
          Issues faced by the companyregarding organisational structure
          To focus on culture and practices that an organisation needs to follow in order to,
            improve its performance.


Analysis on Organisational Structure and Culture of Company


Formal and Informal Organisations

         More than two people come together to form the formal organisational structure. In this
system, the members work together towards specific goals. There are certain rules, which are
essential to follow by managers and employees. The objective and goals are well defined by top
management and the members are clearly defined about their duties and responsibilities. Top
management creates the formal organisational structure and they use formal channelsfor
communication. The financial benefits are also given to employees.


         While in informal organisation, management and employees work together and share
their ideas. They form a system, which is based on the friendly relationship among managers and
sub-ordinates. Social forces form informal organisation and employees are not obligated to
follow the rules and regulations. There are no fixed authority, responsibility and duties given to
employees, and they use informal channel for communication.


         The corporate culture of Apple is neither to informal or formal. They have transformed
their traditional organisational hierarchy from tall to very flat. Not only this, but they have also
allowed employees to dress in a casual way and interact among each other. The employees
working with Apple are clear about their priorities and value. In order to perform quickly, the
members are performing in a team, which is enhancing the organisational performance (Grady,
2009).
Types of Organisational Structures

       The organisational structure helps in determining the hierarchy and structure of reporting
in an organisation. The organisational structure of company differs from another company
because it is based upon the nature of business. Thus, by following this plan organisations can
direct their work in a systematic manner for future success.

       There are three types of organisational structure:

Traditional structure

       The traditional structure is based on the departments and functional divisions. Employees
follow the organisational rules and actions. Following are the various types of traditional
structure:

       Line structure – In this structure, the approvals and others are from top to bottom as it is
forming a line. The decision-making in this structure is easy and informal. The departments are
few, which decentralised the organisations.

       Functional structure – This type of structure focuses on the functions of individuals,
which they are performing in the organisation.


Divisional structure

Product structure – This structure organises the employees work on various types of products.
Market structure – The market structure groups the employees of the company based on precise
market for sales.
Geographic structure – This structure helps the organisation in working at different places. It
helps them in following the different regional cultures.
Matrix Structure

       The matrix structure merges the production and function structures. It combines them
together to develop an efficient system in organisation.
       Apple Company is focusing on the creative and innovative people, which help them in
generating new ideas for carrying out business. They believe that survival of the organisation is
based on how the organisation manages its employees. The high performance of groups and
teams enacts in advanced way (Griffin, 2011).



Effect of Management Communication Style of Performance

       The management communication style of Apple Company is ‘Cooperative’. The
managers and subordinates are connected with each other and maintain a friendly environment.
The company is offering training programs to employee for their future effectiveness and
efficiency. The top managers encourage the employees at every step. In this way, the employees
are feeling motivated and enhancing their abilities. The management of Apple has formed a
significant association with subordinates, which help them in solving complex problems and
adapting new technologies. Hence, the effective management communication style relate in the
success of the company.

Management Practices and Company Performance

       Organisational culture is based on the norms, beliefs, assumptions, and values, which
help in determining the actions of managements and employees in the organisation. The Apple
Company adopts environmental changes quickly to maintain their internal structure. They are
successful in finding new ways to reinvent their existing products into new products. The Apple
Company is following geographical structure system. In this way, they are making the product
manufacturing easy and delivering their products around the world according to the demand of
that country. This structure helps managers and employees to focus on specific geographical
customers and sales target. Hence, the leadership quality in managers also plays an important
role to maintain the changes and satisfy stockholders, employees and customers (Daft, 2007).
Team and Group Dynamics

       The performance of organisations is based on the successful teams. It is important to
maintain a proper strategy and focus on interpersonal skills. The teams in Apple Company are
working together in order to achieve their goals. The managers and employees are cooperating
with each other to solve problems and face challenges.

Emotional Climate of Organisation

       The emotional climate is a concept, which is followed in many fields such as business,
management etc. This concept helps the organisation in increasing the performance and
productivity. Apple Company is focusing on adapting new strategies, which is affecting directly
on the performance of the company.



Working Culture affect on Performance

       The working cultures of organisations are based on the traditions, identity and objectives.
It differs from one organisation to another. The working culture of Apple Company is informal
and innovative. In this way, employees are enjoying their work and adapting new technologies
effectively. It is based on the psychological factor of individuals through which they interact
with others. The managers and employees are working with enthusiasm, which result in
improving the productivity, effectiveness and efficiency (Keyton, 2011).

Organisational Culture and Performance

       The organisational culture is based on the six major factors [1] knowledge [2] procedure
[3] leadership [4] rewards [6] formation. The positive relationship among the managers and
employees build trust. Hence, this createsan internal culture, which is based on the group
decision making, knowledge sharing, easy flow of information and mutual understanding. This
also builds the interpersonal trust among members of the company, which influence the
performance (AL-Alawi, et al, 2007). Hence, Apple Company is successful and growing faster
due to its effective organisational culture.
Effect of Organisational Culture on Performance of Apple

       As the organisational culture of Apple is based on the individual who work hard for the
success, hence, this made them react more quickly towards change. The organisational culture
effects directly on the company’s performance. It is important for companies to adapt the
environmental change for the future sustainability. The culture of       theorganisation should
organise the procedures, plan and focus on long-term orientation (Eccles, 2011).



Impact of Departmentalisation on Organisational Performance

       Departmentalisation is the key factor in organisational structure. It has connected the
members together in an organisation and forming departments. The managers identify the work
and divide the job through the specialisation among different groups. In this way, the task is
executed by mutual understanding. All types of companies use departmentalisation structure
because it is easy to carry out the activities and increase the accountability. Apple Company is
using functional departmentalisation they are grouping the individuals by their knowledge, skills
and abilities. In this way, they are emphasising more on the quality of products and flexible
towards the external changes.



Corporate Culture and Performance of Organisation

       The corporate cultures are the adaptive values and beliefs of the organisation. The
corporate culture is associated with the performance of the organisation. The negatives mean can
directly affect the organisational performance and destroy the image of the brand. The culture is
the internal variable of organisation which strengths the organisational financial performance.
The successful organisations are made up of a strong culture with superior outcomes. The
corporate culture of Apple Company is extremely strong and stylish. The friendly and
cooperative relationship between managers and employees is making the company grow faster.
They are innovating new products, which is making the lives of customers easier (Lee, 2004).
Influence of Leadership over Organisational Performance

       The elements of leadership playan important role in the internal culture of the
organisation. The behaviour of management with employees helps in the expansion of the
company. The organisations appoint those managers who can motivate employees and
understand their value. The management of Apple communicates with employees and motivates
them at every step. The management emphasises more on the value of employees and their
satisfaction (Leidner, 1993). The leadership training programs also offer to employees for their
best performance and career development. The activities offered by organisations encourage
employees and make them feel privileged. The management of Apple Company maintains the
secure environment for employees and keep them updating about opportunities. Therefore, it is
imperative that employees embrace those strategies and techniques, which will enhance their
working abilities and performance.




Conclusion

       From the overall essay, it is concluded that the organisational structure and culture plays
a vital role in performance of the company. It will not only affect the internal environment of the
organisation, but also effects on the performance. The better adoption of organisational culture
strategies and structures may enhance the working ability of employees. This will also improve
the internal weakness of a company through which company can face all the challenges and
changes.
Apple is the world largest innovative company. They are ruling the technological world by
following the better organisational structure and culture. The managers and employees are more
focus towards interacting with each other and sharing new innovative ideas. In this way, they are
producing different products rapidly. The practices done by them are their competitive advantage
for them because they are increasing their financial conditions day by day. The brand is almost
recognised in every part of the world.
References:
     AL-Alawi, A.I., AL-Marzooqi, Y.N and Mohammed, Y.F. (2007) Organizational Culture
     and Knowledge Sharing: critical success factors. Journal of Knowledge Management,
     11(2),pp. 22-42.
     Daft, R.L. (2007) Organization Theory and Design.9thed. Cengage Learning.
     Eccles, R.G., Ioannou, I and Serafeim, G. (2011) The Impact of a Corporate Culture of
     Sustainability on Corporate Behaviour and Performance. Harvard Business School.
     Grady, J.D (2009) Apple Inc Corporations That Changed the World Series.ABC-CLIO.
     Griffin, R.W and Moorhead, G. (2011) Organizational Behavior: Managing People and
     Organizations. 10th ed. CengageLerning.
     O’Grady. J.D. (2009) Apple Inc Corporations that Changes the World Series. ABC-
     CLIO.
     Keyton, J. (2011) Communication and Organizational Culture: A key to Understand
     Work Experiences. 2nd ed. SAGE.
     Lee. S.K and YU, K. (2004) Corporate Culture and organizational performance.Journal
     of Managerial Psychology.19 (4), pp. 340
     Nicotera, A.M., Clinkscales, M.J and Walker, F.R (2003) Understanding Organization
     through Culture and Structure: Relational and Other Lessons from the African American
     Organzation.Routledge.
     Swe,    V.   and   Kleiner,   H.B.   (1998)    Managing   and   Changing    Mistrustful
     Cultures.Industrial and Training, 30(2), pp. 66-70.

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Coursework essay

  • 1. Impact of Organisational Structure and Culture of Apple.inc on its Performance Introduction The culture and structure of organisation plays a vital role in the success of the organisation. It is essential for organisations to compete with the culture and keep on performing well, but most of the organisations fail and get into trouble. If the organisation is not able to focus on the problems faced by itsorganisational structure and culture, then they reduce the ability of expanding their business. The impact of organisational culture is based on the employee’sbehaviour. If the employees of organisations are skilled and well, then that organisation faces difficulties. Employees are the basic key towards the organisational effectiveness, so they need to be trained in a way that they behave well and follow all the policies. If employees are not habitual of behaving well, then the internal culture and values of an organisation can be easily destroyed (Swe and Kleiner, 1998). The organisational structure is the framework, which organisations adopt to perform their strategies and objectives. It helps in providing the clear guidelines to employees through which they can determine the differences. It also connects the members of organisation together to build a team. Moreover, the organisational culture is the practices, which are done by the organisation. It helps in maintaining the internal strategies in order to achieve organisational goals. It also helps management to avoid unethical practices and gives direction to new employees for improving their behaviour (Nicotera, et al, 2003). The aim of this essay is to understand those factors of organisational culture and structure, which influence the performance of the organisation. The culture followed by top managerseffect on the internal and external environment of the organisation. It focuses on the policies and practices which ensure the organisational stability. The objectives of this essay are as follows:
  • 2.  To identify the practices done by management  The impact of culture over the employees performance  To recognize the consequence of culture over the performance of the organisation  Issues faced by the companyregarding organisational structure  To focus on culture and practices that an organisation needs to follow in order to, improve its performance. Analysis on Organisational Structure and Culture of Company Formal and Informal Organisations More than two people come together to form the formal organisational structure. In this system, the members work together towards specific goals. There are certain rules, which are essential to follow by managers and employees. The objective and goals are well defined by top management and the members are clearly defined about their duties and responsibilities. Top management creates the formal organisational structure and they use formal channelsfor communication. The financial benefits are also given to employees. While in informal organisation, management and employees work together and share their ideas. They form a system, which is based on the friendly relationship among managers and sub-ordinates. Social forces form informal organisation and employees are not obligated to follow the rules and regulations. There are no fixed authority, responsibility and duties given to employees, and they use informal channel for communication. The corporate culture of Apple is neither to informal or formal. They have transformed their traditional organisational hierarchy from tall to very flat. Not only this, but they have also allowed employees to dress in a casual way and interact among each other. The employees working with Apple are clear about their priorities and value. In order to perform quickly, the members are performing in a team, which is enhancing the organisational performance (Grady, 2009).
  • 3. Types of Organisational Structures The organisational structure helps in determining the hierarchy and structure of reporting in an organisation. The organisational structure of company differs from another company because it is based upon the nature of business. Thus, by following this plan organisations can direct their work in a systematic manner for future success. There are three types of organisational structure: Traditional structure The traditional structure is based on the departments and functional divisions. Employees follow the organisational rules and actions. Following are the various types of traditional structure: Line structure – In this structure, the approvals and others are from top to bottom as it is forming a line. The decision-making in this structure is easy and informal. The departments are few, which decentralised the organisations. Functional structure – This type of structure focuses on the functions of individuals, which they are performing in the organisation. Divisional structure Product structure – This structure organises the employees work on various types of products. Market structure – The market structure groups the employees of the company based on precise market for sales. Geographic structure – This structure helps the organisation in working at different places. It helps them in following the different regional cultures.
  • 4. Matrix Structure The matrix structure merges the production and function structures. It combines them together to develop an efficient system in organisation. Apple Company is focusing on the creative and innovative people, which help them in generating new ideas for carrying out business. They believe that survival of the organisation is based on how the organisation manages its employees. The high performance of groups and teams enacts in advanced way (Griffin, 2011). Effect of Management Communication Style of Performance The management communication style of Apple Company is ‘Cooperative’. The managers and subordinates are connected with each other and maintain a friendly environment. The company is offering training programs to employee for their future effectiveness and efficiency. The top managers encourage the employees at every step. In this way, the employees are feeling motivated and enhancing their abilities. The management of Apple has formed a significant association with subordinates, which help them in solving complex problems and adapting new technologies. Hence, the effective management communication style relate in the success of the company. Management Practices and Company Performance Organisational culture is based on the norms, beliefs, assumptions, and values, which help in determining the actions of managements and employees in the organisation. The Apple Company adopts environmental changes quickly to maintain their internal structure. They are successful in finding new ways to reinvent their existing products into new products. The Apple Company is following geographical structure system. In this way, they are making the product manufacturing easy and delivering their products around the world according to the demand of that country. This structure helps managers and employees to focus on specific geographical customers and sales target. Hence, the leadership quality in managers also plays an important role to maintain the changes and satisfy stockholders, employees and customers (Daft, 2007).
  • 5. Team and Group Dynamics The performance of organisations is based on the successful teams. It is important to maintain a proper strategy and focus on interpersonal skills. The teams in Apple Company are working together in order to achieve their goals. The managers and employees are cooperating with each other to solve problems and face challenges. Emotional Climate of Organisation The emotional climate is a concept, which is followed in many fields such as business, management etc. This concept helps the organisation in increasing the performance and productivity. Apple Company is focusing on adapting new strategies, which is affecting directly on the performance of the company. Working Culture affect on Performance The working cultures of organisations are based on the traditions, identity and objectives. It differs from one organisation to another. The working culture of Apple Company is informal and innovative. In this way, employees are enjoying their work and adapting new technologies effectively. It is based on the psychological factor of individuals through which they interact with others. The managers and employees are working with enthusiasm, which result in improving the productivity, effectiveness and efficiency (Keyton, 2011). Organisational Culture and Performance The organisational culture is based on the six major factors [1] knowledge [2] procedure [3] leadership [4] rewards [6] formation. The positive relationship among the managers and employees build trust. Hence, this createsan internal culture, which is based on the group decision making, knowledge sharing, easy flow of information and mutual understanding. This also builds the interpersonal trust among members of the company, which influence the performance (AL-Alawi, et al, 2007). Hence, Apple Company is successful and growing faster due to its effective organisational culture.
  • 6. Effect of Organisational Culture on Performance of Apple As the organisational culture of Apple is based on the individual who work hard for the success, hence, this made them react more quickly towards change. The organisational culture effects directly on the company’s performance. It is important for companies to adapt the environmental change for the future sustainability. The culture of theorganisation should organise the procedures, plan and focus on long-term orientation (Eccles, 2011). Impact of Departmentalisation on Organisational Performance Departmentalisation is the key factor in organisational structure. It has connected the members together in an organisation and forming departments. The managers identify the work and divide the job through the specialisation among different groups. In this way, the task is executed by mutual understanding. All types of companies use departmentalisation structure because it is easy to carry out the activities and increase the accountability. Apple Company is using functional departmentalisation they are grouping the individuals by their knowledge, skills and abilities. In this way, they are emphasising more on the quality of products and flexible towards the external changes. Corporate Culture and Performance of Organisation The corporate cultures are the adaptive values and beliefs of the organisation. The corporate culture is associated with the performance of the organisation. The negatives mean can directly affect the organisational performance and destroy the image of the brand. The culture is the internal variable of organisation which strengths the organisational financial performance. The successful organisations are made up of a strong culture with superior outcomes. The corporate culture of Apple Company is extremely strong and stylish. The friendly and cooperative relationship between managers and employees is making the company grow faster. They are innovating new products, which is making the lives of customers easier (Lee, 2004).
  • 7. Influence of Leadership over Organisational Performance The elements of leadership playan important role in the internal culture of the organisation. The behaviour of management with employees helps in the expansion of the company. The organisations appoint those managers who can motivate employees and understand their value. The management of Apple communicates with employees and motivates them at every step. The management emphasises more on the value of employees and their satisfaction (Leidner, 1993). The leadership training programs also offer to employees for their best performance and career development. The activities offered by organisations encourage employees and make them feel privileged. The management of Apple Company maintains the secure environment for employees and keep them updating about opportunities. Therefore, it is imperative that employees embrace those strategies and techniques, which will enhance their working abilities and performance. Conclusion From the overall essay, it is concluded that the organisational structure and culture plays a vital role in performance of the company. It will not only affect the internal environment of the organisation, but also effects on the performance. The better adoption of organisational culture strategies and structures may enhance the working ability of employees. This will also improve the internal weakness of a company through which company can face all the challenges and changes. Apple is the world largest innovative company. They are ruling the technological world by following the better organisational structure and culture. The managers and employees are more focus towards interacting with each other and sharing new innovative ideas. In this way, they are producing different products rapidly. The practices done by them are their competitive advantage for them because they are increasing their financial conditions day by day. The brand is almost recognised in every part of the world.
  • 8. References: AL-Alawi, A.I., AL-Marzooqi, Y.N and Mohammed, Y.F. (2007) Organizational Culture and Knowledge Sharing: critical success factors. Journal of Knowledge Management, 11(2),pp. 22-42. Daft, R.L. (2007) Organization Theory and Design.9thed. Cengage Learning. Eccles, R.G., Ioannou, I and Serafeim, G. (2011) The Impact of a Corporate Culture of Sustainability on Corporate Behaviour and Performance. Harvard Business School. Grady, J.D (2009) Apple Inc Corporations That Changed the World Series.ABC-CLIO. Griffin, R.W and Moorhead, G. (2011) Organizational Behavior: Managing People and Organizations. 10th ed. CengageLerning. O’Grady. J.D. (2009) Apple Inc Corporations that Changes the World Series. ABC- CLIO. Keyton, J. (2011) Communication and Organizational Culture: A key to Understand Work Experiences. 2nd ed. SAGE. Lee. S.K and YU, K. (2004) Corporate Culture and organizational performance.Journal of Managerial Psychology.19 (4), pp. 340 Nicotera, A.M., Clinkscales, M.J and Walker, F.R (2003) Understanding Organization through Culture and Structure: Relational and Other Lessons from the African American Organzation.Routledge. Swe, V. and Kleiner, H.B. (1998) Managing and Changing Mistrustful Cultures.Industrial and Training, 30(2), pp. 66-70.