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Report & Powerpoint: Apple Inc Organization Culture Report & Powerpoint: Apple Inc Organization Culture Lecturer: Mrs Ngoc GROUP – AEP ACCOUTING 55B: Nguyễn Quỳnh Trang Nguyễn Tuấn Anh Nguyễn Diệu Linh Tơ Thuỳ Dương Phan Chí Hiếu Trần Mỹ Hà APPLE’S ORGANIZATION CULTURE | GROUP Report & Powerpoint: Apple Inc Organization Culture MAIN CONTENTS I Introduction: There are no single widely accepted definition for Organization Culture A few of those definitions are “ The pattern of assumption that a given group has invented, discovered, or developed in learning to cope with its problems of external adaptation and internal integration” and “ A belief share by an organization” as defined by Spender Despite the diversity of these definitions, some common attributes emerge First, all definition refers to a set of values held by individuals in an organization Secondly, the values that make up by an organization’s culture is always taken for granted Finally, there’re symbolic means through which the values in the organization’s culture are communicated APPLE’S ORGANIZATION CULTURE | GROUP Report & Powerpoint: Apple Inc Organization Culture In fact, organization culture is very important The culture of the workplace controls the way employees behave amongst themselves as well as with people outside the organization The culture decides the way employees interact in their workplace A healthy culture encourages the employees to stay motivated and loyal towards the management The culture of the workplace also goes a long way in promoting healthy competition at the workplace Employees try their level best to perform better than their fellow workers and earn recognition and appreciation of the superiors It is the culture of the workplace which actually motivates the employees to perform Every organization must have set guidelines for the employees to work accordingly The culture of an organization represents certain predefined policies which guide the employees and give them a sense of direction in the workplace Every individual is clear about his roles and responsibilities in the organization and know how to accomplish the tasks ahead of the deadlines No two organizations can have the same work culture It is the culture of an organization which makes it distinct from others The work culture goes a long way in creating the brand image of the organization The work culture gives an identity to the organization In other words, an organization is known by its culture The organization culture brings all the employees on a common platform The employees must be treated equally and no one should feel neglected or left out of the workplace It is essential for the employees to adjust well in the organization culture for them to deliver their level best The work culture unites the employees who are otherwise from different backgrounds, families and have varied attitudes and mentalities The culture gives the employees a sense of unity in the workplace APPLE’S ORGANIZATION CULTURE | GROUP Report & Powerpoint: Apple Inc Organization Culture Certain organizations follow a culture where all the employees irrespective of their designations have to step into the office on time Such a culture encourages the employees to be punctual, which eventually benefits them in the long run It is the culture of the organization which makes the individuals a successful professional Every employee is clear with his roles and responsibilities and strives hard to accomplish the tasks within the desired time frame as per the set guidelines Implementation of policies is never a problem in organizations where people follow a set culture The new employees also try their level best to understand the work culture and make the organization a better place to work The work culture promotes healthy relationships amongst the employees No one treats work as a burden and molds himself, according to the culture It is the culture of the organization which extracts the best out of each team member In a culture where management is very particular about the reporting system, the employees, however busy they are would send their reports by the end of the day No one has to force anyone to work The culture develops a habit in the individuals which makes them successful in the workplace In this report, we would like to analyze the organization culture of Apple Inc to explain why the company achieve success because of its organizational culture When visiting Apple website, people can see the many values in term of environment, inclusive, and so on… but it all comes down to one word “ Innovation” Innovation is what Apple pursuits from the very beginning day Innovation is described not only in Apple products like iPhone, iPad, but also in the way they work Apple has built an effective innovation system to harness APPLE’S ORGANIZATION CULTURE | GROUP Report & Powerpoint: Apple Inc Organization Culture creativity in in its people, stimulate new idea, streamline the design process, and launch successful, profitable new innovation Apple’s current vision statement was introduced by CEO Tim Cook, who stated, “We believe that we are on the face of the earth to make great products and that’s not changing We are constantly focusing on innovating We believe in the simple not the complex We believe that we need to own and control the primary technologies behind the products that we make, and participate only in markets where we can make a significant contribution We believe in saying no to thousands of projects, so that we can really focus on the few that are truly important and meaningful to us We believe in deep collaboration and crosspollination of our groups, which allow us to innovate in a way that others cannot And frankly, we don’t settle for anything less than excellence in every group in the company, and we have the self- honesty to admit when we’re wrong and the courage to change And I think regardless of who is in what job those values are so embedded in this company that Apple will extremely well.” Apple’s vision statement is considerably detailed and reflects the company’s comprehensive approach in ensuring continued growth and success For instance, the vision statement enumerates a number of major points, such as the emphasis on innovation, which directly relates to Apple’s rapid innovation strategy In addition, the vision statement specifies simplicity, which is also an integral aspect of the company’s approach to product design and development Apple is known for user-friendly and easy-to-use products that help improve daily activities For instance, the simplicity of the design of the iPhone and iOS makes it easy to communicate, use apps, and access the Internet Moreover, Apple’s vision APPLE’S ORGANIZATION CULTURE | GROUP Report & Powerpoint: Apple Inc Organization Culture statement shows a careful selection of markets This factor reflects the firm’s use of market research to guide decision-making in product development and strategic formulation Also, even organization culture is described in the vision statement Apple highlights employees’ collaboration and excellence as keys to its business This detailed vision statement is quite comprehensive in addressing the different aspects of Apple’s business It effectively shows the holistic approach of the company’s leaders Thus, based on conventions on vision statement construction, Apple’s vision statement is satisfactory because it clearly shows the direction of the company This direction is stated in the business as a whole, as well as the various aspects or components of Apple’s organization Such a detailed vision statement is beneficial to business because it helps guide decision-makers and other employees in working toward the desired condition, which in this case is a condition of Apple’s continued global success based on excellence and innovation Coming to the main part, we carry this report following the Ouchi framework which includes seven criteria: commitment to employee, evaluation, career, control, decision making, responsibility and concern for people II Analysis Of Organizational Culture: Commitment to employee: Unlike some typical Japanese firms, Apple doesn’t guarantee to hire any employees for a whole life For example: Apple warns employees that they can be fired for speculating about future products, using their work APPLE’S ORGANIZATION CULTURE | GROUP Report & Powerpoint: Apple Inc Organization Culture email account for personal messages, and posting messages on an Apple-related web site Moreover, Apple conducts a comprehensive employee survey in each of its organizations every two years; surveys of randomly selected employees are performed more frequently The survey questions are concerned with how well employees understand the company’s strategy as well as whether or not they are asked to deliver results that are consistent with that strategy The results of the surveys are displayed in terms of both the actual level of employee responses and the overall trend of respond Apple also commits to the employee the working environment: Apple CEO Tim Cook said in the company’s press release: We believe that workers everywhere have the right to a safe and fair work environment, which is why we’ve asked the FLA to independently assess the performance of our largest suppliers The inspections now underway is unprecedented in the electronics industry, both in scale and scope, and we appreciate the FLA agreeing to take the unusual step of identifying the factories in their reports So we can see that Apple company has guaranteed the best working environment for the employees Evaluation employee's performance: Just like high school students, employees need report cards so they know how they are doing Apple evaluates the employee by these factors Discuss job performance: The evaluation is based on the effect of employee’s work in the company both in quality and quantity As Apple is a technology company so all of their products have to be up to date with the modern world That’s the reason why quality is not enough when they evaluate the work It is not only how they it it also how much they can to bring more profit to the company APPLE’S ORGANIZATION CULTURE | GROUP Report & Powerpoint: Apple Inc Organization Culture Set goals for professional performance: The employees need to have a vision in their work to enhance the quality of their jobs Establish objectives for contributing to the department’s mission: The effective ideas will be rated Discuss expectations and accomplishments: Their motivation in work by expectation and accomplishment will be considered Career: The career paths in Apple inc are narrow Most managers and employees at all levels of management only perform one or two business functions For example, the top manager, Timthony Cook is in charge of General Management (GM) function He has overall responsibility for the organization, and his main duties is to create a context for change, create a positive organizational culture language and action, monitor their business environments In general, GM oversees all the firms’ functions as well as day-to-day operations to sustain the company’s integrity and growth Promotions are really hard to come by at Apple Many employees expressed frustration at how hard it can be to land a promotion at Apple As one production designer in Cupertino explained, “There is almost zero opportunity to move up, even if they’re the best Apple is plagued with hiring externally instead of promoting internally Recruiters will low ball you if you offered a spot, so be prepared for a fight” Sources at Glassdoor.com Control: Controlling through the organization culture and sometimes through motivating strategy Very little controlling from the policy APPLE’S ORGANIZATION CULTURE | GROUP Report & Powerpoint: Apple Inc Organization Culture The control of employees in Apple comes from the organization culture and sometimes from the effect of some strategy to motivate their employees Very little controlling from the policy First, the culture of Apple was based on an ideal that self-motivated individuals will work harder if they not have a boss micromanaging every action Employees love that they aren’t micromanaged at the company Second, simplicity is often equated with minimalism It’s about making something that always seems to “just work” When people pick something up for the first time and already know how to the things they want to do, that’s simplicity It’s a way Apple controls its employees through self-performance, or collaboration.Third, specialization is the norm at Apple, and as a result, Apple employees aren’t exposed to function outside their area of expertise Jennifer Bailey, the executive who runs Apple’s online store, for example, has no authority over the photographs on the site Photographic images are handled company wide by Apple’s graphic arts department Apple manages their employees’ performance through motivation The low - order need should be taken as a priority In Apple position, they have fulfilled their employee needs of physiological by setting an average salary of $ 108,483 which basically can ensure survival Also, they provide a wide range of application to protect the safety need of workers such as the development of health and safety standard, training more employees to identify hazards or providing safety equipment Managers always assure the Esteem need as Apple rewarded its executives by giving them a recognition bonus of salary from to percent Apple is worth as a leader, their strategy is a perfect example because they were not only getting the employee to something or fulfill their needs , but also getting these employees want to and work for Apple APPLE’S ORGANIZATION CULTURE | GROUP Report & Powerpoint: Apple Inc Organization Culture About the responsibility: DRI At Apple there is never any confusion as to who is responsible for what Internal Applespeak even has a name for it, the “DRI,” or directly responsible individual Often the DRI’s name will appear on an agenda for a meeting, so everybody knows who is responsible “Any effective meeting at Apple will have an action list,” says a former employee “Next to each action item will be the DRI.” A common phrase heard around Apple when someone is trying to learn the right contact on a project: “Who’s the DRI on that?” Jobs indoctrinates a culture of responsibility by hosting a series of weekly meetings that are the metronome that sets the beat for the entire company On Mondays he meets with his executive management team to discuss results and strategy as well as to review nearly every important project in the company On Wednesdays he holds a marketing and communications meeting to receive feedback Simplicity breeds clarity, as Jobs he explained in a 2008 interview with Fortune “Every Monday we review the whole business,” he said “We look at every single product under development I put out an agenda Eighty percent is the same as it was the last week, and we just walk down it every single week We don’t have a lot of process at Apple, but that’s one of the few things we just to all stay on the same page.” It’s one thing when the leader describes the process It’s another thing altogether when the troops candidly parrot back the impact it has on them “From a design perspective, having every junior- level designer getting direct executive-level feedback is killer,” says Andrew Borovsky, a former Apple designer who now runs 80/20, a New York design shop “On a regular basis, you either get positive feedback or are told to stop doing stupid thing.” 10 APPLE’S ORGANIZATION CULTURE | GROUP Report & Powerpoint: Apple Inc Organization Culture Decision making: Individual decision making is applied on Apple The ideas are shared at the top No decision-maker at Apple is far removed from Steve Jobs Through his tight-knit and largely long-serving executive team, Jobs quickly sees everything that goes on at the company He also routinely reaches outside these inner and outer circles to collaborate on critical projects with key employees Another interesting decision making approach at Apple is top 100- There is a small group at Apple that most certainly has met Steve Jobs It’s called the Top 100, and every year or so Jobs gathers these select few for an intense three-day strategy session at a proverbially secure, undisclosed location Everything about this Top 100 meeting is shrouded in secrecy, starting with its very existence Those tapped to attend are encouraged not to put the meeting on their calendars Discussing their participation is a no-no, even internally Attendees aren’t allowed to drive themselves to the gathering Instead, they ride buses that depart from Apple’s Cupertino, Calif., headquarters to places like the sumptuous Chaminade Resort & Spa in Santa Cruz, Calif., which satisfies two Jobs requirements: good food and no golf course Apple goes so far as to have the meeting rooms swept for electronic bugs to stymie snooping competitors Concern for people: The last culture value examined by Ouchi is concern for people Apple’s culture value is a holistic concern for the works and managers Holistic concern 11 APPLE’S ORGANIZATION CULTURE | GROUP Report & Powerpoint: Apple Inc Organization Culture extends beyond concern for people simply as a worker or manager to concern about that person’s home life, hobbies, personal beliefs, hopes, fears, and aspiration Now we will take a look some holistic concern for people of Apple Firstly, Apple always provides good benefits for all of the employees: Full-time employees see all the benefits that you would expect, like medical and dental coverage And for those falling on especially hard times, Apple has partners around the country to get its employees free access to other beneficial programs Even part-time workers can get benefits at Apple At the moment, Apple offers all employees who work 20 hours or more a week with health and 401k benefits Secondly, the salaries are pretty good in many positions: In fact, an analysis of Apple salaries on the salary comparison website Payscale.com shows that many positions at the company earn well above the industry average Thirdly, Apple also provides many discounts for staff: Apple's "Employee Purchase Program" gets its workers access to the company's products at a more agreeable price A special thing that even a friend and family of Apple employee also can get discounts, too For example, once a year, employees can get a 25% discount on a computer They can also get a 25% discount on each model of iPod and iPad Most Apple software is discounted 50% Third-party stuff is 10% off and AppleCare comes with a 25% discount 12 APPLE’S ORGANIZATION CULTURE | GROUP Report & Powerpoint: Apple Inc Organization Culture Forth, Apple’s employee can wear almost whatever you want : As long as your shirt and name tag are Apple-issued, almost anything else goes Go nuts with hat, flip flops, and facial piercings Fifth, Apple makes the commute much easier for its employees: A few employees also noted Apple's commuting options as a positive of working at the company, including company's shuttle services that transports employees from parts of the Bay Area to campus in Cupertino Apple also provides a stipend to help cover the cost of employees commuting by bus, train and other means Finally, there is some really good food available on campus : Apple may not offer as many good things as Google and Facebook, but there are still some Several employees raved about the great food at Cafe Mac at Apple's main headquarters in Cupertino III Conclusion: The last part of our report is about the success due to the better organization culture of Apple The company’s organizational culture is key factors that enable success and competitive advantage Therefore, it empowers Apple to stand out and stay ahead of competitors In more details, good organization culture brings to Apple the following benefits: Financial Benefits 13 APPLE’S ORGANIZATION CULTURE | GROUP Report & Powerpoint: Apple Inc Organization Culture As the culture builds, people take personal responsibility for costs With such widespread focus, administrative and operating costs drop well below industry norms Therefore, Apple can get a higher profit Labor cost advantage When Apple’s organizational culture is built, the pool of prospective employees grows The self-selection process reduces the number of mismatches among new hires The cost of selecting among many applicants is offset by cost savings as prospective employees sort themselves into and out of consideration for jobs As a result, organizations with clearly codified cultures enjoy labor cost advantages Great employee and customer loyalty Organizations with enforced cultures enjoy great employee and customer loyalty, in large part because they are effective in either altering ineffective behaviors or disengaging from a value-challenged employees in a timely manner Motivation of Employees Motivation blossoms in a well-developed culture that recognizes the employee’s personal work needs and desires and allows people to fulfill these needs through the business tasks When people are recognized and appreciated for who they are and what they can contribute, the two-way benefits are large and unending Cooperation By definition, a developed culture increases cooperation, collaboration, and motivation Improving cooperation between divisions and between levels profoundly improves communications, decisions, and problem-solving Satisfaction and Happiness 14 APPLE’S ORGANIZATION CULTURE | GROUP Report & Powerpoint: Apple Inc Organization Culture Last but perhaps most important, there are few things more satisfying than being part of a well-developed company culture It is a real pleasure working in an organization where people enjoy each other, where they enthusiastically cooperate around the work tasks and around problem-solving, and where people sincerely recognize each other for their special contributions to the group’s success Satisfaction and happiness go hand-in-hand with improved performance References: http://www.apple.com/ http://www.businessinsider.com/leaked-apple-might-fire-employees-for-doinganything-on-this-long-list-2011-12 http://www.leadershiplime.com/apple-innovation.html 15 APPLE’S ORGANIZATION CULTURE | GROUP ... 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