Question

Discuss the organizational structure of Apple, Inc., including the advantages and potential disadvantages.

Answer 1

The organizational structure of Apple Inc. is a combination of hierarchical structure and divisional structure. This was developed by its founder, Steve Jobs to cascade his innovative ideas to the employees and to achieve the organizational goals through shared vision. There is a certain level of decentralization to encourage innovation and creativity for which Apple is known for. However, the organizational structure is traditionally a hierarchical structure. The organizational chart is as below-

Advantages of hierarchical and product-based structure-

                - Many layers of reporting or management of employees is required for a huge organization like Apple which helps in managing more than 1, 30,000 employees globally.

                - Helps in tight monitoring and control of the employees in different product divisions

                - Facilitates promotional opportunities for performers.

                - Facilitates specialization and focus on the different product lines.

Disadvantages of hierarchical structure-

                - Delay in making decisions as the approval process has to pass through different layers of management.

                - Communication is not effective as the information might be misinterpreted as it has to pass through different managerial hierarchies.