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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:
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and Knowledge Sharing: critical success factors. Journal of Knowledge Management,
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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-
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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.