Apple Inc.’s organizational structure is collaborative in nature with the company’s CEO as the nucleus. Apple follows a vertical organizational structure, where the major decisions are taken by. Each of those managers has their own unit comprising of team members who assigned with a variety of responsibilities. Apple’s organizational structure has been shown in figure 1 given below:
Although the organization structure looks relatively complex but is simple in nature. The collaborative structure allows employees in the lower level to communicate with middle level managers as well as top tier managers. The company’s business strategies are completely aligned with the organizational structure and its chain of command. The collaborative organization structure allows the top tier managers to delegate responsibilities appropriately to the middle tier managers. The middle level managers thereafter find it relatively convenient to convey the organizational objectives to the lower level employees. Apple’s organizational structure has promoted teamwork integrated with proper coordination and collaboration. The free flow of information between the organizational employees has allowed the managers to align the operations closely to the organizational goals and objectives.
The organizational structure of Apple is regarded by many as very robust as it allows the managers to focus on the specialized segments. Managers are able to allocate resources efficiently in those departments that are conducting research in specialized segments. This paves way of successful product development. Given the fact that the managers in Apple are able to effectively channelize resources between all the functional departments, the company is able to realize economies of scale. This allows the managers to earn greater benefits with the utilization of lesser number of resources. The integrative organizational structure of Apple provides a wider span of control and higher unity of command to the organizational managers. The top tier managers are able to oversee all operations conducted within the organization which allows them to emphasize more on the strategic plans of all functional divisions in the organization.
Apple’s organizational structure supports a centralized decision making framework whereby managers are able to include the employees in the decision making process. This helps the organization to identify the strengths and weakness of the company and formulate appropriate improvement plans. The centralized decision making process driven by a simplistic start up oriented organizational structure enables the managers to formulate and subsequently implement effective business strategies.