Apple - Summary Organisational Behaviour PDF

Preview

Summary

exam preparation...

Description

Ting Fei

OB Final case prepare

2014 semester 1

Apple case Culture Topic theory: Culture is about shared understanding or meanings about the organization, its purpose, its members and how they could behave.

Integrationist theory Schein argue that the Integrationist theory of culture is a single uniform culture that is characterized by consensus on internal integration and external adaption ****In the period of 1980 – 1983, the culture at apply mainly follows the integrationist theory of culture as the company implied a ‘unique culture’ developed by Steve Jobs. Apple culture is uniformly vibrant, fun and creatively and attempts to create a strong sense of belonging to the company among its employees. (From the visual aspect)

1. Once internal integration has been found, an organization will have its own common language, core values which are different from other company  strong boundary between inside and outside  common criteria for relationship  allocation of resources  strong identify and sense of belong

****For the internal integration we can see employees in apple all believed that their mission is to bring computer literacy to the masses. 2. External adaption refers to a fit between the organization and environment.  agreement on how to operate in the environment  specific goals  measures to accomplish those goals  criteria for measuring results ---- whether goals are achieved  repair strategies --- what to do when things go wrong ****i.e. agreement on how organization operates in its environment. We can see evidence that Apply has a culture that emphasized individual achievement, entrepreneurialism and commitment.

Ting Fei

OB Final case prepare

2014 semester 1

3. Visual aspects and others Observable symbols and physical layout and appearance

  

Laser disc blasted out Michael Jackson music in the lobby Staff wears jeans and sneakers Place great value on aesthetic values, reflected on the design of their products and working environment

Communication



Informal interactions

Value, belief, feeling



Apple employees are described as ‘laid back and cocky… Apple employees believe somewhat that their mission is to bring computer literacy to the masses’.

Differentiationist theory Martin et al. argue that an organization is characterized by a differentiationist culture when it comprises a cluster of separate sub- cultures related to particular challenge, task, and responsibility of a unit or group.  



During 1984 when the product line was separated into two divisions: Mac and Apple II, two distinct sub-cultures were therefore established. Mac division, which was led by Jobs, he perpetuated the unorthodox culture that typified apply ( fun and vibrant like before) ( example about the physical describe) Another one is leaded by Del Yocam (apple 2 divisions), he operates in a more mundane manufacturing way and be described as ‘dull and boring product division’ by Jobs

Differentiationist Theory can be applied in the company during this period 1. Relations among subculture can be complementary, conflicting or independent.   

The two subcultures have conflicting relations Culture clash arise because of different types of culture within apple There is observable tension and unhealthy competition between the two

Ting Fei



OB Final case prepare

2014 semester 1

divisions------ (Evident during the 1985 AGM when employees from the Apple II division are only allowed to watch the AGM from another room while the employees from the Mac divisions are in the front seats) Steve Jobs emphasized too much on Mac while Apple II division created major revenue ---- (the departure of a number of key personnel, including one of the founders, Steve Wozniak. They were unsatisfied)

2. Subculture work for self-interest rather than common interest Evident as Apple III, Lisa and Mac each has a different Operating System, and the two divisions made no effort to improve the compatibilities of their systems with the OS of the other division  Consequence: - Departure of key personnel, leading to more job uncertainty and -

indirectly resulting in a decline of company performance Tension between the two divisions leading to lower job satisfaction Eliminates the willingness of effective collaboration between the two divisions

Critical theory Instead of look at culture from management point of view, critical theory f culture takes a different approach-look at how employees are affected by culture and how a strong culture is a way to control employees. 1. Steve Jobs create a culture of emphasizing Mac Division and dismiss Apple II division. 2. Employees under Mac Division were young and dress codes unconventional. 3. However, Apple II Division has been perceived by employees to be becoming increasingly corporate in nature, which is contrary to the original Apple culture: passion and emphasizing the technology. 4. Employees in Apple II division were depressed about the current culture and they felt hopeless because Steve Jobs did not care about Apple II division any more Recommendations Main aim: Transforming the two subcultures from a conflicting relation into an independent relation would be a feasible goal. On the other hand, a complementary relation would be difficult to achieve since the two divisions have contrasting culture

Ting Fei

OB Final case prepare

2014 semester 1

and they produce similar products (which reduces chances of collaboration).  Clarify the future plans for Apple II division. Treat both divisions fairly in their seating during AGM.  Conflicts arise as a result of perceived injustice on the Apple II side and the sense of superiority on the Mac side  Through treating both divisions in a less discriminatory way, such extreme sentiments are more likely to be eliminated Improve communication by setting up more feedback channels (e.g. focus



discussion groups which constitutes employees from both divisions). Most importantly, follow-up sessions should be conducted by divisional managers for their employees to clarify messages in the AGM.  Reduces conflicts caused by differentiated subcultures: Such feedback channels allow the top management to further clarify their goals and organization processes with representatives from each division. The divisional representatives can also discuss their problems through such channels, giving the top management a clear overview of the big picture.  Conflicts can be resolved before they become deep-rooted in the organization Inter-divisional team building activities  Research has shown that team-building can enhance the cohesiveness





of a group, which in turn causes the group to work more effectively (Stevens & Bloom, 2003).  E.g. Drinking session, company retreat A possible but difficult suggestion: Improve the compatibility of the

Operating systems of the computers from the two divisions

Change Topic theory: change is inevitable and change tends to be difficult because it creates stress and resistance.

1. Why apple need change? Theory summary: Organizations had to change because of both external and internal forces. For External forces - Socio-cultural factors

Ting Fei

 





OB Final case prepare

-

Technology factors

-

Economic factors

-

Political factors

2014 semester 1

1983 saw the first change of Apple Company. Apple needs to change because competition had increased. Socio-cultural factor is the most important factor. The whole computer market has been divided into five different areas. Customers in different areas have various needs. Additionally, Technology factor is the other significant factor. Since more competitors entered into PC market, technology grew in an incredible speed. Political and legal factors --- apple had found itself squeezed on both sides: form both superior proprietary technology and low priced apple imitations.

For internal forces: - Internal performance problem,

 



-

Management process problem

-

Introduction of new strategies, objectives, products or markets. New management

During 1983, Apple Company was also facing internal issues. Company performed bad under the pressure of outside competitors. Two major products, Apple III and Lisa, failed to meet the expectation. Management process need to change as the company was continuing expand. New management --- Sculley with new strategy and new products (Macintosh & rationalization of product lines into two division)

2. What kind of change did Apple applied? Change can be evolutionary or revolutionary Evolutionary changes are small and usually taking place in the long time. - Stay relatively stable - Change individual parts or departments - Makes the most of existing structure and management - Incrementally change existing production technology - Improve existing products

Ting Fei

OB Final case prepare

2014 semester 1

Revolutionary changes are big and taking a small period of time - Seek new equilibrium - Transform entire organization - Create new structure and management - Adapt radically new production technology - Introduce path breaking new products Apple experienced a planned revolutionary change during 1983. One of characteristic of revolutionary change is 1. Create new structure and management 1983  The evidence is hiring Sculley as president and CEO of apple. Sculley brought totally new strategies – focusing on Macintosh & rationalization of product line into two divisions.  Also, the structure has been changed in order to support the new strategy. He builds two product divisions (Apple II & Mac)  This revolutionary/planned change had brought apple both success and future problems. 1985  Sculley experienced difficulties in changing the organization because of Job’s resistance.  Sculley removed Jobs from his position. And then Jobs leave Apple by taking five key employees with him. Sculley change structure again…. after that, apple is totally in charge of Sculley. 1987  Seek a new equilibrium by creating a technology-sharing alliance with IBM  Restructure again  New product – Newton

3. How Apple change Theory summary: Change involves a series of process. 1. Identifying the forces causing the change For example, Sculley perceived that he was “sandwiched” between Jobs’ two position as the chairman of the board and the vice-president of Mac division. Conflicts occurred when he and Steve had different ideas.

Ting Fei

OB Final case prepare

2014 semester 1

2. Identify who should be responsible for change (right knowledge, right skills and right attitudes) Sculley knew that he and Steve could not control the company at the same time. 3. Identify the problem and the solution Power position should be change. Sculley could not “touch” Mac division when he had to do so to meet his management goal because of Steve’s special position and power. Sculley choose to solve the problem by asking power 4. Implement the change First, unfreeze the problem. Sculley asked Steve Jobs to step down as vice president and asked the Board to make a choice between him and Steve. Secondly, change process. Steve Jobs left the company he founded and Sculley changed the original culture into a new, common culture and changed structure to reduce duplication and ensured a lower breakeven point. Then, he restructured the company twice to strengthen a top-down control and common culture that is established by him. Besides, out of everyone’s expectation, he even cooperated with Apple’s biggest competitor IBM. 5. Review the results. Apple was in danger when Steve Jobs left. Sculley temporary saved Apple through change. However, Sculley’s way of change also creates many implicit problems, which were the major cause of collapse of Apple empire in 1990.

4. Six Silent Killer, analyze how this theory applied in Apple cas e Theory Summary: Beer & Eisenstat argue that there are six common mistakes in managing change. 1. Management style is either too top down or too laissez faire. Steve Job no wonder will be very demanding and having top-down management style as he is not bring the apple 2 team when making decisions and he always prefer individual deals; but at the same time, he ignores most of the conflict between the Apple II division and Mac Division, and not treating any feedbacks seriously, and therefore he was having a laisser faire style as well.

Ting Fei

OB Final case prepare

2014 semester 1

2. Unclear strategy/conflicting priorities Steve Jobs was dismissive Apple II division. He controlled the company’s direction to Mac division. Therefore, even though Apple II division created three quarters of company’s revenue, it had limited resources. Without the support, technologies in Apple II division were not able to improve rapidly. 3. Ineffective senior management team Steve Jobs, as Chairman of the Board, put all his effort in Mac division. Many employees in Apple II division become increasingly disenchanted with the lack of attention. Neither Steve nor Sculley, could be able to manage the balance well. 4. Poor vertical communication Mac team was in the front row seats listening to Steve Jobs announce mainly Mac products whereas the Apple II employees watched on closed circuit TV from another room. There were rarely vertical communication between Steve and Apple II division since all Steve cared was his Mac division. 5. Poor horizontal coordination Steve, as the head of Mac division had poor horizontal coordination with Del, who is the head of Apple II division. Del described Steve as the “God” while Steve believed Apple II division as “the dull and boring product division.” Del also found it is too difficult to cooperate with a manager who had 12 percent of Apple’s share because obviously Steve had more power than Del. 6. Inadequate down-the-line leadership Steve Jobs was both Chairman of the Board and vice president of Mac division. Apple division had limited access to resources since Steve had the power to influence decision making and make adjustment to resource distribution.

Power & Politics  Power is the capacity to influence the behavior of others  Politics is the exercise of the power  Power and politics can be positive or negative connotations, we are advocating the responsible use of power

Ting Fei

OB Final case prepare



First dimension of power (mobilize resources) - visible - Use of resources to defeat conflict



Second dimension of power (changing process) - less visible - Use of process to sideline conflict - Participation: who gets to speak - Agenda: what gets tasked about - Rules: quality of discuss, what can/cannot be done



Third dimension of power (managing meaning) - least visible - Use of meaning to prevent conflict - Symbols and skillful use of language - No opposition because outcomes are accepted - Create meaning for outcome

2014 semester 1

First dimension in Apple case 1. Steve Jobs Removes Steve Wozniak   Jobs used resource power to remove Woz from the organization. The fact that he had more shares than Woz gave him more authority to get rid of Woz. 2. John Sculley Removes Steve Jobs   Sculley used power in trying to get Jobs to resign. He is both in a higher (Chairman 12% Ownership Stake) and lower position (Vice President of MacDivision) than Jobs hence this is an awkward position. (1st dimension)   When that failed, he used his political access/networks to ask the boards to get Jobs to resign. (2nd Dimension)   Sculley also used coercive power by informing the board that if they did not back him, he would resign. (1st dimension) 3. John Sculley’s Difficulties Dealing with Steve Jobs   Jobs was both above Sculley (Chairman 12% Ownership Stake) and below (Vice President of Mac-Division)   In 1983 Jobs led a Mac Project Team of less than 100 people, by 1985 he was responsible for more than 1000 people   I had given Steve greater power than he had ever had and I created a monster 4.Del Yocam’s Difficulties Dealing with Steve Jobs

Ting Fei

  

OB Final case prepare

2014 semester 1

Del found it difficult to compete with a manager who had 12% of Apple’s shares It was regarded that the Mac people had God on their team Conflict between Apple II and Mac Teams.

5. Steve Jobs and the Lisa Development Team   Jobs stormed out on the Lisa Development Team claiming a low cost easy to use product was needed for the masses rather than a high priced business orientated product. 6.A well-controlled of resources can lead the company to success 

As Steve Jobs acquired massive valuable resources for Mac, Mac successfully aimed at small business and university students and earned a good profit to the company.

Steve Jobs has power of:   Authority (Legitimacy), Position, Status – Founder, Chairman, Vice President Mac-Division, Chief Executive Officer, 12% Ownership Stake   Expertise - can identify opportunities & has the initiative to make ideas work – E.g. liaising with suppliers, distributors, advertising agency etc.   Charisma – charismatic and engaging leader   Credibility - business acumen   coercive - Rewards or Punishments – Removes Woz  Other - Political Access/Networks, Group Support Budgets, Equipment, Information, Referent Power John Sculley has power of:   Authority (Legitimacy), Position, Status – President and CEO of Apple (1983) Chief Technicologist (1990), President of Pepsi-Cola Co. Inc.   Expertise - Degree in Architectural Design Brown University, MBA Wharton School University of Pennsylvania   Credibility - Degree in Architectural Design Brown University, MBA Wharton School University of Pennsylvania   Coercive: Rewards or Punishments – Removes Jobs, Threatens to resign if Jobs is not removed  Other - Political Access/Networks, Group Support Budgets, Equipment, Information, Referent Power Del Yocam has power of:   Authority (Legitimacy), Position, Status – Head of Apple II Operations, Vice President Operations   Expertise - Came up through manufacturing ranks   Credibility - Came up through manufacturing ranks

Ting Fei

OB Final case prepare

2014 semester 1

 Other - Political Access/Networks, Group Support Budgets, Equipment, Sanctions: Rewards or Punishments, Information, Referent Power

Second Dimension - Managing Process: (Bachrach & Baratz) 1. Participation -- Annual Meeting  Mac Team was in the meeting listening to Jobs announce mainly Mac products(agenda)  “Apple II employees watched on closed circuit TV in another room and virtually nothing was said about Apple II computers or people despite it being the highest performing division; thus Second dimension used to exclude Apple II employees from meetings giving MAC employees more power. 2. Agenda -- John Sculley Removes Steve Jobs  Sculley sidelines resistance from Jobs by bring the issue of resignation of Jobs into boards and ensuring the decision making processes are in place by the appropriate members.

Third Dimension - Managing Meaning: (Lukes & Fox) 1. John Sculley’s Work Experience  Sculley had to manage meaning in relation to his own position as he came from a soft drinks company and needed to be seen as legitimate by computer geeks. 2. Exercised through managing meaning Recession changed the focus for Sculley from “...