Apple’s organisational structure is one of the major factors of the company’s success. There are sixteen top executives under Apple’s CEO Tim Cook. Apple has a hierarchical and functional structure which have been created and developed by Steve Jobs to guarantee focused realisation of his innovative ideas and explicit vision for the business. However, Apple’s organisational structure has gone through some modifications since Tim Cook became the CEO in 2011. Cook accepted the decentralisation of decision making to some extent to boost innovation and creativity at different levels.
Hierarchical organisational structure
Apple structure remains to be largely hierarchical with several layers of management although Tim Cook made some significant changes to the company’s corporate structure since he became the CEO. Huge size of the company that includes 132,000 full-time identical employees around the world requires the attachment to the hierarchical organisational structure. Apple’s hierarchical organisational structure brings about tight control owned by senior management over all areas of the business. Withal, promotion opportunities encourage employees to do well and there are explicit levels of authority and accountability. Nevertheless, Apple’s hierarchical organisational structure may come to terms with flexibility of the business to reflect modifications in the global marketplace.
Functionality is another crucial element of Apple’s organisational structure. Senior vice presidents report to CEO and are responsible for functions, not products. Apple takes advantage of the actual patterns of its corporate structure. Particularly, there is no opposition between the company’s heads of product divisions for resources. Withal, functional organisational structure permits the company to omit short-term financial targets when developing new products that entail significant investments. Senior R&D executives receive bonuses according to Apple’s financial performance rather than revenue from specific products. Hence the company’s executives are made to understand and look at the bigger picture for the future of the business which includes all components, divisions, and employees that are working together.