Human Resource Management of Apple.inc : Apple Inc. (NASDAQ: AAPL; previously Apple Computer, Inc.) is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operating system; the iTunes media browser; the iLife suite of multimedia and creativity software; the iWork suite of productivity software; Aperture, a professional photography package; Final Cut Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite of music production tools; and iOS, a mobile operating system. As of August 2010[update], the company operates 301 retail stores[5] in ten countries,[6] and an online store where hardware and software products are sold. As of May 2010[update], Apple is one of the largest companies in the world and the most valuable technology company in the world, having surpassed Microsoft.[7]

Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977,[8] the company was previously named Apple Computer, Inc., for its first 30 years, but removed the word "Computer" on January 9, 2007,[9] to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers.[10] As of September 2010[update], Apple had 46,600 full time employees and 2,800 temporary full time employees worldwide[4] and had worldwide annual sales of $65.23 billion


Apple Computer is a company famed for its innovative strategic management. Apple Computer management strategy places great emphasis on ground-breaking new products and designs.

Apple change management has proved successful over the years as the company has adapted to the changing market by constantly redefining the design and purpose of digital technology. The Apple brand is now synomynous not only with Macintosh personal computers but with innovations such as the iPod and the iPhone.

The corporate culture of Apple Computer is one of optimism and belief. The founder and CEO, Steve Jobs, believes in funding and investment in new products and innovation even against the backdrop of a challenging economic climate.

The following articles refer to Apple Computer and Apple Computer management. Use them to learn from the past of Apple Computer and the present of Apple Computer to build a successful future for you and your own organisation.

Apple Management
To manage its products and marketing, Apple Computer had five product divisions responsible
for the development, evaluation and manufacture of computer systems, software, and peripheral
devices (e.g., Macintosh). It also had four product support divisions which handled marketing,
distribution and post-sale product support (e.g. North American Sales Division). In addition,
there were a number of administrative departments in charge of overseeing Apple’s day-to-day
corporate activities (e.g., the Finance Department).7 Exhibit 2 provides a description of these
divisions. Although Apple did not publish an organizational chart, Exhibit 3 represents what
such an organization probably would have looked like.
The Early 1980s and John Sculley
Since 1981, Apple’s market share relative to its industry competitor had steadily declined.8
Apple attempted to enter the business market with its new Lisa and Apple III computers, but the
products failed to win acceptance and could not compete successfully with the IBM PC.
In May of 1983, Markkula retired from his posts as CEO and president but remained as director
and consultant. Jobs hired John Sculley from PepsiCo, where he had been the president of
domestic operations and, before that, vice president of marketing. Sculley was hired for both his
executive and marketing expertise. Considering Apple’s new competitive pressures, choosing
Sculley with his corporate experience as the company’s new president was considered by Jobs to
be “one of the most important decisions in Apple’s history.”9
Once Sculley joined the company, he had the following reaction:
As a member of the executive staff, I came away with a clear impression that
there wasn’t a common understanding of the company we were trying to build. In
fact, there were many, competitive fiefdoms. A group called PCDS (Personal

The Macintosh and Lisa teams were not getting along. The Macintosh people believed that once
on the market their product would be better than Lisa and any other Apple product. They
routinely referred to the Apple II people as “bozos” and were given perks such as free fruit juice
and a masseuse to work the tense backs of the Mac engineers. The Apple II group resented this
favoritism. They also resented that they had been moved to a building that was two and a half
miles from the Apple campus. Furthermore, there was duplication of activities and resources
within the company. Sculley recalls, “When I arrived, I found people all over the organization
doing the same thing. Three or four home-marketing groups, for example, existed. Everyone had
great ideas. But some structure was needed if people were to feel a greater sense of
accountability.”11
A Change in Structure
In December of 1983, Sculley reorganized management. His main change was to reduce the
number of Apple product divisions to three: a division for Apple II products, another for the Lisa
product and the development and production of the Macintosh, and an accessory products group.
Each division was responsible for its own functions and could be managed as “independent
profit-and-loss centers.” The organizational chart is presented in Exhibit 4. Sculley placed
himself in charge of the Apple II group to “learn how a product division worked.”12 He later
gave this position to Del W. Yocam, a six-year Apple veteran. Jobs was placed in charge of
Macintosh division but maintained his position as chairman of the board of directors.
Sculley hoped that the new structure would eliminate most of the overlap without causing
massive layoffs.13 Also, he did not want to be insulated from the organization.14 He wanted many
people reporting to him, both line and staff people, so he could “assess all the pieces.”15 Sculley
also installed tighter control policies and increased the market focus and level of discipline of
Apple’s managers. No longer did he have more than a dozen vice presidents reporting to him, as
was the case when he arrived. “Now there was a distinct hierarchy, with two powerful product
divisions responsible for their own manufacturing, marketing, and finance and a small central
organization for sales, distribution, corporate finance, and human resources--in essence, two
companies, each reporting to Sculley and his staff, each competing with the other.”16
New Apple Products
In 1984, Apple discontinued Apple III and Lisa and introduced a new product--the compact,
portable Apple IIc. That same year, the Apple II division experienced record sales. It sold an
estimated 800,000 of Apple Iie’s and portable IIc’s, with revenues that year nearly reaching $1
billion.17 The Macintosh was also introduced. In keeping with the company’s new strategy, the
Macintosh was promoted as an alternative business computer in a bold campaign to win space in
offices at the expense of IBM, whose PCs dominated the business market. Despite the fanfare,
the Macintosh failed to attract business customers as had the Lisa and Apple machines before it.

Its impressive graphics and ease of use did not compensate business managers for its lack of
power and software. “Because the Macintosh was so easy to use, people concluded that it wasn’t
powerful,” Apple executive Guy Kawasaki complained.18 Also, it was a closed machine that did
not allow specialized add-on hardware and software. Jobs developed the machine this way
because he wanted it to be as simple an appliance to use as a telephone--one complete package
like any other appliance in the home. The strategic decision to produce incompatible machines
increased short-run profitability. Prices could remain high since competition was minimal. IBM,
on the other hand, welcomed competition by allowing cloning. As a result, IBM prices were
forced down by cloning companies, which tended to charge less for their machines. While high
margins were attractive to Apple management, the company’s strategy was decidedly short-term
in perspective. Regardless of Apple’s ease of use, computer purchasers could not ignore price
forever.19
Additionally, incompatibility caused the Apple computer to have limited applications. The
business market sought machines hat could be used with various hardware and software. Also,
the Macintosh had fewer software programs written for it--600-700, compared with the 3,000
programs that could run on IBM PCs and their clones.20
Furthermore, Apple’s image as an “irreverent, hip, young company” sustained a perception that
the Macintosh was not a business computer. This discouraged professionals, most of whom were
familiar with the maxim, “No one ever got fired for buying IBM.” Apple expected to sell 60,000
to 85,000 Macintosh machines a month by late 1984, yet sales barely exceeded 20,000.21 Still, an
estimated 250,000 were sold by the end of 1984, which was more than the IBM PC had sold in
its first year.22 The division earned revenues of close to $500 million, but the cost of introduction
and reorganization significantly reduced profits.23
A Changing Industry
In 1985, the microcomputer industry suffered its worst slump in over a decade. Many new
computer products had been promised or rumored but were not yet available, causing consumers
to delay purchases until they could evaluate the new machines. Also, the home market was
saturated. Hobbyists and professionals who worked at home were pausing to “digest” their
recently purchased systems and were not buying newer models.24 Other potential home users did
not yet see the need to have a computer in their homes, which made this market difficult to
penetrate. The business market also experienced a decrease in sales. Businesses, concerned about
an impending recession, delayed capital equipment purchases. Only one market—education--was
still growing. Apple was still the dominant player in this segment. Unfortunately, it was smaller
than either the business or home segments.
Consumer preferences also changed. Service and how new products fit into an existing family of
products had become more important. There was a growing demand for personal computers that
could communicate and share information or that were tied together into cohesive information
systems. It was estimated that this demand was growing at 30% a year, or twice the rate of the
overall industry.25

Organizational structure
Job Analysis
Job title: CEO and MD

Job description:
Responsible for the day-to-day operations of the organization,
Responsible for strategic planning,
Ensuring co-ordination between different business units,
Co-ordination between board members
Performing role of figurehead of company


Job Function:
Planning: Overall company strategy, Strategic Plan, Operational Plan

Organization: Organization chart; Job descriptions, Authority levels

Management recruitment and development: Succession planning, in-house training, outside training, promotion from within, human resource plan, new positions, active recruiting

Policy: Corporate policies, new policies, management input, review


Standards of performance and performance reviews: Standards of performance, performance reviews, performance improvement plans

Controls: Monthly reports, quarterly reviews, supplemental action programs

Management morale: Involvement in planning, salary discussions, access to CEO, management turnover

Product development: Overall strategy, quarterly priority meetings, status reports, new products, development expense


Profitability and growth: Profit objectives, results compared to industry, sales objectives, dependency on single product/customer, market share, profitability by product line

Job specification:
Reporting to: Other board members

Eligibility: Selection to this designation under normal circumstances would be from amongst the board members with the approval of the board and independent directors

Job Title: Project Manager

Job Description:
Responsible for overseeing the activities of team leaders and software developers to ensure that the various modules of the project are completed within schedule and to ensure compliance with necessary quality standards

Job Function:
Creates and executes project work plans and revises as appropriate to meet changing needs and requirements.

Identifies resources needed and assigns individual responsibilities.

Manages day-to-day operational aspects of a project and scope.

Reviews deliverables prepared by team before passing to client.


Effectively applies our methodology and enforces project standards.

Prepares for engagement reviews and quality assurance procedures.

Minimizes our exposure and risk on project.

Ensures project documents are complete, current, and stored appropriately.


Job specification:
Reporting to: Delivery Manager

Eligibility:- 5-6 yrs experience in similar role
Adequate knowledge in Java, Mainframe and .Net platforms
Adequate knowledge in Windows, Oracle and DB2

Job Title: Software Developer

Job Description:
Responsible for the operating system and associated subsystems.

Provide system-level support of multi-user operating systems, hardware and software tools, including installation, configuration, maintenance, and support of these systems.

Identify alternatives for optimizing computer resources.


Job Function:
Full lifecycle application development

Designing, coding and debugging applications in various software languages.

Software analysis, code analysis, requirements analysis, software review, identification of code metrics, system risk analysis, software reliability analysis


Front end graphical user interface design

Software testing and quality assurance

Performance tuning, improvement, balancing, usability, automation.

Support, maintain and document software functionality

Integrate software with existing systems

Maintain standards compliance


Job specification:
Reporting to: Team leader

Eligibility:- fresher/ experienced candidate with degree in B.E. or B. Tech.(Computer or IT) from reputed University
- Object oriented Design & C, C++ Programming skills
- Knowledge of Windows Application Development
- Familiarity with XML, DHTML & XSLT technologies
- Familiarity with Oracle or any other DBMS


Requirement planning
Money
Method of acquisition- Partly financed by equity and partly by bank loan

Preliminary costs - registration and legal charges, purchase of building, purchase of computers and servers, purchase of furniture, air-conditioners, and other incidental expenses

Day-to-day costs - salaries, electricity and water charges, printing and stationery, conveyance, computer repair and maintenance costs.

Requirement planning
Machine
Main requirement - desktop computers and servers; laptops for senior executives.

Method of acquisition: bulk purchase from well-known companies like IBM, Microsoft, Apple, etc. or on assembly basis

Other assest:
Air-conditioners -for cooling the machines and to maintain a dust-free environment;
UPS and a generator- back up round-the-clock power supply as well
Requirement planning
Material
Maximum availability of computer systems throughout the Company

IT infrastructure services includes desktop applications, Local and / or Wide area networks, IT security and telecommunications

Apple focused its efforts on developing the Macintosh as an alternative business computer. In
January 1985, Apple introduced the “Macintosh Office” which consisted of the computer, a laser
printer, a local area network called Appletalk, and a file server. The company’s emphasis on
gaining acceptance in the business market led it to finally acknowledge IBM’s preeminence,
which, in turn, led to a change in its competitive strategy. In the past, said marketing director
Michael Murray, “We would have vowed to drive IBM back into the typewriter business where
it belongs.”26 In 1985, according to Bill Gates, chairman of Microsoft Corp., Apple began to
preach coexistence.27 It now emphasized developing a comprehensive line of compatible
computers that worked well with those made by other manufacturers. The company targeted
small and medium-sized businesses, accounting for 80% of personal computer sales, and tried to
win several accounts from major corporations to be used as “showcase accounts.”28
Despite these changes, Apple’s efforts to sell Macintosh to business were making little progress,
and the company experienced its first quarterly loss. The Macintosh fell short of its 150,000 sales
goal over the Christmas season by approximately 50,000.29 Sales then declined to an average of
19,000 units a month, falling even further after that.30 Sales of the Apple II, Apple Iie, and the
Apple IIc were also disappointing. The Apple II line of products was the company’s cash cow,
but in 1985 it was not bringing in the revenue it had in the past.31 Although the company
experienced stunning Christmas sales, the following quarters were worrisome. The company
earned only $10 million on sales of $435 million for the three months following Christmas, as
compared with $46 million on sales of $698 million the previous quarter.32 Apple had no
backorders left over from Christmas; rather, it had inventory excess for the first time.
Internal Problems
Disappointing market performance was attributed to internal problems. Jobs and his director of
engineering were missing schedules for crucial parts of the system. They were “months behind
with a large disk drive that would help Mac run sophisticated software programs for business and
make it easier for users to share information.”33 In addition, Apple had no salesforce with direct
access to corporations. Unlike IBM, which had 6,000 to 7,000 direct salespeople, Apple relied on
300 manufacturers representatives over whom they had no direct control. These representatives
also sold the products of other manufacturers. In the early 1980s, Apple established a 60-person
direct sales staff. However, soon after, the staff began to experience conflict with the
independent dealers who still provided most of Apple’s revenue. The direct salespeople were
accused of selling Macintoshes at lower prices than dealers, “elbowing” them out of markets.34
There were also marketing problems. The company failed to communicate a business image for
the Macintosh to the market. A former Macintosh employee stated, “Mac was being perceived as
a cutesy, avocado machine for yuppies and their kids, not as an office machine or as the
technology leader that it is.”35 This image problem was compounded by the fact that Jobs and
Sculley disagreed over marketing strategy. Jobs believed that Apple should focus on technology,
which would be the motivating force behind purchases of computers. Sculley thought the focus
should be on customer needs. Customer needs should determine the product. Therefore, getting
close to the market was of fundamental importance. Jobs complained that Sculley didn’t
understand the nuts and bolts of the business or how products were developed and questioned
Sculley’s competence
 
Last edited by a moderator:
Top