International Leadership and Human Resource Management at Apple Inc - Case Study Example

HRM: APPLE INC Introduction Apple Computer Inc. was founded in 1976, by trio of Steve Jobs, Steve Wozniak and Ronald Wayne. It is an American company. By 2009, Apple had retail stores in approximately 263 retail stores all across the world. At the time of formation, the organization was into simple computer business only. Over time, Apple evolved gradually. The path was definitely not smooth. It had to emerge in a highly competitive market, acquire confidence of share market. But at the same time, it had to face a series of adversities also like- lack of recognition, inadequate innovations, negative response from customer base, sporadic customers, inability to identify potential customers, etc. Due to all these, Apple had experienced considerable amount of loss in its initial years. Things however, changed soon after. With success, the organization expanded and with it its managerial strategies also changed. Present success of Apple could be owed to its efficient management, consistent creativity and innovations. In the past few years, Apple has not only developed long and standing relationships with different industry groups, but has also expanded to newer fields. The organization has different corporate values which have proved to be beneficial for the company. HRM of Apple ensures worker empowerment thorough different training and developmental programs. Among its numerous objectives, the most focused were- development of international behavior as well as development of appropriate corporate culture. International staffing including recruitment and selection, reward management, and ‘fit’ level are some other concerns of Apple. Simultaneously it has also framed organizational policies to build a sound supply chain management. All these aspects have made Apple one of the most successful corporate organizations of present times. (Our commitment to transparency n.d) 2. HR planning at Apple In recent times, human resource management strategies of Apple have undergone significant changes. Previously Apple’s HRM strategies were basically people- oriented and targeted to individual service providers of HR. In later years, this focus got shifted towards orientation of services. Policies were framed accordingly and were implemented by introducing updated technologies and ‘user- friendly’ tools (Groe, Pyle and Jamrog 1996). For long Apple has been one of the powerful names in computer and associative technologies. The next practices that were developed by Apple have generated competitive advantage for the organization. Such practices were mostly adopted for product packaging and customer- oriented service. For instance, the time when iPod and i-Music service was introduced in market, HRM practices were framed for building a sustainable and contented customer base and also a long- term relationship. HRM practices in Apple ensure that the business activities are carried out dynamically, in a well organized and progressive way. The next practices include hiring the right kind of people from leading educational institutes, global hiring, calculating the right recruiting metrics, prioritization, assessment of market criteria as well as probable candidates, etc (Sullivan, n.d). As far as 720- degree succession planning of Apple is concerned, organizational values are treated with utmost importance. Among some of HR- strategy planning at Apple, one is succession planning. To succeed its co- founder and CEO Steve Jobs, Tim Cook has been groomed for years. Cook, the chief operating officer, was one of the most eligible candidates. After the death of Jobs, Cook has succeeded him. Cook was given the opportunity to work with Jobs directly and this has not only added to his experience of Apple’s supply chain, but at the same time has also enriched him with in depth understanding of internal organizational operations of Apple. This was an important HRM strategic measure that Apple had taken in recent times. This measure has not only successfully developed an effective leadership curriculum within the organization, but has also carried forward the style and philosophies of Jobs. This HRM strategic approach was different from general practices for most organizations opting for competency models and access by candidate’s leadership qualities (The Real Succession Plan For Steve Jobs: Apple Thinks Different With Apple University 2011). As per organizational policies, Apple prefers to appoint its CEO who will be a good consumer marketer, and at the same time will also possess existent transition skills. Motivation is an important aspect when it comes to creativity and innovation. This is important keeping in mind the level of competencies in existing markets (White et al. 1992). 3. International Staffing at Apple 3.1   Recruitment At staffing levels, Apple has been sacking its employees a new strategic measure. This staffing strategy was adopted for retail stores of Apple mostly. This made Apple retail stores understaffed. This had a huge impact on business of Apple since around this time Apple had launched some new products. Shifts were affected and customer- service was also hampered very much. The employees of Apple too had to face increased workloads and personal loss also (Sheer 2012). Recruitment in altogether is a complicate procedure. Also their recruitment network is very large. Thus, recruitments are made to meet this labor demand. For this purpose, Apple has merged its HR and information system to form HRIS. This has contributed in further development of technology. The recruitment procedure is designed to ensure competitive advantage for Apple. Candidates from external sources are preferred more. However, keeping to the present times, Apple also opts for e-recruitment. E-recruitment supports flexibility as well as access to larger number of prospective candidates (Ayob, n.d). 3.2   Selection The selection procedure is designed to ensure that only the best professionals are hired for serving Apple. Cordial and welcoming behavior is given priority above all by Human Resource Department of Apple. The organization had been expanding globally in a fast speed, and so it required candidates who are dynamic and would adapt to global culture of Apple. The HR department which has strength of more than hundred thus prefers to recruit who have best IT records as well as exceptional contributions in the field of technology, leadership and computing. Aspiring candidates are recruited after they pass through rigorous interviewing procedure. Apple believes in following the behavioral policies and etiquettes as it is followed in hospitality industry. In other words, HR management selects only candidates with ‘agreeable nature’. Next comes, passionate. For long, corporate image of Apple has made the organization synonymous with communication and passion. Thus, the recruitment board of Apple focuses on hiring candidates who could connect easily with connection- oriented tools and at the same time demonstrate passion. Recruitment procedures of Apple focuses at future service benefits that could be achieved from the candidate and does not readily focus on candidate’s knowledge about Apple products. Above all, confidence, corporate aggressiveness during interaction and customer- service is extremely essential for retail stores in Apple. These qualities are thus searched in candidates appearing in interview process. During the procedure, candidates are divided into small groups. This is done to judge their teamwork and level of cooperation and assistance. Commitment, not only to the customers, but to the organization as well is important in retail business. This fact is often judged by leaving the candidates to comment about their past organizations. Their commitments and respect about their past jobs is judged for predicting their future level of commitment towards Apple (Adams 2012). 4. Training and development at Apple Apple focuses on certain things as far as training and other developmental programs are concerned. First of all, it is ensured that the employees possess a basic consumer marketing skill. Irrespective of designation, it is also ensured that the employees posses transitional skills, interpersonal skills and other cognitive skills. The management of Apple constantly invests on keeping their employees motivated and focused. Organizational values are instilled in them. Above all development of a unique corporate organizational culture is emphasized. These organizational policies have contributed a lot in present success of Apple (White et al. 1992). Employees are trained for specific tasks. Free education opportunities for Apple’s employees have generated both professional and personal benefits for employees. This is basically carried out by Employee Education and Development program (SEED). This program aims at increasing technical and communication skills of employees. This has further helped Apple to create a global corporate environment within organizational premises. Life skills, organizational values, behavioral skills, skills about management, social and environmental responsibilities are also incorporated within the employees through numerous other developmental programs. At the same time, management of Apple Inc ensures equal participation of employees in such educational and development programs. From time to time, these programs are expanded to ensure more participation on part of the employees. Though these programs have cost millions to Apple, they get good returns. Secondly, Apple believes in reciprocal business activities. For this reason, management of Apple has introduced provisions where employees could voice not only their opinions and concerns but their discontentment as well. This is achieved by building up some sustainable programs, complying with organizational objectives. Safety and other precautions are maintained while giving trainings to their workers. The chief objective of Apple behind providing training and other developmental programs are- proper and adequate management of supply chain, effective management of organization’s human resource and lastly, quality control. All these help Apple to explore a wide range of solutions and come out with most effective ones (When people gain new skills and knowledge, they can improve their lives n.d.).Other than training and other developmental programs, Apple Inc encourages transferring, examination of respective departments, employee’s recommendation and many others. 5. Reward Management at Apple Over time Apple has adopted advanced rewarding system. Apple’s reward system not only aims at retaining happy employees but it is also a form of appreciating the efforts and performances of their employees. For this reason, Apple has been increasing perks as well as personal times for projects. Simultaneously, sabbaticals were approved for a section of employees, increased stock benefits and other counter offers. For instance, ‘Blue Sky’ is one such perks which has allowed the employees of Apple were allowed to work on their personal projects while at office. For a hi-tech organization Apple, such measures have worked wonders. CEO Cook has quite appropriately carried forward the vision of Jobs who has once claimed that the most worthy resource of Apple are its employees. Such increase and innovativeness in perks has no doubt sustained large, loyal and satisfied employees. Happy employees, in turn put their best efforts in producing best products and experiences for Apple customers. This also implies that Apple’s image is its prime concern. Thus, Apple makes all efforts so as to keep its internal business operations smooth and going. Furthermore, benefits offered like benefits on Apple products for its employees, stock discounts, etc are other means of reward management followed by Apple (Ogg 2012). Apple is known for its brilliant designs and innovations. To maintain it, it is extremely important to keep the employees motivated and goal- oriented. Performance appraisals and reward management are excelling ways of achieving such objectives. Also, Apple has its long time employees rewarded in the form of plagues, glass- made awards, glass blocks, day offs, etc. These were awarded from headquarters of Apple. The glass sculptures that were awarded often contained both organization’s objectives as well as personal achievement of that particular employee. Rewards are given to employees who have completed five years, ten years, twenty years and so on (Apple’s Rewards for Longtime Employees n.d.). Certain job benefits are also given to the employees with better performances. Other policies as adopted by reward management of Apple include benefits regarding health and life insurance, flexible spending accounts, education, long as well as short term disability coverage, flexible spending accounts and many others. To retain its skilled employees Apple has adopted certain strategies also. For instance if any employee has to get a discount on Apple products like iPod or i-Phone, that particular employee has to serve the organization for a minimum of 90 days and that such product discounts would be awarded once in three years only. Also, the discounts were not available for all Apple products and were applicable mostly for Apple hardware. 6. Appropriate level of “fit “for Apple As far as overall human resourcing strategy is concerned, Apple holds a strong position. Strategic fit holds that functional strategies of organizations go in line with their respective competitive strategies. Most important of all it ensures synchronization as well as optimum use of modest resources of organizations. Fit human resourcing strategy of Apple lies in its innovations that have helped it enjoy the benefits of having superior competitive strengths. Introduction of new items also accounts for another vital competitive strength for Apple (Gary 2010, p. 51- 52). Formal and informal communication forms the basis of Apple’s supply chain. ‘Fit’ involves both internal as well as external communication. The communication that is carried on with people within a corporate organization is referred to as internal communication. And those that are carried with aspects outside the organizational premises are known as external communications. This technique is formally known as the grapevine technique. Apple Inc. as a global corporation has also adopted this technique of communication in all its production houses across the world. It is basically an informal channel of communication. Through this communication method, information is passed on an informal mode, more specifically the informal information. A characteristic feature of this communication mode is that it is oral and is usually un-documented. This has generated benefits for Apple for such a kind of information could easily pass from one department to another and has also helped in better organization and teamwork. Added to these there are also vertical and horizontal channels of communication that Apple promotes within its hundreds of outlets all across the world (Pirasteh n.d). 7. Recommendation There are certain things that are responsible for lowering of not only Apple’s market image but also their brand value. First of all, Apple must be more discreet about its publicly traded U.S. stocks. This would prevent Apple’s stocks from falling further. In recent times, it was found out that there were too much inventories from suppliers of audio- chip. From this Apple predicted a fall in demand of i-Phones. This requires more of effective and efficient management of business activities. Also it is important for Apple to maintain its mobility mojo. It has been found out that innovation level of Apple has fallen considerably in present times, due to lack of skilled employees. After the death of its former CEO and co-founder Jobs, Apple has been unable to bring such innovations as was brought by Jobs from time to time. It points not only towards the flaws of Apple’s management but also towards lack of initiatives of Apple teams. Thus, implementation of new organizational policies for making up this drawback would be immensely beneficial for Apple Inc. Moreover the cheaper policy vision that has been taken by Apple is not always fruitful. Not only their profit margins would fall, but Apple would also lose their leadership. This view clashes with original vision of Apple which was oriented more towards differentiation. Over the years, it was differentiation that provided Apple with competitive advantage over its competitors. Following with the original mission and vision would be advantageous for Apple. Apple’s management could take up initiatives for this like making better products for present market demands, appealing more to investors and customers. This would not only widen customer base of Apple, but also at the same time would generate more positive impressions on investors and stockholders. Better products always have their own contribution to customers. Apple could thus, concentrate more in offering its customers better quality of music players, smart phones, tablets and other Apple products. The Low Cost Producer has hampered overall image of Apple (Cohan 2013). There are certain other aspects as well where Apple could well improvise. First is strategic positioning. From investors’ point of view, presently Apple has lost its product-edge. Too much dependency on super- premium strategy of pricing is another reason. The only way Apple could increase its net income is by lowering of the market as a whole, including those of its competitors too. Furthermore, revisions in investment strategies of Apple would yield better results for the organization. Lower expectations, on the contrary, might not carry a positive vive as far as investment strategy of Apple is perceived by its investors (Cohan 2013). 8. Conclusion Succession planning is usually treated with highest amount of confidentiality by large corporate companies. The strategy is more of an annual event. The succession planning usually has only involvement of core members or core committees only, with mandatory presence of HRM board as well as the CEO. The succession planning has only one chief objective- ensuring the right replacement candidate. Generally this planning is done only for most important executive posts in the company. On a general basis, large corporate organizations make use of strategic succession planning at a regular interval of two to three years. This is done to ensure that the business focus remains intact in spite of marginal interruptions. While nominating any probable candidate, all attribute and skills as well as managerial capabilities of probable candidate are taken into account. Another chief feature of this organizational strategy is that, that the probable candidates are selected within the respective organizations only (Succession Planning: an HR-Strategy Must 2011). Apple looks at itself as a Global Community of Entrepreneurs. So their recruitment processes are constantly focused at hiring new leaders who would enhance synergy level of teams. According to organizational values, hard working has no substitute with the sole objective of fulfilling dreams of millions of Apple users, continuing the legacy and meeting goals. HRM planning of Apple are for the most part directed towards upholding the organizational image and gaining competitive advantage in existing market. Recruitment and selection procedure is important for Apple, for through them, they could hire the right kind of candidates for their organization. Apple provides numerous training and developmental programs to enhance employees’ performance. Through this, apple aims at management of supply chain, optimum use of human resource, and quality control. Reward management is yet another concern of Apple. Through acknowledgements and rewards Apple has been successful in making their employees satisfied and retaining them. 9. References 1) Adams, S 2012, How To Get Hired At An Apple Store, Forbes, 4 March 2012 2) Apple’s Rewards for Longtime Employees, n.d. Applegazette, viewed 26 August 2013, Read More