ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 12: Organizational Behavior

Submission date 8/8/2021 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Nguyen Thai Bao Student ID GBH200086

Class GBH0908 Assessor name Hoang Thi Lan Anh

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

Student’s signature Nguyen Thai Bao

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Contents

Introduction ............................................................................................................................................................... 5

General information of Apple Inc. ......................................................................................................................... 5

Culture of Apple and its impact on the employees ............................................................................................. 7

Vision and mission .................................................................................................................................................. 7

Strategy .................................................................................................................................................................... 8

Symbol...................................................................................................................................................................... 9

Impact of Apple’s culture on its people ................................................................................................................. 9

Motivation methods of Apple ............................................................................................................................... 10

Maslow’s hierarchy of needs ................................................................................................................................ 10

Apple’s application of Maslow’s hierarchy of needs .......................................................................................... 12

Conclusion ................................................................................................................................................................ 13

References ................................................................................................................................................................ 13
Introduction

Corporate behavior research is the foundation of any organization's human resources on the ever-
changing and dynamic company market. Organizational behavior is an analysis of the effect that
individuals, groups and organizational structures and process have on the comportments inside
organizations, drawing upon psychology, sociology, political science, and cultural anthropology (Brief &
Shaw, 1979). This study thoroughly examines the cultural components of the organization, its impact and
consequences on strategy and staff productivity.

General information of Apple Inc.

Apple Inc. is an American technology multinational that manufactures and sells gadgets, computer
software and online services. It is headquartered in Cupertino, California, and is considered as one of the
Big Five companies in the US, along with Microsoft, Amazon, Facebook and Google. Apple Inc. was founded
by Steve Jobs, Steve Wozniak and Ronald Wayne in 1976, and currently Apple has about 500 stores and
200 suppliers around the world (Apple, 2021).

Figure 1. Apple’s top Institutional Holders (Reiff, 2021).

According to Investopedia, the top 3 Institutional Shareholders are Vanguard Group Inc., BlackRock Inc.
and Berkshire Hathaway Inc., which makes Apple a private-owned business. The Vanguard, Inc. with 1.255
million shares owning 7.48% of the outstanding shares of Apple, is now the largest stakeholder of Apple.
BlackRock Fund Advisor is the second-biggest stakeholder owning a total of 1.056 million shares, equal to
6.29% of Apple's shareholdings. Berkshire Hathaway, Inc. is the third largest shareholding with 887 million
shares, representing 5,228% of the total outstanding shares of Apple. (Reiff, 2021).

Figure 2. Apple’s executives profile (Apple, 2021).

The organizational structure of Apple follows that of a functional structure: every role is allocated either
to a leader or to a vice president in Apple. It divides work into groups or divisions such as Marketing,
Finance, Operations, IT, HR, etc. These managers' positions do not consist of departments (iPhones, iPads,
Mac Books, Accessories, etc.) (Software, Services, Environment, Marketing, Operating, Finance, etc.). The
organizational structure of Apple is clearly shown to be functional. The reason Apple does not adopt the
product-based organization is because these products are uniform, and cooperation across different
teams is required.

Culture of Apple and its impact on the employees

Vision and mission

Despite obstacles in the competitive landscape, Apple Inc.'s corporate purpose and vision are connected
with how it drives the ongoing growth of the firm.

Apple’s corporate vision: “To make the best products on Earth, and to leave the world better than we found it”
(Apple, 2021).

The company vision statement is aligned with Apple's policy on social responsibility and emphasizes
sustainability, the preservation of the environment and the general improvement in the company's
surroundings. The vision statement of Apple impacts the strategic management with regard to the
decisions made by the management of the firm to attain a future in the many sectors in which the company
works. The word "best products" refers to the company's ambition as a world leader in product design and
development. Apple's aim of having the greatest goods is to press for new product development
innovation. In this regard, the company's vertical integration enables the management of computer
technology, software and on-line services to achieve a cohesive business scenario. The supply chain
strategies of Apple assist the design and development of the finest products by promoting improvement
of suppliers and excellence. The corporation has plans and policies for the operation and activities of
partners including suppliers and manufacturers of semi-conductor components in order to meet its
corporate vision statement. For instance, Apple demands that its suppliers conform with its environmental
conservation policy and fair employment standards. This initiative addressed directly the second section
of the vision statement of the consumer electronics firm, which outlines the need to enhance the impact
of business on the globe. Somehow Apple is increasingly influencing the global society through the
corporate vision. With the emphasis on excellence and the conservation of environment, the vision
statement affects the corporate culture of Apple Inc. and its effects on human resources (Kim, et al., 2021).
Apple’s corporate mission: “To bring the best personal computing products and support to students, educators,
designers, scientists, engineers, businesspersons and consumers in over 140 countries around the world” (Apple,
2021).

This statement takes account of the changing business environment that impacts what Apple Inc. can
accomplish this statement. In the fields of consumer electronics, for example, the firm identifies trends
and developments. This business goal is pointed to as a means to solve current world market issues in
Apple's media and official pronouncements.

Its corporate mission statement is that computer products are focused as corporate outputs by Apple Inc.
Computing products not only comprise computers and smartphones, but are based largely on computer
technology as well as other items or services. Including cloud-storage, software and the distribution of
digital material (App Store, iTunes, etc.) and online payment systems (Apple Pay). The statement further
indicates that the target consumers of the technological firm are almost everyone. In consequence, Apple
creates products that satisfy customers' wants and preferences in different sectors of the market. The firm
mission further indicates that the operations of the company are multi-national and aim to promote
consumer electronics and internet services worldwide. Apple Inc.'s marketing mix or 4Ps is somewhat
influenced by the company mission statement on computers. The mission declaration also impacts the
corporate vision statement of the firm, which directs strategic planning for the future of the technological
business (Kim, et al., 2021).

Strategy

Two sessions may split Apple strategy: general strategy and an intense plan for growth. Generic approach
is sometimes seen as distinction. This implies concentrating on special qualities that make them unique in
the technology business. Elegant design and high-end branding, etc. are elements that distinguish Apple
from others. While originality is not popular at times, Apple nevertheless reaches many people in a wide
range. Apple aims at purchasing their products, for example, from MacBook, for people and organizations.
The aggressive growth strategy of Apple, on the other hand, involves product creation, market penetration
and market development. Product development, the organization’s main intensive growth strategy,
requires the company to develop new and updated products to attract both loyal and new customers. The
firm has to produce new and updated items in order to attract both loyal and new clients. Product
development is the principal growth strategy of the organization (Kim, et al., 2021).

Symbol

Whenever a person sees a bitten apple, that immediately reminds them of Apple. There are many theories
of why Apple chose a half-bitten apple to be their symbol. The first theory is that the logo at the back of
an iPhone or Mac honors Alan Turing, who established the groundwork for contemporary computers and
developed artificial intelligence research and cracked German military codes. The connection to Apple is
his death a decade after the conclusion of the war. He is not known for his work, has a filthy indecent
prison, and has been humiliated with estrogen injections to "cleanse" his homosexuality. On June 7, 1954,
ten years after the landings in Normandy, which garnered the intelligence by his techniques, he perished
obscurely. He was killed. Other theories suggest that the apple depicted knowledge or referred to the
falling fruit that led Sir Isaac Newton to the notion of gravity, or as in the biblical account of Adam and Eve,
the apple represents curiosity and the urge to discover of humanity. But until now, none of the theories
are confirmed as the reason why Apple initiatively picked an apple to be its symbol, but it is undeniable
that Apple has successfully created a unique logo that still affects the technology field today (Frith, 2011).

Impact of Apple’s culture on its people

The corporate culture of Apple Inc. is a significant element in the company' continuous success. The
organizational or corporate culture of a firm creates and retains employee philosophy, values, beliefs, and
associated conduct. The corporation continues to strengthen its cultural features through the
management of Steve Jobs and now Tim Cook to optimize the support of human resources for corporate
relevance in diverse markets across the world. Apple shapes and leverages its company culture as a tool
to manage strategically and successfully (Purkayastha & Qumer, 2009).

Apple may be the world's most valuable business, but it is not like a large firm. Several staff talked about
Apple as a cluster of start-ups operating under the cover of a larger business as one of the finest aspects.
"Apple is running like a series of small businesses (working groups)," wrote one senior software engineer.
"When your work grows older, it is easy to transfer inside the firm to acquire a new view without changing
employers entirely, and they all end up doing so. Likewise, there are lots of progression chances if you
have to extend or upgrade your skills" (Fiegerman, 2012).

As a cornerstone of its corporate culture, Apple tries to embrace diversity and inclusion. The technological
multinational firm serves as Vice-President of Diversity and Integration; whose main objective is to
guarantee diversity among employees at all levels. In 2020, the firm announced an initiative to promote
racial equity of US$100 million. Tim Cook, unlike his predecessor, Steve Jobs, sometimes writes about the
need for society to do more for equitable treatment, especially for Black people, to internal and external
stakeholders (Apple, 2021).

Apart from its secrecy and moderate degree of combatability, the corporate culture of Apple presents
problems. The secretive environment restricts the relationship between employees. Moderate militancy
is also likely to limit or lower the morale of employees. These cultural problems might impair efficiency
and increase the turnover of employees. The "need for secret means sometimes working twice when
changes occur in schedule and releases" writes an Apple inventory expert. Another staff member who
works as a Cupertino product manager says that "the requirement for secrecy presupposes additional
obstacles to work across the board”. Moreover, some present and past employees denounced the
treatment of arrogant colleagues. "Most engineers have an overall perspective of their skills, and that
reflects in their approach," one senior software engineer put it (Fogliasso & Williams, 2014).

Motivation methods of Apple

Maslow’s hierarchy of needs

Maslow's hierarchy of needs is a psychological theory of motivation, consisting of a five stage model of
human requirements commonly represented in a pyramid as hierarchical levels. The requirements are:
physiologically (food and clothes), security (employment security), love and belonging needs (friendship),
esteem and self-actualization, from the bottom up in hierarchy. Lower hierarchical requirements must be
met before people may meet higher demands. The first and foremost need is physiological needs, for
instance: air, food, water, sheltering, clothes, warmth, sex, sleeping; these are biological necessities for
human existence. The human body cannot operate efficiently if these demands are not met. As all other
needs become secondary until these requirements are satisfied, Maslow regarded physiologic needs to be
the most significant. When the physiological demands of a person are met, safety and security
requirements are of great importance. In their lives, people desire order, predictability and control. Family
and society can provide these requirements (e.g. police, schools, business and medical care). Emotional
security for example, financial security (e.g. jobs, social benefits) law and order, fearlessness, social
stability, property, health and welfare (e.g. safety against accidents and injury). The third level of human
wants is social and involves emotions of belonging once physiological and safety needs have been
satisfied. Belonging means a craving for human emotional ties, affiliation, connectivity and group
membership. Examples of the need to be part of the family include friendship, privacy, confidence,
acceptance, acceptance, affection and love, or emotional security, finances, law and order. Esteem needs
are the fourth level of the hierarchy of Maslow and includes self-worth and respect. Appreciation of self
(dignity, success, mastery, independence) and the desire for fame or respect by other people (e.g., status,
prestige) are the two categories classified by Maslow. The desire for self-actualization is the greatest on
the hierarchy of Maslow and refers to the realization of a person's potential, self-fulfillment and self-
growth (McLeod, 2020).

Figure 3. Maslow’s hierarchy of needs model (McLeod, 2020).

Maslow first said that people need to address lower deficiency requirements before they can make
progress to achieve higher growth needs. But he later made it clear that the fulfilment of a necessity is not
an all or nothing event and admits his previous remarks could have created "a misleading impression that
a need must be met 100% before the next necessity arises" (McLeod, 2020).

Apple’s application of Maslow’s hierarchy of needs

Maslow's hierarchy of needs is now the motivational approach employed in Apple. The motivation of
employees is an essential component of helping Apple employees enhance productivity and do full
assignments. The first is Apple's response to the physiological requirements of employees by setting a
median salary of $98,438, largely in accordance with Maslow's hierarchy of needs pyramids (Zippia, 2021).
Moreover, Apple also offers employees “onsite doctors and nurses at its wellness centers collaborate with
dietitians, acupuncturists, and its fitness centers to offer everything from intense workouts to soothing
medication (Apple, 2021). Apple has implemented a variety of second-level applications for the safety
needs of employees, such as health and safety regulations and training additional personnel to identify
dangers or supply safety equipment, or its commitment to safe working conditions in its supply chain
(Apple, 2014) & (Apple, 2013). Some employees also observed that Apple offers commuting options from
part of the Bay area to the Cupertino site, as a good part of its job, including the business shuttle services.
Apple also offers a grant to assist pay the cost of bus, rail and other modes of transport for employees
(Fiegerman, 2012). In the third level of belongingness and love needs, Apple ensures that employees will
have paid time away (e.g., maternity leave, family issues, etc.), quoting Apple: “We’re passionate about
our work, yet we’re believers in taking time away to replenish, relax, and provide for others” (Apple, 2021).
The following is esteem needs of the demand pyramid of Maslow. Apple not only offers its people a
healthy, non-toxic, encouraging and respectful working environment, it also states that gender equality is
secured in the organization. Moreover, Apple University creates an environment that helps people grow,
sharpen skills through online classes (Apple, 2021). The highest level is self-actualization. According to Jen,
an Advanced Manufacturing Engineer, Apple provides many resources for its people to go beyond the
limit, she also stated that there is no discouragement in the company, and no idea is too crazy in Apple.
Apple also encourage creativity, quoting: “Everyone here is an innovator, or an innovator-to-be — even in
areas customers don’t typically notice: Consider the Siri curators and engineers who help reduce bias with
continual updates and respectful neutrality in search responses. Or the teams who designed, produced,
and shipped millions of COVID-19 face shields for front-line medical workers. Or the chef in one of our
cafés who patented our environmentally friendly pizza box.” It can be seen that Apple treasures every
position in the organization, from the chef in the cafés, to engineers and designers, and the business has
been trying to encourage people to bring the most out of them, help them to reach their peaks, and way
beyond that (Apple, 2021).

Conclusion

In conclusion, the corporate culture that Apple has built has certain impact on its people's behavior and
performance. Furthermore, research of Maslow's hierarchy of needs, as well as Apple's application of the
hierarchy has clearly pointed out that Apple is treating its people right while maintaining its position in
today’s technology world.

References

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[Accessed 5 August 2021].
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Kim, J., Jeong, B. & Kim, D., 2021. Who Drives Innovation? Apple. In: Patent Analytics, Transforming IP
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Purkayastha, D. & Qumer, S. M., 2009. Apple Inc's Corporate Culture: The Good, the Bad and the Ugly.
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