In this week’s module we are analyzing how good organizational
control during the great recession of 2008 allowed certain companies to come out
on top. The textbook lists 10 big and small companies that have managed to do
this. I have chosen to evaluate CEO Steve Jobs and Apple Inc. on why they deserved to
be labeled as a “recession winner”.
One of the main reasons Steve Jobs & Apple Inc. were
able to survive the recession was that they knew the importance of
organizational control.
This means being able have these six guidelines to
correspond with the organization’s goals.
1.
Adapt to change and uncertainty – Apple has
always been ahead of the curve with their products. Steve Jobs was known for being prolific when it came to coming up with innovative new products for the consumers. This along the side of a world renowned design team, Apple Inc. is a force to be reckoned with.
2.
Discover irregularities and errors – Apple has been
able to monitor and control irregularities and issues with its operating system
OS X which they developed themselves to support all their equipment and
machinery.
3.
Reduce costs, increase productivity, or add
value. – Apple has maintained a relatively low labor cost because their
manufacturing is done in China. But has control over product quality as most of
the designing and testing is done in California. The Apple brand is known
around the world and is instantly recognizable with their signature white ear
buds.
4.
Detect opportunities – Steve Jobs has stated he
created many products at the same time but released them separately based on
the market trend or until he thought they were ready.
5.
Deal with complexity - Apple Inc.
employees are specialists who are not exposed to functions outside their area
of expertise. Steve Jobs saw this as a means of having best-in-class employees
in every role.
6.
Decentralize decision making, and facilitate
teamwork -
Apple is known for promoting
individuality and excellence that consistently attracts talented people into their
employ.
Here is the outline of the steps in the control
process shown in our textbook:
1.
Establishing standards against which performance
is evaluated
2.
Measure actual performance
3.
Compare actual performance against chosen
standards
4.
Evaluate results, and take corrective action
when the standard is not being achieved.
5.
Repeat the process
Now I will relate it to how Apple Inc. goes through the
process:
1.
Establishing standards against which performance
is evaluated
-
Measures of standards: efficiency, quality, ethics,
responsiveness to customer service, and innovations in technology.
-
Measure of costs: operating costs, employee
training costs, labor costs, machinery maintenance costs, and marketing costs.
2.
Measure actual performance
-
Monitoring Output : Financial performance,
Organizational Goals, Operating budgets
-
Monitoring Behavior: Direct supervision, (MBO) Management
by objectives, and Bureaucratic control
3.
Compare actual performance against chosen
standards:
-
Measuring
the performance of customer and employee satisfaction equally. Apple has made
great strides to ensure that their low wage employees in China have suitable
conditions unlike many large companies operating in China.
4.
Evaluate results, and take corrective action
when the standard is not being achieved:
-
Confirming the use of appropriate standards,
matched with appropriate rewards. Encourage employee input and address any
concerns or issues that need corrective action.
5.
Repeat the process
Even though Steve Jobs sadly passed away on October 2011,
his vision and beliefs live on with Apple Inc. Where they continue to value and
follow the steps in organization control which has helped them remain successful
all these years. They have surpassed the pioneers in the industry such as
Nokia, Motorola, and Samsung, because they were smart and learned to adapt to the ever changing world around them. This is why I believe that Apple Inc. deserve to be labeled as a "recession winner".
Resources:
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Derrick.
ReplyDeleteI completely agree with your desire to add Steve Jobs as a recession winner. It is pretty amazing how his company mangaged to remain a techology giant, even through economic downfalls. Consumers obviously made it a priority to purchase Apple products, even if times were tough.
Cassandra