Features of Apple’s Organizational Structure

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Apple organizational structure can be described as hierarchical. Such a structure has been developed by its founder and former CEO late Steve Jobs in order to ensure focused realization of his innovative ideas and clear vision for the business. Apple organizational structure has been subjected to certain modifications since the leadership role was assumed by Tim Cook on August 2011. Specifically, Mr. Cook embraced the decentralization of decision making to a certain extent in order to encourage innovation and creativity at various levels. Nevertheless the structure remains to be largely hierarchical.

Product-based grouping is another important feature of Apple organizational structure. Each product within Apple portfolio such as iPad, iPhone, iPad, Apple TV and iWatchis a result of collaboration of product-based groups.

Figure below illustrates Apple organizational structure:

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Apple’s organizational structure enables the firm to continue innovating rapidly. The creation of new products like Apple Watch is linked to the support from the firm’s organizational structure. The following are the most significant characteristics of Apple’s organizational structure:

1. Spoke-and-wheel hierarchy

2. Function-based grouping

3. Product-based grouping

Spoke-and-Wheel Hierarchy. A bird’s-eye view of Apple’s organizational structure shows considerable hierarchy. In the past, everything went through Steve Jobs’ office. Jobs made all the major decisions. However, under Tim Cook’s leadership, this hierarchy in Apple’s organizational structure has slightly changed. There is now more collaboration among different parts of the company, such as software teams and hardware teams. Apple’s vice presidents have more autonomy, which was almost absent under Jobs. Thus, the company’s organizational structure is now less stiff, but still has a spoke-and-wheel hierarchy where Tim Cook is at the center.

Function-Based Grouping. The upper tier of Apple’s organizational structure has function-based grouping, which is an element derived from the functional type of organizational structure. Each senior vice president who reports to Tim Cook handles a business function. For example, Apple has an SVP for industrial design, an SVP for marketing, and another SVP for retail. In this aspect of the organizational structure, Apple’s top leaders address business needs in terms of function areas.

Product-Based Grouping. The lower tier of Apple’s organizational structure has product-based grouping, which is an element derived from the divisional type of organizational structure. Below the senior vice presidents, there are many vice presidents for different outputs or products. For example, Apple has a VP for iOS apps, a VP for iPad, and another VP for consumer apps. This aspect of the organizational structure enables Apple to address specific products or product components.

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