Advantages & Disadvantages of Apple’s Organizational Structure

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Advantages & Disadvantages of Apple’s Organizational Structure

Strong Control. The hierarchy in Apple’s organizational structure supports strong control over the organization. Theoretically, hierarchy empowers top leaders like Tim Cook to control everything that goes on in the organization. Through the hierarchy, function-based grouping and product-based grouping in this organizational structure, Apple ensures that Cook and the senior VPs control all organizational processes.

Limited Flexibility. Apple’s organizational structure has the downside of low flexibility. Hierarchy typically prevents lower levels of the structure to flexibly respond to business needs and market demands. However, Tim Cook has already made slight improvements by increasing collaboration among different parts of the firm. Still, Apple’s organizational structure does not support rapid changes because everything must go through Tim Cook and the senior VPs.

Microsoft Organizational Structure: Divisional Structure with Focus on Innovation

Microsoft organizational structure can be classified as divisional. In June 2015, the senior management announced a change in Microsoft organizational structure to align to its strategic direction as a productivity and platform company. This restructuring initiative resulted in elimination of approximately 7,400 positions in fiscal year 2016. The current divisional Microsoft organizational structure is the result of this restructuring initiative.

As it is illustrated in figure below, Microsoft organizational structure is divided into divisions according to engineering groups and business functions. ….

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