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An analysis of Apple and Nucor’s organizational models revealed that the two corporations differ significantly regarding organizational perspectives and the relationship between employees and management. For example, “Apple promotes institutionalized role orientation” in almost all its departments (Tasnim, 2018, p. 38). Only marketing and design departments operate independently within the organization (Tasnim, 2018). They and Apple’s CEO have the full authority to make major decisions and determine the company’s future course. Moreover, only the CEO has the right to set the goals and values of the company (Tasnim, 2018). The independent status of these two departments and their freedom in making decisions is because these employees are behind the final product and, consequently, Apple’s brand and image. They are informal elements in the formal organizational structure of the corporation.
Nucor takes the opposite approach to organizational perspectives and intra-organizational relationships. All employees are given significant freedom of action and decision-making. Experts note that “the company is famous for its decentralized structure and for pushing authority and responsibility down to lower levels in the hierarchy” (Organizational behavior, 2017, p. 206). Managers are encouraged to listen to employees’ ideas and implement them in the workplace, which happens frequently (Organizational behavior, 2017). Salaries and bonuses of both employees and employers, including the CEO, directly depend on the company’s performance (Organizational behavior, 2017). Such an organizational culture motivates each employee to do their best and actively cooperate. It is also worth noting that employees define the company’s goals and principles, unlike in Apple.
As one can see, Apple and Nucor have become leaders in their industries precisely because of their organizational structure. They took different approaches, but both have succeeded. The former focuses on building and maintaining a strict hierarchy while the latter adheres to cooperation and equal division of powers. I believe that Nucor is more efficient than Apple because it manages to maintain a high level of employee independence while providing them with the highest salaries in the industry. However, the dependence on the performance factor can harm the company’s sustainability in the long run. I believe that organizational culture should have a balance between egalitarianism and elitism, equality, and hierarchy.
References
Organizational behavior [eBook edition]. (2017). The University of Minnesota Libraries.
Tasnim, M. (2018). An organizational analysis on Apple.European Journal of Business and Management, 10(11), 35-40. Web.
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