Modernist organization theory states that complete knowledge means understanding how and why organizations function and the way they do and how their functioning is influenced by different environmental conditions. Effective organizations are able to balance internal and external pressures, increase efficiency and adapt to change. In this case analysis I will analyze Apple. This organization ‘designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals networking solutions and third-party digital content and applications. The company sells its products worldwide through its retail stores, online stores as well as through third party cellular network carriers.
Modernist Analysis – PG 77 – read modernist theories relating to organizations to their environments 1. Environment:
‘In modernist organization theories, the organizational environment is conceptualized as an entity that lies outside the boundary of the organization, providing the organization with raw materials and other resources (inputs) and absorbing its products and services (output). (Hatch, 1997) The success of Apples’ organizations relies heavily on this theory. There are a host of general forces at work in the environment that have an effect on an organization. The aspects that would have an impact on Apple’s organization include culture, economy, social, legal and technology environments. A major reason Apple has become so successful is because they have been able to match their internal structure to appropriate environmental characteristics. The social sector of the environment is associated with ‘class structure, demographics, mobility patterns, life style, social movements and traditional social institutions’ (Hatch, 1997). Lifestyle, social movements and demographics are social movements in particular that have an impact on the Apple organization. -Global media coverage
– Popular culture
– English as global language of science, politics, business and the internet
– Materialism and consumerism
– Multi-racialism, multi-culturalism and multi-lingualism
The cultural sector of the environment ‘revolves around issues such as history, traditions, normative expectations for behaviors, beliefs and values’ (Hatch, 1997). Conditions in the cultural sector such as an increased emphasis on material wealth have a direct impact on Apple. Apples main market is high volume consumers, and as a company Apple exploits that demographic more so then any other technology company in the world. The legal sector involves all the laws in which the organization must conduct its business, including legal practices in each of these domains.
The economic sector ‘is comprised of labor markets, financial markets, and markets for goods and services’ (Hatch, 1997). Labor markets in particular are a very important and interesting sector in regards to Apple. Economic conditions which have a direct impact on how Apple conduct their business include things such as the balance of payments, economic alliances with other countries, trade agreements, price controls, access to raw materials markets, price indexes, excess production capacity an investment risk. The biggest sector that has a direct impact on Apple would be technology. The technology sector ‘provides knowledge and information in the form of scientific developments and their applications that the organization can acquire and use to produce output (goods and services) (Hatch, 1997). With Apple being a technology organization, it means that
Social structure refers to the relationship among the parts of an organized whole. This concept can be applied to almost anything; in this case we are talking about the relationships among people who assume the roles of the Apple organization and to the organizational groups or units which they belong. Within Apple there must be a division of labor, which is the distribution of responsibilities and assignment of work tasks within the organization. This division is what organizes work. Within Apple there are both divisions and departments. Their divisions include areas such as Within Apple there is also a hierarchy of authority. This refers to the Apple has in place contingencies that help ensure the organizations success. A good organization design is based on fitting the internal organizational structure to the demands of the environment, in Apples case this would be their consumers.