REALITY CHECK: APPLE COMPUTER

Reality Check: Apple Computer Managing Performance for Results ORG 520 Cynthia Bage CSU Global Campus Dr. Victoria Figiel January 16, 2011

REALITY CHECK: APPLE COMPUTER Reality Check: Apple Computer

Aguinis (2009) describes many ideal components of a Performance Management System (PMS). It ideally has congruency with both unit and organizational goals, be thorough in nature, practical to implement, meaningful in relation to job duties and workplace reality, specific and concrete in its expectations, able to distinguish between effective and ineffective job performance, reliable and relatively free from human error, valid when applied within the context of job demands, deemed acceptable and fair by reasonable standards in relation to procedural and distributive justice, inclusive in regards to employee feedback in relation to design and implementation, transparent and non-secretive, open to correction by way of an appeals process when systematic errors are discovered, consistently applied within the organization and is based on a sound ethical foundation that excludes personal self-interest (pp. 17-20). In assessing the PMS of Apple, Inc. (formerly Apple Computer), their Human Resources Management (HRM) department has in place a process of staff appraisal in line with the organizational goals of the company. In 2003, Apple Computer Inc. described the objectives of their HRM department as one that is devoted to staffing their organization with those deemed necessaryto assure superior performance (as cited in Iliev, et al., 2004, p. 88). In order to maintain this competitive advantage with the rest of the home computer and digital device market, they have set in place a system which meets many of the above-mentioned characteristics of an ideal PMS. In order to create this system, Apple was able to woo Timothy D. Cook away from Compaq by offering what are the main strengths of Apples organizational culture: life-long learning, management

REALITY CHECK: APPLE COMPUTER development, and reward policy (Iliev, et al., 2004, p. 94). Figure 1 shows a flow chart of the process created by Cook.

This system, as described by the chart, shows that it is functional and meets many of the characteristics of an ideal system. It permits HRM to know which positions need to be filled, how far an employee has progressed through the organization, and who qualifies as top

REALITY CHECK: APPLE COMPUTER performers in an effort to preserve Apples reputation as an ideal work environment for creative and innovative staff (Iliev, et al., 2004). With such strengths as thoroughness and practicality, the effectiveness of this custom-made PMS is not lost on those within the organization. It is not clear from the available evidence what the schedule is for each employees assessment. While it would be reasonable to hope that such performance reviews would be completed based on a regular schedule, the reality is that Apple is by no means traditional in terms of organizational structure or business theories. Since this system was created by the HRM department, it is also not clear that there has been much in the way of employee input in creating this system. One potential weakness that would need to be greatly mitigated is in the area of reliability. Since assessments depend on the observations of supervisors and since there is potential for human error in this process, reliability would be the glaring weak spot in this system. The most notable strength of their PMS lies in regards to specificity. Not only is there detailed guidance on expectations but there is also a great deal of opportunity for training in order for employees to meet and exceed these expectations. Not only does this system note employee strengths and weaknesses, but it also helps identify needs to develop new skills and capabilities (Iliev, et al., 2004, p. 93). In this way, Apples PMS goes above and beyond traditional systems by grooming their employees to improve the companys market share in the form of new product linesa strategic strength for Apple as its continued growth as a company has been in innovative products such as the iPod, iPad and iPhone (Morris & Levinson, 2010, para. 4). Without a devotion to increasing the training levels of their product developers, Apple would not be as innovative or successful.

REALITY CHECK: APPLE COMPUTER Part of ensuring the success of employees is in recruiting the right candidates for a limited number of job openings. The rest lies in using the right PMS fit for the organization which supports employee development and gives proper motivation in order to maximize the

talents of ones staff. With Apple Inc. and their tailor-made PMS, they have the best system that may not work for Dell or HP, but it has ensured continued success as the fourth best tech companies for employees (Fusfeld, 2010). While Apples business plan defies conventional wisdom, it is one of the most successful exceptions to the rule.

REALITY CHECK: APPLE COMPUTER Resources Aguinis, H.. Performance management (2nd edition). Upper Saddle River, NJ: Pearson Prentice Hall. Fusfield, A.. (2010, July 22). The 25 Best Tech Companies To Work For. Business Insider SAI. Retrieved from: http://www.businessinsider.com/the-25-best-tech-companies-to-workfor-2010-7?slop=1#slideshow-start#ixzz1BGHwDTpW Iliev, V., Lindinger, A., Poettler, G.. (2004). Apple Computer Inc.: Strategic audit. (Unpublished Masters Thesis). Dublin Institute of Technology, Dublin Ireland. Retrieved from: http://www.andreaslindinger.net/downloads/strategicmgmts-lindingeretal.jpg

Morris, B., & Levinstein, J. L. (2008). What makes apple golden. (cover story). Fortune, 157(5), 68. Retrieved from EBSCOhost.