Harshitha 1

Velagapudi Harshitha
BBA LLB(Hons), Sec D
Business Psychology and organizational behavior
Dr. Sabyasachi Dasgupta
19 April 2019

Topic- Organizational Structure of Google And Apple

The organizational structure of google is cross-functional/Matrix organizational structure which
is a mix of functional and divisional structure with degree of flatness. “A matrix organizational
structure is a company structure in which the reporting relationships are set up as a grid, or
matrix, rather than in the traditional hierarchy. In other words, employees have dual reporting
relationships - generally to both a functional manager and a product manager” (Louise &
Louise). The structure of google is flat in nature and has wide span of control where by authority
is also given to lower level managers and non-managerial employees as google as an
organization believes that the knowledge of its each and every employee is important for the
organization. Decentralization is practiced in google wherein the authority and responsibility is
given to the lower levels of management. “The cross-functional organizational structure used by
Google is more of a team approach to management. By allowing all employees to be a part of
decision-making, Google maintains a small-company feel and promotes the notion that all
employees play an equally important part in Google’s success. This type of structure places more
importance on intelligence and ideas than on titles” (Skyler, 2019).
The organizational structure of apple is a traditional hierarchical organizational structure in
which the flow of authority and responsibility is channeled from higher authorities to lower ones
or subordinates, and it is collaborative in nature. The collaborative structure allows employees in
the lower level to communicate with middle level managers as well as top tier managers. It has
flat organizational structure where managers and employees consult aimed at achieving the
desired objective in the market. It is simple and not complicated. It is in the form of mechanistic:
bureaucratic organizational structure. Apple follows a vertical organizational structure, where the
major decisions are taken by each of those managers has their own unit comprising of team
members who assigned with a variety of responsibilities. .The collaborative organization
structure allows the top tier managers to delegate responsibilities appropriately to the middle tier
managers. The middle level managers thereafter find it relatively convenient to convey the
organizational objectives to the lower level employees. “Apple’s organizational structure has
promoted teamwork integrated with proper coordination and collaboration. The free flow of
information between the organizational employees has allowed the managers to align the
operations closely to the organizational goals and objectives. Apple’s organizational structure
supports a centralized decision-making framework whereby managers are able to include the
employees in the decision-making process. This helps the organization to identify the strengths
and weakness of the company and formulate appropriate improvement plans”(
 Harshitha 2

https://penmypaper.com/knowledge-base/apple-organizational-structure). The centralized

decision-making process driven by a simplistic start up oriented organizational structure enables
the managers to formulate and subsequently implement effective business strategies.
Google’s corporate mission is “to organize the world’s information and make it universally
accessible and useful.” and Google’s corporate vision is “to provide access to the world’s
information in one click”(Thompson, 2019). Whereas Apple’s current mission statement is as
follows: “Apple designs Macs, the best personal computers in the world, along with OS X, I
Life, iWork and professional software. Apple leads the digital music revolution with its iPods
and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone
and App store, and is defining the future of mobile media and computing devices with iPad and
Apple Inc.’s corporate vision influences strategic management in terms of the decisions that the
company’s managers make to reach a future of leadership in the various industries where the
business operates” (Rowland, 2019). “The various intensive growth strategies of google are
market penetration, market development, and product development which are of relatively equal
importance in Google’s business. The company continues to expand and grow its international
presence through the intensive strategies of market penetration and market development. As a
highly innovative technology firm, Google’s business growth also significantly depends on the
intensive strategy of product development”(Thompson, 2017). Other strategies also include
partnership with different companies, Product ,expansion , and revenue strategy, Whereas,” the
various strategies of apple are Product development which is main intensive strategy for growth
where the company offers attractive products to grow its market share and performance; Market
penetration which involves gaining larger market share by selling more of the company’s current
products; Market development where organization creates new products to enter new markets”
(Meyer, 2017). “The critical success factors of Google are the tightly coordinated leadership
group, Commitment to provide best available technology, Wise Expansion through acquisition
of new ventures/projects, Technology, and Business Model Innovation. Whereas, the critical
success factors of apple are Innovation, Extensive research and development and advertising and
its products differentiation from other products. The values of google are Focus on the user and
all else will follow, It’s best to do one thing really, really well, Fast is better than slow,
Democracy on the web works, You don’t need to be at your desk to need an answer, You can
make money without doing evil., There’s always more information out there., The need for
information crosses all borders, You can be serious without a suit., Great just isn’t good enough”
(2018). Whereas, “the values of apple are the qualities, customs, standards, and principles that
the company believes will help it and its employees succeed. They are the basis for what we do
and how we do it. Empathy for Customers/Users, Positive Social Contribution,
Innovation/Vision, Individual Performance, Team Spirit, Quality/Excellence, Individual Reward,
and Good Management”(https://www.seanet.com/~jonpugh/applevalues.html).
The DMA Solution Set of two organizations -The type and level of work which is carried by the
employees of Google in all levels is the same with head in each department as it is cross
functional and final head/board of directors on the top. The type of work in the second layer is
based on functions such as engineering, products, etc. and the follow up lower level is based on
divisions of that particular functions department. Whereas the employees of Apple are in
 Harshitha 3

hierarchical in nature with CEO in top followed by levels which are hierarchy in nature with one
person in top then next level based on functions followed by lower levels. The number of layers
which added to the value to decision making in Google organization is that there are three layers
with board of directors and CEO at top followed by one layer which is of functional structure
which is divided based on functions such as Engineering, Products, Sales, Legal and Finance and
these layers are further divided into three layers under it as divisional structure where it is
divided based on divisions such as sales based on market in the world, etc. It is a matrix
organization so there is mix of both functional and divisional structure, the lower levels are of
divisional and middle level is of functional and the final and topmost level is executive
directors/CEO, Whereas in Apple is it is more of a hierarchical structure wherein there is
topmost authority who is CEO then it is divided into marketing, finance, design, software
departments with one top manager in each department and then each department has lower level
respectively. It is more of a hierarchical simple structure which as first the top most manager and
then lower managers for each department and then supervisors or workers. The development and
growth of individuals in Google is relatively more compared to apple as it is cross functional,
Whereas in Apple also it is good but less compared to google as it is collaborative in nature.
Establish how people should be paid by linking levels of work(operational-strategic) /
responsibility to national or industry market- Employees in google are paid more compared to
Apple although the amount of work one does is almost same but the reward the employees are
getting is more in google compared to apple.
Google Apple
CEO-$200 million CEO- $136million
Next level- $140,000-$220,000 Next level- $100,000-$200,000
Lower level- $40,000-$120,000 Lower level- $40,000-$110,000
Seven 7 critical elements for linking accountability and organizational health: Expected work-
The nature of work is clearly specified in both the organizations but it is a bit more detailed in
nature in apple, Resources are clearly linked in both the organizations but more specific in apple;
Problem solving-the nature of problems in google are that the functional differential level is
more of strategic in nature whereas the lower level or divisional differential level is operational
in nature, whereas in apple in hierarchy topmost authority that is CEO and top authority of all
divisions are strategic in nature and all other underneath which are middle and lower level are
operational in nature; Change- google is flexible compared to apple as it is cross functional
employees can change easily compared to apple which is hierarchical in nature; Lateral teams-
Employees in google can change their teams easily comparatively to apple as it is cross
functional; The environment in google is comparatively good compared to apple- as an
organization google thinks more about its employees than apple like it gives more shares, bonus,
appreciation, motivation to its employees comparatively to apple; time horizon; expected work
of google is same as the work done by boss and subordinate is almost same whereas in apple the
work done by boss and subordinate is different. Deciding which will be line and support jobs
(differentiating main & support jobs)- in google the differentiation of main and support jobs is
less as the work done is almost same as it is cross functional employees can change their work
easily compared to apple where the work is different as it is hierarchal in nature.
 Harshitha 4

Hence, seeing all the components and comparing both the organizations Google is comparatively
healthier organization than apple.
The organizational structure of Apple (https://penmypaper.com/knowledge-base/apple-
organizational-structure) :-

The organizational structure of

Google(https://larrypagebusinessleader.files.wordpress.com/2013/12/structure.jpg)
 Harshitha 5

Works cited
Louise, P., & Louise, P. (n.d.). Matrix management. Retrieved from
https://www.academia.edu/9370175/Matrix_management

Thompson, A. (2019, February 13). Google's Mission Statement and Vision Statement (An
Analysis). Retrieved from http://panmore.com/google-vision-statement-mission-statement

Rowland, C. (2019, February 13). Apple Inc.'s Mission Statement and Vision Statement (An
Analysis). Retrieved from http://panmore.com/apple-mission-statement-vision-statement

Thompson, A. (2017, January 28). Google's Generic Strategy & Intensive Growth Strategies.
Retrieved from http://panmore.com/google-generic-strategy-intensive-growth-strategies

Meyer, P. (2017, January 29). Apple's Generic Strategy & Intensive Growth Strategies.
Retrieved from http://panmore.com/apple-inc-generic-strategy-intensive-growth-strategies

Company Values & Team Norms. (2018, August 24). Retrieved from
https://teambay.com/company-values-and-team-norms/

(n.d.). Retrieved from https://www.seanet.com/~jonpugh/applevalues.html

Google. (n.d.). Retrieved from

https://www.indeed.com/cmp/Google/salaries?job_category=management

Apple. (n.d.). Retrieved from https://www.indeed.com/cmp/Apple/salaries?job_category=sales

Skyler, H. (2019, February 11). Google's Organizational Structure. Retrieved from

https://bizfluent.com/about-6692920-google-s-organizational-structure.html

Organizational Structure of Apple. (n.d.). Retrieved from https://penmypaper.com/knowledge-

base/apple-organizational-structure