APPLE INC.

STRESS AND STRESS MANAGEMENT

WORK STRESS AT APPLE INC. AND STRATEGIES FOR STRESS MANAGEMENT

SUBMITTED BY: MOHD UZAIR KHAN (ROLL NO 106) PRABHAT PAL (ROLL NO 134) VAIBHAV SHARMA (ROLL NO 132)

APPLE INC. STRESS AND STRESS MANAGEMENT

INTRODUCTION
Apple was by two college dropout students: Steve Wozniak and Steve Jobs with the motto of Think Differently. In the early 1980s, Steve Wozniak left the company and Steve Jobs hired John Sculley as the President of the company. After facing many failures, Apple launched its Macintosh computers for house hold users. In mid 1980s, Steve Jobs had to leave the company because of his controversial relations with the president. At that time John Sculley rejected the offer of Microsofts CEO, Bill Gates to license the Macintosh operating system to Microsoft. After this refusal, Gates developed DOS operating system and in late 1980s, t h e competition between DOS and Macintosh decreased Apples sale, workforce and resignation of John Sculley. So, Apples current CEO planned to purchase NextStep operating system of Jobs in order to improve the Macintosh operating system. In late 90s Jobs again became the CEO of the company and be started surprising relations with Microsoft by developing a Macintosh version of office software.

Apple also took cost saving measures like streamlining the product line, production of printers. Steve Jobs brought Apples focus on two concepts of consumer series with the prefix I for internet like iMac, iBook laptop and professional with prefix power such as PowerMac desktop and PowerBook laptop series. Under Jobs, Appl a g a i n became the innovator of computer market. His leadership leads the company to USB and Fire wire ports, introduction of iPod and iTunes website put Apple in the digital computing age

Apple manages its business on geographic locations having offices in Americas, Europe, Japan and Asia Pacific. Apples sale is continuously growing. In the era of 2000, Apple opens 86 retail stores in USA and two international stores in Tokyo and Osaka which increases its sales. It introduces eMac line of cathode ray screen, but its most impressive and fastest growing market is of iPod line of digital music players and iTunes music store website. The three major competitors of Apple are Dell, Hewlett-Packard and IBM, however Apple also competes with Microsoft in software industry. Dell is the largest computer manufacturer with extremely low cost production strategy. Dell has entered the in theline of music against Apple by its Jukebox. Hewlett Packard is a big brand name and leading provider of technology. Apple combined with IBM enjoyed profit jointly but now Lenovo took over IBM and become a competitor of Apple. Apples new products like speech recognition program will help take industry into a new age of computers and is according to the companys motto and it is hoped that it will double the profit margin in the near future. Overall, Apple is continuously growing and its future seems bright. With the slight change in their strategies, they can become giants in technology industry
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APPLE INC. STRESS AND STRESS MANAGEMENT

In 2003, Jobs was diagnosed with a pancreas neuroendocrine tumor. Though it was initially treated, he reported a hormone imbalance, underwent a liver transplant in 2009, and appeared progressively thinner as his health declined. On medical leave for most of 2011, Jobs resigned in August that year, and was elected Chairman of the Board. He died of respiratory arrest related to his metastatic tumor on October 5, 2011. In August 2011, Jobs resigned as CEO of Apple, but remained with the company as chairman of the company's board. Hours after the announcement, Apple Inc. (AAPL) shares dropped five percent in after-hours trading. This relatively small drop, when considering the importance of Jobs to Apple, was associated with the fact that his health had been in the news for several years, and he had been on medical leave since January 2011. It was believed, according to Forbes, that the impact would be felt in a negative way beyond Apple, including at The Walt Disney Company where Jobs served as director. In after-hours trading on the day of the announcement, Walt Disney Co. (DIS) shares dropped 1.5 percent.

Tim Cook was appointed as the new CEO of Apple following Steve Jobs death. Since cook took over, the value of apple as a company has increased by $270 billion. Whilst Apples new product development has been less ambitious in the last year, the upgraded iPhones and iPads have all been very well received by the market. But how much of the success achieved by Apple in the last 12 months is down to Tim Cook? The Forbes article suggests that much of the success might be attributable to the legacy plans put in place by Jobs: While Cook wins high marks from investors and generally favorable reviews from employees and partners, the conventional wisdom is that the current success of Apple continues to be attributable to the plans put in place by Steve Jobs.

SWOT ANALYSIS
a) Strengths:
(i)Produce innovative products by using innovative technology (ii)Produce aesthetic / stylish products (iii)They make diversified products
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APPLE INC. STRESS AND STRESS MANAGEMENT (iv)Customers of Apple computers are brand loyal (v)Have technology of interacting with computer using human senses (vii)They have virus free systems (vii) First company which adapt calligraphic font style (viii) Introduce USB and fire wire ports for digital connection (ix) Make music website

b) Weaknesses
(i)Apple has high manufacturing and inventory cost (ii)Management is not stable (iii)\Has low market share in software industry (iv)Majority of retail stores located in U.S.A. (v)No compatibility options in their soft wares (vi)Decline in sales of iMac (vii)Less emphasis on marketing issues to create awareness for their innovative products

c) Opportunities
(i)Should expand on the basis of sales (ii)Should open retail stores in different countries (iii)Should target government and educational institutions (iv)Should make compatible softwares (v)Should capitalize on the basis of virus free systems (vi)Should introduce the speech recognition program (vii)They should focus on customized products for customers (viii)Should start making their own microprocessor chips
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APPLE INC. STRESS AND STRESS MANAGEMENT

d) Threats
(i)Merger & acquisitions of competitors (ii)High cost can be a limitation in future (iii)High market share of Microsoft Windows (iv)Competition increases in music downloading sites

Organizational Culture at Apple

Apple Inc. is a global computer manufacturing company that is going through major changes in its organizational culture and its organizational structure due to several events of the past few years. This is a company that grew extremely fast in little time, that their management found themselves not being able to keep their operations and finances under control. Apple Inc. has been forced to reevaluate and redesign its organizational culture and organizational structure to avoid bankruptcy. The organizational culture of Apple is one of change; with the drive to outperform and succeed as their major objectives. The organizational structure of the company has also transformed to be more competitive in a critical juncture in the companys history. Apple is going through major restructuring to regain control of its operations and finances in order to stay competitive on the global market. This paper will describe the organizational culture and structure of Apple. The culture of Apple was based on an ideal that self-motivated individuals will work harder if they do not have a boss micromanaging every action. The unique structure of Apple had allowed it to grow and react more quickly to changes than its competitors. The reason for the quick responsiveness is simple; it is much easier to get a project started if there are only a few people to obtain approval from. Apple initially grew fast, because decisions were made at the lowest possible level. Corporate headquarters made policy and oversaw all activities, but the local employees made the day-to-day decisions on the ground in countries all over the world. This type of top-down philosophy allowed for quick responsiveness and resolutions to situations without involving the corporate headquarters, thus avoiding corporate red tape). The organizational structure of Apple was almost non-existent and focused on placing decision making in the hands of the people in the field. Apple was doing incredibly well and had gotten the attention of many people because the company worked well and was very responsive to change. However, things took a downward turn and Apple found themselves in a financial nightmare. Apple suffered problems in regional areas, specifically in the accountability of spending and in fiscal decision-making. The same "top-down" ideology that helped Apple grow also opened the door for some serious financial losses. With employees at different levels making decisions, it became difficult for the corporate office to keep track of spending and purchasing.
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APPLE INC. STRESS AND STRESS MANAGEMENT

Work Stress at Apple

The stress at Apple Inc. is surprisingly high considering the fact that it is one of the fastest growing companies. An article is showcased here based on a book by Ex apple employee Adam Lashinsky : Inside Apple

Working at Apple Is Brutally Insane and Awful

You might have a stressful jobeveryone's is, sometimes. But does your job involve an office with windows that inexplicably frost, plainclothes agents that spy on you at bars, and instant firing? Welcome to Apple, says Fortune's Adam Lashinsky. Lashinsky's upcoming book, "Inside Apple: How America's Most Admired and Secretive Company Really Works," details the lengths Apple goes to maintain its iron wall of secrecy. Just some of the fascist lunacy: Employees are regularly hired without knowing what their jobs areor what their coworkers are doing. Special teams are surrounded by extra locks and added doors, sealed off from the rest of the workplace without any explanation; there are some rooms at Apple that nobody claims to have ever been in. Corporate rumors also say Apple posts up spies at nearby watering holes to catch employees blabbing while off the clock. This might sound outlandish, but this is the same Apple that does have its own draconian secret police. And of course, talking about any of this? Instant termination, even if it's to your wife or kids. No exceptions ever. Put this all together and you have what sounds like an entirely petrifying, miserable career. So why do people put up with it? The knowledge, explains Lashinsky, that you're working on the world's most desired products: "Sitting in a bar and seeing that 90% of the people there are using devices that your company made there is something cool about that, and you can't put a dollar value on it," explains one former employee. Sure, there's something cool about it, but is it worth enormously stringent career demands that span your entire life? Your family is affected, your friends are affectedyou can't discuss how you spend most of your conscious life with most of the people you'll ever know.

APPLE INC. STRESS AND STRESS MANAGEMENT

From the Article it is quite evident that there is no scope for errors in Apple. You wont find the term balance anywhere on the career site; instead, Apple makes it clear it is looking for extremely hard-working and committed individuals. On the website, for example, it proudly states: This isnt your cushy corporate nine-to-fiver. It reinforces the hard work message several times, including Making it all happen can be hard work. And you could probably find an easier job someplace else. But thats not the point, is it? And: We also have a shared obsession with getting every last detail right. So leave your neckties, bring your ideas. If you dont care about getting every precise detail perfect, great work, and a lot of it, Apple makes it crystal clear that this is not the place for you.

Here is another article from Neil Hughes who is a part of the team inside apple

Former workers of Apple have offered a peek inside the company's secretive corporate culture, with a glimpse at employee mentality, security, and the difference between a project in which Steve Jobs is involved, and one without the chief executive's interest.

Purported details about Apple have been shared by some ex-employees who have left the company on Q&A website Quora. As first reported by Silicon Alley Insider, current Facebook employee Chad Little and Mint.com employee Justin Maxwell offered a glimpse of their time spent at Apple. Little claimed that, like most companies, Apple has its fair share of red tape that can frustrate employees. But those issues go away and projects take on a "startup level urgency" when something is given the attention of company co-founder Jobs. "If you have a project that Steve is not involved in, it will take months of meetings to move things forward," Little wrote. "If Steve wants it done, it's done faster than anyone thinks is humanly possible. The best way to get any cross departmental work done is to say it's for Steve and you'd probably have it the same day." Maxwell said that Apple's legendary secrecy lives up to its reputation; though he said things could be different after the lost iPhone 4 prototype incident. Nothing like that happened when he worked there, he said.

APPLE INC. STRESS AND STRESS MANAGEMENT "It wasn't just the rules, it was the job itself," Maxwell said of security. "The measures that Apple takes to protect its creative and intellectual environment are unparalleled in the valley, and it's been a disappointing experience since leaving there. Apple's security policy extends to blogs, to speaking engagements, to what we talk about with our spouses. Most people get it and respect it." He continued: "If I was still at Apple, I would not be responding to this question, nor would I feel wronged for not being able to.... The general idea is this: You are part of something much bigger than you. The ideas you talk about in the hall, the neat tricks you figured out in CSS, the unibody machining technique, that's part of your job, something you are paid to do for Apple's success, not something you need to blog about to satisfy your ego." The great lengths that Apple goes to in order to keep projects under wraps was profiled last year by The New York Times. That report said the company's veil of secrecy began to take shape around the release of the original Macintosh back in 1984. One employee said that employees working on secret projects at Apple must "pass through a maze of security doors, swiping their badges again and again and finally entering a numeric code to reach their offices." Once inside the top-secret areas, employees are often monitored by surveillance cameras as they work. Those working with the most sensitive projects are allegedly instructed to "cover up devices with black cloaks when they are working on them, and turn on a red warning light when devices are unmasked so that everyone knows to be extra-careful." And in January, a former Apple marketing manager described the company's "controlled leaks," which he said the company sometimes relies upon to gauge public reaction, confuse competitors or encourage partners. Other information on Apple's corporate culture, from the Q&A:

Launch events provide "probably the single greatest feeling working at Apple," Little said. Workers work feverishly and pull all-nighters to prepare for the company's public presentation, then the employees gather in the cafe to watch the event unfold. "It's a great rush and your whole team feels it." Apple employees "truly feel they are changing the world with what they are doing," Little said. "Apple is one of those companies where people work on an almost religious level of commitment." Benefits, however, were described as "lacking." Little said most things on campus, including meals, snacks and the gym, come with a cost. He said one person asked Jobs why the benefits
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APPLE INC. STRESS AND STRESS MANAGEMENT were limited, to which the chief executive reportedly responded, "It's my job to make your stock go up so you can afford these things."

Chad Little a former apple employee adds; Apple is one of those companies where people work on an almost religious level of commitment. There are probably a handful of large companies that can command this, such as Disney or Google. Most workers, no matter how simple their job might be, truly feel they are changing the world with whatever they are doing. That's not a bad thing; it can just make you blind on the next point.

And some other factors that enhance the work stress at apple as described by the employees on glassdoor are as listed below Very loud stressful environment very crowded somewhat smothering culture and back to back night and morning shifts. Lots of managers proves to be cumbersome to some employees Lashinsky in his book describes how the secrecy is maintained at apple For example, employees are only allowed in parts of Apple's campus that directly relate to something they are personally working on. It's not uncommon for an employee to have access to a room even his boss does not, Lashinsky documents, and it's equally uncommon for any employee to ask about why that is. What you're not told, you don't ask about. Stress Management at Apple The employees currently employed at apple seldom complain about the company or its strict policies. The reason behind that apple is not just an organization its actually a culture. The people working over there have religious level of commitment and the feeling that everyone enjoys working at apple is they are somehow changing the world. So the employees are selfmotivated and they are passionate about what they do. Apart from that there are certain strategies employed by apple to prevent their employees from getting exhausted. Apple provides respect to its employees every project is given equal importance and every employee is given equal oppurtinity Apples nurtures talents so that great things could be accomplished. Rules were things meant to be broken, as symbolized by the pirate flags jobs raised before team meetings.
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APPLE INC. STRESS AND STRESS MANAGEMENT So that proves that in spite of the tough working conditions the working environment is quite casual. The work culture at apple is quite friendly as well. Everyone is ready to offer help and also there are various recreational activities being planned at apple like Gymnasium, Swimming Pool etc. At apple one can ask for any gadget or instrument needed for the project development instantly Free dinners are also provided to the core team. The management at Apple Inc. also understands that an employee must not be assigned a same job everyday which makes ones mind stagnant and thereby lowering the innovation that is why each day an employee or a developer is given new things to do. Apple also provides a 25% discount for its employees on its products annually and also 15% discount for family and relatives apart from it all the other softwares are given at 50% discount. At apple one is supposed to pay ones expenses for gymnasium, lunch refreshment etc. When asked why these services are not free to Late Mr. Steve Jobs he replied my job is to make sure that your stocks get high and you can enjoy all these services. And that is the reason why apple pays hefty amounts to its employees. A few days back there was a rumour of the exploitation of workers in china manufacturing unit. An article by Mr. Maninder Pal Singh who did a case study on this topic clarifies the allegations put upon on apple. Mr. Maninder Pal Singh is an Industrial Automation Entrepreneur and had several encounters in Shenzhen, China. Apple is the most successful company of our time. It has created new products, new benchmarks and new economies. All this is being done not by following conventional management wisdom but by evolving its own success mantra. One unique policy was contract manufacturing. Apples major contract manufacturer is Foxconn Foxconn (Hon Hai Precision Industry Co., Ltd.) is a Taiwanese company yes its not a Chinese company. Foxconn has 13 factories in nine Chinese cities, more than in any other country. That is the reason its normally referred to as a Chinese company Foxconns largest factory worldwide is in Longhua, Shenzhen. Shenzhen is the electronics manufacturing capital of the world & Foxconn is the poster boy of Shenzhen. Foxconn factory in Shenzhen is spread over 3 square kms and houses more than 300,000 employees. Their impact is such that the area is normally referred to as iPod city or Foxconn City. It has all the facilities of a sub-city: Its own TV network, worker dormitories, swimming pool, grocery store, bank, restaurants, bookstore, and hospital.
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APPLE INC. STRESS AND STRESS MANAGEMENT There have been a lot concerns and protests over the workers conditions in Foxconn factories and I am trying to put some facts together. Foxconn plant is an electronics factory where the work is divided between state of the art CNC machines and workers. A typical process when manufacturing is CNC Milling machines working on a piece of metal and carving out the exact frame e.g. in a MacBook Air, the base is carved out from a single piece of aluminum. Thereafter components move on a conveyor and workers sitting along the conveyor pick those components and do their required operation which could be a simple soldering or mounting a chip and place it back on the conveyor which is then picked by another worker to perform his set of duty. Now examining the allegations on Foxconn. US media says that some workers who work for hours standing, drop a nut so that they can pick it up and stretch their legs My Take: In any assembly line workers are sitting along a conveyor, they pick up a component from the conveyor, put it on their work station and put it back after the job is done. If someone knows a different process then I am from Mars. Samsung, LG name a company and this is the assembly line process. In Walmart a typical worker stands for hours at the cash register and even their rest room breaks are rationed. Foxconn exploits its workers by making them work for long hours My Take: If this was the case, why would the Chinese workers travel thousands of kms and queue up in a hope of getting a job at Foxconn? Most of the Western Media admits that is 1-2 km queue when Foxconn has an opening. Moreover a lot of manufacturing has moved to second tier cities, but still workers travel to Shenzhen to work at a reputable name like Foxconn. The Suicides are on the rise My Take: The media never brings up the news that there were 46 suicides at France Telecom, 9 at Foxconn is the only stuff they are interested in. Mexicans working in meat industry in Colorado are the worst exploited lot. Foxconn underpays its workers My Take: Minimum wage in Shenzhen is RMB 2,000 per month (1RMB = INR 8) (1 USD = 6.2 RMB) and this is in addition to benefits including free or subsidized housing and meals, medical coverage, and other government required insurance and trust funds. Minimum wages as per government notifications in New Delhi is USD .60 per hour and For Foxconn it is USD. 1.24 per hour and unlike the meat processing plants in the US, drugs are not distributed to the illegal Mexican workforce just to avoid work place injury compensations.

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BIBLIOGRAPHY

http://en.wikipedia.org/wiki/Apple_Inc. http://uxmovement.com/resources/8-things-to-know-about-the-company-culture-at-apple/ http://www.appleinsider.com/articles/10/07/07/former_employees_shed_light_on_apples_inte rnal_corporate_culture.html http://www.quora.com/Apple-Inc-2/What-is-the-internal-culture-like-at-Apple http://www.glassdoor.com/Reviews/Apple-Reviews-E1138.htm http://onlygizmos.com/is-the-foxconn-apple-criticism-justified/2012/02/ http://www.tutor2u.net/blog/index.php/business-studies/comments/leadership-at-apple-timcooks-first-year#extended http://www.icmrindia.org/casestudies/catalogue/Human%20Resource%20and%20Organization %20Behavior/HROB124.htm

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