ORGANISATIONAL RESOURCES MANAGEMENT

Strategic Resources
Management in
Organisations
A case study of Apple Inc.
[Ozan AlkanS.I.D. 10338]
LONDON SCHOOL OF MARKETING MAIE

JUNAID KHAN STUDENT NO: 10132

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Table of Contents
1.

Executive Summary:................................................................................................................4

2.

Introduction:.............................................................................................................................4

3.

Background of the company:...................................................................................................5

4.

Evaluation of HR system of Apple:..........................................................................................6

4.1.

Recruitment Strategies Analysis:..........................................................................................6

4.1.1.

Responsible Hiring............................................................................................................6

4.1.2.

Recruitment Standards:.....................................................................................................7

4.1.3.

Excessive recruitment and bonded labor laws:.................................................................7

4.2.

Retention Strategies Analysis:..............................................................................................7

4.2.1.

Ending excessive work hours:...........................................................................................7

4.2.2.

Sourcing conflict-free materials:.......................................................................................8

4.2.3.

Educational opportunities for workers:.............................................................................8

4.2.4.

Equal treatment to employees:..........................................................................................9

4.2.5.

Academic community engagement:..................................................................................9

4.3.
5.

Employees training and development programs:..............................................................10

Strategies implemented for positive employee relations:.......................................................11

5.1.

Apples commitment to environmental responsibility:.......................................................11

5.2.

Ensuring highest standards:................................................................................................11

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5.3.

Regulations regarding working conditions:........................................................................12

5.4.

Policies for job security:.....................................................................................................12

5.5.

Policies for Worker well-being:..........................................................................................12

6.

Performance management and rewards system:....................................................................13

6.1.

Encouraging Innovation:....................................................................................................13

6.2.

Build and Reinforce a Performance Culture:......................................................................13

7.

Monitoring and evaluation of HR system in Apple:...............................................................14

7.1.

Core violations and corrective action:................................................................................14

7.2.

Workplace ethics and protections:......................................................................................14

8.

Limitations in HR system of Apple:.......................................................................................15

9.

Recommendations:.................................................................................................................16

10.

References:.........................................................................................................................19

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1. Executive Summary:
This report is about the study of human resource planning and developmental model. Now a
days an integrated human resource management system is required in the modern business in
order to replace the manual processes for the operational control of the relationship of the
employees which results in the reduced administrative as well as the labor requirement
processes. Furthermore the human resource performance monitoring techniques of Apple Inc.
will be studied. The company is an American multinational corporation which has very
successful business. The core product lines of Apple are Macintosh computer line, iPod portable
media players, iPad tablet computer and iPhone smart phone. Besides this the success of the
company all over the world is due to its best human resource management system. This system
provides the best recruitment, retention and training to its employees. Besides this the company
also commit for the environmental safety responsibility. Also Apple provides its worker rewards,
health and safety and proper safe work environment to its employees. At the end the
recommendations for improving the human resource management of Apple were given.

2. Introduction:
This report is being written to critical evaluate the Human Resource planning and developmental
models. The main focus of the report is on the recruitment, retention, training and learning and
development strategies of the Apple Inc. Besides this the strategies implemented for the positive
relationship with the employees will be studied. Along with these the performance management
and rewards given by the Apple Inc. will be discussed. Furthermore the human resource
performance monitoring techniques of Apple In. will be studied. So in this report by studying the
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all of the above factors, the recommendations for the Apple Inc. has been given in order to
enhance the efficiency and effectiveness.

3. Background of the company:

One of the multinational corporations that create the commercial services, computer software,
personal computers and consumer electronics is Apple Inc. which was formerly called as Apple
computer, Inc. Apple Inc. is the media contents digital distributor (Jabbour and Santos, 2008).
The core product lines of Apple are Macintosh computer line, iPod portable media players, iPad
tablet computer and iPhone smart phone (Kim, 2012). On April 1, 1976 Apple Computer was
effectively created by the Founders Steve Jobs and Steve Wozniak and on January 3, 1977 with
the release of the Apple I, the company was incorporated in Cupertino, California (Gallo, 2012).
Apple established itself as a leader in the media sales industries and consumer electronics after
introducing iPod music player in 2001 and in 2003, iTunes Music store and in 2007 leading the
company to drop Computer from the name of the company. For the iOS range of the tablet
computer, media player, smart phone that started with the iPhone after following iPod touch first
and then iPad, the company is also well known (Kim, 2012). Apple is the largest publically
traded corporation as of 2012 all around the world with an estimated value of the US $626
billion by the market capitalization as of September 2012. In comparison with the Microsoft and
Google combines, market capital is larger of Apple Inc. worldwide the annual revenue of Apple
in 2010 was US$65 billion that in 2011 grow to US$127.8 billion and in 2011 reached to $156
billion (Gallo, 2012).

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4. Evaluation of HR system of Apple:

HR system of Apple is divided into various parts to analyse their overall performance and
strategies.

4.1.

Recruitment Strategies Analysis:

This part will analyse the overall recruitment strategies of Apple Inc.:

4.1.1.

Responsible Hiring

Human resource management at Apple Inc. attracts a quality workforce by hiring the visionary
people who can see the potential and think freely in different objects. This can be done by the
outstanding human resource planning which include job specifications and job descriptions and
the recruitment which involve screening the applications and job vacancies advertisement on the
website and also the process of selection (Wayne F. Cascio, 2012). Apple Inc. provides the tools
to enable the responsible hiring of the employees. For the recruitment of the employees Apple
Inc. provide the online recruitment facilities. Besides this Apple Inc. also offer the internship
programs for the students at the university level. The students can also get the experience by this
internship program. One of the important parts of the team is interns. And after the graduation
they will be much closer to land a full time job at Apple (Kim, 2012).
Apple Inc. also offers the Apple Store Leader Program. This program is a 24 month
concentration in every aspect of the operating and managing the Apple Retail Store (Times,
2012). In this program the employees by working as an expert and a specialist gain the selling
skills and also learn and teach others as a creative and at the Genius Bar, resolve the problems.

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4.1.2.

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Recruitment Standards:

Many of the students in different countries are required by their school programs that as part of
their curriculum they have to complete their internship or field work (Wayne F. Cascio, 2012).
While hiring the students as interns the supplier must follow the strict standards. For example the
working hours does not conflict with the school attendance and must comply with the legal
restrictions.

4.1.3.

Excessive

recruitment

and

bonded

labor

laws:
Many suppliers can take help from the third party labor and contract the workers from the other
countries. The multiple sub agencies are often used by the agencies which in turn through the
smaller local agencies in the home countries of the workers do the business (Budhwar and
Sparrow, 2006). In to gain the employment workers are often needed to pay the fees to each of
these agencies. And even before they start the work, they have taken on the huge debt.

4.2.

Retention Strategies Analysis:

This part will analyse the overall retention strategies of Apple Inc.:

4.2.1.

Ending excessive work hours:

One of the top priorities of Apple Inc. is ending the industry wide practice of overtime practices
of the industry. Except in unusual circumstances, the Supplier code of Conduct limits to work
weeks to 60 hours and all the overtime must b voluntary (Times, 2012). In excess of 60 hours
work weeks unfortunately have been started historically rather than the exceptional and in the

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industry for about many of the years a little has been going to changed. Different methods for the
problem fixation have been tried in the past but no results are still seeing. So a more basic
approach was adopted in 2011 i.e. at a handful of suppliers work hours tracked weekly and
workers become able to address about the problem freely and rapidly with the supplier whenever
they found the excessive hours (Gallo, 2012).
That program was expanded in 2012 and for over 1 million employees workers hours become
racked weekly and publish the data every month. Our suppliers have achieved a 92% average
compliance as a result of this effort across all the work weeks and there are under 50 average
hours worked per week (Bergvall-Kreborn and Howcroft, 2013).

4.2.2.

Sourcing conflict-free materials:

The commitment of the Apple is using the conflict free materials and to conflict the challenges
related to minerals in the Democratic Republic of Congo, Apple has joined civil society to
support supply chain solutions, a joint initiative among governments and companies and also the
Public-Private Alliance for Responsible Minerals Trade (Apple, 2013). In order to map the
supply chain for the conflict minerals, Apple was the first electronics companies to map its
supply chain and suppliers can be surveyed actively to confirm about their smelters sources
(Bergvall-Kreborn and Howcroft, 2013). Total 211 smelter have been identified as of December
2012 and refiners from which the source of the suppliers is gold, tungsten, tantalum and tin
(Bergvall-Kreborn and Howcroft, 2013).

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4.2.3.

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Educational opportunities for workers:

Apple by the introduction of Supplier Employee Education and Development (SEED) program
continue to expand the personal and professional development opportunities for the workers. The
workers classes are offered in engineering, management skills, language skills, social and
environmental responsibility, life skills, technical and software skills by this Apple designed
program. Along with this workers are accessing to the advanced degrees and get the quality
education by the parternership with the different universities (Gallo, 2012).
Over 200,000 workers have been participated in the SEED program since its beginning in 2008.
The program will expand to reach even more workers. In the nine final assembly factories Apple
has now funded the degree programs and class rooms and with the three second-tiers, have an
agreement in place for the expansion. Along with this the program began, millions of dollars
have been invested for the tuition support and the computer equipment.

4.2.4.

Equal treatment to employees:

Workers are provided that environment where the basic voice of the students cannot hear and
also where the supervisors and managers act on those concerns. Therefore the worker manager
communication is fostered by the manager training guidance. But this is not enough. Therefore,
in 2012 the work begin aimed at finding the most effective feedback for workers managers
communication on two separate initiatives and ensure that their feedback is addressed and heard.
(Times, 2012)

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4.2.5.

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Academic community engagement:

To collaborate with the academic community the Supplier Responsibility Team of Apple
continues to explore the different ways in order to enhance the worker programs. An advisory
board was formed in 2012 which include the University of California, Berkeley, the University
of Washington, the University of Michigan, Cornell, MIT and Stanford, Columbia (BergvallKreborn and Howcroft, 2013). Apple audit data is accessible by the board as well as supply
chain and program results so that the research projects will be incorporated into our supplier
Responsibility program and its members can develop independently and made available to the
broader academic community (Lazonick, et al., 2013).

4.3.

Employees training and development programs:

The managers and supervisors of the Apple Inc. are also trained on the valuable management
practices that include workers protections, anti harassment policies, worker communication
management because only finding and correction of those problems is not sufficient. It also entail
the suppliers to implement the Apple designed training programs in order to trained and educate
the workers about Apples Supplier code of conduct, occupational health and safety, workers
rights along with the local laws (Apple, 2013). This training has been received by more than 2.3
million managers and workers in the Apples supply chain since 2007 and carrying this
knowledge along with them in their any future job or current situation (Polachek and Tatsiramos,
2010). The training about the hazard identification is also very important to the employees and
Suppliers of Apple. 350 Apple employees have been trained since 2011 that spend most of their
time in suppliers facilities on the different process safety topics such as reactive materials,
toxins, combustible dust and flammable vapors (Bergvall-Kreborn and Howcroft, 2013).

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Another 260 of the supplier personal were trained in 2012 on the personal protective equipment.
Lockout tag out (LOTO) and chemical safety are the two topics that are also included in the
health and safety training program.

5. Strategies implemented for positive employee relations:

5.1.

Apples

commitment

to

environmental

responsibility:
At Apple it is the responsibility of the Suppliers for their operations as well as for minimizing the
environmental impacts of operations. They must comply with the use of environmentally
responsible manufacturing process where the products of Apple are manufacturing and with the
local regulations and laws (Apple, 2013). Total carbon foot prints are also reported and it is one
of the few companies who are doing so. By the comprehensive reporting and analysis of the
impacts of the products and operation, the company is now managing the overall carbon
footprints.

5.2.

Ensuring highest standards:

Apple does not tolerate and allow any kind of environmental violations. The suppliers are
holding responsible for our Supplier Code of conduct in terms of the environmental standards
that are the strictest standards in our industry and many other places (Lazonick, et al., 2013). So
for an additional layer of scrutiny Apple target high risk suppliers with a focus on the
environmental audits and after working lessen the impacts. Apple work with the Institute of
Public and Environmental Affairs (IPE), the Environmental Protection Agency (EPA) and the

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Natural Resources Defense Council (NRDC) in order to make sure the approach and standards
that reveal the environmental issues (Apple, 2013).

5.3.

Regulations regarding working conditions:

Suppliers must provide the up-to-date and comprehensive training to the workers also provide
them safety harnesses, guardrails, proper protective gear and other safety equipments to them in
order to reduce the hazards risks. In many of the situations the manufacturing process and new
materials can be reviewed and assessed and before their introduction to the supply chain, take the
appropriate actions. During an audit, when any problem is discovered through onsite Apples
employees, safety practices and procedures are implemented for immediate corrections (Apple,
2013).

5.4.

Policies for job security:

At confident supplier facilities, specialized process safety assessments are conducted with the
help of industry experts to look deeply in to the manufacturing process potential hazards. Such
trainings to the suppliers in the manufacturing facilities to identify the problems and make the
positive changes are offered by Apple. It also provides the corrective and preventive measures of
the hazard identified (Apple, 2013).

5.5.

Policies for Worker well-being:

A detailed study of the job roles have been conducted in the factories and in diverse areas of the
supply chain in order to identify the ergonomic hazards and improve the health and well being of
the workers (Mathis and Jackson, 2011). The workstations and tasks will be carefully analyzed

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by the ergonomic experts. The results of these assessments can be used to strengthen the
standards for both job performance guidelines, workstation, including the job rotation, training
and task requirements (Polachek and Tatsiramos, 2010).

6. Performance management and rewards system:

30 years of the stellar performance is not only the result of extraordinary valuation. Apples
success is the result of manufacturing capability, great location, special equipment, but also the
access to great talent, superior leadership and approaches related to talent management (Apple,
2013). Apple also provides its workers best performance awards in order to give them more
confidence (Lazonick, et al., 2013).

6.1.

Encouraging Innovation:

Every industry develops a capability in order to make it dominant in the world (Mathis and
Jackson, 2011). Because of its complete dominance in the new industrial market and
demonstrated the ability of shifting into, Apple is in a different league. Apple was a computer
company for most of its history but it was tackled the music industry in the last decades with
iTunes distribution channel and iPod device (Apple, 2013). The PC is being challenged most
recently by the Apple and is in the disrupting process of the publishing industry. In a few short
years the ability of successfully shifting from one industry to another is called as agility. For
agility the Apple is looking in the talent because its agility is lying in the post on boarding. After
succeeding in one task there is a cultural expectations at Apple, so to move on forward is very
difficult. Because of the extraordinary talent and way of managing it, the ability of Apple to
dominate and move into completely unrelated industries becomes possible (Apple, 2013).

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6.2.

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Build and Reinforce a Performance Culture:

The focus on the production of industry leading results will be revealed by any business analysis
of Apple (Apple, 2013). By the help of operational practices and processes the performance
culture is reinforced continually. Such as employees are forced to focus on the companys
performance and its stock having stock as a primary motivator. At Apple the component for the
trying or efforts are not included for the recognition and rewards program. But it includes the
final results only (Apple, 2013). Only the final product exposed is commendable of the chief
celebration rather than celebrating the numerous product milestones.

7. Monitoring and evaluation of HR system in Apple:

Apple is conducting regular monitoring and evaluation programs to analyse the performance of
staff and HR in the company. In 2006, the first audit of Apple was expanded to more supplier
categories. In 14 countries, their audits have been conducted and nearly 1.5 million workers are
covered by this audit (Apple, 2013). This type of efforts not only improves the industry wide
conditions but also improve the working conditions at these supplies.

7.1.

Core violations and corrective action:

The most serious breaches of the compliance are considered by the Apple as the core violations.
The forced labor or debt bonded, underage, physical abuse, obstruction of audit or falsification of
information, coaching workers for the audits or retailing against them if the information about
environmental impacts, significant pollution, bribery and issues posing immediate threat to
workers health and safety are provided to them (Apple, 2013).

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7.2.

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Workplace ethics and protections:

Suppliers must give their accurate documents and record keeping process and also provide the
auditors access to the factories in order to conduct a thorough audit. Each worker receives a
hotline card after an audit interview along with the case numbers in order to identify audit date
and facility. A private opportunity can be given to the workers and report any unethical
consequences and provide the additional information as a result of the interview.

8. Limitations in HR system of Apple:

The critical analysis of the above study is that human resource management system is very
important for the successful operation of an organization because it helps the top management to
better identify its man power. Apple Inc. is an American multinational company which markets
and designs the consumer electronics, personal computers and computer software. The reputation
of Apple in the electronic industry of consumer is very unique because of its efficient human
resource management system. This can be done by the outstanding human resource planning
which include job specifications and job descriptions. The human resource software system of
Apple forecast the requirements of the labor, keeping the labors track, facilitating day to day
employee management, forecasting the labor requirements and providing the financial reporting
to the department of accounting which is the important part of the operation of the company. The
company by its efficient human resource management system will long reap the benefits such as
increase productivity, saves time and cut costs.
Along with the program progress, the employees of Apple should be mentored and guided by the
Market Leader and experience a variety of the training experiences and provide the opportunities
of leadership (Polachek and Tatsiramos, 2010). Apple must hand over as a result over a high

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proportion of their wages and for paying this debt to the recruiters and until the debt is being paid
they have to remain at the job. This is considering being the form of bonded labor and by the
Supplier Code of Conduct, it is prohibited strictly. In order to help the Suppliers source conflict
free materials in an industry wide efforts Apple continue to align the programs with the
organizations for guidelines of OECD i.e. Economic Co-operation and Development and by
working with the Global e-Sustainability Initiative (GeSI)as well as with (EICC) Electronic
Industry Citizenship Coalition (Apple, 2013).
On some of the specialized topics that need the deeper learning, the managers and workers were
also trained. For example in 2012, the focused training was held on the underage labor
prevention as well as different kinds of topics related to the health and safety (Apple, 2013). But
these are very limited and mostly carried out in tense and hard situations instead of adopting
them as precautionary measures. Lock Out Tag Out is basically a process that is related with
the energy during the maintenance and isolation of hazardous material and modification of
energy (Lazonick, et al., 2013). 77 suppliers were trained on LOTO and 5 were trained on the
chemical safety. Overall effectiveness of this system cannot be measured until unless it is
effectively used in all the units and channels of human resource working in Apple. The suppliers
in Apple are being pushed through the whole process of corrective actions included the third
party audits under the local NGOs supervision. A high level of the public participation and
transparency is required by this approach and can be viewed as a symbol that Apple is serious
(Apple, 2013).

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9. Recommendations:
Following are some important recommendations developed based on critical analysis of HR
system of Apple:

Apple should develop a global level HR auditing, tracking and reporting system based on
updated information and consolidated HR policies. This system will not only help to
track the performance, it will also used to monitor the latest trends in HR system. This
system will also help to conduct cross cultural comparison of HR practices within Apple

channels.
Apple is facing various issues of HR retention mostly in skilled labors after the death of
Setve jobs (Apple, 2013). Thus, they should focus on global workforce development via
relocation of best employees with high incentives to develop diversified pool of

employees.
They should adopt the shared services HR model, in order to reduce the HR costs with
more focused HR planning to minimize the overall overhead cost of company. This
model will not only helpful to maintain the centralized command in HR system it will

also reduce the overall HR recourse spent on administrative tasks.

At Apple all the employees i.e. top management and employees in the low management
area are not treated equally. So they must be treated equally and well by having all the
benefits and compensation that a top management have. This is one of the motivating

ways to make the employees to work productive and hard.

The new CEO Timothy Cook should get into the role speedily. They need to device
various strategies to retail the loyal employees that are associated due to brand name that

is heavily challenged by Samsung after the death of Steve Jobs.

Apple should also focus carry on introducing the cutting edge products and must focus on
their core competencies in order to remain in the leading position. The core competencies

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may include product design HRM policy, high-end marketing, Creativity and design,

technological inventions and design, engineering excellence and innovation.

The company should also conduct a personal SWOT analysis for the purpose of asking to
all the individuals their personal weaknesses and strengths along with the opportunities
and threats that they are facing during their professional work. This will be resulted in the
improvement by using the strengths to exploit the opportunities while working in order to

avoid the threats while working to overcome the weaknesses.

Generally the employees do not like some overtime hours due to the reason of lowering
their income. At Apple workers should be incentivized towards the overtime work. So
this issue if not avoided must be minimized. This strategy will help to get more work

from skilled and experienced workers to maintain the current working stream.
The Apple should also establish an employee assistance program. The purpose behind
this is to eliminate the stress factors of the employees in order to make them better focus
on their responsibilities. The financial tips should also be included in this program.

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10. References:
Apple.

(2013).

Health

and

safety.

Retrieved

2013,

from

www.apple.com:

http://www.apple.com/supplierresponsibility/health-and-safety.html

Apple.

(2013).

Labor

and

human

rights.

Retrieved

2013,

from

www.apple.com:

http://www.apple.com/supplierresponsibility/labor-and-human-rights.html

Apple. (2013). When people gain new skills and knowlege, they can improve their lives.
Retrieved

2013,

from

www.apple.com:

http://www.apple.com/supplierresponsibility/empowering-workers.html

Bergvall-Kreborn, B. and Howcroft, D., (2013). The Apple business model: Crowdsourcing
mobile applications. Accounting Forum, 37(4), pp. 280-289.

Budhwar, P. S. and Sparrow, P. R., (2006). An integrative framework for understanding crossnational human resource management practices. Human Resource Management Review, 12(3), p.
377403.

Gallo, C., (2012). The Apple Experience: Secrets to Building Insanely Great Customer Loyalty.
illustrated ed. New York: McGraw Hill Professional.

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Jabbour, C. J. C. and Santos, F. C. A., (2008). Relationships between human resource dimensions
and environmental management in companies: proposal of a model. Journal of Cleaner
Production, 16(1), p. 5158.

Kennedy-Luczak, K., Incorporated, C. and Thompson, C. E., (2005). HR how to Recruiting and
Hiring. illustrated ed. s.l.:CCH Incorporated.

Kim, S., (2012). Apple (AAPL) Becomes Historys Most Valuable Firm on iPhone 5 Rumors.
ABC News, ABC News Network.

Lazonick, W., Mazzucato, M. and Tulum, O., (2013). Apple's changing business model: What
should the world's richest company do with all those profits? Accounting Forum, 37(4): 249267

Mathis, R. L. and Jackson, J. H., (2011). Human Resource Management: Essential Perspectives:
Essential Perspectives. 6th ed. ed. s.l.:Cengage Learning.

Polachek, S. W. and Tatsiramos, K., (2010). Jobs, Training and Worker Well-being. 1st ed.
s.l.:Emerald Group Publishing.

Times, T. n. Y., (2012). The Rise of Apple. New York: VOOK.

Wayne F. Cascio, J. W. B., (2012). Short Introduction to Strategic Human Resource
Management. illustrated ed. New York: Cambridge University Press.
(WORD COUNT: 4355)

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