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COVER PAGE AND DECLARATION

Master of Business Administration (M.B.A.)

Specialisation: General Management

Affiliated Center: CEO Business School.

Module Code & Module Title: MGT560 : Leading Organization

Student’s Full AL SHOMRANI,MOHAMMED BURIK S Name: Student ID: EIU154755

Word Count: 3794

Date of Submission: 8/4/2021

I confirm that this assignment is my own work, is not copied from any other person's work (published/unpublished), and has not been previously submitted for assessment elsewhere.

E-SIGNATURE: mo_break

DATE: 8/42021

Contents

Introduction: ...... 2

1. Apple leadership practices: ...... 2

a. Maintaining an innovative culture through leadership ...... 3

b. Sustainability under competitive pressure ...... 4

2. Critique for Apple leadership style: ...... 5

a. Trait Leadership ...... 6

b. Behavioural Leadership ...... 6

c. Situational Leadership ...... 7

3. New leadership style strategy ...... 7

a. Evaluation of the current leadership style ...... 7

b. Transactional leadership for Apple: ...... 9

c. Departmental communication plan ...... 10

d. Leadership and networking ...... 10

Conclusion: ...... 12

Introduction:

One of the most important aspects of enhancing a company's success is the leadership. The procurement, creation, and implementation of organizational capital, as well as the translation of these resources into useful goods and services and the distribution of value to organizational stakeholders, are all determined by leaders as key decision makers. As a result, they are powerful sources of managerial and long-term competitive advantage (Rowe, 2001).

Any organization's goal is to improve efficiency in order to succeed and maintain its existence. According to (Arslan & Staub (2013), companies should improve their production in order to satisfy the demands of increasingly competitive markets. According to earlier researchers such as (Peterson, et al., 2003), the position of leadership is crucial for achieving organizational success.

In the other hand, organizational efficiency, employee work satisfaction, and employee affective commitment are thought to be important factors in a company's growth (Drucker, 2007). According to certain reports, leaders can inspire and assist their staff by using successful leadership styles (Luftman, et al., 2004).

As a result, the leader must use proactive leadership to encourage high excellence in the professional advancement of the organization's workers. According to a variety of reports on leadership styles (Yukl, 2009), leadership styles have a positive impact on organizational success.

By tying job success to valuable incentives and ensuring workers have the tools they need to get the job done, leadership lets companies achieve their existing goals more effectively. Leaders develop a conceptual vision, express it by enclosing and symbolism, model it by behaving faithfully, and foster devotion to the vision (Bass, et al., 2003)

Leadership has a favorable impact on human success and organizational effects, according to previous longitudinal studies and meta analyses. Many longitudinal studies have recently indicated that transformational leadership improves follower success and firm results (Bass, et al., 2003).

1. Apple leadership practices:

Apple is widely regarded as one of the world's most creative and disruptive businesses. Apple Inc.'s market capitalization soared from $2 billion to $741 billion under Steve Jobs' leadership, a

37,000 percent growth in less than two decades (Heracleous & Papachroni, 2016). By 2015, the firm had surpassed nearly every “KPI” metric among the world's biggest technology firms, including revenues, earnings, and assets. Apple maintained its outstanding success by introducing revolutionary serial products and building a dedicated customer base that no rival could equal. When Tim Cook took over as CEO in 2011, the company's exponential success continued; in April 2015, the company reported sales of more than $200 billion and a net profit of $45 billion (Heracleous & Papachroni, 2016).

Though Apple's enormous growth and popularity was notable, the company has had its share of setbacks during Steve Jobs' absence. Jobs left Apple in 1985 to pursue his new company due to an internal schism among Apple executives (NeXT Inc). Apple raised its rates just after Jobs' exit, sparking a market slump. Thanks to a series of leadership blunders and falling profits, losses began to mount, resulting in a significant decline in market share. Apple had just 3.3 percent of the personal computer market by early 1997, and its shares had dropped to $14 per share (Rose, 2011). With a $1 billion annual deficit, the corporation has gone through three CEOs in less than a decade. When Jobs returned to Apple in 1997, he was faced with the challenge of reorganizing a company on the verge of bankruptcy. He resurrected Apple's shattered leadership and guided the company to new heights of growth. Jobs cut more than half in new product growth and redirected money to programs of game-changing promise (Heracleous & Papachroni, 2016).

a. Maintaining an innovative culture through leadership

Steve Jobs was the creative force behind Apple's growth, and he knew that the company needed an exciting and sustainable atmosphere that energized employees' attention and talents. Apple is recognised for its unmistakable "no-compromise" work ethic and unwavering commitment to excellence. All of this was made possible by Jobs' outstanding leadership, which established consistent priorities and fostered a work culture centered around the apple principles. All Apple did, according to Jobs, came down to the company's central value: making the best goods on the market. He was convinced that this would be the company's most enduring legacy, and his mentality pervaded the whole organisation (Brandculture, 2019).

Apple retains its status as the innovator of choice by improving both its devices and its business model. Apple is constantly looking at opportunities to improve its innovative processes in order to tap into its employees' imagination, generate fresh ideas, streamline the design process, and launch

3 popular and profitable products (Nary, 2008). Apple has done a better job than many of its competitors at integrating novel features and technical solutions into its offerings while keeping them appealing to a wide range of consumers. Although their rivals may claim to be the first to launch or invent a product or feature, the fact remains that Apple was frequently the first to commercialize it with the greatest degree of success (Nary, 2008). Diamond Rio PMP300, a portable music player, for example, was a big hit and came out three years before the first iPod. Apple, on the other hand, seemed to have single-handedly conquered the music industry with the popularity of the iPod. Apple's strategy defined markets and conquered them with easier, better- built, and-marketed goods (Murphy, 2017).

Competitors who chase Apple's new update find themselves behind as Apple launches its latest and best product only a few months back. Although many companies do comprehensive market studies to learn what their clients want, Jobs claimed that you can't count on your consumers to tell you what they want because their experience is limited to what they already know (Kawasaki, 2019). Apple, under Jobs' guidance, created an entirely new line of companies by foreseeing industry trends. Whether or not you believe Apple has lost its way since CEO Tim Cook took over from Steve Jobs, the policy has remained consistent. If Microsoft and Samsung released a tablet; so will Apple. If Samsung and others release large smartphones and small tablets, so will Apple. Apple will only do it better through their art of perfection.

b. Sustainability under competitive pressure

Despite Apple's obvious interest in its future, there are many challenges to its growth. Apple has been chastised for lagging behind in emerging developments including artificial intelligence, augmented reality, virtual reality, and self-driving vehicles in recent years (Murphy, 2017). Despite some significant AI acquisitions and the initial launch of (Siri), Apple has lost ground in machine learning and natural language processing to companies like Google and Amazon, which are already competitive in this market (CB Insights, n.d.). In addition, Apple faces fierce competition in the advertising and film industry, and it lacks original content. Apple is late to the original content game in comparison to Netflix, Amazon, and even Hulu, who is leading in the original content trend (CB Insights, n.d.).

However, in order to build its parts, the firm is aggressively engaging in emerging platforms and acquiring various facets of the supply chain. Cook's approach demonstrates that he is planning for

4 the future. Apple's current focus on iPhone revenues seems to be a challenge to the business, as it accounts for more than half of its revenue and gross profit. Cook is well aware that something will emerge to destabilize the mobile industry in the same way that Apple did with the iPhone launch in 2007. (Wharton, 2017). Though Apple is sticking to Jobs' legacy, Cook's leadership is searching for a way to protect and distinguish the company's brands. To keep up with the rate of sales growth in this market, the company can continue to evolve software products in new categories such as augmented reality and self-driving vehicles. According to a report from Business Insider, Apple's Wearables, Home, and Accessories division is gaining momentum and helping to offset iPhone sales losses (Business Insider Intelligence, 2019). To continue growing this segment, Apple can focus on expanding the range of health offerings in the Apple Watch, as they are a major driving force in purchase decisions.

2. Critique for Apple leadership style:

Steve Jobs has the power to compel others to share his enthusiasm and confidence in their ability to accomplish the apparently impossible (Isaacson, 2012). California was a hotbed of individualism, with increasing numbers of people contributing to society in novel ways, regardless of ethnicity, gender, history, socioeconomic status, or educational attainment. As he returned to Apple, his countercultural radical mentality started a wave among free thinking who believed they had the ability to transform the environment, which is mirrored in his "Think Different" advertising, “Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square hol.While some see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world are the ones who do.” (Isaacson, 2012).

He was seen as dictatorial, overseeing every stage of the product design process and publicly reprimanding and humiliating employees (de Silva, 2011). He did, however, see himself as a chief rather than just a boss, owner, or CEO (Arlen, 2011). Jobs was known for his "tough love" leadership style. He was harsh with his subordinates but lavished gratitude on them when they delivered what he desired. According to a 2011 report conducted by Cornell University, the University of Notre Dame, and the University of Western Ontario, disagreeable leaders were more highly respected and paid more than agreeable leaders (Badass-Boss, 2014). Other leaders who have tried to copy his “tough love” approach have often failed by not understanding that loyalty

5 needs to be in place in order for such a tactic to work (Isaacson, 2012). Looking at the various popular theories of trait, behavioural, and situational theories, I will attempt to analyse Steve Jobs’s leadership approach and the positive and negative aspects of such.

a. Trait Leadership

Emotional intelligence, according to Northhouse, can be used to measure the efficacy of trait leadership. Many scholars believe it to be made up of both personal and social abilities. Self- awareness, self-confidence, self-regulation, conscientiousness, and inspiration are examples of personal competencies. We've already established that Jobs was attentive and inspired to some extent, but proof of his often aggressive and obsessive behavior suggests that he lacked self- awareness and self-regulation. Furthermore, despite displaying a lot of self-assurance in public, he has a lot of insecurities, he ironically often “broke down and cried when he felt that he had not been treated fairly” (Evans, 2012).

Trait theory has the most science, but it can be difficult to apply because it is an intuitive approach and the traits are normally inherited and cannot be taught. “His perfectionism was legendary, but so was his disloyalty, abrasiveness, violence, and lack of generosity, both financial and otherwise,” Evans said (2012). Many of his dissent undoubtedly contributed to his first expulsion from Apple. He was never called in because the firm was in financial difficulty. One has to wonder if Jobs could have done much better if he had handled people with a bit more dignity. He admitted that he might have, but that he would have betrayed his true nature by suppressing his unpleasant personality traits (Isaacson, 2012).

b. Behavioural Leadership

Behavioral leadership dominated the 1950s and 1960s, according to Doyle and Smith, and the emphasis shifted from characteristics to how leaders acted. There are four basic models of leadership in this category (2001): 1) Job Concern – Priority in Competitiveness and Ways to Achieve Goals, 2) People Concern – Priority in Follower Wants, Interests, and Preferences 3) Directive leadership, in which leaders make decisions and ask followers to obey them, and 4) Participative leadership, in which leaders collaborate with others to make decisions. (Doyle & Smith, 2001).

Jobs' ability to have complete influence of nearly any area of architecture landed him in the role of exception-active management under transactional leadership (Harzell, n.d.). He acted quickly to solve issues by micromanaging, and he didn't think twice about insulting employees in front of everyone. With those around him, he was described as obsessed, arrogant, impatient, and tough (Isaacson, 2012). In reality, he tended to work with only those who could match his vision and intellect, and with these fans, he was able to instill a profound sense of trust in many people, which could have clouded their perception of his abusive personality.

c. Situational Leadership

Jobs would have been able to lead as brilliantly in another organisation that prized character over talent, according to DeGrosky (2012). The leader in situational leadership must consider the skill and willingness of followers and change their leadership style accordingly. Based on the wishes of a follower, they will often move from guiding to counseling, assisting, and delegating. Jobs may have struggled in another organisation due to his rough treatment and failure to change his approach. As a result, he did not use the situational solution and he wanted to collaborate with like-minded individuals who were both extremely qualified and eager. These follower attributes would suggest that Jobs should have taken the delegation approach to situational leadership; yet he didn’t because he was too controlling of projects.

Steve Jobs' leadership style was characterized by strong transactional and transformational aspects, which were fueled by his personality characteristics. Since both transactional and transformational methods have been related to follower satisfaction with their leader and work, it's understandable why his strategy was predominantly effective. About the fact that he was fired from Apple for being impossible to deal with, when he returned, he effectively rescued the company and was never forgotten. This transactional / transformational tactics gave him the freedom to display divisive, disagreeable personality characteristics without jeopardizing his position as a leader.

3. New leadership style strategy

a. Evaluation of the current leadership style

Steve Jobs, Apple's CEO for fourteen years, stepped down in 2011. Jobs' form of leadership was essentially autocratic. However, with the arrival of a new CEO, Tim Cook, the company's

7 leadership habits have shifted radically. Jobs' era was characterized by micromanagement, with everything being regulated by him. It was the pinnacle of creative fervor, and Jobs seemed to value innovation very highly. Cook's management style, on the other hand, is described as "collaborative" (Yarrow, 2013). He is a wise leader who places the highest priority on ideals. This seems to be a good thing, as Fortune Magazine named Tim Cook the "World's Greatest Leader" in 2015, citing the launch of the Apple Watch as his most notable achievement. Cook's popularity is reported by Lashinky (2015), who claims that the newly-appointed CEO increased Apple's stock price from $54 to $126, resulting in a $700 billion market capitalization. Bort (2015) sheds a lot of light on Apple workers' gratitude for Cook's "inspirational leadership," which makes them "better human beings." This raises the question of what kind of management style Cook uses to earn such high praise.

Tim Cook's style is defined as democratic by Investopedia (2015). Although others have argued that Cook lacks Jobs' vision, he has proven himself through his charm and enthusiasm. Cook's tenure hasn't exactly been marked by a slew of new ideas. On the other hand, a stronger emphasis was placed on strengthening the consistency of Apple's partnerships with its corporate partners and employees. Cook did not take on Jobs' autocratic leadership style, instead focusing on fostering collaboration among Apple's most talented executives. Such an act exemplifies a democratic management style that prioritizes creating unity among business leaders before making decisions. Furthermore, this has been a significant departure from Apple's previous micromanagement. Cook became less interested in processes, such as product engineering, and instead delegated them to his executive cabinet, resulting in a leadership style that is markedly less assertive. The corporation has benefited from the huge change away from Job's strategy, as it has increased staff productivity and goodwill.

Cook's leadership style, according to Dicob (2016), is primarily situational, an approach that asserts leadership as consisting of guidance and assistance applied accordingly in each particular circumstance. Cook is compared to a coach in this article who leads a team and develops their talents while trusting them to focus on their own goals. Cook's situational leadership was most evident when he refused to comply with the FBI's demand to produce a phone that, in his opinion, breached security controls and put users in risk. Cook successfully resolved the topic by speaking his mind, aided by laws that backed him up.

Yet, Galloway (2013) characterizes Cook as a transactional boss, who enjoys management by exception and employs constructive involvement in dispute resolution. Shifting away from Jobs’ approach, Cook recognizes the shortcomings of Apple’s offerings and interestingly also advises consumers to even look at its competitors, such as Google and Microsoft, so as they can make an educated decision in purchasing Apple products. Although Jobs' vision and motivation drove him to be transformational, Cook is more concerned with gaining the loyalty and happiness of his employees and customers. His transactional nature makes him generally less inclined to concentrate on breakthroughs and instead, eagerly work on the company’s existing structure.

b. Transactional leadership for Apple:

Transactional leadership is based on the sharing of information between the leader and the followers. Followers carry out the will and direction of their government, and leaders reward their contributions favorably. The baseline is reward, which can be negative, such as disciplinary punishment, if followers fail to obey, or constructive, such as praise and acknowledgment, if subordinates pursue the leader's aim and guidance and accomplish the goal. By frequent economic and social exchange that accomplish particular aims for both the leaders and their supporters, transactional leadership attempts to preserve unity rather than promote progress within an organisation.

Transactional leadership, according to Robbin (2008), builds a close association with job performance by providing either favorable incentives for achieving set expectations or negative rewards for failing to fulfill desired targets. Employees gain concrete results in terms of job development and boss satisfaction as more positive incentives are offered for out-performance. They use incentives and threats to motivate employees, effectively turning the leader-follower dynamic into a business transaction. Seeking opportunities to improve target engagement, according to Premack (2009), is a vital leadership role, and this can be accomplished by improving individuals' outcome expectancies and self-efficacy.

Transactional leadership is a feasible means of reinforcing Apple subordinates' goal dedication by offering the necessary clarifications for Apple workers about how to achieve job goals and what intrinsic and extrinsic benefits Apple subordinates will earn upon goal achievement, thus encouraging them to make significant contributions to enhancing corporate efficiency.

c. Departmental communication plan

Communication and technology are not mutually exclusive. Technology can also help communication skills with the advent of digital communication and it helps people to learn written communication for a variety of audiences. Employees and supervisors must learn how to communicate in person at meetings and through everyday work activities while still staying up to date on all business announcements via email or digitally shared since technology is now common in most workplace work environments. What were once printed memos are now often public blog posts on the corporate website or an employee newsletter. It's critical that people appreciate the significance of emailing, as it's often regarded as just as vital as telephones as a means of communication.

It's time to introduce new strategies in 2021 that will help you develop your internal relations plan and communicate, engage, and inspire your team. The internal communication best practices mentioned below will assist Apple in accomplishing this goal.

1. Envision, strategize & plan communications 2. Implementing company chat software like Slack, Microsoft Teams or Google Hangouts 3. Using cloud technology such as Google Drive whenever possible 4. Using one platform for all your email, calendars, documents, etc. (e.g. Google, Apple, Microsoft) 5. Avoiding email overload with visual communications through digital signage

d. Leadership and networking

Most people agree that networking—creating a web of personal connections who can provide advice, input, insight, and resources—is an important practice for aspiring executives. It is, in reality, a prerequisite even for those who are solely concerned with doing their current jobs well. This is an unpleasant fact for others. They assume that focusing on "who you know" rather than "what you know" when working across networks is a hypocritical and probably dishonest way to get things done. For those who recognize that networking is a valid and essential aspect of their careers can be discouraged by the payoff if they are doing so in an insufficient manner.

A good leader recognizes the importance of networking. As a result, any leadership growth strategy should include creating, managing, and engaging with a professional network.

Professional networks are one of the most valuable resources at a leader's disposal because they help find job prospects, develop a cohesive team, predict cultural developments, and keep on top of market trends.

The leader can utilize networks fir the following reasons (Harvard,2019):

• To Identify Career Opportunities • To Build Their Teams • To Anticipate Strategic Change Within Their Organization • To Keep a Finger on the Pulse of Their Industry

Conclusion:

One specific leadership style that Jobs used for his team hit me as something I might relate to my own work environment. I feel the potential to churn out fantastic goods was built around core leadership's ability to function synergistically together and was focused on a simple idea in an atmosphere that I would guess was equivalent to a "think tank" that is ultra innovative and eccentric. Jobs explained his management style in more depth in an interview with Brent Schlender in 2004 where he said, "My model of management is the Beatles". The explanation I claim that is because one of the Beatles' main members prevented the others from straying into their negative impulses... They held each other in line in a way. They never did anything as good until they broke up.” He goes on to say that he believes the energy was sustained by the chemistry of a tiny, well- functioning community, which was greater than the amount of its parts (Schlender, B., 2012).

This "Beatles Business Model" was based around the basic concept of working together and balancing each other; this simple methodology can be incorporated into one's leadership brand. Having a team who understands this model for operations and interpersonal professional partnerships sets the stage with a basic, but powerful brand that is simple to grasp, serves as a business metaphor, and can be deployed with minimal preparation with little additional support. I assume that using a straightforward and relatable model will result in the creation of a team dynamic that is motivated, respects one another, and is capable of proactive problem-solving without fear of retaliation; when a team has these ingredients, progress and enhancements are limitless.

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