NORTH BORNEO UNIVERSITY COLLEGE

GROUP ASSESSMENT COVER SHEET

Student Name NETALY PIUS

Student ID. 2020.8.ME01.0008

Student Name FEOCENOVIA VEE

Student ID. 2020.8.ME01.0007

Student Name SITI NUR ASSHILA BINTI YUNUS

Student ID. 2020.8.ME01.0004

Student Name CHRISTIA ZYNDIAMAGNE TUPAZ

Student ID. 2020.8.ME01.0003

Assessment Title ASSIGNMENT ORGANIZATIONAL BEHAVIOUR CASE STUDY 1 (GROUP)

Program DIPLOMA IN BUSINESS ADMINISTRATION

Course (Code) ETO 430

Lecturer / Tutor MISS HEDAYU

Date Submitted MARCH 30, 2021

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Date Received

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Mar 30, 2021

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 CONTENT

1.0 The summary of case study

2.0 Answer of each questions
2.1 Pros and Cons for local and overseas
labor forces of Apple’s going global. The potential political implications for country
relationships.
2.2 Apple and its management have a moral obligation to provide jobs for U.S.
employees first. If this is the case, then does this put international employees at a
distinct disadvantage?
2.3 Is it possible for U.S. managers to organize, motivate, and ensure quality in their
Chinese manufacturing facilities?
3.0 Conclusion
4.0 References
1.0 THE SUMMARY OF CASE STUDY

In summary, back then Apple is only known in America but as time passes by, it is now
have grown globally. This is because many company had began to manufactured apple
too which lead more than 20,000 jobs directly lost by U.S workers not to mention
some of it had been given to foreign in Asia, Europe and elsewhere. Steve Job also
stated that the lost of the job is not temporary by saying “Those job aren’t coming
back”. One of the country that became the as the strongest competitor is China. This
is because China has flexible, diligence and high industrial skills compared to the U.S.
Even one of the executive of Apple in U.S said “the speed and flexibility is breathtaking”
that not even America can match their efficiency. America then started using Chinese
workers for their organization to manufactured Apple since the workers from China is
very impressive. Some also said that they shouldn’t be criticized for using Chinese
workers since America no longer produced people with the high skill they need. Since
apple is one of the most imitated brand in the world, some suggested that the US
should be better led, better trained, more effectively managed and more motivated to
be proactive and flexible. By applying this, they can improve their organization more.
Though apple switch from “100 percent made in the U.S.A” to “10 percent made in the
U.S.A”, it can still be the representative of natural growth pattern of company going
globally. At this point, iPhone is largely designed in the United States while some part
of it are made in South Korea, Taiwan, Singapore, Malaysia, Japan, Europe and etc.

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2.0 ANSWER OF EACH QUESTION
2.1 What are the pros and cons for local and overseas labor forces of Apple'
s going Global? What are the potential political implications for country
relationships?

Apple is the speed of flexibility breath taking in manufacturing processes in China

while the U.S. and has stopped producing people with the skills that Apple’s need.
From this case, we can actually see that U.S. workforce needs to be better led, better
trained, more effectively managed, and more motivated to be proactive and flexible
suggesting to an overseas advantage. Apple’s decision to manufacture its products in
China using inputs sourced from multiple countries is beneficial for the overseas
labour force where new jobs are created and spill over effects can generate other
benefits for the local economy. Moreover, there are a lot of people who are seeking
for jobs opportunities. By creating domestic production, citizens could be taken in as
employees. Local low skilled labour forces will suffer for a job loss.

Next, the political implicationsis can cause a riot that is involved in this case because
companies are taking more labor force from overseas which is an advantage for the
companies to increase the profit. In order to gain a big sales profit at a lowest cost,
Apple should provide jobs to the fully skilled workers from low-cost country so the
wages payment will be lower. In fact, U.S. workers are costly workforce because they
expect to get medical insurance and other high-cost fringe benefits which pricing
themselves so much but they are not as skilled as other workforces that could be
found throughout the world like in China which been identify as flexibility, diligence
and industrial skills.

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2.2 As a U.S. corporation, does Apple and its management have a moral
obligation to provide jobs for U.S. employees first? If this is the case, then
does this put international employees at a distinct disadvantage?

Apple is allowed to make the observations and conclusions stated in the case because
they have been experienced in the industry for years and they will experience a decline
in the U.S. or Canada having people skilled and flexible enough that they have the
ability to work in their factories. Therefore, they then have to find out where they can
find enough skilled manpower who can keep up with the development of their
company. In addition, China is proving to be more appropriate, regardless of the fact
that they have a cheaper labor force. This can be a negative and positive thing that
executives at Apple have voiced this opinion. Negative in the sense that people in the
U.S. who have the skills or flexibility that a company claims may feel as if they were
overlooked or that the company is not necessarily working hard enough to find a
skilled workforce in their own country. This might be positive for someone who has the
misconception that Apple only chose to have manufacturers in China because cheaper
labor will now know the real reason behind their decision and hopefully find ways to
improve skills in their own country Canada or the US that will and then create more
employment opportunities for other communities.

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In addition, Apple has no moral obligation to offer employment to U.S. employees.
Since succeeding in China, which is a foreign country it should consider the locals first
and their qualifications. As a problem, Asia does not have a supply chain but also a
group of knowledge workers that America cannot match. Apple has a responsibility to
its shareholders to maximize sales revenue at the lowest possible cost, and to do that
they need to recruit talented people from any nationality and pay them as little as
possible. So that means that they have to look for talent all over the world, and if they
have to choose between two candidates who have the same ability, they have to
choose one who comes from a country with low cost so that the salary cost will be
lower. Not to mention the fact that many Americans expect to get medical insurance
and other high benefits, effectively putting self esteem out of the game.

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2.3 Is it possible for U.S. managers to organize, motivate and ensure
quality in their Chinese manufacturing facilities?

It's possible. The same principles apply to the Chinese facility as with their facilities in
the US. China can support Apple’s high demands. After tons of research, The New York
Times published a very informative report which covered interviews with both former
and current executives at Apple. The reason behind the relocation itself is quite simple,
iPhones aren’t manufactured in America because they simply can’t be. Put simply
there’s not enough manpower to support the manufacturing of Apple’s products.

The factory in China where Apple products, specifically iPhones, undergo final
assembly has approximately 230,000 workers. In the US, there are only 83 cities that
have the same population as this factory’s number of employees. Meaning the number
of possible workers in the US is not enough to cover Apple’s needs. In China, an
estimated quarter of their workforce lives in company-owned dormitories. These
barracks are located on factory property. Many people are living and working at the
factory. Such jobs are in high demand in China, and they can hire many people
overnight. These examples prove that the measure, speed, and efficiency of Chinese
manufacturing surpass anything the US is presently capable of.

One reason why US companies sometime fail to motivate, organize, or ensure quality
is because they choose the wrong type of manufacturing leadership for their China
factory. The thinking goes like this, the US HQ in the US has had its own attached
workshop for 25 years, and they know what they were doing. The guy running that
facility knows our product very well. US need an expat to run our China factory, so
they will send that guy over to China and replicate they operations over there.

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And when it doesn't work, the finger pointing starts, Chinese people don't think,
Chinese can't create anything, Chiness? can't trust them, Chinese government doesn't
let them think for themselves. But what often happens is the guy sent over had thrived
in the more static environment of the HQ's attached workshop, which was embedded
inside the whole management structure of the company. But he was sent to China to
organize, improve and motivate an entirely separate (albeit related) organization.
Different skillset required, so different results obtained.

How to avoid this and get China manufacturing right the first time? Choose the right
leader. Choose one with General Management experience. Don't assume a good
shopfloor supervisor in US equals a good GM in China. Transparency, empathy,
reciprocation, communication, integrity, and other. These work in China just like they
do elsewhere. Do not assume an expat is required. Local people can and do succeed.
Do not be seduced by bilingualism. Chinese is useful, but some very good
manufacturing leaders in China cannot speak it.
Concentrate initiatives on those that improve cost, quality, and delivery. Focus on
adding value. Create an “ownership” culture, where success is rewarded and
celebrated, and is linked directly to results. Create a “development” culture. Promote
learning and celebrate promotions, lateral moves, etc. Create and publish internal
development roadmaps.

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3.0 CONCLUSION

As conclusion, the globalization makes it able for business to expand not just for one
country but also around globally. In any operating organization, it is very important to
operate efficiently. If not, it will lead to the same case with China leading the brand of
the Apple more than America do. If there’s one reason why China was able to compete
with America and that will be because of the efficiency of its co-workers and the
organization itself.
Like it had been stated from the statement, the U.S were asked to make their
organization better by making sure their employees are trained, feel motivated
towards their job and making sure the management are completely managed so that
they can make a better performance. As we all know, when running a business it is
very important to perform better than the competitors do so we can have the
advantages it offer for the company.
Apart from having a skillful employees, it is also very important to make employees
like their work. Often in an organization, how employees react toward their jobs can
affect the whole organizational behavior. That is why it is very important to make sure
the workplace of one’s company are comfortable and suitable for employees to do
their job. Having a good term relationship with the workmates can boost their
performances as well. When employees are happy and not too stressed about their
work, t will lead directly to efficiency in one’s organization.
Since business are expected to grow more in the future, it is one of our job to make
sure that Organizational Behavior in the workplace are always in a good condition. If
we can make our organization a better place for us to do our job, then we should just
continue with the great work so that we can create a better and comfortable
organization for everyone.

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4.0 REFERENCE

Course Hero (2021) "Case Study 1 Apple Goes Global"

•https://www.coursehero.com/file/35181477/TUTORIAL-1docx

Course Hero (2021) "Case Study 1 Apple Goes Global"

•https://www.coursehero.com/file/p18cc7qi/Question-1-16-As-a-US-corporation-
does-Apple-and-its-management-have-a-moral/

David Levy (2019) "Is it Possible for the US managers to motivate, organize and
ensure quality of their Chinese manufacturing facilities"
•https://www.quora.com/Is-it-possible-for-the-US-managers-to-motivate-organize-
and-ensure-quality-in-their-Chinese-manufacturing-facilities

Brian X. Chen (January 27, 2015), "iphone Sales in China Bolster Apple Earnings"
•https://www.nytimes.com/2015/01/28/technology/apple-quarterly-earnings.html