I'm interested in developing an iPhone application that would be useful to some of the employees at our company in the field. I'm wondering if that's possible to do and if I still have to through the Apple application approval process for it to work?
Yes, you can develop internal apps.
To do so, you would need to sign up for the Enterprise program, or work within the limitations of Ad-hoc distribution.
As far as I know, in-house distribution for Enterprise level developers does not have an app approval process.
http://developer.apple.com/iphone/program/apply.html
Distribute Your Application
Enterprise Distribution (Enterprise Program, $299 / Must have D-U-N-S number)
The iOS Developer Enterprise Program is intended for companies who create proprietary, in-house iOS apps for internal deployment within the company only. A valid Dun & Bradstreet (D-U-N-S) number is required for program enrollment.Ad Hoc Distribution (Available in Standard Program, $99)
The Standard and Enterprise Programs allow you to share your application with up to 100 other iPhone or iPod touch users with Ad Hoc distribution. Share your application through email or by posting it to a web site or server.
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