Premium Essay

Johnson&Johnson - Organizational Structure

In:

Submitted By nustu
Words 763
Pages 4
J&J Organization Structure

Johnson & Johnson is a global American health care manufacturer founded in 1886. The Family of Companies – as they call themselves – consists of more than 250 operating companies in 60 countries employing about 118,000 people worldwide. (J&J)
The companies of the family are organized into three business segments: Consumer Health Care, Medical Devices and Diagnostics, and Pharmaceuticals. It is a typical instance of a product based divisional organization that collects all functions contributed to a given product under one division. This model makes it easier to manage a wide variety of products, customers, and geographic regions. Another advantage is that managers have to deal with less amount of information regarding a certain product. It also generates greater job awareness for the employees. Managers are more independent and therefore more accountable. This concept assumes wide general skills of the management, which goes along very well with the board opportunities for training managers receive. However, in some cases more in-depth skills are required turning this advantage into a disadvantage. Since functions are duplicated for each division, the organization has more expenses. (Bateman)
Johnson & Johnson is known by its strong work design concept, the decentralized management. On the top of the organization is the Board of Directors lead by the CEO. Members of the Board are selected annually by the shareholders. The organizational chart of the Board shows that currently there are 12 Board members. (J&J) The CEO oversees:
- the CFO, Vice President Finance;
- the Vice Chairman of the Management Board, Worldwide Chairman, Medical Devices and Diagnostics, Global Supply Chain, Government Affairs and Policy;
- the Vice President of Human Resources;
- the Vice President of Legal Counseling; and
- the

Similar Documents

Premium Essay

Organizational Structure

...Organizational Structure Diane Leahy MGT/230 September 2, 2013 Christi Monk Organizational Structure Edwards Lifesciences is a global medical manufacturing corporation that uses a hierarchical form for its organizational structure. Its top management is comprised of an executive leadership team and a board of directors. The board of directors is comprised of Edwards CEO and other medical professionals. Management works its way down with senior leadership teams and on down to functional teams or business units. Its US location is broken up into business units that function almost as separate businesses. Each business unit has its own purchasing, human resources, finance, marketing, clinical, research and development, and manufacturing departments. Resources are not shared between the business units. Other organizations are not structured the same way. Johnson & Johnson, another global medical device company is also structured in a hierarchical form. “Johnson & Johnson has more than 250 companies located in 57 countries around the world. Our Family of Companies is organized into several business segments comprised of franchises and therapeutic categories.” Johnson & Johnson, 2013). They operate under a decentralized management approach and manage for the long term. This is similar to the organizational structure of Edwards Lifesciences as both organizations structure their companies around their product lines. Johnson & Johnson’s board of directors...

Words: 1137 - Pages: 5

Premium Essay

J&J Analysis

...BUS*2090*03 Team Report Winter 2011 Thursday, March 31, 2011 Johnson & Johnson – Socialization and Culture, and Organizational Structure Mathew Baptista Cassandra Dingli Sophia Jefferson Jessica Mighton Hayley Summers Daniel Vijayakumar SUMMARY Johnson & Johnson (“J&J”), one of the largest, well-known organizations in the world, produces products for consumer health care and for use by medical professionals in care and diagnostics. Some of their most recognizable brands include Tylenol, Neutrogena, Listerine, Band-Aid and Reactine. These, along with their many other brands, are produced in over 60 countries by more than 250 different operating companies that make up the J&J organization. In total, more than 114,000 employees are part of the organization, and they are managed through a system of decentralized management with a wide span of control. J&J faces the unique challenge of trying to create one corporate culture that all parts of their organization believe in and adhere to. One of the strategies used to combat these obstacles is values-based leadership and linking employees and subsidiaries under a common set of values, as outlined in "Our Credo". J&J works extremely hard to uphold their Credo, which was written by Robert Wood Johnson – one of the founders of the organization – in 1943. It is a set of values that J&J vow to work by and which lend to the present culture that is so important in the organization today. J&J also attempts to induce a culture...

Words: 5893 - Pages: 24

Premium Essay

Centralized vs. Decentralized Organizational Structure

...Centralized Vs. Decentralized Organizational Structure Many multinational corporations are increasing in all around the world rapidly. Besides, multinational corporations play a common significant role in globalization. However, the way the corporations are managed is very dissimilar. In this essay, the distinctness of how the multinational corporations are managed, especially the differences between organizational structures of Ford and Honda will be discussed. The background of a multinational corporation is an organization doing business in more than one country. In other words it is an organization or enterprise carrying on business in not only the country where it is registered but also in several other countries. It may also be termed as an international corporation, global giant and worldwide corporation (Shyam Soni, 2012). Ford is one of the earliest international companies in the world. They organize their company with a really wise way – decentralized decision-making. It is generally seen that there are more and more plus points of decentralization for decision-making. It is said by Kuldeep (2012) that decentralized decision-making helps to reduce burden of top executives and they can concentrate to another important tasks of policy-making, coor­dination and control. He also states that prompt and more accurate decisions can be made near the point of action without consulting higher levels and without waiting for approval of top executives. In the other side,...

Words: 1335 - Pages: 6

Premium Essay

Internal and External Factor Paper

...Paper Johnson and Johnson (JNJ) began in the late 1880s as a family owned and operated business geared toward the health care and first aid of individuals. In their first 20 years of operation, Johnson and Johnson built a solid domestic business and were among the first responders to the 1906 San Francisco Earthquake. Currently, Johnson and Johnson span the globe with more than 250 locations in 57 countries ("Johnson and Johnson Company Structure", 2011). In JNJ’s century plus experience and business operations, adjusting and adapting the functions of management to meet operational goals and public demands is a testament to their longevity. From their worldwide expansion, innovations in healthcare, business ethics, contributions to technology, to their community diversity, JNJ provides a “How to Succeed in Business” guide for others to follow. Internal and external factors involved in technology affect management’s efficiency in planning, organizing, leading and controlling. The new advances in technology have provided new production techniques and new ways to manage and communicate such as telecommuting and robotic manufacturing. The technology of computers has increased productivity and performance. Management is able to watch and learn what the competitors are doing and improve the efficiency in decision making. There are also threats involved with technology when ensuring the most up to date technology and developments are used. Johnson and Johnson’s...

Words: 1943 - Pages: 8

Premium Essay

Case Study

...built, there were five new plants and had over 200 more employees. “Each plant is run by a plant superintendent who reports directly to the manager of plant operations and maintenance” (Nkomo, Fottler, & McAfee, 2011, p.3). Many companies are very adept at change if it is gradual (Nelson & Quick, 2013, p. 7). When companies grow fast there are things which do not function as they should. The Situation In one of the plants, Bud Johnson worked his way up to auxiliary operator (Nkomo, Fottler, & McAfee, 2011, p.5). He frequently filled in for the equipment operator and asked for a promotion to this job from his boss Braxton (5). Upon getting his annual performance review, Johnson did not receive a pay increase or promotion which angered him and he informed his boss of his irritation. The next day Johnson no called, no showed to work. Company policy may be termination after a no call, no show. He returned back to work the next day and was asked to sign a blank (per him) termination form. The organizational structure of Mount Ridge is contributory to these issues. The relationship between HR and the actual operations of the plant is flawed. It is supposed that HR has an established complete set of procedure and policies, however, there is seemingly no connection between HR and operation at plant level. "Human resource management is concerned with designing formal systems in an...

Words: 1572 - Pages: 7

Free Essay

Codman & Shurtleff, Inc

...Shurtleff was launched in 1838, focusing on the design and fabrication of surgical supplies. Years later, Johnson & Johnson acquired it in 1964. Today, Codman & Shurtleff, Inc. is still one of many subsidiaries of Johnson & Johnson. It continues to supply the medical profession with surgical tools, equipment, implants, disposable materials and many other medical supplies. This case discusses the planning and control system of Codman & Shurtleff, Inc. It focuses on the reporting relationships, five and ten-year plans, financial planning, and budget revisions and reviews. One major issue is that the company is dealing with an unfavorable profit objective. They are currently two million dollars short of their projection for the year. The weakening of the dollar, a poor mix variance and unexpected high start-up costs have all contributed to the underperformance of the company. In order to understand the position of Codman & Shurtleff, this paper will analyze the culture and the organizational structure of Johnson & Johnson, as well as Codman & Shurtleff. It will also analyze how well the company coordinates their financial planning and what problems they may encounter as the company implements changes in order to adhere to the corporate mission statement. Analysis The Culture of Codman & Shurtleff, Inc. / Johnson & Johnson Per the case, when Johnson & Johnson acquired Codman, they had to achieve a compromise on a new mission statement. Codman & Shurtleff’s...

Words: 1738 - Pages: 7

Premium Essay

How Growth Is Influenced by the Executives and Organizational Structure

...Annotated Bibliography The Transitional Process and Organizational Change: How Growth is influenced by the Executives and Organizational Structure MGMT 610 10/25/2015 Johnson, K. (1989). Building your management skills. Managers Magazine, 21-23. Johnson battles that numerous mangers are verse in management theory; in any case they are not able to apply such knowledge. He portrays an incredible supervisor as one who knows how to oversee in fact, as well as lead individuals, and have the right management capacity so as to use the proper management style at the right times. He maintains that powerful supervisors have four attributes: they are achievement oriented, administrators, entrepreneurs, and integrators. Johnson also presents four components of effective organizational management which include: the lone avengers, bureaucrats, fire-starters, and therapists. He contends that there is no perfect manager. Maybe, the extent to which a manager may have two or more attributes above relies on upon the circumstance. Thus, the needs of the business decide the most proper style of management. Additionally, the individual’s personal needs determines which management style is used. He additionally recognized four phases of business advancement: age of organization, bell curve peak decline, and regeneration. Kilzer, J., Glausser, G. (1984). Closing the small business management gap. Management Accounting, 65, 57-61...

Words: 759 - Pages: 4

Premium Essay

Strategic Management Process

...strategic purposes. This information assists in the internal and external factors influencing an organization. Following the analysis process, there should be an evaluation on it to improve the analysis (Management Study Guide, n.d.) Strategy formulation is the method of deciding the best course of action for accomplishing organizational objectives for this reason achieving organizational purpose. After conducting environment scanning, managers formulate corporate, business and functional strategies (Management Study Guide, n.d.). Strategy implementation entails producing the strategy work as intended or putting the organization’s chosen strategy into action. This includes designing the organization’s structure, distributing resources, developing decision making process and managing human resouces. The final step of the strategy management process is the strategy evaluation. The fundamental strategy evaluation activities are: appraising internal and external factors that are the root of present strategies, measuring performance and taiking corrective actions. This type of evaluation asures the organizational strategy as well as the implementaton meets the organizational objectives...

Words: 457 - Pages: 2

Premium Essay

Managing Change in a Contemporary Organisation

...Thus innovations in terms of evolutionary and revolutionary change occur at each organisational growth level as determined by Greiner (1972). To answer these fundamental questions about the nature of organisational change it is vital to distinguish between two levels of change. Similarly the factors that directly influence organisational behaviour and organisational features that determine these factors should be examined in turn need to be considered. In line with Greiner’s (1972) theory each of the organisational elements and processes are shaped by its choices implied in the consciousness of the history of the organisation. Therefore the obvious features of an organisation can be defined and deduced from the aspects of organisational structure, organisational system and organisational culture of which it is composed, (Salaman & Asch, 2003). Researchers have argued that change that has limited influences on the entire organisational...

Words: 2902 - Pages: 12

Free Essay

Human Resources Practices in Corporate Culture Communication: a Case Study of Johnson & Johnson

...Michigan University DigitalCommons@EMU Master's Theses and Doctoral Dissertations Master's Theses, and Doctoral Dissertations, and Graduate Capstone Projects 5-13-2003 Human Resources Practices in Corporate Culture Communication: A Case Study of Johnson & Johnson Flavia Xavier Follow this and additional works at: http://commons.emich.edu/theses Recommended Citation Xavier, Flavia, "Human Resources Practices in Corporate Culture Communication: A Case Study of Johnson & Johnson" (2003). Master's Theses and Doctoral Dissertations. Paper 4. This Open Access Thesis is brought to you for free and open access by the Master's Theses, and Doctoral Dissertations, and Graduate Capstone Projects at DigitalCommons@EMU. It has been accepted for inclusion in Master's Theses and Doctoral Dissertations by an authorized administrator of DigitalCommons@EMU. For more information, please contact lib-ir@emich.edu. HUMAN RESOURCES PRACTICES IN CORPORATE CULTURE COMMUNICATION: A CASE STUDY OF JOHNSON & JOHNSON by Flavia Xavier Thesis Submitted to the Department of Management Eastern Michigan University In partial fulfillment of the requirements For the degree of MASTER OF SCIENCE In Human Resources Management & Organizational Development Thesis Committee: Stephanie Newell, PhD, Chair Mary E.Vielhaber, PhD Diana Wong, PhD May 13, 2003 Ypsilanti, Michigan iii DEDICATION To God who has been a blessing my life with my beloved husband, Luis Felipe. iv ACKNOWLEDGEMENTS ...

Words: 29225 - Pages: 117

Premium Essay

Mgt - 426 - Week 4

...Managing Change Paper III Steptoe & Johnson, LLP (Steptoe) made the decision that there was a need for change within the company. The revenues within the company were of great concern and the partners felt the issue needed to be dealt with immediately. Steptoe failed to create a shared vision within the company that leads to a difficult change over. Steptoe needed to create a sense of urgency and separate the past issues to make the changeover successful. The leadership needed to take responsibility and set a structure for everyone to follow in order for the change take effect and maintain after the transition was complete. In this paper, we will discuss the needs for change within the organization and the proper steps that needed to be done to complete an effective change. Analyze the Need for Change Analyzing the need for change is a crucial step in the change process. Without proper analyzing why must change result in failure from the very beginning. Steptoe & Johnson, LLP made the assumption that the need for change was a necessary component that needed to be addressed and imposed immediately. The decision was primarily based on discussions amongst partners of the firm in respect to payroll and bonus issues that they were not pleased with. The partners decided that in order eliminate these issues, the firm as a whole would need to cut back as soon as possible. This was not a discussion that discussed with the partners and the management team’s it was at the...

Words: 2631 - Pages: 11

Premium Essay

Organizational Structure

...Organizational Structure Latoya Dale MGT/230 October 28, 2014 Chenise Hamilton Organizational Structure Organizations are set up in specific ways to accomplish different goals, and the structure of an organization can help or hinder its progress toward accomplishing these goals. Organizations large and small can achieve higher sales and other profit by properly matching their needs with the structure they use to operate. The three main types of organizational structures are functional, divisional, and matrix structure. Organizations have to pick the structure that will work well with their company. These things do not come all at once overnight, companies have to try and see what works for them. Structure Caesars’ Entertainment has developed the functional structure. “Functional structure is set up so that each portion of the organization is grouped according to its purpose. In this type of organization, for example, there may be a marketing department, a sales department and a production department.” (Writing, 2014) While every department within the organization is responsible for themselves, they must all work together to make sure the business is successful. The CEO of Caesars’ Entertainment has appointed regional presidents because they are familiar with a specific area. The regional presidents are responsible for targeting the correct market. “Organizational structure provides guidance to all employees by laying out the official reporting...

Words: 1223 - Pages: 5

Premium Essay

Strategic Management

...Implications for Business strategy 3.7 Industry Lifecycle and Market Turbulence Implications for Business Strategy 3.8 Corporate Level Strategy Decisions 3.9 Relevant Growth Strategies to Qatar Airways 3.10 Advantages and Disadvantages of Related and Unrelated Diversification 3.11 Important Strategies to Qatar Airways 3.12 Portfolio Analysis 3.13 Aspects of International Strategy that are Relevant to Qatar Airways 3.14 International Strategies that are Appropriate 3.15 Market Penetration Strategies that are Appropriate 3.16 Evaluation Technique of Best Strategy to Adopt 4.0 Strategy Implementation 4.1 Resourcing of Strategy 4.2 Suitability of Current Organizational Culture 4.3 Suitability of Current Organizational Structure 4.4 Organizational Processes 4.5 Requirement of Strategic Control Systems to Implement new Strategy 4.11 Importance of Stakeholders 5.0 Conclusion 6.0 References 1.0 Introduction The...

Words: 5154 - Pages: 21

Premium Essay

Review of "Rise and Fall of Cf"

...considerable behavioural trait failures by Fiorina, supported by plenty of anecdotal evidence to support his claim. Johnson identifies Fiorina’s leadership direction was set by the Board of HP, found that the Board itself had been unethical, and the Board did little to influence or change this direction until the penultimate days of Fiorina’s tenure. The article fails to recognise that Fiorina’s “fall” was ultimately caused by her failure to improve the bottom line. But recognises that her poor performance as an ethical Leader had left her without sufficient support to allow her to complete her radical changes. The ethical Leader construct used here, could be considered to be inadequate to comprehensively assess Fiorina’s leadership, and highlights a need for a more integrated construct/s covering commonly shared behaviours. This essay discusses the addition of change-oriented leadership behaviour to task-oriented and relationship –oriented leadership constructs to overcome this limitation. Elements of leadership Johnson (p. 188) focusses on Fiorina’s ethical leadership behaviours (Brown , et al., 2005) to justify his judgement that Fiorina was a bad leader of Hewlett-Packard. Johnson (p. 192) also goes on to describe her as a Charismatic leader without being explicit on the elements which support this, merely drawing on some of the expressions of her actions. Johnson (p. 192) uses two definitions to identify the ethical leadership construct – “The Moral Person” (Trevino...

Words: 1988 - Pages: 8

Premium Essay

Antz

...Discuss the Organizational structure as illustrated in the movie by referring to the Antz Colony structure and the Insectopia structure. 2 The Antz Colony 2 What type of structure does the Antz colony have and what are the positive/negative effects of such a structure? 3 Insectopia 4 What type of structure does Insectopia have and what are the positive/negative effects of such a structure? 4 2. Discuss the job designs of the workers in the Antz movie and indicate the implications of the job designs on the motivation of the workers. 5 Job design elements defined 5 Job design elements in the Antz colony 5 How can job satisfaction among the ants be improved? 6 Job redesign 6 Alternative work arrangements 7 How can the employee’s/ ants be more involved? 7 Rewards used as motivators 8 3. Describe the Culture that was prevalent in the Colony. 9 What does the culture do in the colony? 9 What liabilities does this culture have? 10 4. Describe and discuss the changes that took place in the movie. 11 What were the changes in the Antz colony and how could they have been handled better? 11 Bibliography 14 1. Discuss the Organizational structure as illustrated in the movie by referring to the Antz Colony structure and the Insectopia structure. An organisational structure is “the way in which job tasks are formally divided, grouped and coordinated” (Robbins & Judge, 2011). An organisation has different elements that contribute to its structure. These elements...

Words: 5502 - Pages: 23