Introduction to Johnson and Johnson
For a company to be successful, it must continuously build and nurture long-term relationships with its strategic shareholders. Shareholders is anyone who has an interest in an organization ((Noe et al., 2016). They include employees, governments, competitors, suppliers, competitors and customers. One such company is Johnson and Johnson (J&J). It has emerged as one of the most successful company globally because of its values dubbed "Our Credo” (Team, Directors and Governance, 2019).J&J is also among the Fortune 500 companies.
This paper will focus on various dimensions of the J&J Company. It is divided into three distinct sections. That is organizational structure, organizational strategy and human resource management. So, J&J organization structure will be explored, the various strategies that the company has pursed over the years will be elaborated and finally J&J human resource management practices will be discussed. Other sections in the paper include organizational design theory and emerging issues in HR management.
Organizational Design Theory
Organizational design (OD) theory is “the study of how organizations function and how they affect and are affected by the environment in which they operate” (Stanford, 2015). An organization is defined as the deliberate arrangement of people to accomplish some specific purpose. There are three definitions of OD. First, OD “is the process by which managers select and manage aspects of structure and culture so that an organization can control the activities necessary to achieve its goals” (Stanford, 2015). Secondly, OD can be defined as” a systems approach of arranging how to do the work required to effectively and efficiently accomplish a business purpose and strategy while delivering high-quality customer and employee experience” (Stanford, 2015). Third, OD according to Jay Galbraith (star model) is the alignment of an enterprise vision, values, strategies, objectives (Hayes, 2014). The Star model further states that aligning all the elements of enterprise results in high performance and achievement of business strategies. Overall, Galbraith star model is the most conclusive definition of organizational design since it helps managers to view an organization holistically.
Organization design is a combination of organization structure and strategy (Stanford, 2015). OD give rise to models which results in the different organization structure. The common organization design models were created by individuals, or it originated from consultancy firms like McKinsey. Models created by individuals include Burke-Litwin model, Jay Galbraith, David Nadler, and Marvin Weisbord. For example, Jay Galbraith model leads to the creation of either divisional or matrix organization structure depending on organizational objectives (Stanford, 2015). Once the organization structure is in place, the managers then formulate organizational strategies. Strategies are policies being undertaken by an organization to improve its competitive advantage (Hayes, 2014). So, OD is linked to organization structure, and organization structure is connected with organizational strategies.
J&J is guided by “Our Credo” which emphasizes on the company responsibility towards its shareholders, communities, employees, doctors, nurses, patients and all users of Johnson and Johnson products (Team, Directors and Governance, 2019). The goals being clear, the company settled on a decentralized structure which classify each subsidiary as independent company. So, organizational design is linked to organization structure. The decentralized structure lead to the formulation of globalization strategy. This strategy emphasizes that each subsidiary is autonomous. Overall, organization design consist of organizational structure and organizational strategy.
Organization Design Theories
OD theories include systems theory, complexity theory, and classical organization theory. The theories are explained as follows:
Systems Theory
This theory describes and demonstrates how organizations work, and the various ways on how goals can be accomplished. It was proposed in the 1960s by Ludwig Von Bertalannffy and J.G.Miller (Stanford, 2015). It provides a framework that views organizations as systems made up of inputs, process, and outputs. Inputs are resources and information needed to supply an organizational system. “Processes are activities within the organizational system that gets work done” (Hayes, 2014). Outputs are outcomes, products, services delivered by the organization. This theory is critical because it helps managers view an organization as a system and not separate units. All the groups of an organization are related, and any change in one unit will most certainly affect other units.
Complexity Theory
This theory states that an organization order, pattern, and structure are derived from complex systems (Stanford, 2015). Since the systems are complex, an organization cannot be treated as separate units but as a whole. This theory is essential in explaining the complex nature of real-world organizations hence manages have to put more effort to ensure an organization achieve its objectives. This theory also explains why it is impossible for two or more organizations to be similar. Complexity theory is important because it outlines the basic principles of organizational design.
Classical Organization Theory
This theory is based on the Principles of Scientific Management which was published by Fredrick W. Taylor in 1911 (Hayes, 2014). The theory views organizations as machines. He proposed for scientific job analysis, selection of personnel, management cooperation and functional supervising. Scientific job analysis provides the most appropriate way to perform a task in an organization. This theory is important because in any organization, a manager should specify the roles of each worker because it improves efficiency. However, this theory is not common today because it treats a human being as machines. Research studies have shown that organizations are not machines that can be controlled.
Organizational Structure
Definition
All organizations are bound to have some form of structure. There are three possible definitions of organizational structure. First, organization structure is the formal system of tasks and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals. Secondly, organization structure is an enterprise formal configuration of roles, governance, authority, and decision making channels. It is generally shown in the form of an organization chart. An organization chart is made up of three components. Namely: job roles/responsibilities, vertical reporting relationships (Hierarchy) and cross-organizational communication paths (Stanford, 2015). Third, organizational structure means a framework within which management and operational tasks is performed. It specifies the relationship between…Introduction to Johnson and Johnson
For a company to be successful, it must continuously build and nurture long-term relationships with its strategic shareholders. Shareholders is anyone who has an interest in an organization ((Noe et al., 2016). They include employees, governments, competitors, suppliers, competitors and customers. One such company is Johnson and Johnson (J&J). It has emerged as one of the most successful company globally because of its values dubbed "Our Credo” (Team, Directors and Governance, 2019).J&J is also among the Fortune 500 companies.
This paper will focus on various dimensions of the J&J Company. It is divided into three distinct sections. That is organizational structure, organizational strategy and human resource management. So, J&J organization structure will be explored, the various strategies that the company has pursed over the years will be elaborated and finally J&J human resource management practices will be discussed. Other sections in the paper include organizational design theory and emerging issues in HR management.
Organizational Design Theory
Organizational design (OD) theory is “the study of how organizations function and how they affect and are affected by the environment in which they operate” (Stanford, 2015). An organization is defined as the deliberate arrangement of people to accomplish some specific purpose. There are three definitions of OD. First, OD “is the process by which managers select and manage aspects of structure and culture so that an organization can control the activities necessary to achieve its goals” (Stanford, 2015). Secondly, OD can be defined as” a systems approach of arranging how to do the work required to effectively and efficiently accomplish a business purpose and strategy while delivering high-quality customer and employee experience” (Stanford, 2015). Third, OD according to Jay Galbraith (star model) is the alignment of an enterprise vision, values, strategies, objectives (Hayes, 2014). The Star model further states that aligning all the elements of enterprise results in high performance and achievement of business strategies. Overall, Galbraith star model is the most conclusive definition of organizational design since it helps managers to view an organization holistically.
Organization design is a combination of organization structure and strategy (Stanford, 2015). OD give rise to models which results in the different organization structure. The common organization design models were created by individuals, or it originated from consultancy firms like McKinsey. Models created by individuals include Burke-Litwin model, Jay Galbraith, David Nadler, and Marvin Weisbord. For example, Jay Galbraith model leads to the creation of either divisional or matrix organization structure depending on organizational objectives (Stanford, 2015). Once the organization structure is in place, the managers then formulate organizational strategies. Strategies are policies being undertaken by an organization to improve its competitive advantage (Hayes, 2014). So, OD is linked to organization structure, and organization structure is connected with organizational strategies.
J&J is guided by “Our Credo” which emphasizes on the company responsibility towards its shareholders, communities, employees, doctors, nurses, patients and all users of Johnson and Johnson products (Team, Directors and Governance, 2019). The goals being clear, the company settled on a decentralized…Introduction to Johnson and Johnson
For a company to be successful, it must continuously build and nurture long-term relationships with its strategic shareholders. Shareholders is anyone who has an interest in an organization ((Noe et al., 2016). They include employees, governments, competitors, suppliers, competitors and customers. One such company is Johnson and Johnson (J&J). It has emerged as one of the most successful company globally because of its values dubbed "Our Credo” (Team, Directors and Governance, 2019).J&J is also among the Fortune 500 companies.
This paper will focus on various dimensions of the J&J Company. It is divided into three distinct sections. That is organizational structure, organizational strategy and human resource management. So, J&J organization structure will be explored, the various strategies that the company has pursed over the years will be elaborated and finally J&J human resource management practices will be discussed. Other sections in the paper include organizational design theory and emerging issues in HR management.
Organizational Design Theory
Organizational design (OD) theory is “the study of how organizations function and how they affect and are affected by the environment in which they operate” (Stanford, 2015). An organization is defined as the deliberate arrangement of people to accomplish some specific purpose. There are three definitions of OD. First, OD “is the process by which managers select and manage aspects of structure and culture so that an organization can control the activities necessary to achieve its goals” (Stanford, 2015). Secondly, OD can be defined as” a systems approach of arranging how to do the work required to effectively and efficiently accomplish a business purpose and strategy while delivering high-quality customer and employee experience” (Stanford, 2015). Third, OD according to Jay Galbraith (star model) is the alignment of an enterprise vision, values, strategies, objectives (Hayes, 2014). The Star model further states that aligning all the elements of enterprise results in high performance and achievement of business strategies. Overall, Galbraith star model is the most conclusive definition of organizational design since it helps managers to view an organization holistically.
Organization design is a combination of organization structure and strategy (Stanford, 2015). OD give rise to models which results in the different organization structure. The common organization design models were created by individuals, or it originated from consultancy firms like McKinsey. Models created by indivi....... Galbraith model leads to the creation of either divisional or matrix organization structure depending on organizational objectives (Stanford, 2015). Once the organization structure is in place, the managers then formulate organizational strategies. Strategies are policies being undertaken by an organization to improve its competitive advantage (Hayes, 2014). So, OD is linked to organization structure, and organization structure is connected with organizational strategies.
J&J is guided by “Our Credo” which emphasizes on the company responsibility towards its shareholders, communities, employees, doctors, nurses, patients and all users of Johnson and Johnson products (Team, Directors and Governance, 2019). The goals being clear, the company settled on a decentralized structure which classify each subsidiary as independent company. So, organizational design is linked to organization structure. The decentralized structure lead to the formulation of globalization strategy. This strategy emphasizes that each subsidiary is autonomous. Overall, organization design consist of organizational structure and organizational strategy.
Organization Design Theories
OD theories include systems theory, complexity theory, and classical organization theory. The theories are explained as follows:
Systems Theory
This theory describes and demonstrates how organizations work, and the various ways on how goals can be accomplished. It was proposed in the 1960s by Ludwig Von Bertalannffy and J.G.Miller (Stanford, 2015). It provides a framework that views organizations as systems made up of inputs, process, and outputs. Inputs are resources and information needed to supply an organizational system. “Processes are activities within the organizational system that gets work done” (Hayes, 2014). Outputs are outcomes, products, services delivered by the organization. This theory is critical because it helps managers view an organization as a system and not separate units. All the groups of an organization are related, and any change in one unit will most certainly affect other units.
Complexity Theory
This theory states that an organization order, pattern, and structure are derived from complex systems (Stanford, 2015). Since the systems are complex, an organization cannot be treated as separate units but as a whole. This theory is essential in explaining the complex nature of real-world organizations hence manages have to put more effort to ensure an organization achieve its objectives. This theory also explains why it is impossible for two or more organizations to be similar. Complexity theory is important because it outlines the basic principles of organizational design.
Classical Organization Theory
This theory is based on the Principles of Scientific Management which was published by Fredrick W. Taylor in 1911 (Hayes, 2014). The theory views organizations as machines. He proposed for scientific job analysis, selection of personnel, management cooperation and functional supervising. Scientific job analysis provides the most appropriate way to perform a task in an organization. This theory is important because in any organization, a manager should specify the roles of each worker because it improves efficiency. However, this theory is not common today because it treats a human being as machines. Research studies have shown that organizations are not machines that can be controlled.
Organizational Structure
Definition
All organizations are bound to have some form of structure. There are three possible definitions of organizational structure. First, organization structure is the formal system of tasks and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals. Secondly, organization structure is an enterprise formal configuration of roles, governance, authority, and decision making channels. It is generally shown in the form of an organization chart. An organization chart is made up of three components. Namely: job roles/responsibilities, vertical reporting relationships (Hierarchy) and cross-organizational communication paths (Stanford, 2015). Third, organizational structure means a framework within which management and operational tasks is performed. It specifies the relationship between people, work, resources, and managers. The second definition of organization structure is conclusive because organization structure is usually shown in the form of a chart which is made up of three components. Figure 1 displays a simple divisional organization structure. The boxes represent roles or responsibilities, the vertical lines represent hierarchy (chain of command), and horizontal lines represent communication paths.
Vice president
Employee 1
Employee 3
Employee 2
Figure 1. Example of Organizational Structure
Organization structure is also linked to organization design. OD consists of organization structure and strategy. Organizational design theory gives rise to different organizational models which result in different organization structures. Organizational design specifies the model that best suits an organization while and organizational structure is the actual implementation of the model. For example, Systems th
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