Johnson&Johnson - Organizational Structure Essay

750 Words Dec 23rd, 2012 3 Pages
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
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Managers who represent key operations of each business segments or specialized functional operations are assembled in the Group Operating Committee. The prime duty of the Committee is to oversee and coordinate domestic and international companies related to each of the segments. However, all of the companies are responsible for their own strategic plans and day-to-day operations. Because of the principles of decentralization, international companies are managed in most cases by local managers, who are citizens of the country in question. (J&J) The decentralized structure and the size, geographical distances, and cultural differences member companies have in this enterprise could make it hard to lead and to maintain a cohesive, unified company attitude. Top management does not have wide control over the operations. Also, there is a risk that people working separately might forget the common purpose. In a recent interview William Weldon, the CEO of Johnson & Johnson answered these problems with highlighting that they have “wonderful leaders” and people in whom they have “a lot of confidence and faith in and they run the businesses”. He also mentioned the most important document of Johnson & Johnson, the credo. The credo and its value system assure a strong corporate culture that holds the Family of Companies together and eliminates the risks of…

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