Building magical organization at johnson and johnson

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Reference no: EM132224977

Building a Magical Organization at Johnson & Johnson

Headquartered in New Brunswick, New Jersey, Johnson & Johnson (J&J) now lists some 275 operating units in 60 countries. Approximately 55 percent of its $75 billion in sales occurs outside of the United States. Some, though, believe the intricacy of the company’s organization, in terms of its decentralized structure, sophisticated coordination and control systems, and Credo-based culture, anchors its superior performance. Decentralized management is the heart of J&J’s organization. It allows each of its 275 units to operate with substantial autonomy. J&J’s successful decentralization attracted talented, bright, and motivated people.

Decentralization enables J&J to respond to local needs but slows the global diffusion of products and programs. Preserving the magic of decentralization, given the contest between local autonomy and global integration, spurs tightening coordination and control systems. Pressures to integrate operations due to market trends, competitors’ moves, and shifting technologies push J&J to centralize some activities.

Separating J&J from the pack is the primacy of its organizational culture, as embodied in “Our Credo.” This one-page ethical code of conduct states how J&J fulfills its responsibilities. J&J’s long list of accomplishments, earned by developing, adjusting, and improving its structure, systems, and culture, has built an organization that confidently leverages bright ideas, no matter if global executives or local subsidiary leaders champion them.

Questions

1. Would you prefer to work in a decentralized or centralized company and why? What outlooks and competencies would make you a high-performing executive in your preferred choice?

2. Explain how Johnson & Johnson makes its structure, systems, and culture work in synchronicity.

Reference no: EM132224977

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