Management ideals: Johnson & Johnson Inc.
Management ideals: Johnson & Johnson Inc.
Twelve attributes which are ideal for the management of any company like Johnson and Johnson include motivation, leadership, decision making process, good communication, listening and feedback, planning, setting goals and objectives, implementing strategies, preventing and resolving conflicts within the organization, cooperation and social responsibility.
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Johnson & Johnson Inc. acknowledges the importance of employee motivation promoting growth, development and productivity in any company. As a result, the company creates, promotes and maintains a healthy organizational culture which helps to motivate its employees. According to a recent survey carried out by the Tennessee National Corporation, 71 percent of employees at Johnson & Johnson cite the company’s family-friendly programs as their main source of motivation (Boyett 1). In addition, the company’s Credo created in 1943 acts as a unifying principle for the employees as it encourages them to be fair, honest and to treat each other with ultimate respect.
The leadership style practiced at Johnson & Johnson company reflects a mixture of certain behaviors based on the Credo values, business oriented goals and leadership competencies which are clearly reflected in the company’s standards of leadership. The major leadership competencies evident in the company include; a high level of innovation, complexity management, interdependent partnerships with other like minded companies, organizational development and most importantly, a clear focus on the customer’s needs in the target market.
The company has a decentralized type of leadership whereby, all subsidiary companies outside US are ran by a local management team. In this case, the senior local managers ensure that all consumer needs are met since they are in a better position to understand the needs of the market place. This way, the company gains many opportunities to develop its employees as well as promote its products by being decentralized as opposed to a situation whereby all company operations are run from a central point.
Decision making process.
Johnson & Johnson company has a strong and stable organizational infrastructure which enables a faster and reliable decision making process. Most of the core values which guide the decision making process are well stated in the company’s Credo and this enables all the managers and employees to put the needs of the people they serve first, before making any critical decisions. During challenging times, the company consults the Credo for guidance and advice. For instance, when unknown individuals added cyanide in the capsule-form of TYLENOL, one of the company’s products in 1983 and 1986, the company readily accepted a court charge of 100 million dollars and voluntarily called off the sale of that product to ensure safety and well being of the people (Kaplan 2). This illustrates how effective and people-minded the decision making process at Johnson & Johnson is.
Johnson & Johnson appreciates the importance of good communication in management. For this reason, all communication lines are open to ensure proper communication both within and outside the company. Several programs and meetings within each subsidiary company help to foster good communication among the employees and the managers. In addition, all customers are encouraged to communicate and air their views through the company’s customer care communication service.
Listening and feedback.
Customers keep changing and so does the company’s products. For this reason, Johnson & Johnson listens to all its customers’ feedbacks which the management team utilizes in the decision making process. This helps the company to achieve a customer focus hence promoting its products at the market place. In addition, all shareholders, business partners, employees and other interested parties are free to contact the company’s Board of Directors via an independent Presiding Director who in turn conveys individual concerns to the company’s Board of Directors and management team.
Setting goals and objectives.
Employees at Johnson & Johnson Inc are provided with a broad range of opportunities for career development which encourage them to set up clear goal and objectives for their future careers. A performance development plan introduced in all the subsidiary company businesses, coupled with frequent conversations between employees and their managers, greatly assist the employees in setting achievable goals for successful career development. In addition, the management team offers the necessary support, training and incentives which assist each employee to achieve his or her long term career goals and objectives.
The company’s strategic plans are initiated by the management team with the support of the company’s Board of Directors. With a decentralized type of leadership, senior managers of each business unit have been given the mandate to establish independent strategic plans for their companies after which all the managers meet to discuss the strategic direction of the numerous company businesses. However, all plans in the company must be tailored to reflect the ethical principles, goals and responsibilities stated in the Credo.
Once the decisions are made and strategic plans outlined, the company’s management team and Board of Directors meet to discuss and approve the implementation of this strategies. The senior management of each subsidiary company is then given the limelight to implement its plans. However, plans which involve all the 257 business companies which span around 57 countries are managed centrally and implemented simultaneously in all the businesses.
The management team at Johnson & Johnson Inc has created a supportive environment where everyone is given a chance to disagree and work constructively towards a viable compromise. This is done through open discussions, models which propel good behavior and programs which encourage reflections among all employees and employers alike. However, the company’s procurement code of conduct clearly states that, all employees are required to avoid conflicts or any circumstances which are likely to result in a conflict of interest, in every way possible. In addition, the company’s Credo which forms the basis of its organizational culture requires all employees to treat their employers, fellow employees, customers and the public at large with dignity and ultimate respect. This helps the company to prevent the likelihood of any conflict both within and outside the company businesses.
To manage conflicts at Johnson & Johnson, the management team employs a sequential process of conflict resolution. In this case, the team identifies the source of the conflict, defines the conflict, generates the possible solutions, evaluates the solutions and develops a contingency plan to solve the conflict constructively.
Johnson & Johnson company encourages high level of cooperation both internally and externally. Internally, the company’s organizational culture promotes team work and healthy working relationships among all employees and this helps to improve their overall productivity. Externally, the company cooperates with many other like-minded organizations in order to achieve certain shared goals and objectives. For instance, Johnson & Johnson has for a long time been working with the American Red Cross on various projects such as the response to the recent China earthquake and this has helped to foster a healthy relationship between the two companies (American Red Cross).
All Johnson & Johnson business companies are known to support many community based programs which are aimed at improving community health and general well being. The company’s senior managers partner with the local community leaders to implement such programs. Some of these programs involve the provision of medical care to communities in developing countries, educating communities how to prevent certain transmittable diseases such as malaria, typhoid and so forth. This spirit of social responsibility is mainly based on the company’s giving policy which is driven by the desire to make the world a better and healthier place to live in.
American Red Cross. Johnson & Johnson and American Red Cross Announce Resolution of Lawsuit. Accessed on 13 November, 2008, from <<http://www.redcross.org/pressrelease/0,1077,0_314_7858,00.html>>
Boyett, Joseph. Four Essentials for Motivating Employees in a Changing Environment. Innovative Leader, Volume 8, Number 10, 1999
Johnson & Johnson Company Information. Accessed on 13 November, 2008, from <<http://www.jnj.com/connect/about-jnj/>>
Kaplan, Tamara. The Tylenol Crisis: How Effective Public Relations Saved Johnson & Johnson. Pennsylvania: Pennsylvania State University Press, 1998.