Organisational Structure of Johnson & Johnson -
February 4th, 2011
Johnson & Johnson (NYSE: JNJ) is a global American pharmaceutical, medical devices and consumer packaged goods manufacturer founded in 1886. Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500.
Johnson & Johnson consistently ranks at the top of Harris Interactive's National Corporate Reputation Survey, ranking as the world's most respected company by Barron's Magazine, and was the first corporation awarded the Benjamin Franklin Award for Public Diplomacy by the U.S. State Department for its funding of international education programs. A suit brought by the United States Department of Justice in 2010, however, alleges that the company from 1999 to 2004 illegally marketed drugs to Omnicare, a pharmacy that dispenses the drugs in nursing homes.
The corporation's headquarters is located in New Brunswick, New Jersey, United States. Its consumer division is located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in over 57 countries. Its products are sold in over 175 countries. J&J had worldwide pharmaceutical sales of $24.6 billion for the full-year 2008.
Medical, Diagnostics & Suppl...
Pharmaceuticals & Consumer
Human Resources & Legal
Strategy & Growth
Most complex of all designs - requires both vertical and horizontal flows of authority and communication. In large organization, there is often a need to work on major products or project each of which is strategically significant.
Advantages of The Matrix Structure
- Project objectives are clear
- Many channels of communication
- Workers can see visible results of their work
- Shutting down a project can be accomplished relatively easily
- Facilitates the use of specialized personnel, equipment, and facilities
Disadvantages of The Matrix Structure
- Can result in higher overhead
- Dual lines of budget authority
- Dual sources of reward and punishment
- Shared authority
- Dual reporting channels
- Need for an extensive and effective communication system
º All the structure has their own advantages and disadvantages.
º It is task of strategists to choose the type of structure that would suite their strategies best.
º We usually conceive of organization structure as a chart consisting of boxes in which the names of position or designations of personnel (and sometimes the name of the person occupying the position) are written in a hierarchical order along with the depiction of the relationship that exists between various positions. To a strategist, an organization structure is not only a chart but much more.
This support staff are employees the CEO surround himself whom he recognizes are competent people who are just as capable, often more capable than himself in specific areas. These are people he respects and who will perform at a high level of proficiency in their field of expertise.
And very importantly, these are trustworthy people he can consult for vital input in making major decisions. The CEOs, job then, is always working with these team members for the betterment of the company.
Last edited by netrashetty; February 4th, 2011 at 05:07 PM..