INTRODUCTION
The focus of this report is to conduct HRM analysis and to align the HRM practices in order to attain the required goals. The analysis revolves around different human resource and performance management aspects and tools of the company that are one of the integral parts which help in achieving the destined goals.
COMPANY OVERVIEW AND HISTORY
Johnson & Johnson is a renowned global American company founded in 1886. Its operations are spread in manufacturing of pharmaceutical products, the products related with the consumer health and devices related to medical. The company has its head office and its consumer division wing located in New Jersey. The company has more than 115,000 employees tagged with its name. It has its companies spread in more than 57 countries and the product of Johnson & Johnson is sold in more than 175 countries across the globe (Alsop, 1999).
The competition in the industry is very intense and Johnson & Johnson competes with different companies in the global and the local market located around the globe.
The company has a history which goes back to 1886. The company was formed by three brothers Robert Wood, James Wood and Edward Mead Johnson in New Jersey, United States (Gant, 2001). Johnson & Johnson has maintained its name as an innovator in the industry. It has transformed the products which are used for the health and care of human beings. The company expanded its product line in the by penetrating in the consumer product line by the year 1920.
Recently, the company is diversifying itself by endeavoring in bio-pharmaceuticals and orthopedic devices (Gant, 2001).
ORGANIZATIONAL STRATEGY:
Any successful company becomes successful by the strategies it follows. The strategies which were used by Johnson & Johnson mainly comprised of:
- The company made innovation its base. New ideas and methods to improve the product and the services which were delivered to its consumers gave it a competitive edge.
- The main focus of the company was growth. This made the company to focus on products, the internal systems of the company, its international presence and the people associated to the company.
- The company has an approach to provide to its customers the best quality products. The products which it produces are innovative and are differentiated to that of its competitors.
- The management cherishes its work force and strives for efficiency in its business functions.
MARKET POSITION OF THE COMPANY
Johnson & Johnson is one of the largest companies which produce consumer goods. It is counted amongst the top 10 companies which produce medical devices and pharmaceutical products (Espicom, 2011). The company is also listed among the fortune 500 companies. The common stock of the company is on the Dow Jones Industrial Average. The company was also ranked # 47 on the Forbes 2000 list of 2010 (Forbes, 2011).
TECHNOLOGY CONSIDERATION
The technological advancements and the new findings in the field are of prime importance for the company. Johnson & Johnson has made collaboration with Enlight Biosciences which is a firm based in Boston. Johnson & Johnson would invest around $13 million in the development program of the company (McBride, 2009). The company is dedicated towards producing and developing technological stuff which can assist in the formulation of the drugs, imaging of the molecules and the synthesis of the drugs. The team is consistently striving in finding out ways which can help in making new drugs which can replace the old ones. This will help the company in attaining a competitive edge and differentiate its product from that of its competitors.
They investment which the company or the business partners plan to invest will undergo a lot of speculation. The technological devices which would be considered worthy of buying would first be speculated and then with proper industry analysis the company pursue with its investment.
JOHNSON & JOHNSON JOB PRICING AND COMPENSATION PACKAGES
The salary of the workforce which is employed by Johnson & Johnson is very lucrative comparatively. The industry trends are the factors which decide in the variation of the salaries. The salaries which are offered to the employees vary usually considering the salary, location and the industry benefits of the market. The average salary for the company is calculated to be $49000 as shown in the image below:
(Simply Hired, 2013)
This figure is a combination of the averages of all the salaries which are offered to the respective representatives of the industry (Simply Hired, 2013).
(Source: Simply Hired, 2013)
OVERALL PROCESSES OF WORK
The current endeavors of the company are a direct picture which shows the focus of the company towards its goals. The work processes of Johnson & Johnson listed below:
The executive committee of Johnson & Johnson is responsible for the overall operations management and at the same time and for the resources allocation of the company. This committee has a prime objective of activities and tasks coordination of all the business segments of the company. The businesses are run because of its consumers and so the company must be focused towards constantly analyzing and accessing the customer requirements.
The management functions of the company are decentralized. The employees of the company are made of the view that they would benefit from the growth of the company. The employees have the rights of management of an entrepreneur and that they have an understanding that if the company will benefit then they will benefit too.
Johnson & Johnson is a customer centered company. It is of the view to offer maximum satisfaction to its customers. If the customers of the company are satisfied then the company will benefit too and so will its employees.
The company competes through its efficient research and development. The company innovates to differentiate itself from others. The company capitalizes its resources by and brings out breakthroughs in scientific or technological advancements. The company targets on efficient marketing and also plans to gain manufacturing expertise in all its operations.
LABOR LAWS AND PRACTICES
It is essential for any company to follow the respective labor laws. The ones which are essential for J &b J are
- The company does not employ individual under the age of 16. Those who are under the age of 18 are not allowed to work for more than 48 hours a week.
- The company cherishes its workforce and hence it does not allow working conditions which are unsafe.
- The company does not use any sort of forced or involuntary labor.
- The wage scale is clearly communicated to the staff and the work force is timely remunerated for the work which they perform. Overtimes are also paid on time.
- The rights and the demands of the workers are respected. The decisions of the company are not coercive by nature. The company believes that if the workforce will remain satisfied the productivity of the company will also be high.
- The company is an equal opportunity employer and it does not discriminate its employees.
- No favoritism or harassment is shown against the employees on the basis of color, race, gender, religion, or any other factor
- The laws of the company regarding inhumanely behavior or cruel treatment, compulsion, vocal mistreatment or punishment of any sort are very adverse.
WORK DESIGN OF JOHNSON & JOHNSON
The structure of the company is decentralized. The employees have the right allotted to them regarding the decision of the company. The core decisions of the company are made by the top management of the company. The other decisions of the company are taken either by the line managers or by the employee himself. The managers of the company are available at all the levels of the hierchy.
A decentralized structure is very flexible. The employees are judged and assessed on the basis of value and creativity of the employees (Dreher & Dougherty, 2002). The employees take the business function with the viewpoint of an entrepreneur. They get a feeling of ownership towards the company and they are of the view that if the company will benefit they will benefit too along with it.
The demerits of the decentralized approach of the management towards its employees are that it makes the communication of the plans very difficult. The decentralized approach is not suitable for large companies. If a company gets decentralized it may lose control over its employees and it may become difficult for the management to implement the decisions (Dreher & Dougherty, 2002).
The ideal scenario for a company to follow regarding the design and structure of a company is that it may have a mix of centralized and decentralized control in the company. This mix can give a decision making power to the middle and the line managers. They won’t be bound to discuss issues with the top management but still the workforce will be bound to discuss their actions with the immediate managers of the company. A balance between centralized and the decentralized decision making will make planning and the coordination of the company very easy in the future (Dyer & Holder, 1987).
JOHNSON & JOHNSON STAFFING
Johnson & Johnson follows the cultural staffing process. The reason for following the cultural fit is mentioned below:
- The candidates who are assumed to be fit for the company and are culturally aware of the culture of the organization are appointed.
- The newly recruited employees are delivered several orientation programs to make him aware of the culture of the company.
- The expectations along with the values of the employee and the employer are expected to be in line to result in positive outcomes.
It is very important that the company hires the staffs which are culturally fit for the overall organization.
- This is essential to reduce absenteeism and turnover of the company
- It improves the motivation of the employee. A motivated employee proves to be beneficial for the company and its success.
JOHNSON & JOHNSON REWARD SYSTEM:
The performance of the employees must be remunerated with sufficient returns or appraisals, the ways in which the performance of the employee is remunerated and how a good performer will be rewarded; in terms of salary increase, incentives or cash benefits. According to Xavier (2003) the company uses the “Performance based individual pay plan” in order to decide about the remuneration for the employees. The rewards which are allotted to be given to the individuals vary from individual to individual and their performances.
The employees often do not prefer the individual pay plans. This is because in certain cases the competition amongst the individuals becomes very fierce. The performances are hard to manage on an individual scale which results in the de motivation of the employees.
Johnson & Johnson must only plan to use the performance pay programs with tasks which are related to the interdependence amongst the workers. The performance pay can also promote the cooperation amongst the workers.
JOHNSON AND JOHNSON SKILL ORIENTATION
The company believes in making its workforce the entrepreneurs of the work they do. This is because the company has a philosophy of empowering its employees for the betterment and growth of the company. A specific tool of I-lead is followed to motivate the employees and make them ready for any sort of challenges. This policy is the essence of furnishing the core business functions (Xavier, 2003).
(source: Xavier, 2003)
JOHNSON & JOHNSON TRAINING METHODS
All the new recruits are given proper orientation of the core values of the company when they are joining. These help the individuals in Gelling in the environment of the company and make it easy for them to adapt to the culture of the company.
JOHNSON & JOHNSON CAREER PATH
The company offers a clear career path and hopes to go far with the employees and maintain a relationship which is beneficial for both. The career development of the company helps the employees in assessing their performance and how they could prove to be beneficial for the company.
The company to make the environment competitive creates succession planning for the employees. It portrays the positions at middle and upper level middle which can become empty in future. The managers constantly meet to discuss replacements and promotions of the employees.
JOHNSON & JOHNSON PERFORMANCE MEASUREMENT SYSTEM
- System is used by the company to access the value of the employees. If the results are achieved the workforce is remunerated with incentives is Result/Goal Oriented
- The performance of the employee is assessed by the immediate superior of the employee. The evaluation of the employee may not be transparent.
CONCLUSION
It can be concluded that Johnson & Johnson, the company which has been analyzed for its HRM practices is a very efficient company. It has far spread and has been running smoothly for over a century. The HRM function of the company can be further improved by keeping in consideration the following practices:
- The work design of the organization must be balanced. It must be a mix of the centralized and the decentralized management approach.
- The employees must be rewarded on the basis of their performances. They must be given additional incentives and pay plans accordingly.
- The performance of the employees must be goal centered.
- The evaluation criteria of the individual must not be that of an instant superior. It must be based on a 360 degree evaluation.
REFERENCES
Alsop, R. (1999). Johnson & Johnson (Think Babies!) Turns up Tops. Wall Street Journal, B1.
Dreher, G., & Dougherty, T. (2002). Human resource strategy: A behavioral perspective for the general manager. Boston, MA: McGraw-Hill/Irwin
Dyer, L., & Holder, G. (1987). Toward a Strategic Perspective of Human Resource Management. CAHRS Working Paper Series, Paper 451. Retrieved April 24, 2013, from
Espicom. (2011). Johnson & Johnson. Retrieved April 24, 2013, from
Forbes. (2011). Johnson & Johnson at a glance. Retrieved April 24, 2013, from
Gant, T. (2001). Johnson & Johnson. International Directory of Company Histories, 36, Farmington Hills: St. James press.
Johnson & Johnson. (2011a). Our Company. Retrieved April 24, 2013, from
Johnson & Johnson. (2011b). Human Rights Policy and Standards. Retrieved April 24, 2013, from
McBride, R. (2009). Enlight Biosciences and Industry Giant Johnson & Johnson Forge Partnership. Retrieved April 24, 2013, from
Simply Hired. (2011). Average Johnson & Johnson Salaries. Retrieved April 24, 2013, from
Xavier, F. (2003). Human Resource Practices in corporate culture communication: a case study of Johnson & Johnson. Masters Theses and Doctoral Dissertations, paper 4. Retrieved April 24, 2013, from
