Organizational Behaviour: J&J's Structure, Ethics, and Globalization

This report provides an analysis of Johnson & Johnson's organizational structure, ethical behavior, and globalization strategies. It begins by describing J&J's divisional organizational structure, which consists of numerous autonomous operating units coordinated from the headquarters in New Jersey, USA. The report then explores how J&J balances globalization with a local focus, emphasizing the importance of assigning key roles to local talent, building R&D capabilities, and promoting innovation within locally based expertise. Finally, the report examines how J&J promotes consistent ethical behavior across its autonomous operating companies, highlighting their strict code of ethical sales and marketing practices, which are governed by various guidelines and codes. The company maintains transparency through communication with consumers, patients, healthcare professionals, and stakeholders. The report references several academic sources to support its analysis.

Running Head: ORGANISATION BEHAVIOUR
ORGANISATION BEHAVIOUR

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Table of Contents
How would you describe J&J’s organisational structure?.........................................................2
How does J&J balance globalisation with a local focus when needed?....................................2
How can a company like J&J promote consistent ethical behaviour across all of its many
autonomous operating companies?............................................................................................2
References..................................................................................................................................3

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How would you describe J&J’s organisational structure?
After Johnson & Johnson (J&J) established itself into the global market and involved within
different varieties of products operation, the company followed a divisional organization
sector in order to bring better coordination and control. The structure consists of 180 different
operating units and each division is chartered individually which is also operate under the
J&J headquarters located in New Jersey, US (Petit, 2018). Also, the decentralized form of
structure allows the company to develop each of the individuals in the company (Kumar, Srai
& Minakata, 2015). Majority companies around the world are coordinated with local people
in order to gain the most beneficial strategy for utilizing the market capacity.
How does J&J balance globalisation with a local focus when needed?
With rapid globalisation, J&J are gaining immense opportunities around the global market.
They are strengthening the qualities of leadership by building at global, regional and local
scale. In order to balance globalisation with a focus on the needs of the local, it is necessary
to assign the most important roles to the key talent individuals of local for quickly
accelerating the growth process and address an expanding business environment. J&J are
constantly building R&D capabilities by introducing advanced technology and monitoring the
emerging market trends (RICART & REY, 2017). By using the decentralized form of
structure, the company believes in promoting innovation among each locally based expertise,
global development operations and physician of each country (“Johnson & Johnson CEO
William Weldon: Leadership in a Decentralised Company”, 2018).
How can a company like J&J promote consistent ethical behaviour across
all of its many autonomous operating companies?
Among its many autonomous operating companies, the most successful globally involve J&J
products include consumer products including Band-Aids and J&J Baby Shampoo, the Ortho
Pharmaceuticals, makers of Tylenol, McNeil follows a strict code of ethical sales and
marketing practices. Their standards are governed by the J&J business conduct, HCBIG,
external laws, industry guidelines and codes and include putting the wellbeing and needs of
the customer and employees for serving in justified, ethically and integrity (Alfini et al. 2018)

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The business are operated with the highest business conducts by maintaining transparency
through communication with consumers, patients and healthcare professional and their
stakeholders.

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References
Alfini, J. J., Lubet, S., Shaman, J. M., & Geyh, C. G. (2018). Judicial Conduct and Ethics.
LexisNexis.
Kumar, M., Srai, J. S., & Minakata, Y. (2015, July). Environmental Sustainability Dynamics
of an Industrial System: A case study on the UK Medical Technology sector.
EurOMA.
Petit, N. (2018). Innovation competition and merger policy: New? Not sure. Robust? Not
quite!. Concurrences, 2018(2).
RICART, J. E., & REY, C. (2017). Strategising for the future. The European Business
Review, 7-11.
Johnson & Johnson CEO William Weldon: Leadership in a Decentralised Company (2018)
[Retrieved from: http://knowledge.wharton.upenn.edu/article/johnson-johnson-ceo-
william-weldon-leadership-in-a-decentralized-company/, Accessed on: 18/03/2019]