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Johnson&Johnson - Organizational Structure

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J&J Organization Structure

Johnson & Johnson is a global American health care manufacturer founded in 1886. The Family of Companies – as they call themselves – consists of more than 250 operating companies in 60 countries employing about 118,000 people worldwide. (J&J)
The companies of the family are organized into three business segments: Consumer Health Care, Medical Devices and Diagnostics, and Pharmaceuticals. It is a typical instance of a product based divisional organization that collects all functions contributed to a given product under one division. This model makes it easier to manage a wide variety of products, customers, and geographic regions. Another advantage is that managers have to deal with less amount of information regarding a certain product. It also generates greater job awareness for the employees. Managers are more independent and therefore more accountable. This concept assumes wide general skills of the management, which goes along very well with the board opportunities for training managers receive. However, in some cases more in-depth skills are required turning this advantage into a disadvantage. Since functions are duplicated for each division, the organization has more expenses. (Bateman)
Johnson & Johnson is known by its strong work design concept, the decentralized management. On the top of the organization is the Board of Directors lead by the CEO. Members of the Board are selected annually by the shareholders. The organizational chart of the Board shows that currently there are 12 Board members. (J&J) The CEO oversees:
- the CFO, Vice President Finance;
- the Vice Chairman of the Management Board, Worldwide Chairman, Medical Devices and Diagnostics, Global Supply Chain, Government Affairs and Policy;
- the Vice President of Human Resources;
- the Vice President of Legal Counseling; and
- the...

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