Johnson & Johnson as a Rational Organization
An examination of the factors that give Johnson & Johnson, Co. a rational organizational structure.
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The paper defines rational organizations as those which seek to develop structure and coordinate their activities in response to technical requirements and in relation to the complexity of the task environment they face. The paper shows how Johnson & Johnson has established its mission and vision by putting in place a rational organizational structure, defining reporting relationships, establishing a project management methodology and infrastructure, developing a communications plan in support of the group’s global leadership role, creating position descriptions, and recruiting. A history of the company is also discussed.
Johnson & Johnson attributes the success of its organization structure to its management of each separate part as part of a functioning, single entity. By grouping its global affiliates into three business segments and then overlaying each segment and its affiliates with a transparent structure of alignment, Johnson & Johnson has created a unique organization structure.