Organisation Design and Development Consultancy Assignment Sample

Achieve Peak Performance: Innovative Organisation Design Solutions

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Introduction Organisation Design And Development Consultancy Assignment

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The report's main topic is organisational design. The management and execution of a company's strategic plan is organisational design. This implies that the best managerial design is determined by the organization's strategy. The organisational structure of Johnson and Johnson is examined in the report. The study emphasises the primary issues and challenges the organisation is facing. The top three issues include product quality, ethical compliance, and a lack of openness. The study includes a stakeholder and SWOT analysis of the organisation. It's common to think of organisational culture as a company's values, attitudes, and beliefs as well as how they influence its human resources. An organisational structure that addresses those challenges is provided in this section. The case company Johnson & Johnson includes a range of organisational development efforts to change the organisational culture. The new organisational structure is developed while taking into account the company's mission and goals.

Figure 1 Johnson & Johnson logo

Johnson & Johnson logo

Johnson & Johnson (J&J) is an American international business that produces buyer goods, medical, and pharmaceuticals devices. The company was founded by three American brothers in 1886 and the names are Robert Wood, James Wood, and Edward Mead Johnson (James et.al. 2019). In 2021, The Company ranked at 36 out of list of 500 companies in the fortune 500 list. The company provided employment to more than 134,000 persons, operates approximately 250 auxiliary companies in the 60 countries, and exports its goods in 175 countries. In the year 2020, its international revenue was above US$80 billion.

Organizational analysis of Johnson and Johnson

Identification of organizational issues

Johnson and Johnson are facing many organizational issues in its operations and organizational structure. This report highlighted main three issues below:

Quality issue

In addition, to the frequent recalls the corporate had issues related to baby products, they also endeavoured to shelter the impurity of children's Motrin by transmitting agents to purchase the whole stock of the stockpiles (Ullah, 2021). The absence of clearness ultimately led to additional problems and government interruption, notwithstanding the detail that this was an approach to try and alleviate reputational issues.

Credo

Credo is a notion of professional ethics (Smolenski, 2022). In further words, Johnson and Johnson have failed in maintaining its credo promises which were part of its organizational structure and culture, it has provided defective and harmful products, which leads to questions on its marketing and promise related to consumer protection.

Lack of transparency

The company is facing struggle connected to the proper disclosure of facts and information to its stakeholders. The company needs to disclose risks and problems related to the products with the consequences of using the products. Some news states that the company was conscious of the occurrence of asbestos in its baby powder for centuries (Ugoani, 2015). Furthermore, 700 females were also hurt from contamination; damage, and discomfort after using the company's vaginal weave implants.

Stakeholder analysis

The company has a diversity of stakeholders who is interested in the business of Johnson and Johnson (Sulley et.al. 2020). All stakeholders directly or indirectly impact the success and growth of the company. Following points analysis of the stakeholder of the company:

Trade association: This is one of the main stakeholders of Johnson and Johnson, stakeholder is interested in making sure that the company is following ethics, affordability, and availability of the product. This group also takes care of product safety and diversity with its innovation.

Consumers: Consumer is the key for the success of any business organization including Johnson and Johnson. Consumers expect the company to produce more socially beneficial medicines and products. They also expect that the company will address their needs and desires.

Employees: this group of stakeholders will require incentives according to the work performed by them. Human resources are very crucial in organizational analysis (Dimitrovski et.al. 2021). The company needs to address any grievances of the employees. The workforce is diverse and corporate culture is safe at Johnson and Johnson.

Government: the company needs to follow all rules and regulations imposed by the government in the country. In 2019 the company had to face legal action because of the asbestos substance found in its baby products. Johnson and Johnson accept a complete approach to the safety and fitness of the staff by educating them. The company intends at making the work environment peaceful and motivating (Chattu, 2015).

Swot analysis

Figure 2 J&J Swot analyses

J&J Swot analyses

From the figure 2 SWOT analyses it is evaluated that the case company can manage its weaknesses and mitigates its risks, as the Johnson & Johnson SWOT analysis may demonstrate. They must develop some policies that will enable them to take advantage of their expansion prospects. Here are some suggestions for the business:

  • A sizable number of clients may be drawn in by the healthcare costs being reduced. It will increase its sales for the customers if the price is within reach;
  • To replace the new and highly successful medications from other nations, the company must produce additional novel medications,
  • The business must resolve its legal disputes. It would boost the company's financial situation.

Diagnosis of the organization development issues (Open system analysis, data collection and analysis methods selected data collection instrument)

The case company follows various administration and management functions to achieve its goals and objectives due to which it faces different development issues. The organization development issues related with open system analyses, data collection, and analysis methods selected by data collection instruments.

  • The open system is the method used to motivate employees by giving them the opportunity for feedback to re-evaluate the working structure inside the organization. The case company should work upon the clients as well as teams opinions.
  • Data Collection is the method of accountability and transparency for the effective decisions and management. With the help of coordination and productive staff Engagement Company can manage the transparency in the work.
  • Quantitative data is the method selected for the collection of the instruments which is effective method for the analyses of the statistics related to the case company. For the analysis methods selected data collection instrument can be adopted which is shown in the figure 2 below:

Analysis of organizational alignment, identification of issues, gaps, or organization design opportunities

The organizational alignment works with the team cooperation and coordination in the organization which further regulate the effective practice, system, metrics and talents between the workforces. The alignments of organization helps in successfully attaining the objectives for the development, identification of issues, gaps or organization design opportunities.

Process adopted in work: The set systems adopted by the administration of the case company aids value in the alignment by developing the effective working culture.

Governance in structure: The strategy made by the managers and leaders of the organizations aids in the proper governance of structure for identification of challenges and to solve them in better manner.

Continuous improvement: The improvement was made continuously in the case company in order to fill the gaps constructed from mismanagement or lack of coordination’s.

Culture and environment: The case company maintain the culture and values for the effective environment inside the organization which further helps in the opportunities related to organization design.

Analysis of the organization's culture

The universal definition of organizational culture is the inclusion of a company's beliefs, morals, and attitudes, and their impact on its human resources (Maiorescu-Murphy, 2020). What it's like for a purchaser to purchase from a business or for a supplier to collaborate with it is prejudiced by culture.

Analysis of Johnson and Johnson’s Organizational culture with help of the Hofstede model

The organizational culture prototypical suggested by Hofstede grips the influential significance as it has been regularly used by predictors to examine the organizational culture of every business (Sull et.al. 2020). Johnson’s & Johnson’s administrative culture is analyzed with the help of Hofstede's cultural representation in this part of the report. This model has six scopes, which are given below:

  • Human resource orientation vs. work orientation
  • Exposed system vs. the locked system
  • Native, Specialized organizational culture
  • Easy-going job restraints. the strict job restraint
  • Inside-driven vs. outside driven
  • Incomes-oriented vs. objectives oriented
  • Ethics-oriented vs. objectives oriented

Johnson & Johnson has tried to attain the correct equilibrium between ethics and object orientation, as it highlights the status of completing the objectives and in the meantime inspires staff to take dangers only if they are valuable.

The company has followed ethics in its work culture in the past but in the last few years, it’s facing difficulty in the ethics-oriented work environment.

By focus on the objective direction, Johnson and Johnson inspire its staff to put in their finest hard work for achieving the allocated goals. Staffs are not upbraiding for giving new thoughts and captivating risks (Minkov and Kaasa, 2020). In this method, Johnson’s and Johnson's have effectively reduced the dread of disappointment from its personnel.

  • Inside-driven vs. outside-driven

Johnson’s and Johnson’s work culture is additional inside driven than outside. The company focuses on the company’s culture as unique in which internal courses, systems, and personnel matter supreme (Beugelsdijk et.al. 2017). They frequently expect associates and consumers to follow their technique of undertaking things. Internally attentive managers think that they are superior at regulating costs, appealing to employees, and ascending.

  • Easy-going job restraint vs. strict job restraint

The examination of Johnson’s and Johnson’s organizational culture discloses that the business is additional thoroughly connected to the efficient organizational culture with a straight-up hierarchy and giant structure. The inspired and innovative efforts related to employment are encouraged by gratifying the workforce with numerous financial and non-financial rewards, but the authorization and independence are imperfect due to administrations' disposition just before the severe work discipline.

  • Native vs. Specialized organizational culture

In the situation of Johnson and Johnson, the business encourages an expert attitude among its employees. At Johnson Johnson, diversity is promoted and differences are appreciated (Rallapalli and Montgomery, 2015). It is done to influence the opportunities offered by such productive differences. Johnson and Johnson’s example shows the importance of humanizing an expert organizational culture to remain positive in a highly delayed environment.

  • Exposed system vs. the locked system

The organisational culture of Johnson & Johnson has been analysed, and the results demonstrate that the business clearly favours the exposed side. Open channels of communication are available locally, and Johnson & Johnson's corporate culture is diverse and adaptable (Shailashree and Mlemba, 2016). The capacity of Johnson & Johnson to manage a highly diverse staff is another source of its competitive edge.

Johnson & Johnson has been able to guarantee a high information flow and utilise the knowledge, skills, and competencies of individuals from a variety of backgrounds thanks to the open cultural system. Multinational companies like Johnson & Johnson believe that both of these elements are crucial to timely responding to the shifting client needs across various geographies.

Development and selection of adequate organization design options and suggestion of solutions to issues

Organizational design and development is the procedure of putting in order individuals within an arrangement that resolves and supports the vision, mission, aims, and actions of a business in command of the function more economically and successfully (Clement and Puranam, 2018).This includes the following things with the designing structure:

  • thoughtful of the essentials for revolutionizing the atmosphere
  • Understanding the company’s processes, responsibilities, and every day jobs, the quantity of work, analysis of actions and resources
  • Designing and trying new models or compositions of structure
  • setting up and managing the change from the previous structure to the innovative
  • apply and control the change in the organization

Organizational development

Organizational development is the intended, comprehensive, and methodical process that has the objective of improvement in the effectiveness of a business as a whole. It includes organization intervention in the form of organization processes, constitution as well as culture; intervention puts strong stress on the behaviour of employees in the organization, development of human resources, and structural change. Organizational design is a kind of organizational development intervention.

Organization design options for Johnson and Johnson

The previous section of the report has discussed the problems faced by Johnson’s and Johnson’s, this section will include an organizational design that will solve those problems. It includes various organizational development interventions, to implement change in the culture of the organization. The new organizational design is made considering companies core values with the mission and goals. The new organizational design includes the following changes in the current organizational culture.

Ethics and compliance:

The new organizational design will use organizational intervention in the area of ethics and its compliance to deal with previously discussed problems. The company will pursue the standard necessary to encourage a culture of performing ethically, officially, and answerably. It is the accountability of Johnson and Johnson to take action correctly while manufacturing the commodities for the consumers and this change will ensure that the goods are safe to use by the consumers (Hayhurst et.al. 2018).

Quality and safe product:

This organizational design mainly focuses production of safe and quality products. The company will focus on the needs of its consumer and provide quality products that are safe to use. The company will use its research and development department to find new and innovative to produce more quality goods. The new design includes new supporting regulations, enhanced security of data for quality, and use of digitalization, the more emphasis is given to the problem and complaints by the consumers.

Improve transparency:

To deal with up with Johnson’s and Johnson's transparency issue, the new organizational design for the company will adopt the standard for making fair and appropriate disclosures on the subject of every substance that can make an impact on the significance or worth of its securities. Johnson and Johnson will disclose a printed policy for obedience with constant disclosure compulsions (Meek and Knupp, 2015).

Change management strategy

Organizational change refers to the change in the methodologies and systems of the organization. The change can be implemented by the human resource of the organization. Change is generally starts by the help of different project or any new initiatives in the organization. A change management strategy includes following points

  • A Systematic and Customized Approach
  • Expect Resistance
  • Ask for Inputs from Colleagues
  • Support those Affected By the Change
  • Acknowledge the Importance of Corporate Work Culture

Evaluation of the success of organisation design and development interventions

Johnson & Johnson’s organizational success strategy depends on the organization's design and development intervention. The skill sets which are categorized effectively challenge the disciplines of the organization. The organizational design which is complementary requires capable employees with a proper understanding of work with skills. The Case company design and development further help in operational management. The values derived in the company are associated with the strategic change adopted through the organization design and developmental activities of Johnson’s & Johnson’s. The CEO of the company initiates the conversation with the employees to understand the employee's capabilities to design the work based model according to the interests of the workforce. The development capabilities transform the working structure to deliver the change for the long-term goals.

Recommendations and Conclusion

The report recommends the implementation of the above organizational change in its design will help out Johnson and Johnson to deal with its various issues. Furthermore, the business will be capable of gaining the confidence of its consumers all over again by preserving transparency and building decisions as particularly mentioned in its credo and principles solitary. The company must implement these changes as a part of the organizational culture that aligned which its core values. The report suggests that the Company can sustain itself in society by providing quality goods to its users which satisfy their needs and cause no harm to them. Additionally, the business should restore the duty, vision, aims, and goals in the company strategy all along understanding its accountability to stakeholders. It is essential for any business to take the essential stepladder in the moral course in order to handle its weakening name in the marketplace all over the world.

The report concluded that organizational design and development are very important for the growth and success of the company. There are some problems faced by Johnson and Johnson because of its organizational culture, the report concluded that the company should focus on providing quality products to its consumer and should be more transparent in the disclosure of facts and information to its stakeholders.

References

  • Beugelsdijk, S., Kostova, T. and Roth, K., 2017. An overview of Hofstede-inspired country-level culture research in international business since 2006.Journal of International Business Studies,48(1), pp.30-47.
  • Chattu, V.K., 2015. Corporate social responsibility in public health: A case-study on HIV/AIDS epidemic by Johnson & Johnson company in Africa.Journal of Natural Science, Biology, and Medicine,6(1), p.219.
  • Clement, J. and Puranam, P., 2018. Searching for structure: Formal organization design as a guide to network evolution.Management Science,64(8), pp.3879-3895.
  • Dimitrovski, D., Lemmetyinen, A., Nieminen, L. and Pohjola, T., 2021. Understanding coastal and marine tourism sustainability-A multi-stakeholder analysis.Journal of Destination Marketing & Management,19, p.100554.
  • Edrawmax,2022. SWOT Analyses(Online). <https://www.edrawmax.com/article/johnson-and-johnson-swot-analysis.html> accessed on 01.12.2022
  • Hayhurst, R., Wills, G., Cooke, J.M.P. and Saddik, S., 2018.Organizational design for marketing futures. Routledge.
  • James, M.M.A., Kee, D.M.H., Xian, T.H., Han, K.C., Ching, K.K. and Alshammari, M.S., 2019. Johnson & Johnson’s product safety issues and ways the company can address those issues.Asia Pacific Journal of Management and Education (APJME),2(3), pp.7-18.
  • Maiorescu-Murphy, R.D., 2020. Online Corporate Diversity at Johnson & Johnson. InCorporate Diversity Communication Strategy(pp. 157-171). Palgrave Macmillan, Cham.
  • Meek, K.M. and Knupp, C., 2015. Corneal structure and transparency.Progress in retinal and eye research,49, pp.1-16.
  • Minkov, M. and Kaasa, A., 2020. A test of Hofstede's model of culture following his own approach.Cross Cultural & Strategic Management.
  • Rallapalli, K.C. and Montgomery, C.D., 2015. Marketing strategies for Asian-Americans: guidelines based on Hofstede's Cultural Dimensions. InMinority marketing: Research perspectives for the 1990s(pp. 73-77). Springer, Cham.
  • Shailashree, V. and Mlemba, E., 2016. Impact of National Culture on Organisation Culture.Impact of National Culture on organization Culture. International Journal of Scientific Research and Modern Education (IJSRME),1(1).
  • Smolenski, M.C., 2022. Johnson & Johnson’s Campaign for Nursing’s Future: The Gift That Keeps on Giving.Health Policy and Advanced Practice Nursing: Impact and Implications, p.25.
  • Sull, D., Turconi, S. and Sull, C., 2020.When it comes to culture, does your company walk the talk?. MIT Sloan Management Review.
  • Sull, D., Turconi, S. and Sull, C., 2020.When it comes to culture, does your company walk the talk?. MIT Sloan Management Review.
  • Ugoani, J., 2015. emotional intelligence and organizational culture equilibrium–a correlation analysis.JA Social Sci Humanities,1, pp.1-36.
  • Ullah, N., 2021. A Comparative Analysis between Unilever and Johnson & Johnsons.
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