Question

Draw an organizational chart showing the primary way in which your company groups its activities. based on this chart, decide what kind of structure (functional, product, or divisional) your company is using. Johnson and Johnson operates by having a multidivisional stucture.

(This is the question that i need answered from the question and answer above)--->Why did your Johnson & Johnson choose this structure? in what ways is it appropriate for its business model? in what ways is it inappropriate?

Answer 1

            Johnson & Johnson operates by having a multidivisional structure. The company’s geographical presence is immensely large and it is operating in a number of places. It is very much important for the company to delegate the power to its managers as well as employees at different levels and places. This type of structure gives empowerment to almost everyone working at different levels in the organization.

            The number of managers and employees in the company has increased to a big number. Having a single and direct control over everyone becomes difficult to execute and implement. A decentralized system of power ensures that the units work according to the needs of the local market. The company is largely diversified and each operating unit needs to work according to its needs and demands. It also ensures that the decision making at every unit is quick. The morale of the employees is also on the higher side as they know their boss well and do not have to wait for approval from their boss’ boss’ boss.

             This model is appropriate for Johnson & Johnson as there is efficiency due to prompt decision making. Moreover, there is very little chance of lack of communication among employees and problems can be rectified easily. Even a low level manager has a say in the decision making process.

              This model has a number of advantages but the disadvantages cannot be ignored. There is less control in the hands of top management as they cannot look after each and every level and unit minutely. There could be a weakened corporate image if one or more units work ineffectively and fails to satisfy the needs of the customers. There is another disadvantage which is he difference in the functioning of the units. There is no surety that two different units operating in two different continents have similar functioning system.