What Is the Organization

1. s the organization’s compensation strategy and does this fit well with its business strategy? Compare and contrast the two companies in terms of their effectiveness in linking business and compensation strategies. (This is the main question for this case).

a. Explain in some detail why there is a good (or bad) fit here.

Johnson & Johnson is desire for a better alignment between job evaluation and market pricing, enhanced alignment of compensation programs and practices to business goals and strategies. The company goal is a more standardize approach to compensation, eligibility, and the opportunity to move workers globally. The company Johnson & Johnson, when employees moved from one office to another, the differences became apparent and confused the employees, so they want a consistent process for setting compensation around the globe, and to ensure that pricing is competitive in all markets, therefore the company creates a more consistent experience for their employees throughout their career with Johnson & Johnson.

b. How do the organizations’ strategies compare to one another?

In establishing the global compensation structure, Johnson & Johnson created a catalog of its 3,000 jobs, which were organized into 20 bands, from entry level to chief executive officer.

“Once we created the catalog and evaluated the jobs, we were able to create a framework, to collect and analyze data around the world and set competitive pay ranges,” Berwick said. “Our goal was to keep it simple and market relevant.”

Mercer was chosen to evaluate the jobs and to ensure they correspond with business results, Berwick said. At the management and executive levels, for example, standard evaluation profiles based on level, type of organization, and size were created for 2,000 job listings. For other positions, covering 98,000, an