Organizational Design and Effectiveness

Organizational Design and Effectiveness

Johnson & Johnson (JNJ) was formed by Robert Johnson, Sr. in New Brunswick over a century ago. The company manufactured various items for women, children, and health. The board of directors consisted only of top management. It was not a publicly traded company until after its founder’s death. The span of control was different then than it is today and so was every other management function of its conglomeration. JNJs effectiveness in the 21st century is no longer in the hand of a Johnson, yet it is greatly affecting this nation and the world. The organization has not only survived through the years of business challenges and government regulations, but has maintained its effectiveness through the years and through its personal adversity. Still a highly effective organization, one can learn from how it operates through its span of control, boundary spanning, boundary setting, and scope control.

Through the years, and like other organizations of its caliber, JNJ experienced its share of adversity, such as with its decision to publicly trade its company, to move from centralized leadership to decentralized management, recalls, and lawsuits. The lawsuit that brought a lot of controversy to JNJ was its lawsuit against the American Red Cross (ARC). ARC is internationally known for its tireless charity work and received widespread sympathy from throughout the nation. JNJ, for many years, was known as a company of people who cared about the communities it served. The decision to sue could to some, seem out of character for the giant. “On August 8, 2007, Johnson & Johnson (JNJ) filed a lawsuit against the American Red Cross (ARC) over alleged trademark infringements by ARC. As we understand the dispute, J&J claims that it owns the trademark for the "Red Cross" symbol before ARC even came into existence,” (Charity Governance). A noted response from the site on behalf of JNJ, “ARC isn't entitled to any special rights just because it does well. In short, we view this line of argument as irrelevant, (Charity Governance). To the public, JNJ’s CEO, and chairman of the board, William Weldon responds, “We join with the Red Cross in expressing our pleasure that this dispute is over. JNJ brought the lawsuit very reluctantly only to protect what we believed were important trademark issues,” (Medical Device Daily).

Scope Control and Span of Control

The court would decide the outcome of the lawsuit in June. The company would need to reposition itself to the public. By August an announcement would be made about the impending changes in JNJs public relations department, citing the retirement of one of JNJ’s top communications leader, Nancy Walker. She led “strategic external and internal communications, including efforts with the corporate Web site and employee relations,” (Lee, 2008). It