Tuesday, June 30, 2009

Company Culture: Johnson & Johnson

Because Johnson & Johnson is such a well known brand and organization in the United States, it was interesting to go visit the facility in Brasil. Because Johnson & Johnson is a huge and successful company with a global presence, it is necessary that there be some consistancy in its operations. From what I noticed during our visit, there is a balance between corporate and national culture in the Brasilian plant. There is a strong corporate culture within the organization, with undertones of national culture.

The plant is under Brasilian management and leadership. Their hours of operation are inline with government regulations and requirements. There are two work shifts during the day—one from 6:00 a.m.—2:00 p.m., and the other from 2:00 p.m.—10:00 p.m. Both of the shifts allow a time for lunch. The culture is very environmentally conscious because of costs and government regulation. Johnson & Johnson Brasil recycles 75% of its waste materials. The company has a products recycling center where they can make rugs, clothing, and other items from recycled materials. They purchase materials from a local supplier.

The facility adheres to Johnson & Johnson corporate expectations and follows standard manufacturing operations and procedures including quality control, inventory management, certification, and management practices. Johnson & Johnson is well known for their credo, which recognized its company responsibility to its customers, employees, communities, and stockholders. When we toured the facility, our guide was very proud of this credo, and refered to it several times. The credo is something special in the corporate culture that permeates the Brasilian facility. Johnson & Johnson competes on quality and positive name recognition, so it is vital that each producer, including the Brasilian plant, provide excellent and consistant quality. This is a corporate value that permeates the company.

As mentioned earlier, the plant is under Brasilian management and leadership. Some Johnson & Johnson employees work for the company for years without every desiring to move "up the ranks". Other employees continuously move up the leadership ladder and make it to the top. When the company faces a leadership transition, new leadership/management candidates are selected and sent to Europe or the United States to be trained for a year. This is a way of integrating corporate and national culture and aligning values.

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