As stated in its corporate responsibility section:
Each Johnson & Johnson business unit or facility is required to measure, monitor and report on its environmental performance and evaluate its Environmental Management System for effectiveness (J&J, 2007).
J&J maintains a small central administrative and finance staff at its headquarters, called "the Tower," in East Brunswick, New Jersey. The top members of the Executive Committee are all operating managers -- each has a group President role for about one-fifth of J&J's companies. Each interacts regularly, with their offices next to one another in close proximity. Thus, the key value at J&J is operating excellence, not the ability to play politics.
From an anthropological point-of-view, J&J's "tribe" supports operations, not staff. J&J top management emphasizes the elements of control which matter most to the corporation:
Put control where the operation is: J&J's division Presidents make most of the operating decisions, with the central HQ acting as "referee" and "scorekeeper," not director.
Uses "real time" controls: Despite approval during the budget process, the division must come back to corporate to renew approvals for capital approvals, deviations from business plans, or major hires.
Builds on trust: Like many 'excellent' companies, J&J entrusts its divisional managers with a great deal of operating authority, then monitors the results.
Strong peer norm culture: There is a strong rivalry amongst J&J divisional managers. Part of this is informal -- all are performance-driven. Some is formal -- they compete for resources from corporate in order to support their divisions.
Incentive systems support teamwork: J&J has an incentive system which is strongly based on divisional and group attainment of goals (Snell, 1995).
Drawbacks
J&J's...
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