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December 02 , 2009

Mr. Hassan Rafiq


Iqra University
Gulshan Campus
Karachi

Dear Sir:
It has been our privilege to present the report on the given topic. Our purpose
Has been to help our class fellows understand the real facts of HR functions in large
organization like Johnson & Johnson. We addressed some of the main functions as we
saw them, as we give three visits to Johnson & Johnson factory.
It is our earnest hope that after you have gone through the entire report, you will consider
it as a comprehensive and informative piece of work.
We sincerely appreciate the opportunity to discuss about the topic with my teacher and
my class fellows
Sincerely,
Syed Murtaza Talib
syed Rauf-ur-Raheem
Danish
Student

Acknowledgment

This brief overview probably would help us in gaining some real facts and insight and
develop a sense to inculcate quality of being adaptable to the somehow typical culture of
large organization

Johnson & Johnson


Company profile

Johnson & Johnson (NYSE: JNJ)


is a
global
American
pharmaceutical,
medical
devices and consumer
packaged goods manufacturer
founded in 1886. Its common
stock is a component of the Dow
Jones Industrial Average and the
company is listed among the
Fortune 500. Johnson & Johnson
is known for its corporate
reputation, consistently ranking
at the top of Harris Interactive's
National Corporate Reputation
Survey, ranking as the world's
most respected company by

Barron's Magazine, and was the


first corporation awardedthe
Benjamin Franklin Award for
Public Diplomacy by the U.S.
State Department for its funding
of
international
education
programs.
The corporation's headquarters
is located in New Brunswick,
New Jersey, United States. Its
consumer division is located in
Skillman,
New
Jersey.
The
corporation includes some 250
subsidiary
companies
with
operations in over 57 countries.
Its products are sold in over 175
countries. J&J had worldwide
pharmaceutical sales of $24.6
billion for the full-year 2008.
Johnson & Johnson's brands
include numerous household
names of medications and first
aid supplies. Among its well-

known consumer products are


the Band-Aid Brand line of
bandages, Tylenol medications,
Johnson's baby

Products, Neutrogena skin and


beauty products, Clean &Clear
facial wash and Acuvue contact
le

Johnson & Johnson operations


and manufacturing facility pales
into
insignificance
when
compared with its international
business in the other developed
countries of the world.
Nevertheless, the company still
is one of the prosperous
organizations of Pakistan as it
has grown double the rate of the
overall market since last few
years.
The companys manufacturing
plant is situated at korangi
Industrial area Karachi, from

where it handles the operations


in Pakistan. In Pakistan also the
company
embraces
three
aforementioned
businesses,
with the name
of its divisions of Janssen-Cilag,
Ethicon, and JNJ consumers
goods As this is the time of
mergers
and
acquisition
because of the whole healthcare
industry and economical slump,
however Johnson & Johnson has
managed to maintain its and
poise as an independent entity,
even in those precarious times

of financial instability company


has
acquired
the
Pfizer
consumer all over the world.
At the same time companys
outcomes
particularly
in
Pakistan has shown a slewed
increase in the sales numbers
and
becomes
the
major
business contributor.

Our Credo
At Johnson & Johnson there is no mission statement that hangs on the wall. Instead, for
more than 60 years, a simple, one-page document Our Credo has guided our actions
in fulfilling our responsibilities to our customers, our employees, the community and our
stockholders. Our worldwide Family of Companies shares this value system in 36
languages spreading across Africa, Asia/Pacific, Eastern Europe, Europe, Latin America,
Middle East and North America.

Management Approach:
A Decentralized Management Approach We are big and we are small all at once. Each of
our operating companies functions as its own small business. They are strongly
entrepreneurial in character, and they know that their success depends on anticipating
customers needs and delivering meaningful, high-quality solutions. While our people
operate in a small-company setting, they also have access to the know-how and resources
of a Fortune 50 company. Its like having dozens of strategic partners at their fingertips.

We are responsible to our employees the men and women who


work with us throughout the world
Human resource at JNJ:
At JNJ every employee is obligated to
share the values of the company, which
has been explicitly stipulated in the
credo and HCBI policy of the company,
in a way that not even a single person
feels being imposed. So in order to
inculcate those values as a part of every
individuals natural behavior, working
within the boundary of JNJ, a
remarkable responsibility lies on the
shoulders of the human resource
department at JNJ.

There are 19 Human resource personnel


dealing with the issues of 1138
employees at JNJ in Pakistan. Though
the number of employees are not slewed
enough comparing to the other countries
but company has outperformed the other
company with big number of employees.
This prosperity betrays the efficiency
and competence of the companys
strategy and its most precious assets the
employees.

Human resource Planning


Since human resources functions and strategies are a means to achieve corporate ends,
they need to be tied to, and driven by the corporate role, mission, vision and strategic
goals, or else they simply end up as processes that add overhead, but down increase
return. Therefore, JNJ HR department also tries to make the planning compatible to the
corporate mission, vision and strategic goals.
Human resource planning is the process by which management ensures that it has
the right personnel, who are capable of completing those tasks that help the
organization reach its objectives.

In context to the above definition, HR planning at JNJ also helps the organization achieve
its desired goals by hiring the right people who are said to be great assets for the
organization.
HR department at JNJ follows the following steps to implement HR planning

Evaluation of the technology, how they affect the work system


Projections of the volume of the business likely to in the next few asking years

Evaluation of the turnover rate of employee

Numbers of managers will be required during the abovementioned years

Analysis of required type and numbers of workers

Analysis of other required administrative personnel

If forecasting suggests that there will be a strong need of more technically trained and
competent individuals, the department

Define jobs and skills needed in some details


Hire recruiters or look for specified skills

Provide new training for existing employees

Other essential measures of JNJ HR to ensure human resource planning is the integral
part of human resource policy and company strategic goals include

Creating a database of records with basic information of each employee (full


name, date of birth, address, start date, starting wage, current wage,
qualification and skills)
Developing job descriptions

Performance standards

Performance appraisals

360 feedback system (web based)

In order to sustain the companys competitive advantage so that it can be noticed above
the noise and to keep the employees motivated, JNJ HR department has following
sophisticated system

Training and development

Recruitment and placement

To motivate the employees, and achieve the best out of the given resources the company
has

Compensation and reward system

Recruitment and Placement


In the recruitment and placement system of the company JNJ HR has to go through the
following steps

A vacancy arises.
Job descriptions are written or rewritten if necessary.
The vacancy is advertised.
Applications are reviewed and candidates interviewed.
References are consulted if necessary.
Round two interviews are given to top candidates.
Offer is extended and orientation/induction training begins.

As we delved deep in to the recruitment and placement system the


Human resource manager Mr. Tariq Saeed elaborated the whole
process as

Plan and Set Up Search Criteria


Once you gain approval to search, you can begin forming a plan and set up search
criteria. What kind of position is this, and what education and skills are needed for it?
Does the position require prior experience? Determine what is necessary in the new
employee before you begin dealing with applicants.

The Advertisement
When you know what you are looking for, create an advertisement. Be specific in what
your requirements are. If you want your employee to have a masters degree, than say so.
If multiple years of experience is more important to you, than list a certain year minimum
of experience required. The hiring process will proceed much more quickly if you can
keep applicants away who do not meet the most basic requirements. Also make sure not
to leave your advertisement active for very long. If people see an ad of yours for months
in a row, they will doubt your seriousness. Even if you have not found anyone for the job
yet, pull the ad after a few weeks and give it a rest. Repost your ad after a break, and you
will generate fresh interest.

Processing Applicants
Now that the advertisement is running, you will need to begin processing applicants. As
you process the applications, you will probably come across some candidates who dont
match your listed criteria at all. To save yourself time, file these separately. Wait to pick
favorites until you have reviewed all of your applicants and pulled your advertisement.

Narrowing of Your Applicant Field


Next in the recruitment process steps is the narrowing of your applicant field. By this
stage, you should be choosing from similarly skilled candidates. You can be more
particular now about how you think the specific job will fit these people. Once the field
has been sufficiently downsized, begin the interviewing process. When you have settled
upon a chosen applicant, you need to get approval to hire.

Interview with selected applicants


After short listing of the candidate you contact them and invite them for the scheduled
interview, the interviews are conducted by line manager and higher management for the
assessment of their skills, and those who qualify or approved to be eligible for the posted
job go for the third stage of the interview process which is usually the final interview of
the selected candidates and in which you give them an offer or negotiate.

The Letter of Offer


Once you have received the green light to hire this candidate, you can prepare the letter
of offer. Wait until you have confirmed the applicants acceptance of the position to break
the news to the other applicants. You do not want to dismiss your other qualified
applicants only to learn that your first choice has accepted another position. Once the
chosen one has accepted, you can draft and send your rejection letter to the others. Now
you can enjoy the fruits of your labor and welcome a new employee to the team.
When these recruitment process steps, or ones similar, are followed, you can be assured
that the hiring process will run as smoothly as possible. Keep your process fair and
functional. In this manner, you cannot help but find success.

Training and development:


The training and development department at JNJ consists of a very limited numbers of
personnel which is structured in such a way that, it has close proximity among different
departments in terms of communication, and is supposed to be a part of human resource
department. The training and development department of JNJ is responsible for the
training of different department, special training of the employees, and training of the
newly hired employee in order to keep them aware of the most contemporary functions
and make them adaptable to the organizational and economical and environmental
changes in relation to their related field.

Performance appraisal:

At JNJ non-management and line managers are appraised through normal performance
appraisal method and generally, the aims of a performance appraisal are to:

Give feedback on performance to employees.


Identify employee training needs.
Document criteria used to allocate organizational rewards.
Form a basis for personnel decisions: salary increases, promotions, disciplinary
actions, etc.
Provide the opportunity for organizational diagnosis and development.
Facilitate communication between employee and administration
Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements.

As in the start of the report we have already discuss that at JNJ the most preferred
approach of the management is MBO. Therefore, every one in the organization is given
an objective to achieve, and in the pursuit of that desired objective employees performed
and get assessed for the extent of their achievement against their given targets.

360 feedback

At Johnson & Johnson we figured out that there is a lack of vertical integeration between
the HR department and other department, consequently which may become counter
productive or organization may end up in planning snafu.

Particularly for those working in HR departments, it's easy to forget that HR planning
(and HR functions) do not exist as ends in themselves, but exist to serve the rest of the
organization in achieving the business goals of the organization. Often HR functions and
human resource planning get accidentally de-linked from business goals.
The solution is obvious. Human resource planning needs to reference the details of the
overall strategic plan of the organization. In effect, it serves the strategic plan.

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