Free Custom «Competing Value Framework» Essay Paper

Organizational behavior is a key component of a company that determines its ultimate success or failure in a long term. To understand the aspects of value framework of a company, the multinational medical company Johnson and Johnson’s philosophy is taken into account. It was found that Johnson and Johnson’s philosophy of value framework under organizational behavior is based upon the platform of hierarchy culture where the company has an internal focus and value stability and control over flexibility.

Johnson and Johnson showed its value stability during the October 1982 Tylenol crisis. At particular time Johnson and Johnson faced a great crisis when seven persons were reported to die in Chicago after they took the Tylenol capsules of extra strength. Afterwards it was claimed that 65 milligram strength of cyanide was put into the Tylenol capsules by the unknown suspects, 10000 times more than is needed to kill a person. This issue was the most important of the case (Wolnik, 1984). The company decided to make a public announcement creating awareness concerning the consumption of the mentioned product. Also, Johnson and Johnson had to solve the problem of dealing with the case without destroying their reputation and their most popular product. Firstly, they decided to protect the people, and, secondly, McNeil products known as subsidiary of Johnson and Johnson conducted a product recall from the whole country which made a loss of about $100 million dollars and 31 million bottles. They also have stopped all the advertisements of the product. Thus, it is certain that the company has always maintained its value stability.

 

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Again, in the context of internal focus it was found that Johnson and Johnson’s philosophy underlines the fact that for a strategy to be sustained, the employees must be capable of adjusting various circumstances as required. If a business wants to succeed, it has to rely on the skill set of its employees across the organization. It is also important for them to recognize the strategic purpose and then both execute the existing strategy and become accustomed to it in a synchronized manner. The company follows this rule of the thumb. They believe that it is not only important to craft out an extraordinary strategy at an instant but also it is imperative to get employees who are competent enough working on it and motivate them to implement the strategy and tailor it as required conditions demand. This necessitates the management to concentrate on the route used to build up the strategy – “the human dimension”, as well as the core of the strategy – “the analytical dimension”. This value creation of internal focus is another good practice by Johnson and Johnson.

Finally, it should be noted that Johnson and Johnson enjoys a great control over flexibility. The company understands that automation has been introduced with a view to doing away with human help. Yet, without the human, ultimately the robot will not work. Human resources have been and still are the greatest source of power to propel business. The manager with a vision will tap into it with aplomb and success. No machine can operate without the human hand and the brain behind it. Thus, Johnson and Johnson makes sure that there is enough opportunity in the context of control over flexibility when it comes to vital elements like employment security, high wages, selectivity in recruiting, incentive pay, information sharing, employee ownership, participation and empowerment, training and skill development, self-managed teams, cross-utilization and cross-training, , wage compression, symbolic egalitarianism promotion from within, measurement of the practices, taking the long view, and overarching philosophy. These points have covered all the probable questions along with their answers regarding man management (Pfeffer, 2005). This is the fundamental control over flexibility that makes Johnson and Johnson a true winner in the market.