Managing and Leading People

Across Cultural Borders - INDU1033

Team Presentation
On
Cross Cultural Management of
Johnson & Johnson (JNJ)

July 2014
CONTENTS
1. INTRODUCTION
2. LITERATURE REVIEW
3. ANALYSIS
4. CONCLUSION
1. INTRODUCTION
JOHNSON AND JOHNSON (JNJ)
Founded in 1886 by three Johnson brothers named Robert Wood, James Wood
and Edward Mead in Brunswick, New Jersey, USA.
The Company is Organized into Three Business Segments of health care field
a) Consumer Health Care Products (Baby Care, Skin Care, Oral Care, Wound Care, etc)
b) Medical Device and Diagnostics Products (Orthopaedics, Neurological Disease,
Vision Care, etc)
c) Pharmaceutical Products (Prostate Cancer, Immunology, Infectious Disease (ex.,
HIV/AIDS, Hepatitis C & Tuberculosis), Cardiovascular And Metabolic Diseases (ex.,
Diabetes), etc)
Owns more than 275 Operating Companies located in 60 Countries
Have approximately 128,100 employees worldwide engaged in the R&D,
manufacture and sale of a broad range of products in the health care field
JNJ
Its a Multinational Company
(MNC)
Subject to cross cultural issue
2. LITERATURE REVIEW CULTURE
THEORIES
MODELS ON CULTURAL DIMENSIONS
a) HOFSTEDE ( Power Distance, Uncertainty Avoidance,
Individualism-Collectivism, Masculinity-Femininity, Time
Orientation)
Cross Cultural Management
Dimensions of National Culture
Low Vs. High Power Distance
Individualism Vs. Collectivism
Masculinity Vs.Long Vs. Short Term Orientation
a) HALL (Context, Space, Time)
Halls High and Low Context Communication Theory




2) LITERATURE REVIEW CONTD
Multinational Firm Communication
Management Style
Staff Behaviour
Communication System
2. CULTURAL DISTANCE B/N USA AND CHINA
3. ANALYSIS OF JNJ USA VS CHINA USING
HOFSTEDE MODEL
JNJ Management Style: Based Upon The Principle Of Decentralized Management
Strategic Framework: Our Credo (Statement Of Principle) As The Foundation
CREDO
Written in 1943 by robert wood johnson,and defines the common values of employees
in 60 countries and more than 250 operating companies
Focused on patients/customers, employees, communities, shareholders
Specific to employee we are responsible to our employeeseveryone must be
considered as individual. We must respect their dignity and recognize their
meritemployees must feel free to make suggestions and complaints. There must be
equal opportunity for employment, development and advancement for those qualified.
We must provide competent management, and their actions must be just and ethical.


3. ANALYSIS OF JNJ USA VS CHINA USING
HOFSTEDE MODEL




Power distance

Individualism

Masculinity

Long-term orientation
China (C)


USA (US)
C(80) US(40) C(20) US(91) C(66) US(62) C( 118) US(29)
Management
style

Power decentralized

Decisions are made through discussions
Managers expected
to be decisive
and assertive
Managers use
intuition and
strive for
consensus
Willing to adopt
new
managements
Respect for
their own way
of management
Staff behaviors High
emotional
distance with
superiors
Equal with
superiors
Ideas keep in the
group
Ideas sharing
within the
whole organization
High life pressure;
work for living
Low life
pressure;
work for
fulfillment
Long term
success preferred
Short results
expected
Communication
system
High
hierarchy
levels
Low
hierarchy
levels
High-context
communication
Low-context
communication
Formal
communications are
preferred
Flexible and
can deal
with
surprises
Visions are for
the future and
they are flexible
Visions are for
now and the
future
CONCLUSION
The cultural distance between china and US using the
Hofstede Model shows that:
China ranks significantly higher in LTO; significantly lower in UAI and
IDV;
US ranks significantly higher in IDV.
China is on the high side and the US is on the low side of PDI.
Both china and US rank high in the side of MAS, with china a slightly
higher than US.
US is on the low sides of PDI, UAI and LTO.
Both china and US rank low in UAI, with china lower than US.

CONCLUSION
However, according to JNJ website, the company clearly
described the importance of diversity and cross cultures,
diversity is a central part of the cultures across the J NJ
family of companies. Furthermore the company stated
clearly . our commitment to diversity and inclusion is
deeply rooted in the values instilled by our credo.
Attracting, developing and retaining a base of employees
that reflects the diversity of our customers is essential to
our success (www.jnj.com).
Therefore, JNG minimizes the cross cultural issues by
properly adopting the credo across their international host
companies and become successful for more than a
century.