Human Resource management is one of the crucial units in modern business and organizations. It gains relevance during the crisis because it guides management in making decisions to overcome the challenge. It is understood that human resource policies and approaches have a significant impact on people. Thus, those approaches result in humanistic consequences as well as influence the performance of the business. This study aims to evaluate the appropriateness of setting a strategic approach to HR in Johnson & Johnson. To do so, secondary resources are analyzed and establish the weaknesses in Johnson & Johnson and provide recommendations to improve these areas.
Strategic management refers to a pattern of decisions and actions undertaken by the organization to achieve the performance goal. It is an ongoing process of planning, evaluating and analysis of the organizational goals and its objectives (Hendry, 2011). Strategic management is a continuous process, which needs constant adjustment. Strategic HR management is split into five steps: mission and goals, environmental analysis, strategic formulation, strategy implementation, and strategy evaluation (Bailey et al., 2018).
Strategic human resources management practices have been found to play a significant role in the retention of employees in the public sector, and effective HRM policies will improve employee retention (Malik, 2018). There is a three-stage model for the development of strategic human resource management, the three stages include The formulation of HR strategy through a vertical fit; Implementation of HRM systems and employee relation intervention; and the evaluation of the HRM system for the improved efficiency in both vertical and horizontal fit (Brewster and Hegewisch, 2017). The development of an effective human resource strategy requires time and careful planning. HR policies are critical because they offer structure, consistency, control, and reasonableness in business.
They also ensure compliance with employment law and inform the workers of their responsibilities (Armstrong & Taylor, 2017). SHRM connects people with organizational objectives and, with this, the HR department creates a strong link between the organization’s most valuable assets and its strategic direction.
Description of the Selected Company and Definition of Data Collection Method
Johnson & Johnson Company is an American international company established in 1886 by Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson. It is headquartered in New Brunswick, New Jersey (Johnson, & Johnson, 2018). The company’s main functions include research and development, manufacturing and selling healthcare products, and developing medical devices. JNJ operates in three segments: consumer goods, pharmaceuticals and medical devices (Johnson, & Johnson, 2018). The consumer goods segment involves products used in baby care, beauty, oral care, over-the-counter pharmaceutical, wound care markets, and women’s health products.
The pharmaceutical segment deals with immunology, infectious diseases, vaccines, oncology, neuroscience, cardiovascular, and pulmonary hypertension. The medical devices segment provides products used in surgery, diabetes care, orthopedic, cardiovascular, and eye health issues. In all their product lines Johnson & Johnson Company and its subsidiaries compete both locally and internationally irrespective of the size or the number of companies involved (Mikulic, 2019). In 2018, Johnson & Johnson generated more than $81billion in revenue, exceeding the 80 -billion -dollar mark previously projected. This is an indication that Johnson & Johnson Company is growing faster than expected.
Data Collection Method
This study used secondary sources as a method of data collection, which included the analysis of online publications about Johnson & Johnson SHRM. Many articles and journals have been published about Johnson & Johnson’s HRM; therefore, using secondary sources allowed the gathering of a wide range of data. Data collection focused on the most recent publications and the sources older than 10 years were not included in the analysis of this study as they offered outdated information.
The researcher used different search engines such as Google Scholar and Microsoft Academic. Secondary sources were the best because conducting an interview is hard since Johnson & Johnson operates globally. Thus, secondary sources were ideal for collecting data across all the company operating centers and identifying strategic human resource approaches employed by the company in all the subsidiaries (Hancock and Algozzine, 2017). Secondary data sources also allowed the researcher to compare different sets of data and make an informed conclusion. Thus, the best to be used in collecting data in this case study.
Findings and Suggestions
Johnson & Johnson Company respects people and segments as part of its credo values. The firm identifies that people are the most important assets a business should have; people only bring invention, scientific innovation, and products. It is the values that have been created in the credo and implementation of strategic human resources that attract and retain a talented workforce; these strategic HRM functions assist Johnson & Johnson to succeed in the global market (Sengupta & Sengupta, 2013).
Johnson & Johnson management also recognizes that effective management of people requires a strategic framework for leading a human workforce. The company employs a strategic model of applying financial guidelines, examining the organizational requirements, planning for such demands and allocating resources, and constantly reviewing the performance of each component (Health Industry Hub, 2019). The company drives talent outcomes through advisory services, modeling and insight by applying the analytics model.
Strategic human resource management starts with examining organizational needs, making it possible for the company to identify and determine the course of action. Johnson & Johnson is a multinational corporation, and it must diversify its employees and improve the standards for current and future employment. The business identifies its global management needs and how it will integrate different cultures.
The company plans and defines the standards of leadership and sets values with specific behaviors that direct the company’s performance. Johnson & Johnson sets dignity and integrity among its credo values; this creates a corporate culture that respects others’ ideas and inspires employees to be innovative. If an employee comes up with a new idea, the management inspires and encourages them by implementing it. A closed-door workshop bringing together over 30 HR executives from main brands is set for discussions on specific challenges and possible solutions. Through this approach, the company is among the most innovative.
Planning is also key in the company’s strategic human resource management; scheduling and managing resources are critical in implementing human resources approaches and helping organizations identify the method of executing HRM. In implementing its HRM function, Johnson & Johnson identifies the difference in culture, race, age, and gender to understand their varied needs and respond accordingly. These differences are also critical for the company’s values and management of diversity.
Johnson & Johnson is facing several challenges in its HRM, which include, the differences in employment policies in different countries, political factors, which create instability and unrest in the labor market, the decrease in managerial and professional talents because of skill gaps, increase in employees turnover because of the tight labor market, and finally, the tension between employees and their employers because of increasing expectation from the workforce in issues such as different benefits, compensation, equity, and union activities.
Suggestions for strategic Human resource management at Johnson & Johnson
The following are suggestions for Johnson & Johnson to improve strategic human resource management:
- Diversity in HRM- Johnson & Johnson is a multinational corporation, and cultural diversity is the main challenge in human resource management. This problem can be solved through diversity management, the best strategy which has proven to result in finding and creating a diverse and inclusive workforce. The diversity strategy should link the progress to the business outcomes. The best diversity management program uses a diversity council, mentorship, and supplier diversity. The business can also use inpatriate managers; multicultural managers will enhance organizations’ global operations (Pilbeam and Corbridge, 2010). International managers are resources, and a resource-based view of human management is needed in this case.
- Training and Development – The company can also use training and development to reduce the tension between employees and employers. Through training, employees understand their roles and responsibilities and are equipped with skills that match the market demand. Training also enhances employee satisfaction and morale because it shows that the organization values its workers. Training also creates a supportive workplace and helps workers to cope with challenging work environments in a global market.
- Focus on people – strategic human resource management focuses on people; Johnson & Johnson should concentrate on attracting and retaining talented employees. Having the right people with the right skills doing the duties will result in an organization’s success. Achieving strategic HRM requires the use of planning, which identifies the organizational needs. The business matching the skills with organizational demands allows the company to identify mismatch and underutilization. The business should use a coherent approach, which designs and manage the workforce based on employment policy and company strategy.
- Aligning HRM activities and company policies – Johnson & Johnson should match the HRM functions and its policies, and the business strategy. This requires matching resources to future company requirements and identifying the future trends in HR and developing strategies that respond to such changes. The business identifies and deals with issues affecting its employees and provides solutions causing the employees to be motivated.
- Effective communication – sharing of information is important. Johnson & Johnson needs to adopt an open communication strategy about operations and finance and develop a culture where employees can communicate with the management. This approach creates trust and encourages employees to air their issues, and will decrease employee turnover.
Strategic human resource management is an integral part of an organization because it determines the success of a firm, but most companies are struggling with this area because of wrong strategic approaches. Strategic human resource management involves developing a plan to manage people and policies that aligns the company objectives and the market demand as well as the available skills. Businesses face many challenges in human resource management; this study examined the strategic human resource management at Johnson & Johnson. The results show that the company effectively manages people, but it is facing several challenges in the global market.
The challenges include the change in labor laws, the tension between employers and employees, increased turnover, and skill gaps. The solutions to this problem are grounded on a comprehensive strategic human resource management that identifies business needs and develops a plan to meet such needs. Aligning organizational objectives with employee capabilities will improve the performance of the business. Training and development reduce the skill gaps, and the business gets the skills and capabilities needed for success. The business also focuses on people; valuing and respecting their employees is the most important HRM value. Employees should be motivated and supported in different aspects as well as encouraged innovation.
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