Codman & Shurtleff : Planning and Control System

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CODMAN & SHURTLEFF : Planning and control system

Introduction
Define the situation. JJ and CD .. The teams, etc
1. The Johnson & Johnson planning and control system efficiency Definition : Management & Control System Management control system can be defined as a critical function in organizations. (K. A Merchant & Wim A. Van Der Stede, 2007). In other words, it can also be described as the process by which an organization secures to achieve its performance. Major roles of control systems
- Motivate organisation members to act consistently with organizational objectives
- Integrate the different parts of an organisation
- Proper interchange/flow of information within the organization
- Enable strategic plans implementation (L.D. Benyayer, 2014) Evaluate the planning and control system use at Johnson & Johnson Strengths
- Decentralized Management o Decentralization, split by business unit – easier to control and have a better view of each unit o All subsidiaries report directly to executive committee members. o Subsidiaries are managed by locals, which enables the organization to gain proper knowledge of the local market, cultural affinity, norms and values. o Each director has to analyze their own business unit strategy and is in charge of monitoring. Allows them to get a grasp of the bigger picture instead of solely working through their day-to-day activity. - Long term approach (5 to 10) o Even though the company has to face a very volatile market, they try to maintain a long-term basis. o Retrospective learning: J&J accords a lot of importance to learning from its mistakes o Motivational factors for directors of subsidiaries: Financial incentives in order to promote motivation o Train someone in JJ and send him to work at a subsidiary to «…...

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