Hr Decision Influence Organizational Performance Commerce Essay

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As world business market becomes more globalize and complex, shifting of norms, cultures and traditions from one place or area to another and rapidly changing improved technology, there is a challenge to create a department in an organization, whose focus is to do strategic value of work. Whose goals are to provide organization with maximum output from minimum input and improving organization performance as well as its employees.

Why HRM is important for Organizational Performance?

A rapidly change business economic environment from which market becomes more globalize, changing customers and investors demands and ever increasing products market competition creates needs for organizations to make effective Human Resource Management because to compete other organizations by reducing cost, improving quality and productivity.

How does HR decision influence Organizational performance?

The HR department responsibilities strategic since the days when business people began including "personnel department" in their organizations. Initially HR took over hiring and firing ran the payroll department, and watch benefit plans. As environment changes, technology in the areas like testing and interviewing began to emerge, the HR department began to play vital role in employee selection, recruitment, training and promotion. The main focus of HR is to improve efficiency by increasing and improving revenue growth of an organization.








Initially (HRM) uses approach to minimized cost to get maximum output. Such as high employees turnover like job cuttings and downsizing organizations. As a result an employee feels un-secure and demotivated. Now, (SHRM) uses approach in which to take care of employees to motivate, train, appraising, rewards and incentives and treat them as firm's assets. (SHRM) includes low employee turnover to feel them secure and there self-promotion.

Strategic Human Resource Management (SHRM):

"It is the process that connects and associate the HR functions with the strategic objectives of the organization in order to improve organization as well as employees performance".

It is design to help company's best meets HR needs of their employees while promoting company goals.

It is helpful to think strategic choices on two levels:

(1). either play vital roles in underpinning the firm's viability.

(2). they account for major ongoing differences in business performance.


The 'Best fit' model:

HR strategy will be more effective when it is appropriately integrated with its specific organizational and environmental context. Firms uses HRM to their particular strategies and adapt to firm's condition and environment such as work force character and business strategy.

The 'Best practice' model:

All firms will see performance improvements if only they identify and implement best practice. The practice could be source from other competitor's successful strategy. It is defined by four sub-functions of undergraduate personnel psychology: selection, training, appraisal and pay. It is about creating sustained advantage.

Employment security

Selective hiring

Self-managed teams or team working

High pay contingent on company performance

Extensive training

Reduction of status differences

Sharing information

Resource-based View (RBV):

It emphasizes in the internal capabilities of the organization in formulating strategy to achieve a sustainable competitive advantage in markets and industries. The following processes as follows:

(1). Unique timing and learning

(2). Social complexity

Company profile and overview:

Current situation:

Johnson & Johnson is an American multinational medical device, pharmaceutical and consumer packaged goods manufacturer. Its a public limited company. Traded as "NYSE: JNJ, Dow Jones Component and S&P 500 Components". Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500.

The corporation's headquarters is located in New Brunswick, New Jersey, United States with the consumer division being located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in over 57 countries and products sold in over 175 countries. Johnson & Johnson had worldwide pharmaceutical sales of $65 billion for the calendar year of 2011.

Its Key people include William Weldon (Chairman of the Board) and Alex Gorsky (CEO).

In 2012;

Its Revenue is US$ 65.030 billion, Operating income is US$ 12.361 billion, Net income is US$ 9.672 billion, Total assets is US$ 113.644 billion and Total equity is US$ 57.080 billion. J&J has more than 250 operating companies in 60 countries employing more than 129,000 all around the world.

History and Background:

Johnson and Johnson founded in 1887 by Robert Wood Johnson I, James Wood Johnson and Edward Mead Johnson.

J&J Statement on Caring:

Johnson & Johnson touches more than a billion people's lives each day through our health care products and services. They are a part of habit, practice and pattern peoples follow to care for themselves and their families. They help doctors and nurses care for patients, heal the sick and restore the joy of good health. And we support non-profit organizations throughout the world in advancing the health and well-being of those in need.

J&J Statement of giving:

Johnson & Johnson and its many operating companies support community-based programs that improve health and well-being. Our community partners show us where our giving can help the most. We listen to them and we learn from them so that the programs we support make a meaningful difference in people's lives. The desire to make people healthier and safer is at the heart of our Company's giving.

J&J Statement of protecting the environment:

Our purpose is to improve the health and well-being of families everywhere. To fulfill this goal, we must protect the environments in which we work and live. A healthy planet and a healthy community go hand in hand.

We set high standards for our operating companies in the area of environmental responsibility - striving for performance that does not merely comply with regulations but reduces our environmental impacts. We have a responsibility to take care of our planet and preserve its beauty, resources and strength for future generations.

J&J Statement of Access to medicines:

We have a responsibility to help create a world where people across all economic and social circumstances can access the treatments they need. To enhance access to our health care products, we have many programs for those who cannot afford our medicines.

J&J Initiatives:

Johnson & Johnson is involved with many causes and advertising campaigns that encourage healthy lifestyles and support those people who care for the health of others.

J&J Mission and Vision:

Johnson & Johnson Development Corporation creates strategic growth options for J&J by investing in emerging health care businesses.

Caring for the world, one person at a time... inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Employees of the Johnson & Johnson Family of Companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

Johnson & Johnson Pakistan

Strategic plans and goals:

J&J match its internal weaknesses with external opportunities and threats in order to maintain and gain a competitive advantage by Market Innovation of new and improved products.

Major elements of business strategy at present are;

Reduce cost

Increase productivity

Develop a new product

Improve quality

Business structure and hierarchy:

J&J is a manufacturing organization contains Permanent 200 employees and Contractual 150 employees. Organization sales and assets reflect financial size and performance. It has a very tall and large hierarchy structure.

Strategy evaluation and control:

It is the process of evaluating and measuring progress towards goals and if there are any problems identifies J&J takes disciplinary action to solve those problems.

System used for evaluation:

J&J uses SWOT (straight, weakness, opportunity and threat) analysis for strategy evaluation. From this analysis they are able to know whether they move in a right direction or not? Are there goals achievable in time? What the goals they set are realistic or not? How much they achieved their goals and how much further to be achieve? Is they have an ability to achieve goals or not?

Main products:

The following are the main products:

Medical Devices & Diagnostics

Prescription Products

Baby products

Market Competitors:

The main competitors are GSK, P&G, and Pfizer etc.

J& J Human Resource Management System in Pakistan

HRM policies:

In J&J, HR policies and strategies vary from country to country, place to place. They follow local land norms, cultures and traditions and external and internal environment have an impact on these polices. So, that's why HR policies are set according to that particular place. But Company mission, vision and goals are remains always same.

The policies of Johnson & Johnson are global policies generates from homeland and implements all around the world meeting the same criteria but follow Local Land Law which is also known as "Collective bargaining agency".

Human Resource planning and capital:

The knowledge, education, training, skills and expertise of a firm's workers.

Kinds of methods:

J&J uses two kinds of methods:

Trend analysis:

In which we study organization past employment needs such as which employees will be retired or how many employees are ready to promote when old ones retires or in case of any death or how many employees resign from their job.

Ratio analysis:

In which we study for future staff needs by using rations and calculations such as organization growth, starting new project or introducing new products in which specialization is needed.

Implementation of Strategic Human Resource Management (SHRM):

In J&J, hydrate model is used. It is a mixture of both models "Best fit" as well as "Best practice".

Example: "Best fit"

They uses "Best fit" to make policies fit in that local culture and environment like if they want a production facility in upper region of Pakistan such as Sawat. There labor routine is to wake up early in the morning i.e. 4:30 a.m. perform "Fajar" pray and start their normal routine work at 6:00 a.m. and complete their work till 2:00 p.m. afternoon. So, why they need to start working i.e. in 9:00 a.m. Another example religious holidays leaves. Like in America and Europe, J&J gives Christmas holiday leaves and in Pakistan J&J give both Eids leaves. That's why organization plans their policies according to the local environment and culture. Because, if they want to do business in that particular region, they have to follow local law of land.

Example: "Best practice"

J&J, try to imitate world's best ongoing HR practices, policies and strategies and try to implement in organization but set and alter according to their mission, vision and goals.

Such as;

Employment security

Selective hiring and recruiting

Self-managed teams and groups

High pay on performance

Broad and wide training

Reduction of status differences

Sharing information

Organizational performance management system:

J&J operates and follow a formal performance management system and all groups of employees are a part of this process. Performance evaluate in organization are on Bi-annually basis but whenever it is needed, they evaluate. Organization performance system was created and developed by J&J itself and implement all around the world in all J&J offices and production facilities. Performance is continually reviewed based on indicators. All aspects are follow up to check control and guarantee continuous improvements. Results are communicated, checked and analyze by all board of directors.


The following are the objectives of organizational performance system:

Development of employee

Keeping track of performance

Setting objectives

Pay Based performance rating

Goals and Targets:

The following are the source of performance goals are established and assign through;

Each supervisor is expected to establish the performance goals for his subordinates.

Each supervisor has free will to establish performance goals for his subordinates within the framework of united goals.

Individual performance goals are linked to and flow the strategic business planning process.

The goals are a balance of financial and non-financial targets. Seniors managers believe that non-financial targets are often more inspiring and challenging than financials alone such as increase sales by flushing huge quantities of products.

Targets are set in a way that employees are encouraged to set long goals.

There are short and long term goals for all levels of an organization. As they are set independently, they are not necessarily linked with each other.


The following are the key factors use to find whether performance is efficient or not:

Achievement of financial targets



Changes in attitudes

In J&J, performance management system is fully automated, including record keeping, manager assistant tools, employee coaching tools, etc. Performance related pay is an essential part. Line managers own and operate the performance management and it is an important part of the employee line manager relationship. The main and important objective of performance management is well communicated. It is about individuals and their long term development. It helps people to perform a better job. It is about managers controlling peoples and decides how much to pay to employees. It is a two way process with both managers and employee expressing their views.

Selection process:


J&J selects majority of its candidates through internal references like many other multinational organizations follow and other source through the help of Outsource HR firm like "HRSG Talent Expert".

Applicants cover letter and C.V:

J&J only wants applicants cover letter and C.V on the basis of job position which they applies or totally on job based such as they prefers applicants whose graduate from Karachi University, DOW medical university and Agha Khan university due to their job specification such as dealing in their special products like Medicines, Baby care products and surgery items.


J&J sales executives must have to sell products such as joint replacement "DePuy", so, they must have knowledge about the product so they effectively have to sell those products..

Web-Based selection:

Even candidates go to J&J website and fill online form. It helps organization to efficiently sort out candidates and give them a chance.

Future planning:

HR manager plans to make a pool of best candidates selects from various universities.

Visit universities and starts recruitment seminars and represent their organization and then select candidates.


Types of interview conducted:

Selection interview:

When recruiting new employee to let know whether candidate have an ability to perform his task, fulfill his job requirement and ability to achieve his assign goals.

Appraisal and discussion interview:

Before promoting employee whether employee is eligible or not.

Exit interview:

When employee wants to quit job, exit interview takes place. Through which HR want to know whether its employee own decision or someone pressurize him like his senior officials or some other matters like discrimination or any other reason.

Interview format:

J&J uses structured format like check list in which a series of job related questions. Individual takes interview as well as panel takes interview.

Kind of interview:

Structured sequential behavioural interview:

"A series of job-related questions that focus on how the candidate would behave in a given situation and this interview is taking sequentially by several persons, each rates the applicant on a standard form".

Factors effecting interview:

When candidate comes for interview, he/she must be preparing to give interview regarding on job related questions.

Candidates must wearing formal wearing.

Grip on verbal as well as written English language is very important and candidates must have an ability to use verbal English language in British as well as American ascent because they have to dealing with organization departments as well as suppliers and clients all around the world. And, this is very necessary for top management.



If candidate from internal reference, they must be eligible enough for that position and job. No knowledge based recruiting. J&J gives priority to recruit candidates from internal reference and from outsource recruiting firm.

Type of recruiting:

J&J recruits employees through centralized and decentralized manner. Like, if they want a hire clerk or staff, so, they use decentralized hiring and if they want a hire HR Manager, the regional head in Dubai office hires from there. HR manager would have to go to Dubai for interview. Even, the regional head recruiting take place from Switzerland Head office.

Other source of recruiting:

Other than that of Employee referrals and HR Firms, they choose from internships programs. If the candidate is eligible for the position, they immediately hire it.

Candidate Screening:

J&J hires firm such as "Mercer" and they secretly give their employees data to them. Then, this is the job of that outsource firm to make sure that person is not a terrorist or agent/spy of any other rival organization. "Mercer" checks employees background whether person has any crime record like theft or burglary charge or credit default etc.

Previous HR recruiting strategy:

Previously they recruit candidates from Karachi University because it is only university that provides candidates with pharmaceutical skill, education and knowledge. Now, working in J&J for so many years, these recruiters becomes a part of top management in Pakistan.

Equal Employment opportunity (EEO):

"An organization must be able to prove that its test are related to success or failure on the job (validity) and test don't unfairly discriminate against minority or nonminority".

J&J provides EEO to every candidate whether selecting and recruiting from internal reference or through outsource recruiting firm.

Future planning:

J&J starts introducing special degree programs in universities like IBA, IOBM, and ZABIST etc for more efficiently recruiting.

HR role in selecting, interviewing and recruiting:

For Managers and staff like G.M marketing, Manager marketing, Manager accounts, assistant HR manager, procurement manager, supply chain manager and ordinary staff, officers and supervisors etc. HR part is more than 80% and technical department part is 20% because for managers HR want to screen their managerial qualities but slightly technical as well.

For Managers and staff like sales executives, production manager, assistant procurement manager, production technical staff, laboratory heads and staff etc. HR part is 20% and technical department part is 80% because it due to technicality and knowledge about job they performs.


Give new employee orientation about;

Explain employee their employment law


Emergency exit

Training first aid treatment

Using fir cylinder

Training to call emergency services

Training to alert from fire alarm

Training to wear protected jackets and clothes

Training to use emergency tools such as ladder, axe, water cannon, torch, gas masks, rope etc.

Training and development:

After recruiting, first 3 months are probationary period. J&J trains new recruiters with latest software s such as SAP, so, employee can performance their jobs efficiently and effectively.

Types of training methods used:

The following are the types of training methods use in J&J:

On-the-job training:

Apprenticeship: It structures by which peoples becomes skillful workers through a combination of classroom instruction and on the job training.

Job instruction training: The process consists of step by step process.

Effective lectures

Programmed learning

Stimulated training: Trains especially to sales executive because they have to help surgeons in operation joint implant "DePuy" for kneel, finger, ankle, elbow, hand, hip etc.

Organization provide sometimes a formal training to line managers, supervisors on how to conduct performance appraisal of the employee. Organization also provides coaching support for managers to help them to improve their skills in performance planning, handling discussion with poor performer and providing feedback etc from one to one coaching by supervisors.

Salary Issues:

J&J tries to balance its salaries with current market condition as well as cost of living at that particular region and inflation rate as well by given data to International firm such as "Mercer".

It is an international firm provides services for employee screening, background check, conducts salary survey in various organizations by collecting secretly data from those organizations but hide detail of every organization. Organization gives data because they knew their data is kept secret, as a result "Mercer" helps them to balance salaries of their employees, benefits and incentives which other organization provides.

By the way in J&J, an employee knows their salary by comparing its job description and position according to organization salary charts. In J&J minimum wage of a labor is Rs.8,000 p.m.

Salary compression:

"A salary unequal problem, generally caused by inflation, resulting in longer-term employees in a position less than workers entering the firm today"

This problem is also address in J&J but HR convinces old employees.

Employee Performance management system:

"The process employers use to make sure employees are working towards organizational goals".

Policy for new recruiters is that J&J gives 3 months probationary period to train and understand job and starting giving performance. But if one employee gives good performance for more than 2 years and suddenly that employee is not giving performance, J&J give chance to improve within 3 months if not then after 3 months period is over, J&J straight forward fire that employee.

J&J have different appraisal system for different employees such as managers have different and labor have different. Performance indicators are tracked and record formally. These are overseen by senior management. Regular reviews and performance conversations focus on problem solving and addressing root causes. Purpose, agenda and follow-up steps are clear to all. Meetings are an opportunity for positive feedback and coaching.


The following are the standards that used in analyzing the "performance" of an employee:

Results related to individual performance goals

Results related to performance standards

Job task and responsibilities as stated on job description

Core abilities that communicate shared values


Behaviors i.e. BARS, BOS, Behavioral expectation scales


After performance management process is over failure to achieve agreed results is tolerated for a period of three months before directly fire that employee and Organization actively identifies, develop and promote top performers and they will be rewarded. Organization doesn't provide appealing procedure after performance appraisals.

Senior managers are measure, judge and held accountable on the strength of the talent pool they actively build. An individual, team and organizational behavioural linked with each other. Line managers sets performance requirement for individuals.

Job Analysis:

In J&J, following are the methods use for job analysis:

Discussion-Based: Senior manager discuss job related issues with his subordinate that till-to-date how much you achieved and now how much will you have to achieve and where you lacking and how to improve your performance and which areas you have to work hard so that your goals and target will be achieve and how will you need my help or how I help you so you can improve your performance etc.

Interviewing: It is the part of information sources such as group of employees, individual employees, subordinates, co-workers and supervisors with knowledge of the job. The interview format is structured according to job related questions.

Questionnaire format: Provide employees questionnaire so that they fill and describe their job related duties and responsibilities. The questionnaire format is also structured and according to job related questions.

Observation: Only observing and noting the physical activities of the employee, how he/she perform job.

Competency-Based job analysis: Competencies - Demonstrable characteristics of a person that enable performance of a job. In this analysis, describing a job in term of measurable, observable, behavioral competencies (knowledge, skill, behavior) an employee must show to do a job well. In J&J, some particular traits are implement such as skill and knowledge about job like bio-medical, pharmaceutical etc.


Managers are neither rewarded nor punished for the quality of their performance management efforts because this is the responsibility of senior management but employees are encouraged to set stretch or long goals and when goals are achieved, they are rewarded. Executive have defined incentive opportunities based on results related to pre-defined objectives. Executives set a portion of the reward which is linked to the achievement of organization goals.

Employee appraisal and promotion:

"Establish employee training, appraisal and rewards on further and rewarding the skills and ability he/she needs to achieve his/her goals".

In J&J, employee appraisal and promotion is a responsibility of his senior manager and it's also a responsibility of HR department whether senior manager do fair appraisal and promotion away from biasness. Peoples are promoted upon the basis of performance ratings. Organization actively identifies, develop and promote top performers.


The following are the technique J&J use in performance appraisal:

Graphic Rating Scale: A scale that lists a number of traits and a range of performance of each that is used to identify the score that best describes an employee's level of performance for each trait.

Filed review method

360 Degree

Management by Objective (MBO): Involves setting specific measurable goals with each employee and then periodically reviewing the progress made.

Issues regarding appraisal and promotion:

Before start performing job, senior manager in writing provides his subordinate his job description in which it is clearly mention employee job description, objectives, goals and task. These target, task and goals must be SMART (specific - clear, measurable - how much, attainable - possible, relevant - what to be achieved, timely).

Issue 1: If senior manager show biasness and friendship towards his subordinate and give extra ordinary remakes and pressurize for his promotion which his subordinate didn't had eligibility to. So, HR takes action, evaluates employee performance through job description written document and takes decision whether to promote or not. If senior manager did wrong, so it's a trouble for that person. Result is, he can even lose his job, suspension or even have to pay penalty/fine.

Issue 2: If senior manager show biasness and give poor remarks to his subordinate, who perform excellent job and complete and fulfill all requirement and achieved all goals and task which were assigned before starting performing job in a written document. HR takes action and try to solve matter in between both parties and minimize conflicts between them but if matter becomes worst, HR takes action and subordinate performance evaluation to other department head, which subordinate directly reported and performing usual job. HR takes action against senior manager and as a result senior manager can even lose his job, suspension or even have to pay penalty/fine.

Issue 3: If other department head is also a friend of that senior manager and show biasness and give poor remarks which subordinate didn't deserves, then HR takes action and takes matter in their own hand and do performance evaluation by themselves. Then subordinate directly report to HR or HR change his department.

Issue 4: If subordinate is not much competent enough and claims falls allegation, then HR takes action, first give 3 months period to improve his/her performance, if not then fire that employee.

Issue 5: If four friends hire in J&J with same similarities and did their graduation in same degree. They all working for two years. If one friend go abroad for higher studies by his own efforts and comes back after two years and his three friends already working for organization for more than four years. They made real progress for themselves as well as organization. When the employee from abroad comes back and demand for promotion, but organization see whether there are any higher position is empty or not. If "Yes", than organization make promotion of him but if there is "No" higher position is empty, then organization don't promote him and offer him to do same job or he can also quit, if he get good offer in market because it is not the concern of J&J that he goes for higher studies and comes back.

Issue 6: If J&J promote that employee with higher degree of education because higher position is available, then his co-workers demotivated but what organization do. If they don't promote him, result is that competent guy switch the firm because he learns new invention, ideas, knows new market trends and upgrades his knowledge. He has a good market value.


J&J only promotes and prefers those employees who are eligible and have an ability to perform their duties but they don't promote on knowledge-based.

Kinds of appraisal method:

The following are the kinds of appraisal methods use in J&J:

Hybrid method - Mixture of Behaviorally anchored rating scale (BARS) and forced distribution (Bell curve) method: An appraisal method that uses quantified scale with specific narration examples of good and poor performance and similar to grading on a curve, advance percentages of rates are placed in various performance categories. And limit the percentage of employees that can fall in certain rating categories.

J&J also conducts appraisal interview. It is a structured format job related interview. They have a committee that tries to make fine adjustments and manage the distribution of rating levels across organizational units.

Succession planning:

"The process of deciding how to fill the company's most important executive jobs".

The most senior management job decides by board of directors.

J&J gives priority to its employees for promotion to a senior manager level job because they employees are already train and now organization culture, environment and trends very well. No outsider can know such things so much better than them. They prepare chart in which they know which employee are eligible to promote or not. They promote the person who is ready. If position is empty and person need minimum 6 months or more then they recruit from outsource but if person is almost ready and need maximum 6 months or less then they give try to that person. i.e. In the context of chart, Furqan is ready now to promote and Jawaid needs minimum 6 months or less, so, organization waits for Furqan until he is ready but only for maximum 6 months. Fawad and Kamran are not eligible for promotion.

Manual system and replacement chart:

Personnel replacement charts:

Company records showing present performance and encourage of inside candidates for the most important job.

Position replacement charts:

A card prepared for each position in a company to show possible replacement candidates and their qualifications.

Example: Chart use in J&J:-


Ready Now

Ready 6 months

Ready 2 years

Ready 4 years









Protecting employee health, physical and psychological condition:

J&J already hire a psychologist in Agha Khan Hospital on permanent basis so that an employee goes and feel freely to discuss their mental problems and issues with them. This service is especially for top management and senior managers because due to their stressful job. And time to time, these psychologists make coordination with them to know and analyze their mental stability because they have to make big and complex decisions.


J&J gives following type of employee incentive and recognition program;

Merit pay

Short term - annual bonus

Long term - stock option


Vacations and holidays leaves

Travelling allowances

Sick and medical leaves

Three months of Maternity and medical leave under 1948 medical act


P.F and graduate fund (25% by employee & 75% by employer)

Send abroad for higher education

At the time of layoff or quit, employee gets two months salary for every two years. i.e. if employee worked in an organization as a permanent employee for 1 year, so, he gets two months salary, if he worked in an organization for two years, so, he get four years salary.



Merit based


Industry standard

Technological changes

Sales compensation plans:

Salary + Commission + Bonus

Organization faces problems while pay compensation. Every department have their own compensation budget. These compensation plan support organization strategies and top-level managers are highly compensated employees.

Organization wide variable pay plans:

J&J gives following types of pay plans;

Profit sharing

Employee Stock ownership program (ESOP)

Accident policy:

If any employee injured or disable or deceased during duty hours time, Organization gives full benefits and incentives to that employee and taking care of his family like;

Give handsome money to his family

Forgive all dues and loans

Free medical treatment to himself and his family

Children education program

Insurance policy money

Gives employment to his son/daughter (only for labor)


If employee didn't perform, HR gives warning of three months and even if employee unable to perform, HR directly fire that employee.

Nobody can fire anybody means if senior manager want to fire his subordinate, he has no authority to fire that employee directly. So, senior manager give his remarks and feedback to HR department. HR analyze the situation that subordinate is performing or not or senior manager got biased. So, HR decides whether to fire or not.

At the time of layoff or employee quit job, HR would take final exit interview.

Control High Turnover Rate:

HR department do its best to control and minimize turnover rate by giving more incentives, increase in salary and medical and many other benefits.

Labour policy:

J&J follow local land labour law also know as Collective Bargaining Agency (CBA).

Some laws according to which;

No more than 40 hours a week means 8 hours a day. Except this, if labor stop and give extra hour for working, so, they must be providing with overtime. But, no more than 12 hours a working day.

Labor must be unionized.

In J&J, labour union agreed by the current performance management arrangements. But, the attitude of union towards performance management is negative.

Employee advocacy:

HR must take responsibility for clearly defining management that how they should treating employees and subordinates. HR makes sure employees have the mechanism required to contest unfair practices and represent the interest of employees within the framework of its primary obligation to senior management.

J&J Have a very strict policy regarding senior's unethical behavior towards juniors and no flexibility regarding sexual harassment.

Discrimination policy:

No discrimination allow regarding men's vs. women's job description, salary, incentives or benefits and no discrimination among religious, ethnicity, race, language etc.

Child labor policy:

J&J discourages child labor and even they have a policy to discontinue relationships with those clients and suppliers whose found involves in child labor.

Disability policy:

In J&J, all recruiting are totally merit based so no special quota for disable persons but depends on job. i.e. If there is a job for data entry and if disable person from legs recruits on merit and do work from his bare hands, so, there is no policy that don't allow him.

Quota policy:

No quota is given to anybody. All recruitments are done on merit basis. Quotas such as minority, disable person, widow etc.

Job Rotation:

"Moving a trainee or experience employee from department to department to broaden his/her experience and identify strong and weak points to prepare for an increase role with the company".

J&J allow job rotation but employees must be need minimum three years not before that. Employees send mostly to other departments and offices around the world like make transfer Sales manager to Dubai Supply Chain Management department.

Balance Job enlargement and Job enrichment:

"Assigning employees same level additional activities" & "Redesigning jobs in a way that increases the opportunities for the employee to experience, achievement, growth and acknowledgement".

J&J always balance job enlargement and job enrichment because if increase in person responsibility but don't increase in person salary or increase in person salary but don't increase in person responsibility, both are major factors of employee demotivation.

Flexible Hour policy:

All Managers and sales executive allow flexible hour policy. Whatever the time they comes, they only have to complete daily 8 hours. This policy is not for production department, finance department and labors.

Overtime policy:

J&J gives overtimes to its employees if employee works more than 8 hours a day. Minimum overtime is Rs.90 per hour for labors.

Nontraditional (part time) workers:

J&J also hires part time or contractual workers. They get their salaries at the end of the month but their salary calculation is on daily basis. There are no incentives, medical or benefits for them.

Work force demographics:

Organization policy is very strict regarding recruiting. Their recruiting process is only on merit basis. There is no space to rehire old age or retired employees. They always hire and give chance to new talent.

Computerized / Web-based HRM system:

Now days, more than one-third organizations uses computerized or Web-Based HRM system to more expeditiously track, test and select job applicants. More than 40% of organizations have Human Resource call centers or intra-net enabled processes that let employee service their own HR need such as changing in benefits etc.

Future planning:

J&J will also try this system because it helps to reduce cost by reducing heads. But still there are always need for HR personnel's because somebody has to insert data.

International HRM:

HR policies generate from mother land and its impacts are globally. They follow same policies and strategies all around the world but some policies varies from land to land, culture to culture. Each policy is set and follow according to environment (external and internal), norms, culture and trends. It is about the world-wide management of human resources. The purpose of this concept is to modify the firm, Multinational enterprise (MNE) to be successful globally. This means being;

Competitive throughout the world


Locally efficient

Flexible and adaptable within the shortest time period

Capable of transferring knowledge and learning across organization globally spreads departments and units.


In J&J, if one HR Manager hires in USA and one in Pakistan. Both have similar job requirements and description and even both have same qualification. If, HR Manager in USA have a salary package of around $150,000 p.a. means $12,500 p.m. It's doesn't means that the HR Manager in Pakistan have also Rs.150,000 p.a. and Rs.12,500 p.m. Both of them salaries are depends upon current market trend like if USA HR Manager takes $150,000 p.a. then Pakistan HR Manager takes Rs.4,800,000 means Rs.400,000 p.m. salary package which includes all benefits and incentives.

Global HRM:

Today, world business becomes more globalize and organizations become multinationals because of the spread of departments and units across the world.

J&J response:

J&J is a multinational organization and it spread across 57 countries where directly and indirectly it must have to be involved. They already knew that time comes when organization don't need just managers instead they need global managers because their own operations were spread so much that Managers have to dealings and make communication with not only their departments and officials but as well as their clients and suppliers.

J&J prefers to recruits those candidates whose have grip on English language both verbal and nonverbal as well as they are flexible enough and quick learner so they adjust in any environment.

Now, HR manager have to daily make communicates with his international counterparts and discuss problem and issues.

Social Corporate Responsibility:

A company's sense of responsibility towards the community and environment (both ecological and social) in which it operates.

Companies express this citizenship;

(1) Through their waste and pollution reduction processes

(2) By contributing educational and social programs

(3) By earning adequate returns on the employed resources.

When J&J starts its business in Pakistan in 2002, from that moment, Organization start working on many projects.

Such as;

Distributing $70,000 medicines in disastrous earth quake.

Help flood victims and donate Rs.1 million.

Running free school for poor children's.

Providing free medical treatments children's whose parents are unable to provide them treatment.

Arranging talk shows for medical problems

Problems and Solutions:

Problem 1:

If J&J provides EEO to all candidates, then why they didn't recruits walks in?


The employment position in J&J is very low, so, that why they waste their time and money in taking test and interviews of all candidates which includes walk in, so, they directly recruit from internal reference and outsource firms. They made their work very easy.

Problem 2:

If J&J recruits from internal reference or outsource firm, then it means they have limited choice in candidate's selection. So, how can they say that they made rational decision making while recruiting?


It is not possible to them to take wrong and bad decision while recruiting because they take recruits those employees who knows how to perform their job.

Problem 3:

Recruiting candidates through internal reference or outsource firm, show biasness? How can you justify?


The main reason to choose candidates through internal reference is time saving and money because selecting from Recruiting firm, organization have to pay a handsome amount for the position to be hired like recruiting Sales Manager. Whatever the package of the sales manager i.e. Rs.400,000 p.m. Organization must have to pay that amount to recruiting HR firm. But, if Sales Manager hires from internal reference Organization only have to pay less amount to its employee i.e. Rs.50,000.

Problem 4:

J&J main competitive advantage is implants body parts such as knee, ankle, hand, joints etc and do not give their equipment to anybody except sales executive. But, an organization creates new innovative products? So, how can J&J strategy effective?


J&J spends a lots of money to training and development of employees so that they can creates and innovates new improved products to gain more competitive advantage and the equipment which implant joints, nobody have these equipments in the whole world. If surgeon wants to operates, J&J sales executive go and return back with the equipment, don't leave the equipment with the surgeon.

Problem 5:

Why J&J recruiters always take structure format interview?


Because they only want person how have an ability to perform job and know what job to perform.

Problem 6 (Main problem):

In J&J there are three departments exist. Which are as follows;

Medical Devices & Diagnostics (Highly profitable)

Prescription Products (Normal profitable)

Baby products (low profitable)

Problem is each department has different salaries, commission, benefits, incentives, bonuses and rewards. So, now employee's runs to somehow enter in highly profitable department, but what wrong does other departments did?


Working is made to balance all departments.

Problem 7:

For implementation of one single policy, minimum 8 years of period needed?


Suggestion and recommendations made so that eliminate a very tall large hierarchy and give authority to take decision to authorized persons like CHRM and after that minimum two years needed to implements policies.