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COCA COLA – WORKING INTERNATIONALLY
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Introduction Globalization poses many challenges in HR practices (McEnergy & DesHamais, 2003) HR practices varies from region to region Multinationals adapts practices that suits regions they operate (Zyman, 2009) Coca Cola – adopts regional HR practices Increased globalization has posed major challenge in HR practices. In this regard, most multinationals have found it difficult to apply HR practices in their home country to international markets (McEnergy & DesHamais, 2003) HR practices mainly vary from region to region because of varying local laws, labor practices, and business culture To work effectively in the international market, multinationals usually adopt HR practices that suits the particular region the operate. This means that they have different HR practices in different regions they operate in (Zyman, 2009). Coca Cola company, one of the most success multinational, has adopted HR practices that suits the specific region they operate in.
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Coca Cola Company Coca Cola is a leading beverage retailer, manufacturer, and marketer of different non-alcoholic beverage and syrups (Andrew, 2006) Best known for a leading brand in the world – Coca Cola The company has more than 500 brands It operates in more than 200 countries and serve 1.6 billion servings a day Coca Cola is a leading beverage retailer, manufacturer, and marketer of different non-alcoholic beverage and syrups. It is the leading manufacture and retailer of leading non-alcoholic beverages in the world. Coca Cola can be considered to be the largest non-alcoholic beverage retailer in the world (Andrew, 2006) . Coca Cola is know for many brands that have become a trade mark in every region the company operates in . The company is best known for a leading brand in the world – Coca Cola. Market research shows that Coca Cola is the most recognized brand in the world One of the competitive edge for the company is that it sells different brands everywhere it operates. The company has more than 500 brands. Each and every brand is considered a market leader in is categories. Another competitive advantage of the company is that it has been able to penetrate different markets in the world. It operates in more than 200 countries. These countries are also referred to as regions. Coca Cola serve 1.6 billion servings a day
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Cont.. Coca Cola syrup was invented in 1886
The formula was sold to Atlanta entrepreneur Asa Griggs in 1891 and the name Coca Cola was patented in 1893 By 1895, Coca Coal drink was sold in every state and territory in U.S By 1906, the company expanded to Cuba and Panama Coca Cola has a long history of growth and development. The company can be traced to 1886 when Coca Cola syrup was invented. Initially, the syrup was sold on the streets and people accepted it. In 1891, Atlanta entrepreneur Asa Griggs saw the opportunity to reap from this invention. He bought the syrup and patented it in This was the real beginning of the company because it provided an opportunity for large scale production of Coca Cola. The popularity of the drink grew overnight and by 1895, Coca Cola was sold in all states and territory in the United States. It was becoming a major household brand in the country and within a short time, demand had outgrown production and new production facilities were coming up every day By 1906, the company went international and opened new branches in Cuba and Panama. Within a period of 20 years after its inception, the company became a major multinational company.
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Cont… The performance of the company has been impressive over the years In 2005, the company sells beverage in more than 200 countries (Andrew, 2006) Of more than 50 billion beverage servings every day, the company account for 1.6 billion drinks everyday (The Coca Coal company ) The international market plays a major role in company performance Coca Cola company is one of the most successful multinational companies in the world. Over the years, the performance of the company has been very impressive. This growth is based on different practices including research and development, HR practices, aggressive marketing, franchising, and others. In 2005, Coca Cola was operating in more than 200 countries. This make the company one of the largest multinationals operating in almost all countries in the world. Coca Cola presence is felt in all continents (Andrew, 2006) . Out of more than 50 billion beverage servings sold everyday in the world, Coca Cola accounts for more than 1.6 billion servings everyday. This makes it the largest non-alcoholic beverage manufacture, distributor, and retailer in the world (The Coca Coal company ). While the U.S domestic market accounts for a large share of company’s market and performance, international market is plays a major role. The international market accounts for more than half of the company sales and revenue
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Cont.. The following chart shows the company revenue by regions (The Coca Coal company ) : From the graph, it is evident that United States remains an important market for Coca Cola. However, other markets also make important contribution to the company’s overall performance. While United States account for only 42% of the total sales, the international market accounts for more than 58% of total sales.
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International HR Practices
Coca Cola adopts different HR practices as per region’s they operate The company does not have a standardized international HR practices Coca Cola HR policies are formed in compliance with local labor laws and culture Cultural diversity is key ingredient of its international operations (Mendenhall & Oddou, 2008) One of the competitive strength of the company internationally has been its HR practices. The company adopts different HR practices that depending on the region it operates in. The company does not have a standardized international HR practices. Rather than being using HR practices at home and adapting them to other regions, the company prefers regional specific-practices Coca Cola HR policies and practices are mainly formed in compliance with local labor laws and culture. Although it is a multinational company, the company operates within the realm of local laws and cultural practices Cultural diversity is a major consideration in its international operations. According to Hofstede, international culture varies from country to country and Coca Cola adheres to these cultural diversity (Mendenhall & Oddou, 2008).
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Job analysis and designing
The company has globally standardized job structure (Anfuso, 2004) Job analysis and designing follows the same international structure Coca cola company checks job description and analysis The generated information is used in recruiting, compensation, appraisal, training and employee relationships Being a multinational company, the company had decentralized operation structure. However, the company has globally standardized job structure especially when it comes to senior management although some regions may differ depending on local job market (Anfuso, 2004). Job analysis and designing follows the same international structure. Although some deviations may be found on some regions, the company adapts a similar job description and analysis structure Coca cola company HR department checks it job description and job analysis to get important information about employees work activities, human behavior, performance standards, and human requirements. The generated information is used in recruiting, selection, compensation, performance appraisal, training and employee relationships
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Planning and forecasting
Planning and forecasting involves deciding what positions the firm will have to fill and how to go about it (Palthe, 2009) Coca Cola HR company is involved in strategic planning HR department forecast future employee demand Forecast report is sent to regional head office for approval to start recruitment Planning and forecasting is important human resource practices. Planning and forecasting involves deciding what positions the firm will have to fill and how to go about it (Palthe, 2009) Coca Cola HR company is involved in strategic planning. The regional HR departments makes strategic planning to hire new employees in future HR department forecast future employee demand and by predicting future market and technology changes that may impact on production process After initial planning forecast report is sent to regional head office for approval to start recruitment
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Recruitment Process Regional franchise have their own recruitment process once given go ahead to hire more employees The recruitment process is well established Job advertisements are placed in news papers, website, institutions and others The company carries both international and external recruitment Regional franchise have their own recruitment process once given go ahead to hire more employees. The go ahead to recruit more employees comes from the head office and once the regional franchise gets the go ahead, they carry out recruitment process according to international and local hiring practices. Coca Cola is an equal opportunity employer and their recruitment process is well established Job advertisements are placed in news papers, website, institutions and others The company carries both international and external recruitment to tap into the most qualified candidates for the job positions on offer
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Attention to culture Coca Cola pays close attention to local culture
Special training given to employees on local and international culture New employees put under supervision of old employees (Briscoe et al., 2009) Working environment represent blend of different cultures (Werther & Chandler 2006) Coca Cola pays close attention to local culture in every region the company operates in. In line with Hofstede cultural model, different civilizations have different culture and this affects business operations from one civilization to another (itim international, 2011) The company gives special training to employees on local and international culture. During induction training, employees are given special training on local and international culture to improve their competitiveness in working in a multicultural environment To ensure induction to company culture, new employees are placed under supervision of old employees. This ensures that they gain the necessary skills at hand to work in such an environment (Briscoe et al., 2009) Coca Cola working environment represent a blend of different cultures. There are managers appointed from head office to oversee the franchise and at the same time there are local employees. This blend of culture has been a major factor for international success of the company (Werther & Chandler 2006)
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Employee motivation Motivated employees are important assets for a company (Ulrich, 2007) According to theories of motivation, monetary and non monetary factors remain key in motivating employees Coca Cola focuses on both monetary and non monetary factors Motivated employees are important assets for a company. Motivated employees are important competitive edge for a company that may not be replicated by other companies in the same industry. Motivated employees therefore becomes a key competitive factor (Ulrich, 2007). According to theories of motivation, monetary and non monetary factors remain key in motivating employees. Monetary factors include factors like wages, monetary gives and others that are based on money while non-monetary factors include factors like leaves, holidays and others that are no based on money Coca Cola focuses on both monetary and non monetary factors. The company has programs that are based on monetary gains for employees and also non monetary factors including good amenities, opportunities for career growth, and others. WE ARE POWERPOINT PRESENTATION EXPERTS! ORDER NOW! TOPMARKDISSERTATIONS.COM!
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Compensation The objective of company compensation is to improve performance of employees and convey a message that the company is loyal to employees The company gives may compensation – salary, bonus, medical, pick and drop, gratuity funds, social security etc The objective of company compensation is to improve performance of employees and convey a message that the company is loyal to employees The company gives may compensation that includes basic salary, bonuses on performance , medical cover and facilities, pick and drop, gratuity funds, social security etc
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Wages Research shows that monetary factors leads in motivating employees Coca Cola provides smart wages to employees (The Coca Cola Company, 2011a) Wages are competitive and satisfy employees Most employees by the company are offered competitive wages alongside commissions Employee motivation research reveals that monetary factors lead in employee motivation. Most employees are more motivated and increase their productivity when they are promised more monetary gains of any kind (The Coca Cola Company, 2011a) Coca Cola has ensured that it pays its employees smart wages in all regions they operates in. Their wages structure is not uniform internationally but it is adapted to the local wage structure and as per policies of the local franchise. In spite of following local wage structure and payment policies, the company ensures that wages paid to employees are not only smart but they also competitive and satisfy their wants. The company wages structure is not at the lowest end of the local wage structure. The wage structure is based on local cost of living and reflects other factors like inflation. Most of the employees in the company are motivated by getting competitive wages that are offered alongside a commissions. Blue collar workers get wages along with commission while sales men are offered wages plus commission pursuant to an agree criteria. White collar workers draw handsome competitive salary plus performance bonus.
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Staffing and Training The company has a clear staffing and training policy that is followed throughout its franchise (The Coca Cola Company, (2011b) Coca Cola believes that education is powerful force in employee motivation (The Coca Cola Company, 2011a) The company has helps people make their drams true It has innovative programs – student books, place of study, scholarships (HR Leader, 2011) The company has a clear staffing and training policy that is followed throughout its franchise. The company understands the power of trained employees in maintaining its leadership in beverage industry and this program is strictly followed (The Coca Cola Company, (2011b) . Coca Cola believes that education is powerful force in employee motivation. The company believes that education is a powerful forces in improving the quality of life and creating opportunity for all people and their families in the world (The Coca Cola Company, 2011a) The company has helps people make their drams true. One of its important philosophy is to support education programs as a tool to fight poverty and to help its employees acquire highest level of training in their work. It has innovative programs – student books, place of study, scholarships. All over the world, the company pursues different innovative programs that give hard working, knowledge hungry students books, supplies, and provision of scholarships (HR Leader, 2011) .
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Annual Leaves The company has different leaves structure that conform to local and international labor laws. The leave structure depends on position of employees as follows: Designation Allowed Leaves Supervisor 26 leaves pa Above supervisor Below supervisor 24 leaves pa The company has different leaves structure that conform to local and international labor laws. The leave structure depends on position of employees as follows: Supervisors are allowed 26 leaves per annum Above supervisor are allowed 26 leaves per annum Below supervisor are allowed 24 leaves per annum The above leave structure is a non-monetary way of motivating employees. It shows that the company is mindful of its employees and wants them to have time to attend to their personal affairs.
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Working Hours Time management is taken serious in the company
Their work is divided in shift to enable the company meet high demand (Global Human Resources Management at Coca Cola) Shifts are adapted to the local labor laws There are typical two shifts: 8 am to 4 pm 4 pm to 12 am Time management is taken serious in the company. It is considered the key to grow in the fast and competitive industry where every minute in production and distribution matters Their work is divided in shift to enable the company meet high demand. In some of its operations, the company operates on 24 hours bases and to make this possible, the company is divided into shifts. This means that the phenomenon division of labor is important in time management (Global Human Resources Management at Coca Cola) Time management follows the local labor laws. Shifts are adapted to the local labor laws. This ensures that the company is not into conflict with local laws and policies. There are typical two shifts: 8 am to 4 pm 4 pm to 12 am
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Performance appraisal
Appraisal of employees involves an assessment of employee performance Coca cola performs performance appraisal annually The company performance appraisal is internationally acclaimed and has three process Define job Appraise the performance Provide feedback Appraisal of employees involves an assessment of employee performance. It is an evaluation of how the employee meets their job and personal goals that are set during performance contracting Coca cola performs performance appraisal annually. This means that employees are engaged in annual performance contract and the evaluation is carried out after every 12 months from the date of signing the contract The company performance appraisal is internationally acclaimed and has three process Define job – agreeing with management and subordinate the requirement of the job Appraise the performance – comparing performance with the standards set during job definition Provide feedback – discuss with the employee about performance and progress and make plans for improvements
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Employee Relations Coca Cola considers employees as the greatest asset for the company Employee satisfaction translate to success for the company Internationally, the company adopts an open door policy to nurture good relationship Employees feel free to share with management about their problems Working internationally is challenging for any company considering the diversity that exist in the world. Coca Cola considers employees as the greatest asset for the company. Good relationship with employees is therefore seen as bedrock for company success Good relationship with employees helps to increase employee satisfaction. Employee satisfaction translate to success for the company because they feel sense of ownership increased productivity Internationally, the company adopts an open door policy to nurture good relationship. This policy ensures that there is close working relationship between managers and employees Employees feel free to share with management about their problems. This has ensured that the company maintains close working relationship between management and subordinates
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Conclusion Working internationally is challenging for any company (Ashamalla, 2008) Coca Cola company is among the most successful multinationals The success of the company can be attributed to good HR practices The company follows international HR practices that are adopted to the local conditions Working internationally is challenging for any company due to diversity in the world (Ashamalla, 2008) Coca Cola company is among the most successful multinationals operating in more than 200 countries The success of the company can be attributed to good HR practices that ensure good relationship with employees and adherence to standard international and regional HR practices The company follows international HR practices that are adopted to the local conditions
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References Andrew, Y (2006). An Easy Burden. HarperCollins
Anfuso, D. (2004). Coca Cola’s staffing philosophy supports its global strategy. Personnel Journal Ashamalla, M. (2008). International human resource management practices: The challenges of expatriation. CR 8, (2), 54 Briscoe, D., Schuler, R. & Claus, L. (2008). International human resource management. Routledge: London Global Human Resources Management at Coca Cola. Retrieved May 25, 2011, from HR Leader, (2011). Talent management at Coca Cola: the fizz from within. Retrieved May 25, 2011, from itim international, (2011). Geert Hofstede cultural dimensions. Retrieved May 25, 2011, from McEnergy, J. & DesHamais, G. (2003). Culture shock. Training and Development, 43-46 Mendenhall, M. & Oddou, G. (2008). Dimensions of expatriate acculturation. Human Resources Management, Palthe, J. (2009). Managing human rights and human resources: the dual responsibility of global corporations. Western Michigan University The Coca Cola Company, (2011a). Workplace/workplace rights policy. Retrieved May 25, 2011, from The Coca Cola Company, (2011b). Diversity education & training. Retrieved May 25, 2011, from The Cocal Coal company Ulrich, D. (2007). Human resource champions. Harvard Business School Press Werther, W. & Chandler, D. (2006). Strategic corporate social responsibility. Sage Publications Zyman, S. (2009). The End of Marketing as We Know It. New York: Harper Business. WE ARE POWERPOINT PRESENTATION EXPERTS! ORDER NOW! TOPMARKDISSERTATIONS.COM!
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