COCA COLA – WORKING COCA COLA – WORKING INTERNATIONALLYINTERNATIONALLY

IntroductionIntroductionGlobalization poses many challenges in HR Globalization poses many challenges in HR practices (McEnergy & DesHamais, 2003) practices (McEnergy & DesHamais, 2003)

HR practices varies from region to regionHR practices varies from region to region

Multinationals adapts practices that suits Multinationals adapts practices that suits regions they operate (Zyman, 2009) regions they operate (Zyman, 2009)

Coca Cola – adopts regional HR practicesCoca Cola – adopts regional HR practices

Coca Cola CompanyCoca Cola CompanyCoca Cola is a leading beverage retailer, Coca Cola is a leading beverage retailer, manufacturer, and marketer of different manufacturer, and marketer of different non-alcoholic beverage and syrups non-alcoholic beverage and syrups (Andrew, 2006) (Andrew, 2006)

Best known for a leading brand in the Best known for a leading brand in the world – Coca Colaworld – Coca Cola

The company has more than 500 brandsThe company has more than 500 brands

It operates in more than 200 countries and It operates in more than 200 countries and serve 1.6 billion servings a dayserve 1.6 billion servings a day

Cont..Cont..

Coca Cola syrup was invented in 1886Coca Cola syrup was invented in 1886

The formula was sold to Atlanta The formula was sold to Atlanta entrepreneur Asa Griggs in 1891 and entrepreneur Asa Griggs in 1891 and the name Coca Cola was patented in the name Coca Cola was patented in 18931893

By 1895, Coca Coal drink was sold in By 1895, Coca Coal drink was sold in every state and territory in U.Severy state and territory in U.S

By 1906, the company expanded to By 1906, the company expanded to Cuba and PanamaCuba and Panama

Cont…Cont…The performance of the company has been The performance of the company has been impressive over the yearsimpressive over the yearsIn 2005, the company sells beverage in In 2005, the company sells beverage in more than 200 countries (Andrew, 2006) more than 200 countries (Andrew, 2006) Of more than 50 billion beverage servings Of more than 50 billion beverage servings every day, the company account for 1.6 every day, the company account for 1.6 billion drinks everyday (The Coca Coal billion drinks everyday (The Coca Coal company ) company ) The international market plays a major The international market plays a major role in company performancerole in company performance

Cont..Cont..The following chart shows the company The following chart shows the company revenue by regions (The Coca Coal revenue by regions (The Coca Coal company ) :company ) :

Coca Cola Perfomance by Regions

43%

37%

20%

United States

Mexico, India,Brazil, Japan &china

Rest of the World

International HR Practices International HR Practices Coca Cola adopts different HR practices Coca Cola adopts different HR practices as per region’s they operateas per region’s they operateThe company does not have a The company does not have a standardized international HR practicesstandardized international HR practicesCoca Cola HR policies are formed in Coca Cola HR policies are formed in compliance with local labor laws and compliance with local labor laws and culturecultureCultural diversity is key ingredient of its Cultural diversity is key ingredient of its international operations (Mendenhall & international operations (Mendenhall & Oddou, 2008)Oddou, 2008)

Job analysis and designing Job analysis and designing The company has globally standardized The company has globally standardized job structure (Anfuso, 2004) job structure (Anfuso, 2004)

Job analysis and designing follows the Job analysis and designing follows the same international structuresame international structure

Coca cola company checks job description Coca cola company checks job description and analysis and analysis

The generated information is used in The generated information is used in recruiting, compensation, appraisal, recruiting, compensation, appraisal, training and employee relationshipstraining and employee relationships

Planning and forecastingPlanning and forecastingPlanning and forecasting involves deciding Planning and forecasting involves deciding what positions the firm will have to fill and what positions the firm will have to fill and how to go about it (Palthe, 2009) how to go about it (Palthe, 2009)

Coca Cola HR company is involved in Coca Cola HR company is involved in strategic planning strategic planning

HR department forecast future employee HR department forecast future employee demand demand

Forecast report is sent to regional head Forecast report is sent to regional head office for approval to start recruitmentoffice for approval to start recruitment

Recruitment ProcessRecruitment ProcessRegional franchise have their own Regional franchise have their own recruitment process once given go ahead recruitment process once given go ahead to hire more employeesto hire more employees

The recruitment process is well The recruitment process is well established established

Job advertisements are placed in news Job advertisements are placed in news papers, website, institutions and otherspapers, website, institutions and others

The company carries both international The company carries both international and external recruitmentand external recruitment

Attention to cultureAttention to cultureCoca Cola pays close attention to local Coca Cola pays close attention to local cultureculture

Special training given to employees on Special training given to employees on local and international culturelocal and international culture

New employees put under supervision of New employees put under supervision of old employees (Briscoe et al., 2009)old employees (Briscoe et al., 2009)

Working environment represent blend of Working environment represent blend of different cultures (Werther & Chandler different cultures (Werther & Chandler 2006) 2006)

Employee motivationEmployee motivation

Motivated employees are important Motivated employees are important assets for a company (Ulrich, 2007) assets for a company (Ulrich, 2007)

According to theories of motivation, According to theories of motivation, monetary and non monetary factors monetary and non monetary factors remain key in motivating employeesremain key in motivating employees

Coca Cola focuses on both monetary Coca Cola focuses on both monetary and non monetary factorsand non monetary factors

CompensationCompensation

The objective of company compensation is to improve The objective of company compensation is to improve performance of employees and convey a message that the performance of employees and convey a message that the company is loyal to employeescompany is loyal to employeesThe company gives may compensation – salary, bonus, The company gives may compensation – salary, bonus, medical, pick and drop, gratuity funds, social security etcmedical, pick and drop, gratuity funds, social security etc

WagesWagesResearch shows that monetary factors Research shows that monetary factors leads in motivating employeesleads in motivating employeesCoca Cola provides smart wages to Coca Cola provides smart wages to employees (The Coca Cola Company, employees (The Coca Cola Company, 2011a) 2011a) Wages are competitive and satisfy Wages are competitive and satisfy employeesemployeesMost employees by the company are Most employees by the company are offered competitive wages alongside offered competitive wages alongside commissions commissions

Staffing and TrainingStaffing and TrainingThe company has a clear staffing and The company has a clear staffing and training policy that is followed throughout training policy that is followed throughout its franchise (The Coca Cola Company, its franchise (The Coca Cola Company, (2011b) (2011b) Coca Cola believes that education is Coca Cola believes that education is powerful force in employee motivation powerful force in employee motivation (The Coca Cola Company, 2011a) (The Coca Cola Company, 2011a) The company has helps people make their The company has helps people make their drams truedrams trueIt has innovative programs – student It has innovative programs – student books, place of study, scholarships (HR books, place of study, scholarships (HR Leader, 2011) Leader, 2011)

Annual LeavesAnnual LeavesThe company has different leaves The company has different leaves structure that conform to local and structure that conform to local and international labor laws. international labor laws. The leave structure depends on position of The leave structure depends on position of employees as follows:employees as follows:

Designation Designation Allowed LeavesAllowed Leaves

SupervisorSupervisor 26 leaves pa26 leaves pa

Above supervisorAbove supervisor 26 leaves pa26 leaves pa

Below supervisor Below supervisor 24 leaves pa24 leaves pa

Working HoursWorking HoursTime management is taken serious in the Time management is taken serious in the companycompanyTheir work is divided in shift to enable the Their work is divided in shift to enable the company meet high demand (Global company meet high demand (Global Human Resources Management at Coca Human Resources Management at Coca Cola)Cola)Shifts are adapted to the local labor laws Shifts are adapted to the local labor laws There are typical two shifts:There are typical two shifts:

8 am to 4 pm8 am to 4 pm4 pm to 12 am 4 pm to 12 am

Performance appraisal Performance appraisal Appraisal of employees involves an Appraisal of employees involves an assessment of employee performanceassessment of employee performanceCoca cola performs performance Coca cola performs performance appraisal annuallyappraisal annuallyThe company performance appraisal is The company performance appraisal is internationally acclaimed and has three internationally acclaimed and has three processprocess

a.a. Define jobDefine jobb.b. Appraise the performanceAppraise the performancec.c. Provide feedbackProvide feedback

Employee RelationsEmployee RelationsCoca Cola considers employees as Coca Cola considers employees as the greatest asset for the companythe greatest asset for the companyEmployee satisfaction translate to Employee satisfaction translate to success for the companysuccess for the companyInternationally, the company adopts Internationally, the company adopts an open door policy to nurture good an open door policy to nurture good relationshiprelationshipEmployees feel free to share with Employees feel free to share with management about their problemsmanagement about their problems

Conclusion Conclusion Working internationally is challenging Working internationally is challenging for any company (Ashamalla, 2008) for any company (Ashamalla, 2008) Coca Cola company is among the Coca Cola company is among the most successful multinationalsmost successful multinationalsThe success of the company can be The success of the company can be attributed to good HR practices attributed to good HR practices The company follows international The company follows international HR practices that are adopted to the HR practices that are adopted to the local conditionslocal conditions

ReferencesReferencesAndrew, Y (2006). Andrew, Y (2006). An Easy BurdenAn Easy Burden. HarperCollins . HarperCollins Anfuso, D. (2004). Coca Cola’s staffing philosophy supports its global strategy. Anfuso, D. (2004). Coca Cola’s staffing philosophy supports its global strategy. Personnel JournalPersonnel Journal 116-121116-121Ashamalla, M. (2008). International human resource management practices: The challenges of Ashamalla, M. (2008). International human resource management practices: The challenges of expatriation. expatriation. CRCR 8, (2), 54 8, (2), 54Briscoe, D., Schuler, R. & Claus, L. (2008). Briscoe, D., Schuler, R. & Claus, L. (2008). International human resource managemeInternational human resource management. Routledge: nt. Routledge: London London Global Human Resources Management at Coca Cola. Retrieved May 25, 2011, from Global Human Resources Management at Coca Cola. Retrieved May 25, 2011, from http://www.work-a-holic.narod.ru/hr3.htmlhttp://www.work-a-holic.narod.ru/hr3.htmlHR Leader, (2011). Talent management at Coca Cola: the fizz from within. Retrieved May 25, 2011, HR Leader, (2011). Talent management at Coca Cola: the fizz from within. Retrieved May 25, 2011, from http://www.humanresourcesmagazine.com.au/articles/ed/0c053eed.aspfrom http://www.humanresourcesmagazine.com.au/articles/ed/0c053eed.aspitim international, (2011). Geert Hofstede cultural dimensions. Retrieved May 25, 2011, from itim international, (2011). Geert Hofstede cultural dimensions. Retrieved May 25, 2011, from http://www.geert-hofstede.com/http://www.geert-hofstede.com/McEnergy, J. & DesHamais, G. (2003). Culture shock. McEnergy, J. & DesHamais, G. (2003). Culture shock. Training and DevelopmentTraining and Development, 43-46, 43-46Mendenhall, M. & Oddou, G. (2008). Dimensions of expatriate acculturation. Mendenhall, M. & Oddou, G. (2008). Dimensions of expatriate acculturation. Human Resources Human Resources ManagementManagement, 331-345, 331-345Palthe, J. (2009). Palthe, J. (2009). Managing human rights and human resources: the dual responsibility of global Managing human rights and human resources: the dual responsibility of global corporationscorporations. Western Michigan University. Western Michigan UniversityThe Coca Cola Company, (2011a). Workplace/workplace rights policy. Retrieved May 25, 2011, from The Coca Cola Company, (2011a). Workplace/workplace rights policy. Retrieved May 25, 2011, from http://www.thecoca-colacompany.com/citizenship/workplace_rights_policy.htmlhttp://www.thecoca-colacompany.com/citizenship/workplace_rights_policy.htmlThe Coca Cola Company, (2011b). Diversity education & training. Retrieved May 25, 2011, from The Coca Cola Company, (2011b). Diversity education & training. Retrieved May 25, 2011, from http://www.thecoca-colacompany.com/citizenship/education_training.html http://www.thecoca-colacompany.com/citizenship/education_training.html The Cocal Coal company http://www.thecoca-colacompany.com/ourcompany/index.htmlThe Cocal Coal company http://www.thecoca-colacompany.com/ourcompany/index.htmlUlrich, D. (2007). Ulrich, D. (2007). Human resource champions.Human resource champions. Harvard Business School Press Harvard Business School PressWerther, W. & Chandler, D. (2006). Werther, W. & Chandler, D. (2006). Strategic corporate social responsibilityStrategic corporate social responsibility. Sage Publications. Sage PublicationsZyman, S. (2009). Zyman, S. (2009). The End of Marketing as We Know ItThe End of Marketing as We Know It. New York: Harper Business.. New York: Harper Business.