COCA COLA – WORKING INTERNATIONALLY

1. COCA COLA – WORKING INTERNATIONALLY

2. 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

3. 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

4. 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

5. 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

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

7. 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)

8. 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

9. 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

10. 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

11. 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)

12. 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

13. 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

14. 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

15. 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)

16. 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:

17. 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

18. 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

19. 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

20. 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

21. References • Andrew, Y (2006). An Easy Burden. HarperCollins • Anfuso, D. (2004). Coca Cola’s staffing philosophy supports its global strategy. Personnel Journal 116-121 • 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 http://www.work-a-holic.narod.ru/hr3.html • 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.asp • itim international, (2011). Geert Hofstede cultural dimensions. Retrieved May 25, 2011, from http://www.geert-hofstede.com/ • McEnergy, J. & DesHamais, G. (2003). Culture shock. Training and Development, 43-46 • Mendenhall, M. & Oddou, G. (2008). Dimensions of expatriate acculturation. Human Resources Management, 331-345 • 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 http://www.thecoca-colacompany.com/citizenship/workplace_rights_policy.html • The Coca Cola Company, (2011b). Diversity education & training. Retrieved May 25, 2011, from http://www.thecoca-colacompany.com/citizenship/education_training.html • The Cocal Coal company http://www.thecoca-colacompany.com/ourcompany/index.html • 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.