COCA COLA – WORKING
INTERNATIONALLY
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
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
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
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
Cont..
The following chart shows the company
revenue by regions (The Coca Coal
company ) :
Coca Cola Perfomance by Regions
United States
20%
43%
37%
Mexico, India,
Brazil, Japan &
china
Rest of the World
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)
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
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
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
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)
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
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
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
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)
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
26 leaves pa
Below supervisor
24 leaves pa
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
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
a. Define job
b. Appraise the performance
c. Provide feedback
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
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
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
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London
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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/
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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.