Professional Documents
Culture Documents
GROUP PROJECT
Diana BORISOVA (r0442606)
Denislava IVANOVA (r0441939)
Esra IBRAHIM (r0206704)
Simon GEVCEN (r0438137)
Marlena TZOCU (r0460908)
I. INTRODUCTION
A.
B.
C.
D.
E.
History
Mission, Vision and Values
Products
Allegations
Coca Cola Pakistan
D.
E.
F.
G.
H.
a. Recruitment
b. Selection
c. Motivation
Training and Developing a Competitive Workforce
a. Overview
b. Internship Programs
c. Mentoring Programs
Performance Measurement
Appraisal and Compensation
a. Performance Appraisal
b. Total Compensation and Benefits
Promoting Well-Being in the Workplace
a. Safety
b. Health and Nutrition
c. Climate Change
d. Waste Management
e. Time Management
f. Commitment to Diversity
g. Employees Social Platform
Labor Relations and Employee Relationship
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IV. CONCLUSION
20
V. REFERENCES
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I. INTRODUCTION
A. History
Nowadays, Coca-Cola is the most universal consumer product in the world, but this was not
always the case. The Coca-Cola Company started out on May 8, 1886 in Atlanta, Georgia as
an insignificant one man business (Hayes). Branded initially as a French Wine Coca Nerve
Tonic the recipe was patented by an Atlanta pharmacist named Colonel John Pemberton. He
mixed a combination of lime, cinnamon, coca leaves, and the seeds of a Brazilian shrub to
make the fabulous beverage. In 1886, however, the prohibition law criminalized alcohol and
thus, enforced Pemberton to re-examine his secret formula. The product was re-launched the
same year as a non-alcoholic tonic. Coca-Cola was originally used as a nerve and brain tonic
and a medicine that was promoted to cure everything from morphine addiction, neurasthenia,
headaches, and impotence to dyspepsia. The products name originates from two of its
ingredients: the coca leaf and the kola nuts. Thinking that the two Cs would look well in
advertising, Dr. Pembertons partner and bookkeeper, Frank M. Robinson, suggested the
name and now famous trademark Coca-Cola (Pendergrast, 2000). The first Coca Colas
advertisement appeared the same year (1886), promoting the drink as delicious and
refreshing, a theme that is still being advertised by the company today.
Prior to his death in 1988, Dr. Pemberton sold his shares to Mr. Asa Candler, who continued
to drive the brand to success. In 1892, he formed the corporation Coca-Cola Company and
undertook aggressive marketing strategy. His efforts were well rewarded and just three years
later, Candler was proud to announce that Coca-Cola' was now drunk in every state and
territory in the United States' (Hayes). From then on, Coca-Cola was on the path to glory led
by the newly invested Woodruff family who for the next six decades would help spread the
brand to all corners of the globe. In 1923, Robert Winship Woodruff was elected President of
the company. By the time of its 50th anniversary, the soft drink had reached the status of a
national icon in the USA. Perhaps Mr. Woodruffs greatest contribution was his vision of
Coca-Cola as an international product.
Today Coca-Cola is one of the most valuable brands on the planet. It is sold in every country
throughout the world except for North Korea and Cuba- due to trade embargoes with the
USA. (BBC News). However, it is reported to be available even in those countries as a grey
import. (Weissert, 2007; Ryall, 2012).
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(put our hearts and mind into what we do); accountability (act with high sense of
responsibility and hold ourselves accountable); integrity (be open, honest, ethical and trust
and respect each other); teamwork (collaborate for collective success).
The US-based company believes in thinking global, but acting locally and this strategy
guides the company management of cross-border operations. The Coca-Cola HRM group sees
its mission as a developing one and providing underlying philosophy around which local
businesses can develop their own HR practices. We can take as an example Coca- Colas
common salary philosophy, stating that the total compensation packages should be
competitive with the best of the companies of the local market. The company gives freedom
to the national business to conduct operations in a way that is appropriate to the market but it
also establishes a common mindset for its employees.
C. Products
Coca-Cola is a carbonated soft drink, which main ingredients are carbonated water, sugar,
caffeine, phosphoric acid, caramel color and natural flavorings (their exact formula is kept in
secret). In addition to the Original Coke, there is Diet Coke, Coca- Cola- Zero and fruit
flavored colas like Cherry Coke, Coca-Cola Lime, and Strawberry Coke etc.
The company has a portfolio consisting of more than 500 sparkling and still brands, worth 17
billion-dollar with 1.9 billion servings a day. The most famous of them are: Diet Coke, Fanta,
Sprite, Coca-Cola Zero, Vitaminwater, PowerAde, Minute Maid, Simply, Georgia and Del
Valle. (Coca-Cola Company website). As impressive as the brand is, there have been a great
number of controversies concerning the company and its products. In this paper, we will pay
attention only to the ones relevant to Human Resource Management.
D. Allegations
Being an international employer, the Coca- Cola Company has a lot of challenges to face
when it comes to Human Resources. In some countries there have been doubts about the fair
practices of the company regarding its employees. For instance, in 2000 the company was
charged for racial discrimination in US. Coca-Cola agreed to pay $192.5 million to settle the
lawsuit and made a promise to change the way it manages and promotes its minority
employees.
Among the questionable labor practices there have been allegations against the company of
involvement with paramilitary organizations in suppression of trade unions. Such is the case
in Columbia, where Panamerican Beverages (Panamco), Coca-Cola's main bottler in Latin
America, have been accused of hiring paramilitary mercenaries to assassinate union leaders.
Several court cases aroused and boycott actions against The Coca-Cola Company were
undertaken (Campaign to Stop Killer Coke).
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Page 5 / 24
Indeed, the aim of this paper is to analyze the four tasks and duties of HRM performance
management, compensation, career development, and succession planning based on the
procedures applied in the United States. Even though HRM is important, its practices arent
widespread in Pakistan. However, multinationals like The Coca Cola Company have their
own separate department of HRM and, according to Waqar Mahmood, HR Senior Executive,
the Gujranwalas HR department consists of 29 people.
In each organization, policies are implemented in a specific way in order to be adapted to the
company. However, policies and practices arent always aligned in all organization. In some
organizations, policies are considered as statements of expectations (Susan Jackson et al.,
2008) and arent then implemented in actual daily practices. In some other organizations, the
more policies and practices are closely aligned, the more effective the organization is likely
to be (Susan Jackson et al., 2008). However, as The Coca Cola Company is a global
company, its impossible to create certain policies or procedures which are applicable in all
divisions of the company (Krishna Kalyanam, 2010).
B. Organizational Structure
The Coca- Cola enterprise in Gujranwala is divided into several departments. This division
improves its functionality. The employees are allocated to the different departments on the
basis of their key competences and common skills. The departments are headed by the
General Manager who is responsible for their proper functioning.
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C. Company Culture
Appropriate business practices and innovative business approaches to managing human
resources sustain strong Coca- Cola culture which contributes to the overall productivity and
satisfaction level of its employees. (Friedman, 2009). These unique human resources practices
could not be easily replicated, hence creating a source of sustained competitive advantage
(Trawneh, 2010). A core value of Coca-Cola culture readily applied in Pakistan is diversity.
The organizations ability to adopt various multicultural perspectives and to utilize them in its
business practices at an operational level is integral part of its global success especially in a
historical city as Gujranwala (Samiti, 1954). The company is attracting, recruiting, retaining,
training and developing the superior talents from diverse backgrounds who could contribute
with innovative ideas and original approach to the Coca-Cola brand. Consequently, the
company is experience sustainable growth, increased market share and better market
positioning (Lee 2010).
In Gujranwala there are several aspects of Coca- Cola HR practices devoted to human capital
development which are strictly followed. Special training is provided to new employees by
experienced staff members who are introducing the companys values, visions and goals
(Dowling & Festing, 2008) In addition, a key objective of the companys HRM strategies in
Gujranwala is to create and sustain a workplace environment which is fostering the sense of
organizational loyalty and appurtenance in its employees (Kuvaas, 2008).
D. Employees as Assets
Employees of all occupations add value to the company by utilizing their professional skills,
experience and expertise in the different stages of the business cycle. These core employees
are adding value to the business in a wide number of ways: through research, production,
problem- solving, effective management, cost reductions, etc. (Herrero & Valle, 2006). As a
result of the rapid expansion of Coca- Cola in Pakistan and the consequent embrace of its
local culture, various advantages have accrued to the business. The different cultural
perspectives that have been embodied in the organisations practices have created diverse and
innovative teams which are extremely efficient and drive growth (Dowling et al, 2008).
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Coca Cola manages its business around the world with a consistent set of values that represent
the highest standard of integrity and excellence. These core values are essential to the longterm business success and will be reflected in the marketplace, the workplace, the
environment and the community.
First, when it comes to the Marketplace, Coca Cola strives to serve the people who enjoy the
brand through innovation, superb customer service, and respect for the unique customs and
cultures in the communities where Coca Cola does business. Second, regarding the
Workplace, Coca Colas aim is to treat everyone with dignity, fairness and respect. Coca
Colas workplace is a place where everyones ideas and contributions are valued, encouraging
all employees to perform to their fullest potential. Third, about Environment, what Coca Cola
Company cares about, is how to conduct its business in ways that protect and preserve the
environment. Coca Cola does this by integrating principles of environmental stewardship and
sustainable development into its business decisions and processes. Finally, for Community,
responsible corporate citizenship is at the heart of The Coca-Cola promise; creating higher
standards of living and quality of life in the communities in which they operate and being
socially responsible for meeting legal, ethical and economic responsibilities placed on them.
F. Environment
The Companys main goal is to increase its commitment to the community as well as the
environment. Touching the lives of billions of people around the world Coca-Colas
responsibility is to conduct its business in ways that help preserve the environment.
Coca-Colas bottlers helped solving environmental litter and solid waste issues for more than
20 years. The company supports litter prevention organizations including the Center for
Marine Conservation and Keep America Beautiful. Marine Conservation is an institute
dedicated to securing permanent strong protection for the oceans most important places for us
and for future generations. Keep America Beautiful is a non-profit organization founded in
1953. It is the largest community improvement organization in the US. It offers solutions that
create clean, beautiful public places, reduce waste and increase recycling, generate positive
impact on local economies and inspire generations of environmental stewards.
Keep America Beautiful and The Coca-Cola foundation have been working on the recycling
Bin Grant Program which provides recycling bins for public spaces. Groups interested in
receiving a bin must apply and recipients are selected based on criteria including; level of
need, recycling experience and the ability of applicants to sustain their program in future. This
year, Coca-Cola expanded its investment in the bin grant program to include a specific focus
on two-year community colleges. In addition, the bin grant programs also include four-year
colleges and universities as well as the traditional public space recycling bin grants.
According to Lori George Billingsley (Vice-President Community Relations Coca-Cola North
America), This collaboration effort not only helps the environment today. It also builds
more sustainable communities for the future.
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b. Selection
The position for which employees apply for leads the selection process to vary, because each
different roles in the plan cant fit with one unique and uniform selection process. Indeed, the
art of choosing men is not nearly so difficult as the art of enabling those one has chosen to
attain their full worth (Napoleon Bonaparte, cited by Michael Josephson, 2012). Many tools
are used to select employees.
First, interviews reveal more about the candidate with questions about how they usually
behave in different situations, at school, university and so on. Second, group exercises show
how effectively people work together and are a good occasion to evaluate how employees
could communicate, influence and involve other people in the workplace (Nipuna Weerakoon
et al., 2011). Third, presentations give the opportunity to express peoples ability to
communicate to a group of others about a specific subject. Fourth, psychometric tests are
exercises to be done in a given period of time and the aim is to evaluate candidates abilities
and potential. Examinators may also use personality assessment tool (Nipuna Weerakoon et
al., 2011) designed to find out more specific elements about candidates. Fifth, roles
plays/situational tests are made to observe how candidates react in a specific context. It helps
1
to highlight competencies and to evaluate if candidates suit for a job position. Candidates may
be given facts and figures to review, or a report to complete (Nipuna Weerakoon et al.,
2011). Hence, once tests with the candidate are done, evaluation is made and the assessment
will be made with respect to the general profile of the candidate, his personality fit to the job,
his aptitude and competencies to do the job in the plant, and his motives to join the company.
c. Motivation
The company is careful about its employees motivation. To keep it high, the companys
policy includes promotions for hardworking employees. These promotions are based on the
performance which is a huge motivation: the higher the performance, the higher the reward
possibility. Moreover, promotions arent the only tool: A compensation strategy can also be
relevant as Coca Cola is paying industrial average in compensation (Umer Farooq, 2012).
In addition to these strategies, competition between employees about performance can also be
an important element for increasing motivation. In that case, managers are important as well,
as they give feedback to employees about regarding their performance. They help employees
with their problems (Umer Farooq, 2012).
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hired in the company should be able to develop new competencies, to become proficient in
new jobs, and even change their occupations (Susan Jackson et al., 2008).
At the global level, training and development programs have an extensive on the job training
program to focus on the day-to-day needs of their people and, in each of their office across
the continent, there are a number of local training initiatives catering to particular regional
needs (CCBPL, 2014). Moreover, the company created The Coca Cola University which is a
university talent program, organized for four main work: Sales and Marketing, Supply Chain,
Public Affairs and Communication, and Finance. It provides opportunities to lead people to
develop both personally and in business (University Talent Program, 2014).
At the Gujranwala plant level, resources are diverse as they include instructor led training
classes (in a range of areas like people, franchise and consumer and commercial leaderships),
e-learning to share knowledge, workshops to generate new ideas and apply them practically,
just-in-time training and development for critical skills, an extensive online library of books
and other resources, and external speakers reviewing the latest thinking on hot topics.
Therefore, it is the Gujranwala plants responsibility to train its employees as technologies are
evolving. After recruited, employees are trained and paid for three months. After this period,
they become part of the company.
Indeed, learning and development teams face challenges for more cost-effective trainings and
a new product called Training on Wheels has been introduced to ensure the idea of training
just-in-time for everyone (CCBPL, 2014). Moreover, Since learning is a constant process,
[the capability development] encourages employees from commercial sales function to come
on board and conduct trainings as well in order to deliver a better understanding and also to
share the experience with the audience. This for sure will enable all volunteers for the project
to indulge themselves in activities other than their regular work and to contribute towards HR
initiatives. (CCBPL, 2014)
b. Internship Programs
The Coca-Cola enterprise is committed to providing opportunities for young professionals
with little or no experience i.e. the company offers a wide range of Internship Programs both
for students and graduates. For a period of four years the company has completed the training
of 150 interns all coming from diverse backgrounds. Every year applicants from more than
225 educational institutions located all around the country are competing for the Summer
Internship Programs. The organization is covering the housing and the transportation costs of
the successful applicants in addition to comparatively high monetary compensation. These
favorable terms attract the very best young individuals who could add a real value to the
company and its culture. The graduate opportunities which are also quite competitive are in
the sphere of marketing and sales.
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c. Mentoring Programs
To ensure that employees are constantly maximizing their professional performance, the
Coca-Cola enterprise is providing mentoring programs which include one-to-one mentoring,
group mentoring and self-mentoring. These programs are designed to foster development and
growth and to stimulate employers to acquire new competences applicable to the everchanging external environment (Burkea & Ngb, 2006). In addition, the employees are offered
an innovative way of networking, coaching and career counseling. Mentoring is used also as a
method of exchange of information within the organization whilst encouraging critical
thinking and instructive learning (Hezlett & Gibson, 2005).
E. Performance Measurement
This measurement is the process whereby an organization establishes the parameters within
which programs, investments, and acquisitions are reaching the desired results (Ayesha,
2013). The company makes a link between the mission and vision, and its operations and
functions. The performance as a whole is managed so that the best is taken from it. Managers
and employees are committed at a high degree in the system to make choices that can lead to
loyalty from the employees.
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policy differs among countries as it is integrated to the local accepted practices. The annual
leave policy regarding Gujranwala is as follows:
Occupation
Annual Leave
Managers
Supervisors
Workers
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c. Climate Change
Coca-Cola takes the issue of global climate change very seriously. Climate Change is a
significant and lasting change in the statistical distribution of weather patterns over periods
ranging from decades to millions of years. It may be a change in average weather conditions
or in the distribution of weather around the average conditions. Climate Change is caused by
factors such as biotic processes, variations in solar radiation received by earth plate tectonics
and volcanic eruptions.
Across the Coca-Cola system, the Coca-Cola team recognizes that climate change may have
long-term direct and indirect implications for their business and supply chain. As a
responsible multinational company, Coca-Cola has a role to play in ensuring that it uses the
best possible mix of energy sources, improve the energy efficiency of its manufacturing
processes and reduce the potential climate impact of the product as well. The Coca-Cola
company climate protection strategy is to find innovative ways to mitigate the environmental
effects of its operations and products. The company is linking climate change to their
leadership on water stewardship issues and to their work with supply chain partners on
packaging.
The three principal activities of the Coca-Cola business system which create greenhouse gases
are manufacturing plants, the distribution fleet and cold drink equipment. Coca-Cola
continually strive to improve the energy efficiency of its plants and fleet. In addition to that,
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the area where Coca-Cola has the greatest opportunity to make a difference is cold drink
equipment. And finally, Coca-Cola is making a great progress toward phasing out HFC use in
both refrigeration and insulation as well as to improve the energy efficiency of cold drink
equipment by 40 to 50%. HFCs (hydro fluorocarbons), are one of six gases which the Kyoto
protocol specifically called to be reduced.
d. Waste Management
Coca-Cola enterprise is committed to preserving the environment and saving scarce resources.
That is why recycling has been high on the companys agenda for a while. In fact, the
organization has built a recycling plant for bottles in Sydney, Australia investing a
considerable amount of money. On average, every one in five bottles sold to North America
contains recycled material.
e. Time Management
Effective time management is another prime objective of Coca- Cola as it stimulates growth
(Jackson, Schuler & Werner, 2012). That is why the organization values time as a limited
resource which shall be used intelligently. In order to achieve this, the Coca- Cola enterprise
in Gujranwala divides the working day into day and night shifts.
Shift
Time interval
Day
Night
f. Commitment to Diversity
Coca-Cola enterprise started realizing the benefits of employing diverse workforce. Diversity
within the company is not only in terms of culture but also in terms of values, lifestyles,
sexual orientation, gender, marital status. That is why companys multicultural management
practices are sensitive to delicate issues related to various life experiences (Newman &
Nollen, 1996). The increased diversity of the companys workforce in combination with the
new attitudes within the contemporary society are both posing a challenge and providing an
opportunity to the company for obtaining an essential competitive advantage (Dowling et al,
2008). Diversity has a direct impact on several key aspects which lead to growth:
Increases understanding of local markets and consumer behavior.
Creates competitive advantage.
Improve companys working conditions.
Raises social awareness.
Adds value to the company.
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IV. CONCLUSION
The purpose of this paper is to present the HR strategies adopted by The Coca Cola
Company. In the introductory part, the historical development of the company could be
observed i.e. the business commenced more than a hundred years ago in the U.S. and since
then it has continued to expand on a unprecedented scale due to its products quality and taste.
Although the company faced many allegations, it is at the pinnacle of the beverage industry.
In addition, in this paper the HRM concept is presented from a theoretical point of view, put
in the context of the organizational structure of the Gujranwala plant. An emphasis is put on
several core aspects related to HRM: the corporate culture as a whole which includes diversity
as a basis, employees as an asset, and the external environment.
The ultimate goal of this paper is to give an overview of The Coca Cola Companys HR
policies in its Pakistani plant of Gujranwala. Its HR strategy is comprised from several
essential concepts such as (1) Job analysis, (2) Planning and Forecasting, (3) Attraction of
qualified employees, (4) Training and Development, (5) Appraisal and Compensation, (6)
Promotion of well-being at workplace, and (7) Labor relations.
First, we explained that the Gujranwala plant has its own HR department which collects
informations at the employees requests. The department also delegates and determines the
different competences and tasks among its employees who fill various positions. Second, it is
mentioned that the Gujranwala HR department develops the strategic plans for hiring (or
firing) employees in accordance with the employment policy of the company. Third, the HR
department tries to meet this policy by recruiting, selecting and motivating only the superior
talents. The recruitment in Gujranwala can be done within the organization, or externally via
traditional vacancy forms. The selection process involves many methods tailored to find the
very best talents that would add value to the company. High motivation is required for the
employees participating in the production of the company.
Fourth, to obtain a competitive advantage, the company shall train and develop its labor
force. Indeed, the HR Department has adopted different leadership development programmes
such as internships (for students and graduates), mentoring programmes and so on. Fifth, the
HR management team took some specific decisions regarding performance appraisal (like
adopting pay-to-performance system) and other employment benefits. Sixth, the Coca- Cola
enterprise is committed to attain a safe, secure, and diverse working environment. Indeed,
safety rules are taken into account as employees health is a top priority of the company. The
Coca- Cola enterprise aims at reducing its footprint, so that it could contribute to the
environmental preservation. Moreover, a social platform has been developed so that
employees from all around the globe can share ideas, experience and opinions. Seventh,
employees are those who drive companys growth. All things considered, these main points
summarize the HR strategy adopted by The Coca Cola Company in its Pakistani plant of
Gujranwala.
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V. REFERENCES
BOOKS AND ARTICLES
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ASWATHAPPA K. (2007) International Human Resource Management, pp.20-21
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BEAUREGARDA A., HENRYB L. (2009) Making The Link Between Work-Life Balance
Practices And Organizational Performance, Human Resource Management Review, Volume 19,
Issue 1, pp. 922
BIGLEY A., FELPS W., JONES T., (2007) Ethical Theory & Stakeholder-Related Decisions: The
Role of Stakeholder Culture, Academic Management Review vol. 32, pp. 137-155
BIRD K., CLEGG C. (2008) The Impact Of Human Resource and Operational Management
Practices on Company Productivity: a Longitudinal Study, Personnel Psychology, Volume 61,
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BOONE L. E., KURTZ D. L. (2011) Contemporary Business, p.281
BOUDREAU J., JESUTHASAN R. (2011) Transformative HR, How Great Companies Use
Evidence-Based Change for Sustainable Advantage, pp.1-6
BURKEA R., NGB E. (2006) The Changing Nature of Work and Organizations: Implications for
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DAVID C. (2006) The Path to a Healthy Workplace: A Critical Review Linking Healthy
Workplace Practices, Employee Well-Being, and Organizational Improvements, Consulting
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DOWLING P., FESTING M. (2008) International Human Resource Management: Managing
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