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Diana BORISOVA (r0442606) Denislava IVANOVA (r0441939) Esra IBRAHIM (r0206704) Simon GEVCEN (r0438137) Marlena TZOCU

Diana BORISOVA (r0442606) Denislava IVANOVA (r0441939) Esra IBRAHIM (r0206704) Simon GEVCEN (r0438137) Marlena TZOCU (r0460908)

Faculteit Economie en Bedrijfswetenschappen

GROUP PROJECT

The Coca Cola Company

Human Resource Practices in Gujranwala, Pakistan

Strategic International Human Resource Management

Master of Science in International Business Economics and Management (MIBEM)

Hogeschool Universiteit-Brussel (HUB) Katholieke Universiteit Leuven (KUL)

Academic Year: 2013 2014 Due date: May 16 th , 2014

Teacher: Dr. J. Griffith

I. INTRODUCTION

3

 

A. History

3

B. Mission, Vision and Values

3

C. Products

4

D. Allegations

4

E. Coca Cola Pakistan

5

II.

GUJRANWALA’S ORGANIZATION

5

A. Human Resource Management

5

B. Organizational Structure

6

C. Company Culture

8

D. Employees as Assets

8

E. Total Quality Management

8

F. Environment

9

III. GUJRANWALA’S HR POLICIES

10

 

A. Job Analysis, Competency Modelling and Work Design

10

B. Planning and Forecasting

10

C. Attracting Qualified Employees

11

a. Recruitment

11

b. Selection

11

c. Motivation

12

D. Training and Developing a Competitive Workforce

12

a. Overview

12

b. Internship Programs

13

c. Mentoring Programs

14

E. Performance Measurement

14

F. Appraisal and Compensation

15

a. Performance Appraisal

15

b. Total Compensation and Benefits

15

G. Promoting Well-Being in the Workplace

16

a. Safety

16

b. Health and Nutrition

17

c. Climate Change

17

d. Waste Management

18

e. Time Management

18

f. Commitment to Diversity

18

g. Employees Social Platform

19

H. Labor Relations and Employee Relationship

19

IV. CONCLUSION

20

V.

REFERENCES

21

Platform 19 H. Labor Relations and Employee Relationship 19 IV. CONCLUSION 20 V. REFERENCES 21

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 product’s 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. Pemberton’s partner and bookkeeper, Frank M. Robinson, suggested the name and now famous trademark Coca-Cola (Pendergrast, 2000). The first Coca Cola’s 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. Woodruff’s 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).

B. Mission, Vision and Values

The Coca-Cola mission has three main objectives defined by the company as: “To refresh the world, to inspire moments of optimism and happiness, to create value and make a difference”. (Coca-Cola Company website). This mission is universal and it also applies for the Coca Cola Company in Pakistan - “Build a sustainable and profitable business through refreshing consumers, partnering with customers, delivering superior value to shareholders and being trusted by communities” (CCBPL website). Company’s values are determined to be: passion

(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- Cola’s 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”).

E. Coca Cola Pakistan

Coca- Cola first stepped into the Pakistani market in 1953 with the following brands: Coca Cola, Fanta, and Sprite. The Coca-Cola Beverages Pakistan Ltd.’s first plant was opened in Karachi in 1996, following the acquisition of locally franchised bottling operations throughout the country over the next 10 years. In 2008, Coca-Cola İçecek acquired 49% share in Coca-Cola Pakistan and took over the management. (CCBPL website)

Currently, Coca-Cola Beverages Pakistan Ltd. (CCBPL) has 6 plants and 13 warehouses throughout the country and serves a population of more than 170 million. It has a significant role in the growth of Pakistan’s economy since it is one of the country’s top foreign direct investments in Fast Moving Consumer Goods business and is one of the major tax paying beverages companies of Pakistan (CCBPL website). The Coca-Cola System, according to the press release, provides direct and indirect employment to more than 8,000 people in Pakistan; while another 35,000 people are employed through its supply chain, and another 100,000 benefit through employment in allied industries (Baloch, 2013).

II. GUJRANWALA’S ORGANIZATION

A. Human Resource Management

Nowadays HRM plays a vital role in the company’s performance and success. Managers in various global organizations constantly emphasize the importance of the effective human resource management which inevitably leads to the establishment of sustainable competitive advantage and subsequent growth (Birdi & Clegg, 2008). As a leading global organization Coca Cola has developed various policies and practices which constitute one complete and functional human resource management system. Not surprisingly, the Coca-Cola enterprise has applied this system also in Pakistan.

The task of managing people efficiently is both thorny and challenging. It requires constant cooperation among human resource professionals, line managers and employees i.e. the so- called HR Triad. The key responsibility of the HR Traid is to attract and retain the superior talents by providing adequate monetary compensation, employment privileges and opportunities, safe working environment, etc. (Garavan, 2007).

As HRM is the function that assists organizations in achieving goals by obtaining and maintaining effective employees(US Legal.com), it is a key element for organizations and the basis on which the organization’s future depends on, because “it is people, not technology who create the company” (Todd McKinnon, 2014). According to Susan Jackson et al. (2008), HR activities “include the formal HR policies developed by the company as well as the actual ways these policies are implemented in the daily practices of supervisors and managers.

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 aren’t 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 Gujranwala’s 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 aren’t always aligned in all organization. In some organizations, policies are considered as “statements of expectations” (Susan Jackson et al., 2008) and aren’t 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, it’s impossible to create certain policies or procedures “which are applicable in all divisions of the company” (Krishna Kalyanam, 2010).

all divisions of the company ” (Krishna Kalyanam, 2010). (Source: Nipuna Weerakoon et al., 2011) HR

(Source: Nipuna Weerakoon et al., 2011)

HR policies and practices consists of many activities: Job analysis, Planning and Forecasting, Recruitment, Training and development, Conducting performance management, Developing an approach to total compensation, Using performance-based pay, Providing benefits and services, Promoting wellness, and Understanding unionization (Susan Jackson et al., 2008).

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.

Organizational members are crucial group of stakeholders which includes executives,

managers,

Gujranwala Coca- Cola enterprise is consisting of eight Departments which are all headed up by a Managing Director (MD). The responsibilities of managing the separate departments are

delegated to the department managers who could take accurate day-to-day operational decisions more effectively than the Managing Director (Narayan, 2010). The different departments are listed herein:

Felps & Jones). The

supervisors

and

even

part-time

employees

(Bigley,

Financial Department

Production and Engineering Department

Quality Control Department

Sales and Marketing Department

Fleet Department

Distribution Department

Human Resource Department

The Research and Development Department

The Financial department is led by the Financial Manager who is in charge of the assistant managers (Narayan et al, 2010). The department of Production and Engineering is managed by the Engineer Manager who is responsible for the performance of the Mechanical Engineers, Mechanical Supervisors and the Assistant Production Managers (Narayan et al, 2010). The Quality Control Department is headed by the Quality Control Manager who is supervising the Chief Chemist (Narayan et al, 2010). The latter is ensuring that the company’s standards of quality, product characteristics and appearance are satisfied and exceeded whenever possible. The Sale and Marketing Department is managed by the Sales and Marketing Management whose main responsibility is to expand the Gujranwala market to the utmost, hence increasing the overall sales of the company. The logistics and transportation are controlled by the Fleet Department which is headed by the Fleet manager. The latter is supervising and ensuring that the transportation system of the company is efficient and well- organized, avoiding any possible delays. In addition, the Distribution Department is operating in close collaboration with the Fleet Department (Narayan et al, 2010).

The Human Resource Department is fundamental for the overall success of the entire organization. The onus is on the Human Resource Manager to adapt to the cultural specifics and to ensure that the company and its culture are embraced on a local level. In addition, the local political organizations and labor market conditions are both crucial part of the Gujranwala external environment which are also considered by the Human Resource Management team (Hitt & Sirmon, 2007). Moreover, the Research and Development Department is responsible for the company’s constant evolution, growth and adaptation to any new emerging trends on the ever- changing market.

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 organization’s 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 company’s values, visions and goals (Dowling & Festing, 2008) In addition, a key objective of the company’s 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 organisation’s practices have created diverse and innovative teams which are extremely efficient and drive growth (Dowling et al, 2008).

E. Total Quality Management

Total Quality Management is a “holistic approach to long-term success that views continuous improvement in all aspects of an organization as a process and not as a short-term goal. It aims to radically transform the organization through progressive changes in the attitudes, practices, structures, and systems. [It] transcends the product quality approach, involves everyone in the organization, and encompasses its every function: administration, communications, distribution, manufacturing, marketing, planning, training…”. The most important message for Coca Cola Company is building trust and continue to build trust regardless where the company does its business.

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 long- term 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 Cola’s aim is to treat everyone with dignity, fairness and respect. Coca Cola’s workplace is a place where everyone’s 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 Company’s 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-Cola’s responsibility is to conduct its business in ways that help preserve the environment.

Coca-Cola’s 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.

III. GUJRANWALA’S HR POLICIES

A. Job Analysis, Competency Modelling and Work Design

Job analysis contains two elements called job description and job specification. The former is a “list of job duties, responsibilities, reporting relationship, working conditions and supervisory responsibilities” (Nipuna Weerakoon et al., 2011), that goes along with the latter which is “a list of a job’s human requirements that is requisites education, skills, personality (Nipuna Weerakoon et al., 2011). Job analysis helps then in analyzing the resources and establishing the strategies to accomplish the business goals and strategic objectives (Talha Nazar et al., 2012).

Indeed, organizations usually split and distribute the work to be done by its employees into specific jobs, and each one of these jobs includes a particular combination of tasks and role responsibilities. For an HRM to be effective, it has to be based on a clear “understanding of the way that work is allocated among jobs, the competencies needed by employees who work in those jobs, and a long-term view of how these are likely to change in the future (Susan Jackson et al., 2008).

In the case of the Gujranwala plan, its HR department has its own job analysis from which they get the information about “employees work activities, human behaviour, performance standard, job context and human requirements and also other information related to his conduct” (Krishna Kalyanam, 2010). Once all informations are collected via observation methods, interview techniques, questionnaires, and headhunting (Talha Nazar et al., 2012), the department is able to align competency modelling with work design. Based on that, the HR department uses these informations for Recruitment, Selection, Compensation, Performance appraisal, Training, and for improving Employees’ relationships.

B. Planning and Forecasting

The Gujranwala HR department is also involved in the strategic planning of the company. Indeed, they make sufficient planning “for hiring new employees in the future (Krishna Kalyanam, 2010). Moreover, the HR department forecasts for the expected employees needs in the company. They forecast their employees on the basis of change in technology and increasing in productivity.

C. Attracting Qualified Employees

a. Recruitment

According to Amara Bashir, the HR Director, “We at CCBPL 1 strive to attract, nurture, mentor, develop and renew talent” and “strive for the Right Person in the Right Job at the Right Time” (CCBPL, 2014). Indeed, for the job to be done, companies have to attract talented labor and retain those who perform best (Susan Jackson et al., 2008). Indeed, the recruitment in the Gujranwala plan establishes ads in newspaper, on the company’s website, in institutions and so on. The HR department collects then all application forms, “from candidates with required documents and CV” (Nipuna Weerakoon et al., 2011).

The recruitment process in Gujranwala is done in two ways. On the one hand, the internal recruitment consists on recruiting people internally, so some job vacancies are allocated to employees within the organization rather than to external persons. There are three main sources of internal recruitment: present permanent employees, present temporary employees, and retired employees. This allocation is based on sources like intranet, staff notice board, in- house magazine and newsletter, internal notices, meeting, and personal recommendations. All vacancies are then announced internally “so that if there is someone who can fulfil the requirements can get him/herself promoted or can refer someone of his relative to join if he is capable of that job” (Umer Farooq, 2012). On the other hand, the external recruitment is “where to fill the vacancy from any suitable applicant outside the organization” (Umer Farooq, 2012). This allocation is based on sources like press advertisement, educational institute, placement agencies, employee reference, employee referrals, and labor contractors.

b. Selection

The position for which employees apply for leads the selection process to vary, because each different roles in the plan can’t 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 people’s 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 Coca-Cola Beverages Pakistan Ltd.

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 company’s 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 aren’t 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).

D. Training and Developing a Competitive Workforce

a. Overview

A prime objective of the Coca-Cola is to raise awareness of the casual relationship between

education and high-quality of life. That is why the organization is funding various educational initiatives at a global level i.e. prospective students are granted scholarships and internships opportunities (Chew, Spangler & Zhu, 2005).

Regarding the employee development in the Gujranwala plant, the basis of the career progression is the employee’s potential itself. The CCBPL Human Resources Department analyses their abilities “through experience, performance ratings, qualifications and competencies” (CCBPL, 2014). In order to achieve the best, the HR department has to ensure that the employees’ potential are efficiently used in the different departments of the company.

Indeed, capability development became crucial in the HR policies of CCBPL. The aim is to construct important organizational abilities, to detect and create talented people a high performance level. Therefore, the company “would be focusing on organizational competencies in order to bridge the skill gap leading to superior performance as well as create focused training & development plans for our employees” (CCBPL, 2014). Hence, “Living positively, Adding Value, and Making Difference” are the objectives. (CCBPL, 2014).

More specifically, for a workforce to be competitive, employees need to know what they are supposed to do. So employers “often provide instruction and training” (Susan Jackson et al., 2008) and, as changes in job requirements can rapidly change, employees who are already

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 plant’s 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.

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 ever- changing 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.

to make choices that can lead to loyalty from the employees. (Source: Ayesha, 2013) “After the

(Source: Ayesha, 2013)

“After the goals and strategy has been formulated, performance is measured in order to check the implementation of strategy and goals. Monthly review is done to check the implementation results. During review periods no changes in the goals can be changed. During the mid-year stage, goals can be further refined or altered and new policies can be designed to achieve the organizational level goals. At the final stage the performance is matched with the standards and goals of the organization. If there are positive results with increase in overall productivity, the individual performance of the employees is evaluated and the rewards are then given on the basis of performance.” (Ayesha, 2013)

F. Appraisal and Compensation

a. Performance Appraisal

As stated by Waqar Mahmood, the HR manager of Gujranwala plant, regarding the performance appraisal, “We appraise the employees due to their performance about goals of the organization. We set the goals, starting [from the beginning of] the year] and tell the employees about the goal. If the employees achieve their goals, we appraise [them]” (Likhon et al., 2011). Indeed, the objective is to improve employees’ performance and to ensure them about the fact that the company is loyal toward its employees, for one simple reason:

“Employees are our assets. Therefore, we are careful about their health and benefits” (Likhon et al., 2011).

By definition, performance appraisal is a system that evaluate employees’ behavior in the workplace, via qualitative and quantitative analysis of job performance (Likhon et al., 2011). Indeed, it is “an effective technique to support and change culture of the organization optimistically; it would be possible if the system is equal for all employees of organization. The company’s management should then utilize this system to all employees so as to increase effectiveness and productivity” (Likhon et al., 2011).

To be specific, there are three steps in the performance appraisal process. The first step is to define the job by ensuring that the manager and the employee agree the duties and the job standard. The second step is the performance appraisal itself, in which the comparison between the subordinate’s actual performances with the standards set. The third and last step is to provide feedback by discussing the performance of the employee, and by developing plans for its future development (Likhon et al., 2011)

b. Total Compensation and Benefits

In the Gujranwala plant, some specific parameters are used for the basis of the reward system:

the inflation rate factor, the market potential (job experience, employee’s expertise), and sales reward. These types of reward are used by the plant to make its employees feel satisfied, motivated and competent in achieving the organization’s goals. The HR department of the plant believes that if employees have a strong loyalty towards the company, they will perform better to attain the desired results (Likhon et al., 2011). Hence, some of fo llowing compensation and benefits are given to employees: basic salary, bonus, medical facility, pick and drop, gratuity fund, social security.

As a progressive employer, The Coca-Cola enterprise is providing fair and sufficient monetary compensation to its employees. Furthermore, the salaries are competitive determined by years of experience, occupation and daily performance. Although it provides a good salary, Coca-Cola is dedicated to supporting its employees in keeping their work-life balance. This practice inevitably increases employees’ satisfaction and productiveness which, in turn, enhance customer satisfaction (Beauregarda & Henryb, 2009). The annual leave

policy differs among countries as it is integrated to the local accepted practices. The annua l leave policy regarding Gujranwala is as follows:

Occupation

Annual Leave

Managers

26

working days per annum

Supervisors

26

working days per annum

Workers

24

working days per annum

G. Promoting Well-Being in the Workplace a. Safety

Offering medical and psychological care in the workplace creates competitive advantage which helps Coca- Cola to retain its best talents (David & Grawitch, 2006). By addressing employees’ main concerns the organization is ensuring safe workplace and healthy employees- both mentally and physically.

Amara Bashir, Director of Human Resources, states that “We are committed to helping you to develop and mature as a professional. The company enables you to do what you can do best; by providing you the conducive Environment to maximize your potential. Our goal is to promote a positive and winning attitude in a Supportive Work Environment.” (CCBPL, 2014)

The Gujranwala plant is involved in ensuring the highest level of safety for its employees but also for its assets and visitors. It is a way to protect employees and to guarantee public safety. Indeed, The Coca Cola Company™ believes that the prevention of losses is possible only via the commitment of each individual in the company because the main effort for ensuring safety is, actually, made by people themselves: Their contribution is essential for their own well- being in the workplace and that’s the reason why the company created The Coca Cola Quality System™ which “incorporates quality, environment, occupational safety and health, and loss prevention into a single framework” (Coca Cola, 2014).

Managers of the Gujranwala plant aim to continuously improve safety standards. Therefore, all “necessary financial and personnel resources are made available” to reach that aim. Indeed, this allows the company to prove its compliance with governmental and international requirements. For instance, the Gujranwala plant implemented sound safety practices although no specific regulations are required in that specific case. That kind of policies can be costs which in turn become benefits in terms of safety work environment. Moreover, in terms of responsibilities, each employee is made accountable for his/her actions. The reason is that managers at Gujranwala have a strong believe: “We believe in safety. We adhere to our safety principles. We deliver.” (CCBPL, 2014)

b. Health and Nutrition

Your Health and Our Beverages: Nowadays people are more and more concerned with health and nutrition. They try to adapt themselves into a healthy lifestyle while at the same time they know that delicious foods and beverage are an enjoyable part of life. Soft drinks and other beverages have a place in a healthy lifestyle. A healthy diet incorporates the basic principles of variety, balance and moderation without sacrificing enjoyment. The scale and reach of The Coca-Cola Company and its brands are unique. Throughout history the company has been distributing refreshing products or resources and information to help contribute to healthier happier communities worldwide.

In 1976, Coca-Cola and FIFA launched world football development program. A program designed with an educational purpose to share soccer technology, teaching and training to get youth active in up to 100 countries where soccer was relatively young sport at that time. The company produced dozens of instructional sport films from the 1950s through the 1970s, which feature famous coaches and athletes. Coca-Cola Company has offered low-or no- calorie beverages for more than 50 years. It began with the introduction of TaB, the company’s first diet product in 1963. Three years later the company produced Fresca, a citrus- based sugar-free product. And finally the biggest launch of a diet product came in 1982 with the introduction of diet coke.

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,

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 company’s 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

8.00 a.m. to 4.00 p.m.

Night

4.0 .m. to 12.00 a.m.

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 company’s mult icultural management practices are sensitive to delicate issues related to various life experiences (Newman & Nollen, 1996). The increased diversity of the company’s 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 company’s working conditions.

Raises social awareness.

Adds value to the company.

g. Employees Social Platform

Coca-Cola enterprise has established a sense of community which enhance its ability to attract, retain and develop the diverse talents by using social platforms where employees from different countries could share their experience, opinions and insights regarding the company. The platforms are committed to equality irrespective of nationality, sexual orientation, occupation or gender. The social platforms currently in operation are as follows:

Administrative Professionals Platform.

African- American Platform.

Asian/ Pacific Platform.

American Platform.

Latin American Platform.

Homosexual Platform.

H. Labor Relations and Employee Relationship

Most organizations are run by their employees: Labor is the main asset of the company and it is in the company’s interest to, therefore, give attention to these employees. The success of the company is partly made by the satisfaction of its labor. If they are satisfied with the company’s policies, they will work hard to achieve the organization’s goal. If they are not, they will probably leave the company and it can become a loss for the organization as a whole. Employees’ relationship is then crucial for CCBPL (Nipuna Weerakoon et al., 2011).

Each company decides what policies to implement for improving employee relationships. In the Gujranwala plant, in case of problems faced by an employee, the person has the possibility to directly share and discuss that point with the manager in order to find a solution. CCBPL suggests that this kind of policy should, indeed, be adopted by every company as they believe that “an open door policy is the best […] because [they] feel very independent and they know that if they get any problem, they can contact directly to the manager of their department” (Nipuna Weerakoon et al., 2011).

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 Company’s 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 company’s 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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