Introduction
Increasing employee performance is a goal of human resource management. HR used to be primarily concerned with hiring, firing, and the conventional yearly salary review, but HR has been favorably reframed and has expanded in scope. The company integrates its human resource management strategy into the broader business objectives to achieve high performance and gain an edge in the fiercely competitive beverage sector. It employs a business planning director in each nation where it conducts business and organizes various business activities to meet its goals. Excellent human resource management has helped successful corporate organizations succeed. Coca-Cola Firm is one of the most well-known and prosperous beverage producers in the world. “Coca-Cola Company launched its first bottling plant in 1894 and since then, the company has primarily prioritized expanding and increasing its profitability margins” (Xiang, 2022). The connection between management and HRM in the Coca-Cola company will be evaluated in this analysis.
Achieving Organizational Goals
The company’s mission statement is “to refresh the world in mind, body, and spirit, to inspire moments of optimism and happiness through our brands and actions, and to create value and make a difference” (Coca-Cola, 2022, para 1).
The company’s approach is “incremental innovation, that is to fully live up to the development possibility in a bottle of small carbonated drinks” (Chu, 2020). In the Coca-Cola Company, human resource management is known as control of people’s functions. One of the initiatives is connecting with customers and enabling them to meet their requirements, lifestyle preferences, and wants. The business employs and strategically manages its employees to carry out successful daily operations. Additionally, the company intends to boost its competitiveness and growth by using its assets to benefit shareholders. This is backed up by a vision of sustainable development that prioritizes the organization’s workforce above all other strategic goals. Coca-Cola delegated various HR-related tasks to line managers in addition to integrating HRM with its business objectives. For instance, the HR planning operations for the business planning department are handled by the director of business planning. The marketing director oversees the organization’s salespeople and marketers’ training and growth.
The human resource planning and forecasting process at Coca-Cola entails selecting the role that needs sorting and the procedure for doing so. The People Functions department, which is also involved in the company’s broader strategy planning, handles HR planning for the business. To plan to employ new personnel to fill open positions in the organization, the HR manager collaborates with other company leaders and line managers. Planning for HR also includes anticipating staff demands and the amount of output required. Coca-Cola Cola’s strategy includes managing employees’ departures from the organization as well.
Strengths and Weaknesses
With a strength index score in the top five, Coca-Cola is one of the strongest brands in the world. The Coca-Cola Company dominates a substantial percentage of the soft drink market in the United States. The company’s advertising effort is one of the key reasons the Coca-Cola brand is so well-known and recognized. Except for Cuba and North Korea, the company operates almost entirely worldwide, and its main product is famous. Coca-Cola invests a significant amount of money in its human resources division. According to their sustainability report, employees are compensated fairly, working conditions are respectable, and they have a strategy to improve this industry. Marketing and advertising are two other professions where they use their resources well. Due to its position among the top ten most valuable brands in the world, Coca-Cola has a high level of market equality.
Concerning the vulnerabilities, Coca-Cola had a high debt ratio due to acquisitions. Because of the almost $8 billion in debt that Coca-Cola acquired due to CCE’s purchase, the company’s debt load, interest rates, and borrowing cost significantly increased. One of the leading causes of sugar consumption is carbonated beverages. Obesity and diabetes are the two serious health problems it causes. The business has not yet developed a healthy alternative or fixed this issue. According to the lawsuit, Coca-Cola pays academics, doctors, and other experts to disprove independent scientific information about the harmful consequences of consuming sugar-sweetened beverages on one’s health.
The Role of HR in Developing Organizational Strategy
Coca-Cola organizes itself using a decentralization inside centralization strategy. This implies that the company is separated into areas and geographical territories where it works, although the global headquarters retains overarching decision-making authority. At Coca-Cola, planning entails setting goals for all employees at all levels. These goals are frequently assessed for success or failure in achieving them, and in the latter case, managers and employees who fell short of the goals are asked for feedback on why this occurred. This is then considered during the decision-making process so that the following year’s plan can correct any flaws and create new goals that consider these factors. A person’s qualifications, knowledge, abilities, and experience match the position’s needs to be filled throughout the recruitment process. Eliminating unsuitable individuals is part of the selection process. Coca-hiring Cola’s selection procedure is a protracted one that includes numerous phases to identify other attributes of candidates that cannot be detected through simple interviews. Coca-Cola uses group exercises to assess a candidate’s ability to collaborate well with others because the company itself is a team. The media, job placement websites, and websites advertising jobs are all part of the first stage.
Performance control includes determining the responsibilities and expectations of workers. Then, utilizing evaluation interviews and appraisal forms, the performance of employees is evaluated with predetermined standards to ascertain their level of performance. Finally, giving feedback entails assessing each employee’s performance and recommending particular measures, such as a plan for improving one’s job, a review of one’s pay, or a promotion or demotion. Asking employees and management pointed questions about their performance is how appraisal interviews are conducted. Building on each employee’s abilities and utilizing their most remarkable performance is one of the main action plans that the organization undertakes to accelerate performance. The lowest performers are also given a performance improvement plan.
Conclusion
In conclusion, the “marketing strategies, innovation, and transformation are embedded in different cultures that led to the sustainable growth of Coca-Cola Company” (Chia et al., 2020). One of the main factors contributing to the Coca-Cola brand’s popularity and recognition is the company’s advertising campaign, along with its excellent human resource management. Coca-Cola makes a sizeable financial investment in its human resources department. Additionally, they effectively utilize their resources in the marketing and advertising industries.
References
Chepkonga, F. (2021). Human Resource Management of Coca-Cola Company. Finance Notes. Web.
Chu, B. (2020). Analysis on the Success of Coca-Cola Marketing Strategy. Advances in Economics, Business and Management Research, 155, 96-100. Web.
Chua, J. Y., Hung Kee, D. M., Alhamlan, H. A., Ying Lim, P., You Lim, Q., Yin Lim, X., & Singh, N. (2020). Challenges and Solutions: A Case Study of Coca-Cola Company. Journal of the Community Development in Asia, 3(2), 43-54. Web.
Coca-Cola. (2022) About. Web.
Xiang, M. (2022). Analysis of Coca-Cola Company’s Marketing Model. Journal of Economics, Business and Management,10(2), 120-123. Web.