Coca-Cola: International Human Resource Management

Executive summery

International HR departments are mandated to recruit and train employees for foreign duties. In this provision, selected employees are transferred abroad to serve in foreign subsidiaries. This paper focuses on Coca-Cola Company (as a case study) in regard to its expatriate recruitment and selection processes. Concurrently, Coca-Cola can improve its current expatriate selection and recruitment criteria using a ‘whole-person’ assessment approach.

Contextually, this report describes viable practices that an organisation can embrace when selecting employees to serve in foreign countries (International Human Resource). This regards various aspects of expatriation (Aswathappa, 2005). Using ‘whole-person assessment’ in improving the current HR practices is important. There are critical advantages and disadvantages characterizing the use of whole-person assessment method. In addition, there are reasons why some organisations hardly embrace this method in selecting appropriate individuals for international job provisions.

Introduction

Coca-Cola Company is among the victorious MNCs globally (Workaholic, 2012). It embraces the provisions of expatriation to enhance its international operations. This allows it to remain strategic in the market and augment its global presence. The company practices a viable recruitment and selection process for expatriates prospected to handle foreign assignments. The concerned expatriates are acquired through pre-set selection procedures, training, and expatriation provisions for enhanced international performances.

Considering these factors, it becomes very important for the company to adopt proper selection methods to be able to find the right expatriate. This provision should also consider familial aspects. Proper selection of an expatriate is the role of the International HRM (Dowling, Festing & Engle, 2008). Consequently, the company can employ ‘whole-person’ assessment method to enhance its selection procedures in regard to expatriation. Most people consider this technique to be very effective. In this paper, the advantages and disadvantages of this method are investigated. Using Coca-Cola Company as the case study, the methods of selecting the right employees and whole-person approach will be analyzed (Dash, 2007).

Definition of the Whole-Person Concept

‘Whole-person’ assessment concept refers to a comprehensive evaluation of an individual’s characters/abilities (Forbes, 2010). In regard to expatriation, this is helpful in determining the suitability of an individual (in regard to his/her body, mind, heart, and spirit) for a given international job. IHRM assesses an individual to ascertain motivation, performance, and ultimate success among the prospected expatriates (Forbes, 2010).

Advantages of Whole-Person Method in Selecting a Suitable Expatriate

It is costly to higher competent expatriates. Without proper selection of expatriates, a company might succeed in a foreign country in the business realms. A whole-person method presents the most thorough method of assessing the suitability of an individual to this kind of task (Dowling, Festing & Engle, 2008). Considering only few factors such as the level of expertise and ability to communicate in a foreign language is not enough to make the person suitable to work overseas. Precisely, the process ensures that the selected candidates are suitable for the concerned foreign duties.

Disadvantages of using whole-person approach

Although this method is considered to be the best criterion of selecting the most appropriate person for a foreign duty, it has some shortcomings. Firstly, it is rather expensive. Additionally, it needs time to know the in-depth characters, feelings, and family issues of the preferred candidate (McCourt & Eldridge, 2003). Without proper understanding of the whole-person a less competent individual can be selected and this could result into failure by the company. This is a vital provision when considered critically in various contexts.

Criteria used by Coca-Cola Company in Selecting Expatriates

According to Sharon, Steven & Corinne (2002), Coca-Cola has set selection standards to be used by its HR management when selecting expatriates. The aspects of job analysis, work design, recruitment, and selections are applicable in the context of expatriation (GBSG, 2003). Coca-Cola considers the following provisions when recruiting expatriates. These incorporate career development, political conditions, living conditions, spousal adjustment, and assignment duration (Sharon, Steven & Corinne, 2002). Prospective candidates must meet such provisions in order to expect any consideration into the expatriation dockets (Sharon, Steven & Corinne 2002).

The first step adopted by the company is the selection of appropriate expatriates. This occurs through viable mechanisms including structured interviews, a panel of interviewers, and a predetermined score guide (GBSG, 2003). The criteria have been standardized to ensure equality, viability, and appropriateness of the prospected expatriates. At this stage, the company assesses extraversion, emotional stability, agreeableness, meticulousness, and tolerance to diversity among the interested applicants (Dlabay, Scott & Calvert, 2010).

Concurrently, the company considers biographical information in order to evaluate the appropriateness of the concerned expatriate (Sharon, Steven & Corinne 2002). Bio-data inventories encompass information pertaining to preceding experiences, beliefs, and considerable virtues (Sharon, Steven & Corinne 2002). From this information, Coca-Cola can easily determine appropriate candidates for expatriate jobs. These are helpful in recruiting and hiring the right employee for foreign duties (Onkvisit, 2008).This helps the company to find the most suited person for any position within the organisation.

Sharon, Steven & Corinne (2002) indicate that training is an important provision for the Coca-Cola’s expatriate acquisition. The selected candidates who meet the required standards for expatriation must be trained to induct them into the company and define the concerned job roles. This is a critical provision when considered critically. Training occurs not only in the technical aspects but also in the concerned cultural environment where the selected expatriate will work. Training helps the concerned expatriates to know rules and regulations of Coca-Cola regarding expatriate jobs. According to Sharon, Steven & Corinne (2002), training is a continuous process in Coca-Cola and it depends on various contexts. The company defines the job roles, conducts a periodic appraisal, and provides an accurate feedback plus viable recommendations.

Since Coca-Cola is a company that operates globally, it prefers to work with people who are able to communicate in multiple languages. Because they are fluent in foreign languages, they are able to work effectively in their prospected work stations. The board of directors demonstrates this standard very clearly. Only 4 individuals out of 21 are from America (Vance & Paik 2010). Concurrently, Coca-Cola Company uses a recruitment program intended to identify potential individuals. This occurs right from colleges (Aswathappa, 2005).

For example, Coca-Cola continues to look for college students from foreign countries either in local universities in the United States or those who are studying abroad (McCourt & Eldridge, 2003). The student who is recruited into the program is trained then sent back to their homeland. In addition, the company has an internship program that is aimed at foreign students who seek to work during their holidays either at home or within the United States. For example, during the internship period, the interns are allocated work in projects that requires them to discuss their likes as well as their dislikes of that kind of work (Stahl & Bjorkman, 2006). Evaluation of each and every intern then follows. This is useful to the management as they are able to select a potential worker for their company. These standards really help Coca-Cola Company to find the most talented and suitable expatriates that can work worldwide (Aswathappa, 2005).

How Whole-Person Assessment will improve the Practices of Coca-Cola Company

Critically, there are several factors to be considered in determining if an individual (an expatriate) is the best candidate for a given foreign job (McCourt & Eldridge, 2003). It is also important to improve expatriate selection by using whole-person method. This can be done by emphasizing on factors including skills for the job, fluency in the foreign language, self-esteem, family issues, and relationship skills (NeelanKavil & Rai, 2009). For example, it is critical to understand that viable selection structures for an individual to work in a foreign country incorporate practical skills.

For instance, Coca-Cola Company selects an expatriate with management skills. It is likely that such individuals will advance very well in a foreign location. Additionally, if he or she has strong relationship skills, he or she is likely to develop good relations with the host country as well as the headquarters of the company. This will help in making the assignments of this individual even more productive (Perkins & Shortland, 2006).The dexterity for conflict resolution should also be considered. An individual selected to work overseas can only be successful to the extent that they advance their careers. Critically, these indicate how it is possible to improve expatriate selection by using whole-person method.

Critically, in selecting expatriates, Coca-Cola Company (for example) considers the aspects of self-esteem as indicated earlier. Concurrently, the right person for a foreign task should be prepared to acquire new attitudes as well as behavioural patterns to suit the kind of working conditions he or she is likely to face. An expatriate will consequently be more successful if they are up to the task of working in a completely new environment. In addition, they should be comfortable in developing networks and making new social contacts (Sparrow, 2010). Good motivation is not only important to an expatriate but also his or her family. If Coca-Cola company this factor into consideration they are more likely to be successful in their foreign missions (McCourt & Eldridge, 2003).

For example, for Coca-Cola Company to avoid chances of terminating an assignment prematurely, it selects individuals with strong relationship skills (Martin & Chaney, 2012). Critically, there are some characteristics they should look at in an individual. Individuals who are likely to be successful are tolerant to ambiguous situations, flexible, and possess strong social skills and outgoing characters (Stahl & Bjorkman, 2006). Additionally, having high cultural compassion also contributes to the effectiveness of expatriates. If an individual believes that his or her own culture is superior to other cultures, then he or she is described as Ethnocentric. People who are ethnocentric will have more difficulties to adjust to the cultures of foreign countries. Consequently, they will be perceived negatively by the local people of that particular country.

Another important factor that Coca-Cola considers is communication skills. An individual who can serve as an expatriate successfully should be fluent in the working language of the host country. Nonverbal communication is equally more essential for an expatriate. Besides, the company understands that an expatriate should understand that different kinds of cultures have different kinds of nonverbal communications. Therefore, they should be prepared to learn and get acquainted with the kind of common practices of nonverbal communication of the different country (Stahl & Bjorkman, 2006).

Coca-Cola Company realizes that family cohesion is important. This can help in enhancing the performance of an expatriate (Stahl & Bjorkman, 2006). The transition of the family of an expatriate should be considered thoroughly. On his or her personal capacity, an expatriate have to be comfortable with the kind of arrangement for transition to a foreign country. Something that is considered very petty (for example, moving with a family pet) can result into a serious stress for the whole family of the concerned expatriate. On the other hand, the spouse of an expatriate should be absolutely willing to live in the foreign country. Precisely, whole-person assessment approach in selecting the right person for a foreign assignment is very important. Simple factors ignored by the company can result into diminished productivity.

Areas that require further research

Benefits of making a preliminary stay in the foreign land

Expatriates might not be aware of the cultures and the living conditions in the foreign countries. This area needs further research to unveil its coherency, appropriateness, and relevancy in regard to foreign expatriates. Evidently, it is crucial to determine whether staying in a foreign land can affect an individual’s performance or not (Aswathappa, 2005). This could affect his or her initial adjustments. Consequently his/her level of motivation can be low and can affect successful completion of the assigned work. Critically, it is crucial to unveil this in regard to foreign expatriates. Additionally, it is important to know why there is need for an expatriate to make a pre-visit to the foreign land to access the living conditions.

Performance in a New Environment

Some individuals perform poorly in new environments. It is important to research why this phenomenon happens. Since a foreign country could be a new environment to an expatriate, the most suitable expatriate should be able to perform under strange working conditions (Stahl & Bjorkman, 2006). Also a different culture can make an individual acquire different characters. This might him/her more competent (Ahlstrom & Burton, 2009). Limited research has been done to help in assessing how each and every individual can perform in unusual working environment.

Area of Controversy

Controversy in assessing the whole family of an expatriate

Critically, it is controversial to apply the ‘whole-person assessment’ approach on the entire family of an expatriate. The solution can emerge from using other viable methods that can cater for family issues in regard to whole-person assessment method. It is critical to understand that since family conditions of an expatriate determines his or her success in work (foreign assignment), comfort and adaptability should be considered (Briscoe, 2008).

However, there are numerous discussions as to whether members of the expatriate families should accompany them abroad. For example, some argue that if an expatriate is accompanied with their family members, who cannot adapt or do not have the right characteristics of living in foreign country, performance might be compromised (Vance & Paik 2010). Critically, an expatriate should be accompanied with his or her entire family without any screening as this will enable him or her to work comfortably. This is a crucial provision when considering various controversies that might emerge when discerning IHRM’s provisions.

Controversy in Using Women Expatriates

Critically, using women expatriates is a considerable controversy in the Coca Cola Company. Presently, the number of women expatriates is quite low (Stroh, Varma & Valy-Durbin, 2000). For example, most people feel that foreigners might be unfair to women. As such, they might hardly complete the company assignments successfully. However, it is arguable that, women, if endorsed with foreign assignments, can change the perception of the local people regarding the roles of women in the society. Thus, women should be given a fair chance to serve in foreign assignments just like men. Additionally, most societies have not accepted women to work on critical positions due to cultural issues and prejudicial provisions (Stahl & Bjorkman, 2006).

Conclusion

Conclusively, International HRM departments promote viable expatriation provisions in the realms of recruitment, training, and evaluation of prospective employees. This paper focused on Coca-Cola Company as a case study discerning recruitment and selection processes for expatriates. Concurrently, Coca-Cola endeavors to improve its current selection and recruitment criteria using whole-person assessment.

Whole-person assessment approach is an important consideration in selecting workers for international duties. As indicated earlier, Coca-Cola Company has been taken as a case study to demonstrate the aspects whole-person assessment approach in selecting the right expatriates for foreign assignments. Without proper selection and induction of expatriates, Coca-Cola might hardly achieve proper implementation of its aims and objectives in a foreign country. A whole-person method presented the most painstaking method of assessing the suitability of an individual for foreign duties.

References

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