Behavioral Theory With Reference To Coca Cola Company Business Essay

Leadership ideas are widely disperse around us using their roots appearing from different practical examples and real time implications from numerous organizations. The essential shoot for the evaluation of leadership theories is to provoke a world of successful management and maintain the smooth jogging of the management with management and management qualities.

Following leadership theories are quoted from Coca Cola Company, the way the company has gained such extraordinary success and a term from CEO. Coca cola Company mainly sees these theories to develop the leadership qualities among their employees.

Behavioral Theory WITH REGARDS TO Coca Cola Company:

The creators of behavioral theory suggest that leaders can be made, they are not always born. They believe in the actual fact that leadership qualities can be learned over a time frame and they're not merely innate traits nonetheless they are successful behaviors of describable and explainable activities present in the habit itself. These activities are easier to be learnt alternatively than adopting numerous different attributes.

CEO of Coca Cola Company persuades and means that the employees receive an opportunity to learn and develop control skills monitoring the improvement every once in awhile accompanied by selecting those employees who possess successful leadership skills. Creating a behavioral theory is comparatively easier assessing market leaders and leadership success actions. Here CEO can discover patterns use which raises to failure there it added a second part of understanding.

Trait Theory WITH REGARDS TO Coca Cola Company:

Trait theory suggests that successful leadership is an amalgamation of qualities that defines control skills and characteristics. Companies like coca cola evaluate the employees on mental traits focusing on unique attributes. CEO of Coca Cola Company evaluates the employees based on their habits and work constructions. Trait theory suggests the possession of the following features and skills confirms successful goal market leaders and Coca Cola Company focuses on retention of them.




Willing to suppose responsibility


Tolerant of stress



Adaptable to situation


Desire to influence others

Alert to sociable environment

Achievement focused and ambitious




Fluent in speaking

Conceptually skilled

Diplomatic and tactful



Knowledgeable about group work

The above set of characteristics and skills are crucial in reaching organizational goals and serve as an inherent part of a good head.

Participative Authority Theory:

This theory aims at developing a knowledge to decision making in several scenarios. The idea suggests that people working in groups must be more collaborative and less competitive. Team based decision making is better and more determined than individual folks.

Coca Cola Company uses this theory and targets the introduction of teams to get more detailed targeted and cooperative decision making rather than being alone. Leaders are decided on for individual teams based on attributes as commitment, cooperation, cooperation, desire friendly behavior etc. different programs are arranged so that the team member can take part and develop those control qualities. Coca Cola Company effectively inculcates this process.

http://1000projects. org/leadership-theories-development-of-leadership. html

Impact Of Managerial Styles On Organizational Efficiency At Nestle':

Democratic and Decentralized Management:

This active world is a regular threat to leaders bringing challenges and even opportunities. To achieve organizational performance Nestle has in so doing gained insight to growing and ensuring Democratic and Decentralized Management Style seeking decision making.

Nestle delegates the power of decision making writing it one of the labor force whereby maintain team market leaders to stick to single coherent direction. The associates are converged to specific participatory roles for full engagement regarding organizational effectiveness.

It also believes in posting of perspective and goals and contribution of all employees to gain operational speed, getting rid of organizational obstacles, leveraging strength of people, and focusing on organizational performance.

Nestle holds and employs the thought of minimal degrees of management so that the information can be flown through all the levels and there is absolutely no communication gap chasing organizational effectiveness.

The notion of bare minimum spans of control and flexible authority and flatter organizations allow people development and also concentrating on fulfilling of targets and goals.

Nestle targets direct personal commitment and encouragement therefore decentralized management style is the best suited for this organization whilst seeking organizational performance when all the employees will feel themselves an integral part of the business and work in correspondence compared to that.

All the above mentioned goals can't be achieved and organizational efficiency cannot be in full bloom if applied another management style known as Autocratic, which does not permit the information to be distributed among workforce and discourages employees' involvement in decision making and provides off a centralized organizational framework not suited to Nestle at this time.

http://www. nestle. com/asset-library/Documents/Library/Documents/People/Management-Leadership-Principles-EN. pdf

Motivational Theory Impacting Worker Motivation:

Maslow's Hierarchy Of Needs:

Motivation is thought as a driving make initiating a specific patterns in response to drive (exterior/ inner cues). A determined employee is significant to organizational success. They make your organization lucrative and are highly effective and essential to different organizational working conditions.

Maslow's Hierarchy of Needs theory focuses on the employees' internal needs that must definitely be full stuffed at every level prior going to the next level to inspire their tendencies.

Considering five basic needs of Maslow consists of the fulfillment of the needs along the pyramid as follows:

Physiological needs: echo the basic needs to be fulfilled to begin with which includes food, normal water, clothing, shelter etc

Safety needs: are actually the security needs including treatment, adequate wages to support family, better household and so on.

Belongingness needs: are the fulfillment of needs of social relationships, maintaining communal circles of friends and internet sites, being essential part of neighborhoods, an active person in society etc

Esteem needs: encircle the aspiration for realization, ability, position, and acknowledgment.

Self actualization needs: include the upbringing of yourself seeking new opportunities and looking for greater chances of progress in you.

If the business is satisfying these needs, the employee is encouraged and works to be able to retain organizational success, development and expansion.


This motivational theory is found to maintain common practice by virtually all the firms about the world today including IBM, Pepsi, Coca Cola, Nestle, and Basic Motors etc ascertaining to worker motivation and morale.

http://hotelmule. com/management/html/07/n-2107-5. html

http://www. slideshare. net/natarajpangal/motivating-employees-in-a-startup-venture

Theories ASSOCIATED WITH Work Relationships and Connections:

As the business continues to grow and expand globally, the changing work human relationships are placed continuously on a broader variety. This evolution help with an effort to management theory by continually changing the assumptions under which organizations are doing their work. Pursuing theories are centered on work human relationships among employees in an organization:

Personal Versatility and Adaptability:

This approach is based on the removal of Inter-personal conflicts using its viewpoint to keep the group people appropriate likelihood to develop their own specific comfort zones as being essential part of the group. One of many ways to eliminate and root out the social conflicts on the list of group members is through "Mediation approach".

http://jethrolmi. com/admin/uploads/connection-35-J-0031. pdf

Systems perspective approach of work interrelationships:

This approach delivers the theory that communication is the binding natural stone consequently of which different systems and subsystems are retained by a business.

Positive synergy:

Groups are considered to become more inclined towards undertaking faster and better when observed in a distributed way alternatively than their specific output expectations. Positive synergy is useful in order to attain more from the group performance as a whole.


Interdependence reveals the fact that the employees are reliant on each other. The output of 1 office and employees end up being the input for other division and employees, if a ball is lowered by one, the group all together will probably meet failure and goals wouldn't normally be achieved.


Homeostasis refers to the natural inclination of balance, synergy, coordination and equilibrium, retained among homogenous or heterogeneous teams and groups of employees. Furthermore additionally it is known as the propensity for confirmed system to continue to maintain its stability in the time of change.

Politeness Theory:

Politeness theory (PT) was developed by Dark brown and Levinson hence describing the actual fact how connections are preserved and sent among participants (employees) by using politeness strategies. Predicated on Goffman's (1967) conception of personality and face work, in the politeness theory by Dark brown and Levinson (1978, 1987) confirmed when, why, and exactly how interpersonal communication is increased through, or in the absence of, politeness.

http://www. sagepub. com/upm-data/4984_Dainton_Chapter_3. pdf

Characteristics of Different Business Structures:

Organizations are established based on various goals that require to be completed over the time of its life, and these functional/ operational goals are achieved by synchronizing the attempts of employees and different other individuals of the organization according to the following organizational constructions.

Functional Structure

Functional framework is the department of work force and work operations into separate respected departments. The different departments such as sales team, marketing, finance, research and development departments etc have their own efficient perspectives pouring a single coherent outcome.

Divisional Structure

Divisional structure can be used where bigger organizations are considered, and when the bigger organization is split into different divisions and sub areas. For instance, the now-defunct Nestle' Company is arranged into divisions for each and every geographic area to handle specific needs.


Matrix structure is an amalgam of divisional and functional structure. Organizations like Nestle' a huge multinational company, the matrix structure allows for the advantages of functional and divisional structures to exist in one organization.

http://smallbusiness. chron. com/different-types-organizational-structure-723. html

Culture and Composition of Nestle' and its EFFECT ON Organizational Efficiency:

Organizational Structure Of Nestle:

Nestle is a worldwide dairy and drinks organization enormously successful across the world. Nestle displays a decentralized organizational composition minimizing the period of control and reducing the levels of management.

Decentralized Firm:

Organizational efficiency is a function of organizational culture and its own structure depending after the operations it executes. Nestle is a decentralized business and it plays a part in the success and expansion of this corporation.

Nestle allows its employees equivalent opportunity to enjoy and preserve a high degree of autonomy. Thus giving them enough courage, sense of responsibility and motivation to execute their jobs fulfilling their job tasks. Major changes and the proper decisions are executed and prepared at the head office level but the daily routine structured activities are taken care of by the employees. The subordinates are allowed to concentrate, derive and implement daily businesses. The responsibility of taking operating decisions is pressed down to tactical business units. The employees enjoy a high amount of autonomy in regards to to decisions affecting pricing, syndication, marketing, recruiting, and so on. SBU or regional managers aren't permitted to make functional or tactical decisions on anything except for exceptional situations.

Nestle follows a traditional top down hierarchical framework of command. The company's executive body is the Table of Directors. Leading the business is the Chairman of the Mother board and Chief Executive Officer. Nestle therefore allows the unchanged person to hold both the positions.

Organizational Culture Of Nestle:

The culture of Nestle' consists of the distinctive patterns patterns and beliefs which makes up the organization differing them from the rest. A simple and quick evaluation of the organizational culture can be made by interacting with the people employed in the business and by checking out how people connect to each other and perform their careers.

A quantity of areas of Nestle's values and therefore working practices relate to interpersonal connections among employees, nestle feels in maintaining good and unbiased relations without the disconcert of contest, age, gender and other diverse ethnicities. All of the employees should accept the Nestle way of working and getting together with fellow employees and subordinates. Nestle seeks to maintain reasonable, sincere, immediate, and caring work place for people creating the business.

Nestle has therefore effectively developed a fair and unbiased group of values and ideas enabling the employees to get maximum reasonable and honest treatment. These worth and principles clinch the participation and contribution of diverse cultures, respecting them and developing long term associations with most of its suppliers and customers. These prices play a significant role in building the organizational culture.

The culture of a business will change and shift over time, both in respond to changes in the exterior environment as well concerning internal stresses within the organization.

Nestle Lessons Plan from THE DAYS 100 website: www. tt100. biz

http://www. mbaknol. com/management-case-studies/case-study-nestles-growth-strategy/

http://www. antiessays. com/free-essays/261835. html

Taking the present merger into account the new firm thus formed must be restructured on various grounds. I've thereby mentioned few dimensions that need to be reviewed for employee efficiency in the new business:

Meeting Notes:

Organizations can aid information and creativeness through effective communication and effective HRM. Creativity is at the heart of most organizations and recently has gained a main focus. For example IBM centers in innovative engineering and its success and expansion depends on creative imagination in field of technology and newer unique outputs. While recruiting, proper HRM can be involved with selecting those those who is constantly on the elicit high level of creativeness in their work, skills and ability, who understands how to respond to various solutions in unique ways, and undergoing different problem controlling guidelines. As IBM has reported that "one of the greatest achievement for just about any organization to own leadership competence is through Creativity"

http://www. cersi. it/itais2009/pdf/TR_3/itais2009_submission_25. pdf

http://executivenewswire. com/2011/02/how-can-creativity-and-innovation-be-facilitated-within-a-company-by-emmanouel-perakis/

http://www. tandfonline. com/doi/abs/10. 1080/09585192. 2012. 690567

The need for learning in organizations has been raised to a spot that allows the employees to learn from their flaws and a new corporation that is going through restructuring after merger must consider this parameter for performance. Hero merged with Honda Company in India and went into restructuring of company resulting in organizational learning, to help make the new management learn a mixture of new and existing organizational functional styles. Organizational learning brings continuous improvement to employees performance and in that way facilitation organizational success, survival and growth. Based on the publication "The Fifth Discipline" by Senge, clarifies his viewpoint as

"The capability to learn faster than your competition may be the only sustainable edge for your organization over time".

Moreover Learning organizations assists with generating and rehearsing new knowledge. This capability enables companies to remain ahead of change and the competition.

http://www. leadershipandorganizationalculture. com/2012/04/importance-of-learning-in-organizations. html

Effectiveness of Team Learning:

Traditional learning have been the practice of days gone by when the peer team leader primarily acts as a disseminator of information responsible for ensuring learning, only. Alternatively, team learning methods to empower the team members giving them the possibility to think, plan and action, enhancing their abilities to perform. Based on the researches by various institutes including Stanford University or college and School of Michigan etc, team based learning is an important evaluator for success of employees (team members). Sharing of information among team members and flexibility to perform and cooperate within groups is vital to the conclusion of any activity frequently. Through team learning, customers widely and easily discover their distributed and individual jobs and obligations in an efficient way.

Team Learning Success is a proven and practical diagnostic tool for assessing team effectiveness and bettering work group performance in any organization specifically for a fresh restructured one such as this.

http://coaching. uncc. edu/articles-books/best-practice-articles/instructional-methods/building-learning-teams

http://www. reliablesurveys. com/teameffectiveness. html

Approaches To Organizational Decision Making:

Valuable information is the building block to organizational decision making. Many companies such as Mckinsey and Co. provide consultation on how firms use the appropriate data. Organizations have preordaining access to huge amounts of data, including consumers, economic concerns, employees, stakeholders, financial information, rivals etc in natural and unstructured format. An organizational setting such as this binding into a merger just lately needs to focus on evaluating the importance of data gathered since past. To be able to realize value also to help organizations become more sustainable in the long run, it is crucial to increase the ways they evaluate and manage their performance.

Such mountains of data make decision making difficult and obscure. Therefore value data is extracted from the organic data known as information which is significant to the business when kept up to date, relevant, timely and correct. Using different information systems and information technology tools make effective decision making. Tools such as Decision Support Systems and Management Support Systems etc are of critical value.

http://www. auditcommission. gov. uk/SiteCollectionDocuments/AuditCommissionReports/NationalStudies/Cranfield_Information_use_review. pdf

Approaches To Risk And Doubt In Decision Making:

Different workshops are conducted enabling the participants to undergo decision making based on simulated situations. This allows them to execute well under actual circumstances. Workshops increase their degree of performance and risk managing under uncertain conditions.

In addition to the I also prefer the development of mitigation regulations to be pursued under dangerous and uncertain circumstances while going through decision making.

Integrated assessments can advise decision designers of the relationship between risk including factors, adaptation potentials, and costs of emission reductions and the advantages of avoiding uncertain situations. These assessments have frameworks to deal with imperfect or imprecise data. Much like Unilever and Procter and Gamble they estimate the demand and supply based on pre defined procedures to take care of the uncertain high or low demand times.

http://www. ipcc. ch/publications_and_data/ar4/wg3/en/tssts-ts-2-2-decision-making-risk. html

http://www. cresp. org/education/workshops/workshop-on-risk-assessment-and-safety-decision-making-under-uncertainty/

Evaluation of Success of Organizational Decisions:

Organizations such as International Energy (a masked name) made critical problems in decision making incurring extra normally high costs known as failure costs. Therefore successful organizations such as Wal-Mart employ a structured approach means building assumptions and methods for "just how we make decisions around here. "

There are five critical elements chasing effective organizational decisions.

The above diagram clarifies the systematic approach to organizational decision making including conditions, facts, alternatives, determination, and closure. The main purpose of decision making has high lightened that particular goal you want to perform over time through effective decision making, whereas having obscure and incomplete goals contributes to failure. Wal-Mart, a web retailer store targets goals and makes decisions appropriately.

Companies like International Energy focuses on reliable and exact use of facts when and where required. There exists too much data but screening process the required and vital valued data is an important step t effective organizational decision making.

Gaining perception to program of alternatives is vital to making right choices while making critical and great decisions. Seeking for alternatives reinforce the need to examine several option and practically always improves the quality of decision making as the CEO of International Energy studies.

Companies like Dow Chemicals, Intel, and Wal-Mart etc embed decisions regarding business-unit strategy in contracts that detail the precise strategic decisions which may have been made, the resources required to use the strategy effectively, and the individuals who are in charge of delivering on the decisions.

Moreover when your choice is not communicated, , obligations are established using their time frames execution and a continuous feedback monitoring system for performance, a powerful decision will be useless. Wal-Mart didn't offer steep special discounts during the getaway selling season. On Friday after Thanksgiving, rivals observed Wal-Mart's strategy and commenced trumpeting their own holiday discount rates, sensing an possibility to draw customers from the retail large. But Wal-Mart was closely monitoring results, and its executives figured out that the new plan wasn't working sufficiently. They quickly reversed the decision and within days and nights, every store in the Wal-Mart system experienced returned to the business's traditional practice of trip discounting.

http://www. bain. com/publications/articles/decision-insights-11-how-organizations-make-great-decisions. aspx

Analysis of the Effective Management of Change in Organizations:

Change management is definitely challenging to the organizations. The vibrant environment encircling the organizations helps to keep on becoming uncertain and unstable. To manage the circulation of incidents it the basic principle of change management must be of focal point. Moreover, for an organization starting a merger, the new management resulting from the combo of both pre existing organizations, has to go through challenging situations of change. This change is essential as well provoking effective management styles.

The change management is approximately maintaining a vibrant equilibrium within the environment you are functioning. By diagnosing the situation which develops as the consequence of change management you can ensure that:

The goals may be accomplished as there is enough stability

There must be operational continuity so that nothing at all would be distracted as the consequence of change

The organization is adaptable to different situations and can take care of the internal and external occurrences as well as the change

There will do determination so when the rite time comes the change can be implemented easily

The management role is all about dealing with the change so that the processes (interior as well as exterior) should only be minimally disrupted as accelerating change can increase the level of intricacy and management problems. It's rather a range of activities which can become a lead to for change like old equipment is beyond repair, changes in legislations, changes in technology, merger and acquisition activity (as inside our case) occurring as a loan consolidation in the bank sector, economic cases etc. matching to Geliner and Earnst, 1996:

"The change will bring in Fresh issues and duties; this will generally offset the job security situation as more motivation can be gained"

http://www. mightystudents. com/essay/Managing. Change. Organizations. 34325


The behavioral and features theories are crucial components for understanding the partnership of leadership styles and linking them with innate or learnt behaviors and/ or characteristics. The significance of participative management theory is through its implementation at various levels in every organization Furthermore, drive at every level leads to success and growth assurance on part of employees, fruitful for the business.

The different group styles, set ups and diverse cultures operate in large and small organizations. Their platform is made stronger with the practice of such guidelines, policies, structures and civilizations making them an natural part of these corporation and allowing new and existing employees to act in unison with them.

Lastly different methods of decision making and the potential risks in making decisions are also evaluated on experience and judgments based on knowledge and perception. The team based mostly learning helps in better solutions to make the employees perform more collaboratively and less competitively.


Lastly I've concluded through my energetic analysis that management theories, desire styles, organizational culture, framework and styles are most important for the correct functioning of an organization. The effectiveness of decision making factors are also very successful and their understanding of stream of information is significant to any group whether big or small.

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