Human Resources in Coca Cola


Coca-Cola was started in 1886 and is world's leading soft drinks company at present. The company has procedures in over 200 countries and possesses about 2800 drink products. The company employs nearly 100000 employees around the world. Hence HR is a significant function within an organization like this. The business is offering high main concern to its work force and making considerable efforts in managing them. This is shown in the major elements of HRM in the business like recruitment, selection, talent management etc. Another key component of HRM atlanta divorce attorneys company is the way the performance of employees is accepted and how these are appraised.

Main body

Performance management is undoubtedly an intrinsic HR function in every corporation and Coca-Cola is also no exception. The company gives high importance to individuals resource management and hence makes considerable initiatives to improve their operations and functions. The performance management procedure for Coca-Cola Company is done through 4 levels. It is described as below:

Stage 1: Annual Performance Review

Stage 2: Plan Performance for the Year

Stage 3: Rewards and Recognition

Stage 4: Mid-term Review

On the successful completion of most these four stages, it could be assumed that the business has conducted it annual performance cycle and certain aims are accomplished.

Most of the very best companies in the us including Coke offers top priority with their performance management system and also doesn't feel it right to disclose much about any of it to the exterior world. Among the Vice Presidents of HR in Coca-Cola has straight said that they consider disclosing the performance appraisal form to external parties add up to revealing the trick method of Coke (Grote, 2000). This obviously indicates the frame of mind of the management of the company towards disclosing more about performance appraisal system. But the company has exposed that the procedure of appraisal consists of three major steps:

Defining the job or role to the worker. The appraiser or superior has to ensure that the employee understands and is also eager to take up the new job and duties.

Appraise the staff based after their performance.

The worker also gets feedbacks about just how they performed in the appraisal period. Here the superior or rater will be talking about the appraisee about the improvement he has made during this time. The superior must give inputs for producing skills that are anticipated from the worker to stand out in his job.

Thus it is noticeable that the company is goal-oriented and calls for its employees to realize their individual targets to be able to get appraised. Hence the system for assessing the performance in the business is based on meeting of targets. The objectives are rated based on a 4-point ranking range. The employees are classified into mainly five structured upon their performance. They may be:

TNTR- Too New To Rate

NP- Not Get together Performance Expectations

DP- Growing Performance

SP- Successful Performance

EP- Exceptional Performance

Based on the rating, the employees will be appraised to the next level. Each one of the evaluations has certain objectives that must definitely be fulfilled as well as certain competencies that will be required. Another integral part of the performance management process in Coca-cola is the KRA (Key Result Areas) setting process. KRA can be viewed as as a set of objectives that must be achieved by each employee so that the organization can in turn achieve its goals. Thus there is a high relationship between the performance management and accomplishment of organizational goals in Coca-Cola.

Another important method used in the company for performance measurement was balance central credit card (Malik & Khan, 2006). This technique requires making a vision, mission and company strategy (Bourne, 2001). Yet another strategy used is self-rating method which requires employees to rate themselves. This technique was found be equally effective with the other methods used (Hale & Whitlam, 2000).

The extremely competitive professional environment of today needs folks who are very skilled and technically licensed. For the reason that finally, it is the toil of the employees which results in organizational success. Therefore most companies are in the quest for attracting and retaining the quality labor force. Performance management is a critical aspect which gets attention in such a situation. It contains high relevance in an firm like Coca-Cola which is facing cut-throat competition in the current business community.

Performance management system functions a number of purposes for an organization. Many organizations find this as a placement tool. That is mainly appropriate in internal recruitments or transfers (Wayne, 1995). Coca-Cola can also use this for similar purposes and so reduce the price of recruiting and training a new worker. Another important utilization of PMS in the company is in career management. The training needs of the employees can be discovered by conducting a proper performance management process and so assist in providing the mandatory training to them thus encouraging them in attaining their goals. This might finally help in organization growth. Pfeffer (1999) has suggested that an company can improve by means of training its employees and increasing their contribution in decision making. He also advocated that the companies must try to bring in team founded performance appraisals to enhance the output. Thus the machine implemented in Coca-Cola helps in conversing the performance targets of the company to the work force. It also helps in obtaining their feedbacks. This might help the average person in evidently understanding his role and figuring out his talents and weaknesses (Piggot, 1999).

The company is also facing certain stresses from the external environment. Coca-Cola got to face lots of protests from the general public and regulatory body in the past decade. The economical tough economy of 2007 which shaken the global market also had a direct effect over the financial stability of the company. Even then the company could with stand the setbacks and could excel over a lot of its competition. Coca-Cola entered in various social ventures during this period to boost their image before the public. Through centering more on the corporate social responsibility, the business was able to maintain its faithful customer bottom as well as regain the trust of its stake holders. The major politics, social, economical and technological factors that influenced the company in the past decade receive below:

Political factors: The politics factors include authorities policies, regulations, taxes requirements etc. The company confronted severe protests in India and the center East before decade. The problem of company performing drinking water misuse and depletion in India received worldwide attention (Luthans and Doh, 2008). The governments of the countries revealed their disagreement with the company policies and practices and demanded a big change. Many environmental regulations were put in place which could have an effect over the company's operations. A number of general public suits were submitted against the company for causing side effects to the people.

Economic factors: The main constituents in this involve the total profit, development in income, contribution to GDP etc. The business had to feed a major economical shift before few years. The economic downturn of 2007 got a direct effect over the company's earnings. The American continent was highly damaged by the financial downturn and about 75% of the company's revenue originates from THE UNITED STATES only. This is the reason behind the business being strike by the downturn waves. It had been the strong marriage that the company holds with its customers and stakeholders which helped it to stand up to the stresses of downturn.

Social factors: The Company is also into lots of social ventures that would allow them showing their corporate interpersonal responsibility. Coca-Cola is aiding out children throughout the world by providing them with books, scholarships etc for his or her education. In Pakistan the company introduced an application which assures basic education to the children. Apart from the company also donates generally to child welfare organizations. In 2004, a sum of 50, 000 was donated to an Austrian children charity company called SOS Kinderdorf. The business is also into campaigns against Products and has donated over 1 million USD for creating awareness against Helps.

Technological factors: The Company is always the first choice of adding new and unique technologies. The innovations of ice-chilled coke, vending machines which are free of HFC, environment friendly plastic bottles etc. are some of its innovative systems. Some of these inventions were quite helpful for the company to improve its brand image before open public and stakeholders.


Hence you can conclude that HRM in Coca-Cola is quite effective and performance management is a key element in its success. If the company is with the capacity of balancing its work force issues and environmental pressures properly, it could continue to keep its position as world's most popular brand.

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