Question

Coca Cola Company

Prepare an evaluation of human resource management within the organization you have chosen. I have chosen Coca Cola Company

• Develop a strategic human resource management plan that addresses the design of work systems, including education, training and development; and employee well-being and satisfaction to support TQM in the organization you have chosen.
• Paper length about 1200-words

Answer 1

Solution:

Human Resources Management (HRM) practice in any organization comprises three models (High-Performance management, High Commitment Management, and High Involvement Management).

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Resource Management:

High-performance working involves the development of several interrelated processes that impact the firm’s performance through people in such areas as productivity, quality, levels of customer service, growth, profits, and ultimately increase the stakeholder and shareholder value. This can be achieved by:

• Increasing Employees Skills
• Enthusiastic engagement of the employee

High-performance management practice includes rigorous recruitment and selection procedures, extensive and relevant training and management development activities, incentive pay systems, and performance management.

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Resource-Based Approach:

An organizational HR strategic policy and strategy is the blend of process, procedure, personalities of employees and employers, management style, capabilities, and organizational culture. Differentiation can be achieved by having an HR strategy and policy which ensure that:

• The firm has a higher quality of people than its competitors
• Development of unique intellectual capital
• The organization learning process is encouraged
• Organization specific value and culture exist, which binds the organization together and give it focus.

The purpose of the resource-based HRM strategy is to improve resource capability achieving strategic fit between resources and opportunities and obtaining added value from the effective deployment of resources.

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Strategic Alignment at CC:

CC has grown through many acquisitions, which made the working culture disparate. The state of cultural discoordination was due to the gap in both Corporate and HR strategy. The total concept of strategic HRM is that HR strategies should be integrated with corporate or business strategies.

There are numerous logical acquaintances, and topic subsists stuck between corporate tactics and human resource (HR) strategies. One of the associations is the portfolio theory that stands for market growth rate as a purpose alongside relative market share. At the same time, get used to HR strategies and policies based on changing conditions. A further relationship is the value chain that encourages innovation, service quality, responsiveness, and describes the positions for precise businesses. The connection also treats human resources as a significant factor in deceiving business rivalry on an in-progress basis. The themes centered on the relation between HR strategy and corporate strategy are identity, emergence, turbulence ownership, and structure. The corporate strategy will be found to have difficulty in the action level unless the HR strategy will not cope with the corporate strategy’s goal.

After merging, HR introduced hierarchy and divided the whole operation into different regions with small teams. To mitigate the organizational cultural chaos, CC became a more people-driven company. The company gave flowers and cards on the birthdays of the employees and major festivals.

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Implementing HR Strategies:

Strategies must be translated into programs with clearly stated objectives and deliverables. A strategy is traditionally the heart of the human resource manager’s strategic job. Top management formulates the company’s corporate and competitive strategies. Then, managers design strategies, policies, and practices that align with a company’s corporate and competitive strategies. Human resource management supports strategy execution in other ways. For example, Downsizing and restructuring efforts, placing employees, cutting pay for performance plans, and reducing healthcare costs and retraining employees.

CC introduced a strategy level decision to introduce a comprehensive career planning system for its managers in the new setup. The system included talent development meetings at regional and functional levels, following which recommendations were made to the HR council. The council then approved and implemented the process through a central HR team.

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HR Strategy for a Merger:

To develop a successful HR strategy for a merger, the responsible HR organization requires timely access to all relevant information. Ideally, HR participates in evaluating the potential merger candidate and can perform HR due diligence before the merger when the technologies, customers, market, and finance are being evaluated. A typical double handicap often arises during this phase:

• First, the acquiring company’s HR is often not involved in the evaluation until after a decision has been made. However, HR is tasked with executing the merger and handling all HR transactions.
• Second, merger candidates rarely fully disclose details personnel data, with all its strength and awareness.

Therefore, HR management is faced with the significant challenge of developing an HR integration strategy without a complete understanding of all the facts. An effective way to address this situation is to form an HR integration team that brings together HR professionals from both companies as early as possible. This will enable the acquiring company to quickly gain a sound understanding of the HR potential for the merger. The joint HR team can develop a single strategy for addressing the changes in post-merger. Two elements dominate the development of an HR strategy: Competence management and cultural management.

There are four leading roles of HR professionals in the case of M&A:

• Strategic partner for top management
• Administrative expert for personnel administration
• Employee champion for the needs of employees
• Change agent for the transformation process.

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Performance Evaluation:

There are three phases of evaluation of performance appraisal as enlisted below:

• Performance Management based phase
• Improving Current Performance Phase
• Development of Individual phase

1. Performance Management based phase:

In this phase, there are two main reasons: either as a system to control employees or to provide data about employees so that benefits (salary increment and other rewards, promotion, transfer, e.t.c.) can be awarded more or less systematic and equitable basis.

2. Improving Current Performance Phase:

The primary approach in this phase to change how employees do their jobs. The emphasis putting on:

• Reviewing previous performance and result for a given period against the plans and commitments generated at a previous appraisal
• Jointly identifying opportunities and needs for improved performance on the part of the employee, and increasing support for other employees and the organization
• Agreeing on performance standards and the ways they will be monitored and assessed.
• Identifying significant constraints and obstacles to task implementation and planning ways of coping with these.

3. Development of Individual Phase:

This phase focused on providing an opportunity to reflect upon professional practice in a structured way, identifying the training and development needs of individuals and groups and seeking job and career discussions and counseling opportunities.

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Employee Development:

Employee development nurtures employees in line with organization, departmental, and workgroup needs. Employee development is not always directly tied to observable, behavioral change. It develops individuals so that their organization collectively possesses the competencies essential to execute present responsibilities and prepare for the future.

The objectives for employee development can be achieved through the following method:

• Long-term, informal mentoring programs
• Long-term, formal mentoring programs.
• Long-term formalized transfer or exchange programs across organizations, divisions, departments, work units.
• Short-term rotation programs
• Special job assignments
• Action learning projects
• Field trips
• Professional conference
• Behavior modeling
• Think tank experience.

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Employee Reward System:

An employee reward system consists of an organization’s integrated policies, processes, and practices for rewarding its employees according to their contribution, skill, and competence and market worth. It is developed within the framework of the organization’s reward philosophy, strategies, and policies.

There are several elements in the employee reward system, including Base pay, Contingent pay, Allowances, Total earnings, employee benefits, total remuneration, Non-financial rewards.

Decisions about pay increase are often critical in the relationship between employees, their managers, and the organization. Individuals express expectations about their pay and about how much of an increase received by other employees. There are several ways to determine pay increase: Performance, seniority, cost of living adjustments, across the board increases, and lump-sum increase. These methods can be used separately or in combination.

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Performance-Based Increases:

A growing number of employers like CC have shifted to more pay for performance philosophy and strategies. Consequently, they have adopted various means to provide employees with performance-based increases. There are several types of performance-related compensations:

• Payment by the result: salary depends on the output of a group or an individual.
• Piecework: It depends on each unit of production.
• Organization or Plant-level incentives: Depends on the measured quantities or value of the plant’s overall establishment output.
• Merit Pay: Based on the assessment of the employee’s contribution to performance.
• Performance-related pay: Based on the performance appraisal of an employee against the set objectives.

There are other forms of performance-related pay, like competency-based pay and profit-related pay.

To be a learning organization, CC introduced a detailed career planning for its managers through a talent development roadmap. Efficient management trainees were to be sent to the overseas office to gain position.

To motivate the employee as well as media rumor, CC CEO took steps to ensure a smooth relationship with the new people in the company. He met the finance heads in every territory and made the company’s policy clear to them.

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Learning Organization:

A learning organization continually improves by rapidly creating and refining the capabilities required for future success through:

• Shared Vision: It enables the organization to identify, respond to, and benefit from the future opportunity.
• Empowering management: Empowering the managers and employees to a different extent, improve the performance.
• Enabling structure: organizational structure and its related knowledge make employees aware of their duties and responsibilities according to their hierarchy or organizational structure.
• Supportive culture: which reveals the expression of the employees, opinion ship, liberty in speech may be the practice of the organization, which makes the culture of the favorable working organization.
• Motivated workforce: Teach employees how to be knowledgeable about their right and wants to learn continuously.
• Enhanced learning: process and policies exist to encourage learning amongst all employees.

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Knowledge Management:

Knowledge management is any process or practice of creating, acquiring, capturing. Sharing and using knowledge, wherever it resides, to enhance learning and performance in organizations. Stock included expertise and encoded knowledge in the computer system. Flows represent how knowledge is transferred from one to another or from one person to the database. It involves transforming knowledge resources by identifying relevant information and then disseminating it so that learning can happen seamlessly.