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Coca-Cola, recognized as one of the world’s leading brands that focuses largely on the marketing of its brand to remain ahead, has recognized the importance of its human resources and, in an effort to attract, retain, and inspire its people, it has developed several integrated Human Resource strategies to ensure that its employees share the organization’s vision, relate to and love the brand, and eel valued and recognized as one of the key success factors within the organization.
Burgeon (2004: 134) maintains that ‘Winning organizations know that in today’s fiercely competitive market place, a well designed and executed talent strategy, that enables people to meet business goals and organizations realize their vision, is imperative and not an optional action”.
Coca-Cola is operating in a highly competitive sector and, in order to retain its global success, it has the challenge of ensuring that its people live the vision of the organization, are brand ambassadors for its products, and become integrated as part as its valued human resources as quickly and efficiently as possible. In order to achieve this integration, and retain such talent, Coca-Cola relies on a comprehensive Talent Management and Development Strategy that is aligned to the organizational vision of brand passion.
Talent management refers to the process of attracting, retaining, developing and motivating highly skilled employees and managers. Within the context of Coca-Cola AS and its aim for global competitiveness, this process becomes a key integrated business strategy as the reality is that in a semi-emerging entry such as South Africa, where much focus lies on Employment Equity and addressing skills shortages, talent that understands global business strategies is scarce and needs to be built.
In order to ensure that Coca-Cola grow and nurture that talent pool to provide such talent in the future, their approach is to invest in their human resources through the application of Talent Management and Development as “… Having the right people with the right skills at the right time and place and focused on the right goals is one of the most pressing challenges facing executives today. ” (Burgeon, 2004:134). Coca-Cola’s Talent management and Development strategy seeks to attract, retain and develop talent through the following processes and strategies: 1. Its Recruitment and Selection Processes: Aligned with Coca-Cola’s emphasis on Talent development and retention, is the philosophy to recruit the right people initially who will ‘fit in’ with its philosophy of growing and nurturing talent. Non et al. (2008:202) define recruitment as “… The practice or activity carried on by the organization with the primary purpose of identifying and attracting potential employees. ” One only needs to look at Coca-Cola’s arrears website, available from http://www. Toecap-Colombian. Mom/ careers/why_work_tact. HTML (Accessed 1 7th August 2011), to see that they seek to attract talent that are results-driven, hard working achievers who recognize employment with Coca-Cola as more than just a job, but as a career opportunity. “Its more than working for the global beverage leader; it’s an opportunity to be a part of something that impacts the world…. We offer you not only the chance to build a successful career we offer you an opportunity to make a difference in the world. ” – http://www. Toecap-Colombian. Mom/careers/ why_work_tact. HTML (Accessed 1 7th August 201 1). Recruiting the right person with the right approach is likely to allow for longer term employer-employee relationships (which translates to the retention of talent). Sedgwick (2007: 1 1 8) refers to the value of establishing Person- Organizational Congruence (defined as the compatibility between people and the organization as a whole) in that high congruence allows for relational psychological contracts that will promote long-term employment relationships.
Coca-Cola expects commitment from its employees to the vision of the organization, whilst the employee will expect the company to reward that commitment in terms of career development opportunities, good compensation structures or long-term employment. High levels of Person- Organizational fit promote similarity of goals and values, and increase the mutual understanding and trust between the b. vow parties (Sedgwick, 2007: 121 In short, Coca-Cola’s efforts to recruit and select (referring to the process of attracting, screening and hiring the best-qualified applicants with the greatest performance) potential people who aim to develop into professionals and are likely to be proactive, results driven, and similar in core ales is based on the premise that this will support longer term, mutually beneficial employer-employee relationships which will ultimately translate to better achievement of the business strategies. 1. Its Training and Development Processes: Coca-Cola’s recognition that “creating and sustaining organizational alignment is a journey and not a one- time event’ (Bergsten, 2004 : 136) is a critical success factor. Operating in a highly competitive environment places Coca-Cola at a higher risk for losing its employees to the competition. Since it places so much focus on building a Rockford that strongly aligns to its values, and retains loyalty to its brand, in an effort to promote innovation and productivity, logic dictates that it makes sense to do everything possible to retain that talent.
Referring again to the relevance of the psychological contract between the employee-employer (Sedgwick, 2007: 120), individuals working for Coca-Cola trade this loyalty and commitment to the organizational values for the opportunity to realize their career ambitions through training, development and career and succession planning. Shaw and Farthest (2008 : 367) suggest that organizations wishing o attract and retain talent within the younger generation entering the job market (referred to as Generation Y and Millennial), who form the future labor pool, must understand their core motivators.
In essence, experiential learning, collaborative team activities, and the desire to engage in lifelong learning so as to remain marketable are key motivators of such generations. Coca-Cola’s management development programmer (egg. Sessile); their leadership programmer, their study grants and support of lifelong learning through the many e-learning resources, their access to Coca-Cola University ICC), as well as external conferences and other education and training opportunities, supports a culture Of continuous learning which is a key to promoting talent retention of the new generation of workers.
From a Diversity Management Perspective, Coca-Cola has placed BEE at the top of agenda, through both their Talent Acquisition and Management strategies as well as their huge economic investments in terms of supporting sustainable small businesses amongst the previously disadvantaged sector. In terms of their Diversity Management Strategies, they have sought to harness Allen from within all sectors of the South Africa whom, due to previous disadvantageous laws and practices, failed to have access to development and career opportunities with the result that the country currently has extensive skills shortages amongst this sector.
By placing key focus on BEE within their Talent Acquisition and Management strategies, Coca-Cola have achieved the following demographic representation: * Black employees: 63. 18% * Previously disadvantaged individuals in management: 79% * Women employees: 52% * Women executive (senior) management: 23% In order to ensure that there is a pipeline of talent available within the many ready to step up when vacancies become available, Coca Cola encourage their employees to engage in development processes which sends the message to employees that they are valued and worth the investment.
Development programmer, together with the opportunity to gain global exposure allow employees to acquire the knowledge, skills, and behaviors that allow them to respond quickly to changing environments or strategies. This is not only on a local level in South Africa, but on a global level in an effort to broaden experiences and development and circulate international talent.
Such development strategies and programmer, being more future orientated than just ‘training, focuses on broadening and individual’s skills for future responsibilities so that they are able to move into jobs that may not yet exist – this allows Coca Cola to remain competitive by having the resources available to “change with the times” in a highly competitive and rapidly changing industry. This approach also speaks to the changes in career management where the traditional model of vertical movement has, in many globally competitive organizations, been replaced by alternative career paths including horizontal cross-functional moves.
In an effort to retain talent, Coca- Cola have recognized the need to set goals, plans and strategies to satisfy employee career objectives whilst simultaneously meeting the needs of the organization (such as retaining talent, increasing employee motivation, combating the negative effects of obsolescence, and gaining the competitive advantage on a local and global level through the retention of its intellectual capital) (Growler et al, 2006 : 246).
In essence, by embracing the philosophy of a learning organization, Coca Cola return employees to relate to the company they work for, have an emotional tie to its philosophy of being “a part of something that impacts the world” (http://www. Toecap-Colombian. Com/careers/why_work_tact. HTML Accessed 19th August 2011 which will translate into them pouring their heart into achieving the organizational vision. In conclusion, Coca-Cola South Africans Human Resource Director, Maggie Mojave sums one of Coca-Cola’s key success variables as lying in its people.
This is reflected in the Integrative linkage of its Human Resource division within the overall business strategy of the organization where it actively articulates in the formulation and implementation of the organizational strategies. By investing in long-term, empowering relationships with its Human Capital, Coca-Cola are able to leverage its competitive edge by remaining flexible, highly reactive, and results driven. Question 2: Coca-Cola has been certified as one of the best employers of AS 2010/11 by the CRY research results.
Making reference to the case study given, discuss how Coca Cola, through various HARM practices, aspired to attain this title * What are the criteria for Best Employer * Discussion around how Coca-Cola are using their Human Resource trainees to align to these criteria in an effort to offer their unique value proposition ‘The breadth of skills and experience gained at both a local level and exposure to global workmates is incomparable to any other FMC organization.
The amount of information and support at one’s fingertips is tremendous in order to facilitate decision making. Working for the company has been an incredible experience. ‘ – Elizabeth Moral Senior Brand Manager (Juices and Liquid Concentrates) (http://whom. Bestsellers. Co. AZ/ Howitzers/Researcher’s/Tetchier – Accessed 1 8th August 2011). In essence, this quotation from one of Coca-Cola’s employees encapsulates why it is considered to be one of the best employers of AS by the CRY Foundation.
The criteria against which the foundation evaluates the organizations are discussed with occasional reference to two specific motivational theories ii. Mascots Hierarchy of needs and Herbage’s two-factor theory. Both theories are based on the belief that all people can be motivated, but by different things, at different times and for different reasons (Nell, 2008 : 337). The criteria responsible for recognizing Coca-Cola as Best Employers Of Choice are s follows (as outlined on their website: http://www. Stereotypes. Co. AZ/ Howitzers/Researcher’s/Tetchier – Accessed 1 8th August 2011) : 2. 1 Primary Benefits : Monetary benefits like pay, pension, and share options. Coca-Cola has an extremely good Compensation structure, with its staff being extremely well remunerated. Maggie Mojave, HER Director of Coca-Cola South Africa, states: “I am proud to say that we pay at the top end of the scale. We try to lead the market when it comes to how we pay our talent” (http://www. Bestsellers. Co. A – Accessed 18th August 201 1). Compensation refers not only to extrinsic rewards such as salary and benefits, but also intrinsic rewards such as achieving personal goals, autonomy and more challenging job opportunities. From an employers point of view, Non et al. (2008: 500) highlights how compensation is a ‘powerful tool for furthering the organization’s strategic goals” in that it has a large impact on employee attitudes and behavior. Coca-cola sees its employees as more than just a cost, but as a resource.
They seek to attract and retain talent using extrinsic rewards in the form of high compensation structures as one means o achieve this, making them an employer of choice through developing effective compensation strategies, and employee benefits and services. The Equity Theory, referred to in Non et al. (2008: 502) suggests that external equity pay comparisons can influence applicants’ decisions on whether to accept a job offer or apply to an organization for employment based on how fair it deems that compensation structure to be in comparison to employees in Other organizations who are doing the same job.
The fact that Coca-Cola offer above average compensation packages will appeal, therefore, to those hat seek to be paid more for added value, making them an employer of choice in this regard. Compensation is more than just remuneration, however, but consists of benefits as well. In terms of the benefits offered by Coca-Cola, they have included a range of conventional benefits including a provident fund and death cover, four months paid maternity leave, “fun stuff’ benefits such as FIFE tickets, study assistance and medical aid.
Other benefits include Club membership, meals that are subsidized, cell phones and G cards to allow for a degree of flexibility in the job, 4 cases of free beverages monthly, R 20 000 o family on death of staff member and 15 cases of beverages. Coca-Cola’s performance management systems take this a step further by recognizing and rewarding performance through effective performance management systems. Nell et al. (2008: 294) discuss how performance based pay schemes “not only get people to perform at high levels, but also get high performing people to join the organization”.
Coca-Cola have yet again demonstrated integrated Human Resource strategies by linking their recruitment policy of acquiring results driven people, to the compensation structure that pays for results. Staff are encouraged to perform via financial rewards in that they are paid for performance which drives how Coca-Cola reward and differentiate and retain their talent. 2. 2. Secondary Benefits & Working Conditions: Non-monetary benefits like leave allowance, flexible working conditions, input channels, innovation, recognition, and the availability of well-being policies.
Coca-Cola offer, over and above their excellent compensation structures, a range of intrinsic benefits to its employees including access to well developed Employee Assistance programmer (Peps): A full range of Peps is provided veering aspects such as financial fitness, and health and wellness. The company runs health and wellness weeks, which offer WIDTHS testing, nutrition guidance, eye testing, cholesterol testing and health and fitness presentations. Staff members also receive an annual financial wellness grant. Employees can spend the money on anything their heart desires.
Every person has different reasons for working. Referring to Herrings Two-Factor motivation theory in Nell et al. (2008: 340), there are two key factors that make employees feel positively or negatively about their jobs and the organization n which they work: Hygiene factors and Motivators. With reference to the working conditions as being an example of the hygiene factors, whilst these do not necessarily motivate individuals to work more productively towards organizational goals, they nevertheless serve to prevent employees from becoming dissatisfied.
In all likelihood, Coca-Cola’s Employee Wellness initiatives are likely to achieve this in part, as well as contribute to the employees’ sense of security that they care about their employees. This also links to Mason’s hierarchy of needs, with specific reference to safety needs (Nell et al. 2008:338). The reasons for working are as individual as the person. But, we all work because we obtain something that we need from work. The something obtained from work impacts morale, employee motivation, and the quality of life.
To create positive employee motivation, Coca-Cola has recognized that it needs to treat employees as if they matter because, referring to their HER philosophy, employees do matter. 2. 3 Training and Development: The availability of function related development initiatives and programmer. How the employer helps you grow in your role. Coca-Cola recognizes that their employees need to develop new kills to allow them to be more responsive to customer’s service and product demands.
Coca-Cola’s Human Resource Strategies aim to ensure that they are seen by current and prospective employees as the employer of choice by meeting their career needs both from a psychological success perspective as well as a career management perspective. Coca-Cola’s values its people and recognizes that by including Human Resources as a key business partner, it can attract, develop and retain the talent needed to keep the organization competitive and sustainable, leading the business to the next level. As outlined on Coca-Cola’s website, (www. Toecap-Colombian. Mom Accessed 20th August 2011 ), the organization has taken this a step further through the development of the Coca-Cola University (CALL) which is “our Company’s education curriculum, which provides a wide range of courses through classroom learning, e-learning and field training to help associates develop personally and professionally. ” Employees have access to a range of training initiatives, and are encouraged to seek training as part of the annual performance review feedback process which aims to address skills gaps and empower employees to perform at their best.
A further intrinsic reward offered by Coca-Cola lies in its talent development initiatives where it provides opportunities for its employees to achieve their career goals and aspirations through a range of development initiatives. They offer study assistance programmer which further support the employee’s need to capacitate themselves in order to remain competitive. “The Company also encourages associates to pursue higher education programs, with levels of reimbursement available for degree-seeking undergraduate and graduate studies at accredited colleges and universities.
We also provide associates the opportunity to take advantage of many e-learning resources beyond Call, as well as external conferences and other education and training opportunities. ” (www. Toecap-Colombian. Com Accessed 23rd August 2011). With reference to Mascots hierarchy of needs in Nell et al. (2008: 338), Coca-Cola’s training and development programmer not only benefit the organization through the growth of talent within the organization, but need employees’ Ego needs and Self-Actualization needs.
By empowering its employees to enhance their competence, potential and career development, and utilizing connection and reward systems referred to in the previous point, they promote employee self-confidence, recognition, sense of achievement (Ego needs) and meet the desire to reach ones’ potential (Self-Actualization). On a broader level, the organization operates globally and is therefore in a position to give its employees the opportunity to travel and gain international exposure to business, allowing for the development of skills to achieve world class status. . 4 Career Development: Includes long-term career paths development, talent management, succession planning, and performance management. Coca-Cola South Africa have placed considerable emphasis on succession planning, recognizing the importance of securing the right capabilities for the future. There are many exciting career opportunities in AS and around the world. Considerable emphasis is placed on talent management and succession planning. One such initiative is the 24 month Management Development Programmer (Sessile) which is aimed at nurturing future leaders.
Their philosophy is to “develop leaders and managers to effectively nurture their talent”. In terms of Performance Management, Coca-Cola has introduced measures of critical success factors (CIFS) into their performance management systems that give the organization its competitive edge. Employee behavior that relates to the attainment of these CIFS is measured, which increases the importance of these behaviors for employees thereby serving to reinforce or strengthen desired behaviors. Employees can be held accountable and rewarded for behaviors that directly relate to the company attaining the CIFS (Non et al. 008: 360). In terms of why this contributes to them being voted as a Best Employer, it suggests that each employee is erectly aware of their specific contribution to the overall vision of the organization, creating greater meaning. Having a sense of meaning and purpose within ones job links directly as a key motivating factor within Herbage’s Two-Factor theory (Nell et al. 2008 : 340). 2. 5 Company Culture: The combined efforts of the employer to establish a strong company culture, I. E. Social and networking opportunities, diversity initiatives, Corporate Social Responsibility programmer and employee input.
Here again, there is a strong company culture within Coca-Cola where its employees know and love the brand. Coca-Cola’s vision to entrench this love of their brand into the hearts and minds of consumers is reflected in their Corporate Social Responsibility programmer. By networking with vendors, suppliers, community members, customers or industry experts, they are likely to learn more about their market and its needs, which in turn will allow them to remain quick to react to changing trends or needs.
A spin off of Corporate Social Investment (CSS) projects is that it makes employees proud to be involved with the brand. Staff are encouraged to volunteer (for example, twice a year as part of their Staff Volunteering Programmer) in programmer here, not only do they benefit from the “feel good” factor of making a difference, but where such assignments can be used for development in that they give employees “opportunities to manage change, teach, have high levels of responsibility, and be exposed to other job demands.
Volunteer assignments and community projects are one way a company lives its corporate values, helps employees improve team relationships and develop leadership and strategic thinking skills. ” (Non et al. 2008:433). Other CSS initiatives include areas related to Health, Education, Entrepreneurship, and Environment – reflecting a comprehensive approach to Social Responsibility investment. A further beneficial spin off of their CSS and Black economic empowerment initiatives and programmer is outlined by Non et al. 2008: 328) referring to this as “Cultural Immersion” ii. Sending employees directly into communities (ii. In providing training and support in setting up span shops, car washes etc) where they have to interact with persons from different cultures, races and nationalities etc. Not only does this diversity awareness benefit an understanding of the company’s customer base, but it alps when solving problems and issues in a leadership or management role that many of the organization’s employees face.
In conclusion, through the alignment of Coca-Cola’s Human Resource Management strategies with the organizational goals and strategies, it has established itself as an employer of choice within the South African context. Using motivational theory as a base of explanation, Coca-Cola meets many of the identified factors that contribute to the continued satisfaction of its stakeholder needs, both in terms of the personal needs of its employees through to the organizational needs of the shareholders.
With Coca-Cola’s Human Resource strategies facilitating the strong entrenchment and initialization Of the organizational vision within each employee, Coca-Cola sets itself apart in terms of its unique value proposition: passion about its brand and its people that translates to bringing out the best in its people, to get the best results.