Human Resource Management at Coca Cola Company

Submitted To,
Prof. Dr. Waqas Farooq

Submitted By,
Muhammad Faisal BC16-649

Ghulam Mustafa BC16-658

Muhammad Abdul Taimoor BC16-671

Ali Munib Nizami BC16-684

Muhammad Amir BC16-716

HAILEY COLLEGE OF COMMERCE

The recommendation of Coca-Cola Company is based on performing various valuation models, which
include HR practices, economic profit analysis, relative valuation and a fundamental price to earnings
valuation model that revealed the Coca-Cola Company to be overvalued. Even though they find the
stock to be overvalued and they feel that KO has some promising outlooks as well as possible challenges
in the near future and they want to recommend it as a hold instead of a sell. The Coca-Cola Company is
the #1 company within the non-alcoholic beverages industry. They have a 20- year standing of being the
leader and investors know that the Coca-Cola Company has an extraordinary reputation for maximizing
shareholder value. Opportunities that exist for the company in the future is expanding market share in
the non-carbonated beverages segment, a restructuring of their business model, and better consistency
of earnings results. A challenge that the Coca-Cola Company is facing is the struggle with their global
competitors in the fact that their HR practices are greater and less than coke. If coke wants to more
reputation in the world they must produce more incentives for employees from which they more done
work hard and produce good quality .Their new management team needs to work on implementing
cohesive goals between the two to reach the Coca-Cola Company’s long-term growth potential.

INTRODUCTION

Founded in 1886, the Coca-Cola Company is the world’s leading manufacturer, marketer, and distributor
of nonalcoholic beverage concentrates and syrups. The company’s corporate headquarters are in
Atlanta, with local operations in over 200 countries around the world.

HR coca cola Although Coca-Cola was first created in the United States; it quickly became popular
wherever it went. Our first international bottling plants opened in 1906 in Canada, Cuba and Panama,
soon followed by many more. Today, we produce more than 300 brands. More than 70 percent of our
income comes from outside the U.S., but the real reason we are a truly global company is that our
products meet the varied taste preferences of consumers everywhere.

MISSION STATEMENT

“To benefit and refresh everyone it touches and to create values for our share owner on a long term
basis by building a business that enhances the coco-cola company trademarks”

According to Gujranwala plant: -

“To have a strong, dominant & profitable business in Pakistan.”

VISION

“All of us in the Coca-Cola family wake up each morning knowing that every single one of the world’s 5.6
billion people will get thirsty that day... and that we are the ones with the best opportunity to refresh
them. Our task is simple: make Coca-Cola and our other products available, affordable, and acceptable
to them, quenching their thirst and providing them a perfect moment of relaxation. If we do this... if we
make it impossible for these 5.6 billion people to escape Coca-Cola... then we assure our future success
for many years to come. Doing anything else is not an option.”

According to Gujranwala Plant: -

“To create value for our shareholders”

We are committed to: -

Building preference & market leadership for our brands

Achieve quality excellence and serve our customers with quality products. Maximizing profits

Developing People

Optimum utilization of assets4

HR coca cola

Shared Values: -

WE VALUE & RESPECT OUR PEOPLE

WE COMMUNICATE OPENLY

WE HAVE INTEGRITY

WE ARE COMMITTED TO WINNING

Beliefs: -

There is much in our world to celebrate, refresh, strengthen and protect. The Coca-Cola Company is a
vibrant network of people, in nearly 200 countries, putting citizenship into action. Through our actions
as local citizens, we strive every day to refresh the marketplace, enrich the workplace, protect the
environment and strengthen our communities. We are a local employer, with responsibility to enable
our people total into their full potential; working at their innovative best and representing the diversity
of the world we serve. We are an investor in local economies and a driver of marketplace innovation,
with a responsibility to act as a good steward of our natural environment. A local citizen, understanding
our responsibility to contribute to an improved quality of life in our communities.

History of Coca-Cola In Pakistan: -

The Coca-Cola Company began operating in Pakistan in 1953.Benjamin H. Oehlert Jr., former senior vice
president of The Coca-Cola Company, served as United States Ambassador to Pakistan from1967 to
1969.
BRANDS / PRODUCT LINE

In 2002, Coca-Cola added pop to a category that many believed had lost its fizz in North America. In
May, after just six months in12

HR coca cola development, Vanilla Coke became the first extension of the Coca-Cola brand since 1985
and immediately generated profitable volume. Vanilla Coke helped boost sales of Coca-Cola branded
beverages while inviting new consumers to rediscover the cola category through a completely original
flavor experience. In product formulation, the Vanilla Coke team struck a balance that lets the taste of
Coca-Cola come through—intriguingly new, yet undeniably Coca-Cola. Already one of our top 10 brands
in the United States, Vanilla Coke is performing well in its initial international markets— including
Australia and New Zealand, with more countries planning launches for 2003. In response to consumer
demand, diet Vanilla Coke was introduced to the U.S. marketplace in October, just three-and-a-half
months after it was given the green light. In 2002, we also celebrated the 20th anniversary of diet Coke
and the expansion of diet Coke with lemon, which made strong debuts in several international markets
after its U.S. launch in 2001.In March 1923, "Coca-Cola" was sold in a 6-bottle carton for the first time in
New Orleans, Louisiana. Today, products of The Coca-Cola Company are consumed at threat of more
than one billion drinks per day.

Major Brands: -

There are 323 brands of Coca-Cola. Out of which there are 7 brands of coke in Pakistan. Two brands
“Lemon” and “Strawberry” are recently introduced products of Coca-Cola in Pakistan.

HR coca cola

Human Resource Management within Coca Cola

HR coca cola Human Resource Management is an essential part for any organization. Moreover,
development of this department is the first step, the ground on which the future of the company
depends. It is essential for every single business unit and especially for such international company as
Coca Cola. It is people, not technology who create the company. Human Resource Management at Coca
Cola Company has many advantages. It is the global company and it is impossible to create certain
policies or procedures applicable in all divisions of the company, cultural and political differences need
to be taken into account. Therefore, the focus of this paper will be on four tasks and duties of Human
Resource Management (performance management, compensation, career development, succession
planning) based on the United States procedures. Basically the HRM practices are necessary for every
organization. But unfortunately in Pakistan not so much used HRM practices. In multinational companies
like coca cola have their own separate department of HRM? Every organization has its own policies and
strategies by which they control the functions of their departments. Similarly, we also have own policies
and strategies by which we control all the functions of our departments. coca cola HR department is also
conducting all the practices of HRM like
Job analysis and design of work

Recruitment and selection

Training and development

Performance appraisals

Compensation

Employee relationships

Staff welfare and medical policies

And some other things like that. These all practices are conducted by own policies and strategies.HR
department not make decisions related of its own department; they also conduct in company’s decision.

Job analysis and designing

HR coca cola Job analysis is the procedure for determining the duties and skill requirements of a job and
the kind of person who should be hire for it. Job analysis consists of two products one is job description
and second job specification. Job description: a list of job duties, responsibilities, reporting relationship,
working conditions, and supervisory responsibilities-one product of a job. Job specification: a list of a
job’s human requirements that is requisites education, skills, personality, and so on-other product of a
job analysis. Coca cola company HR department check its own job description and job analysis in which
they get the information about employees work activities, human behavior, performance standard, job
context and human requirements and also other information related to thisconduct.HR department of
coca cola used this information for Recruiting, selection, compensation, performance appraisal, training,
and employee’s relationship.

Planning and Forecasting

The process of deciding what positions the firm will have to fill, and how to fill them. Coca cola HR
department involves in company strategic planning and they also make sufficient planning for hiring
new employees in the future. We forecast for the expected employees needs in the organization. We
forecast of employees on the change technology and increasing in productivity. After planning we send
this report to the head office for approval. If we get approval from the head office then we start
recruitment process.

Our recruitment process

Our recruitment process is well established first of all we give ads in newspapers, company website,
institutions etc. Once we receive

HR coca cola an application form, from candidates with required documents and CV. Internal
recruitment. External recruitment
Recruitment Sources

That source which help the company in identifying and attracting potential employees .The major
recruitment sources are following

1. Media Advertisement

2. E-recruitment

3. Employment agencies

4. Executive search firms

5. Special events recruiting

6. College Recruiting

7. Summer internships

Internal Recruiting

Internal recruiting—recruiting source seeking applicants for positions from among the ranks of those
currently employed

Advantages

Better assessment of candidates

Reduces training time

Faster

Cheaper

Motivates employees

High Performance Work System character

Disadvantages

Creates vacancies

Stifles diversity

Insufficient supply of candidates

External Recruiting

External recruiting—recruiting source seeking applicants for positions from outside the organization.
Advantages

Increases diversity

Facilitates growth

Shortens training time

A theory that you get new/novel problem solving

Disadvantages

Expensive

Slower

Less reliable data stifles upward movement of personnel

Selection process

The selection process will vary depending on the position you ‘reapplying for, as one process can’t fit all
the different roles we have here at CCE. However, in most cases a combination of any of the following
tools will be used:

 Interview
 Group exercises
 Presentations
 Psychometric tests Role plays/Situational Exercises

Interview

The interview is designed to reveal more about you and your experiences. We’ll ask for examples of how
you behaved in different situations, maybe at school, university, a club, at home or
in previous jobs. This is not designed to 'catch you out' and our interviewers will never try and trick you
into an answer. Be honest, be yourself and it should be an enjoyable experience.Also, don’t forget that
this is your chance to find out more about us and ask questions. Remember, interviews are a two-way
process so use it to understand the nature of the role and to make sure it really is what you’re looking
for.

Group exercises

We’re very much a team at CCE so these will show us how effectively you work with people. They’re a
good opportunity for us to see how you communicate, influence and involve other people in the
workplace.
Presentations

Presentations give you the chance to show your ability to communicate to a group of people on a
specific topic. You may be given a topic in advance or on the day, but don’t worry – you’ll have plenty of
time to prepare.

Psychometric tests

Psychometric tests are timed exercises that examine your abilities and potential. On occasions, we may
also use a personality assessment tool that is designed to find out more specific things about you. If
you’re asked to complete a psychometric test, we’ll send you information and advice in advance on how
to prepare.

Role Plays/Situational Exercises

Designed to assess how you react in certain situations, these help to highlight particular skills and how
well you’re suited for a position. You may be given facts and figures to review, or a report to complete;
we may also have an assessor acting as a customer or employee to simulate a situation that could occur
in the workplace. Don’t worry, you’ll be given a brief and ample time to prepare.

Training process of employees

Training process is essential part of every employee without training; employee cannot come to now the
procedure of work, rules and regulations of firm, sometimes when new technology is introduced it is
also responsibility of a firm to train its employees.

After recruiting the fresh employee we train them for three months and also pay them salaries after
three months they become part of a firm

We also give training to already exist employee it depend upon condition for example if new technology
is introduced first of all we give full training to them about new technology then we allow them to start
their job .

Performance appraisal

Coca cola performance appraisal is annually Hr. manager waqar mahmood said that we appraise the
employee due to their performance about goals of the organization .we set the goals started

HR coca cola the year and tell the employees about the goal if the employees achieve this goal we
appraise the employees.

Steps in appraising performance

The performance appraisal process process contains three steps;

 Define the job

Define the job;

Means making sure that you and your subordinate agree on his or her duties and job standard.

Appraise performance;

Means comparing your subordinate’s actual performance to the standards that have been set.

Provide feedback;

Means discuss the subordinate performance and progress, and

Compensation and benefits

Objective of compensation

Our compensation objective is to

Basic salary

Bonus

Medical facility

Pick and drop

Gratuity fund

Social security

We get many advantages from our employees because they are happy from company.

Our employees are satisfy from our compensation and in the coca cola never downsizing occurred which
shows that well relationship between employees and company.

EMPLOYEES RELATIONSHIP

HR coca cola Employees are the most important assets of every company so it is very important to give
them importance. The satisfaction of the employees makes the company successful. The reason is that if
the employees of the company are satisfied then they will work hard for the development of the
company but if they are not satisfied with the company’s policies and they are not given their rights
then they will leave the company which can turn into a big loss. So employees ‘relationship is very
important for every company.

Every company has its own policy. We have also got our own policy by which we give importance to our
employees if any employee faces some kind of problem related to his life or work then he can directly go
to the manager and he can share all of his problems. This thing should be adopted by every company
because this makes the employee satisfied with the company.

We believe that an open door policy is the best policy for employees’ relations because due to this, our
employees feel very independent and they know that if they get any problem, they can contact directly
to the manager of their department. So we strongly believe that such policy makes our employees
satisfy with us.

Safety Policy

We at CCBPL Gujranwala are committed to ensure the maximum level of safety and prevention of loss
for our employees, assets and visitors. We believe in the involvement of each and every one of us35

HR coca cola in this effort and realize the importance of every individual’s contribution to safety. We
strive for continuous improvement in our safety standards and to the consistently meet or exceed them.
We therefore, will make certain that the necessary financial and personnel resources are made available
in order to continuously improve our safety standards. With this belief we vow to. Set our safety
standard at a level that ensures compliance with governmental and company requirements.

Protect our employees and ensure public safety extending throughout our organization.

Integrate sound safety practices in to our daily business operation even in the absence of specific
regulatory requirements use the results of research and new technology to minimizing the safety risks
of our operations equipment, products and packages taking into account the associate costs or profit for
each safety benefits. Ensure each and every one to use in responsible and accountable for our actions.

Establish mechanisms to communicate effectively with employee’s consumers and government on our
safety performance.

We believe in safety. We adhere to our safety principles. We deliver.