Strategic human resource management at COCA COLA BEVERAGES PAKISTAN LIMITED

Table of content

Description Page No.

Acknowledgement 2

Executive Summary 3

Industry Profile 4

Company Profile 5

CCBPL Management Structure 7

Vision and mission of CCBPL 9

MANAGERIAL VIEW OF Coca Cola 11

Communication within Coca Cola: 11

Motivational Techniques 12

Leadership Styles 12

HRM Practices at Coca Cola 14

Human Resources Division/Department at Coca Cola 14

Recruitment & Selection 17

Training and development 19

Appraising and Managing Performance 23

Compensation and benefits 24

Dyer & Holder’s Typology of Strategies 25

Possible Roles Assumed by HR Function 26

Lepak & Snell’s Employment Models 27

Traditional HR versus Strategic HR 28

coclusion 29

Strategic HRM Page 1

Acknowledgement

We are very grateful to Allah who blessed us the strength and courage to stand by the difficulties

that came in the way and who enabled us to complete this project effectively. As plants cannot

grow without seeds, birds cannot fly without wings. Similarly knowledge cannot be attained

without proper direction and supervision. We are, therefore, also thankful to our respected

Professor Madiha Rehman , because of whose generous co-operation and help, the

accomplishment of this Project became possible.


EXECUTIVE SUMMARY

This report gives a detailed account of the Coca cola brand. It starts off by briefly examining the

history of the brand to see how it becomes the world's largest beverage company. It also

introduces the various products that the company offers.

The report goes on to introduce the various strategies that the company employs in conducting

their operations. The report show the managerial view to the company along with the Humana

Resource Management .the report cover the strategic HRM point of view of the coca cola that

illustrate the HR is playing role to bring the positive impacts to the business. Also different

models of HR practices have been explained for the better understanding. The report breaks

down into different concepts which studied in SHRM


OVERVIEW

Industry Profile

The beverage industry in Pakistan has grown over the time. The industry produces soft drinks,

juices, syrups, milk, and squashes. With about 170 units currently in operation throughout the

country, both upstream and downstream industries have grown and are flourishing.

The beverage industry in Pakistan, currently having a size of little over 120 million cases per

annum with an annual growth of around 10-15 per cent, has the potential to double its size in the

next 3-5 years, if the government's taxation policies towards this industry are corrected. There

are 34 beverage plants in the country and this is one industry, which is very well organized. Job

oriented in nature, the beverage industry employees over 500,000 people directly and indirectly

and also supports many other up/down stream industries such as crown corks, glass bottles,

plastic shells, sugar, transport, advertising and media, P.E.T bottles, concentrates etc. due to this

industry a huge number of outlets/shops are supported to generate wide-spread economic activity

in the country.

Soft drinks market in Pakistan is growing rapidly. And the carbonated category is the leader in

the soft drink market with a share of 63.7 %. This reflects such a huge market to cater. The

beverage industry in Pakistan has a lot of potential and room for growth and development. It is

one of the few sectors that have shown measurable growth and the incremental augmentation in

consumption is more likely to continue in future as well and will certainly benefit in the long run.

Also, flourishing consumerism and establishment of stronger brands with innovative and

superior products has contributed towards the beverage industry’s growth. There exist a lot of

opportunities for new entrants and local players to exploit the untapped facets of the market, for

instance the energy drink market or juices, by strategically positioning their products and by

resorting to innovative and effective marketing strategies.


However, there exist certain serious threats to this industry as well. According to a recent report

on Pakistani Food and Beverage Industry, dated January 20th 2014, the two primary threats to

this industry are; political instability and continuous militant activity, which have the tendency to

obstruct foreign direct investment in this industry. Never the less, the report further emphasized

that Pakistan remains one of the most potentially profitable markets. Another major hazard is the

increasing inflation rate, which was reportedly 9.20% in December 2013, which ultimately

translates into depreciated purchasing power of the household which could lower consumption of

certain drinks.

Challenges faced by beverage industry are the high prices and unavailability of sugar and also

the taxes, excise duty, and sales tax at the rate of 15 percent on the retail price. This is the reason

that beverage industry at the moment has very low per capita consumption of 20 serves whereas

in other countries of our region it varies from120-250 on the basis of single serve of 250 ml.

Based upon the aforementioned facts, on can conclude that the beverage industry is Pakistan has

gained momentum and is more likely to continue the growth in coming years as well. Although,

certain macroeconomics factors certainly do have the potential to corrode this industry’s

profitability

Company Profile

The Coca Cola Company

The Coca-Cola Company (TCCC) was first introduced by John Syth Pemberton, a pharmacist, in

the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged

brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the

street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain.

Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a

drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today

wherever Coca-Cola is enjoyed.


Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name and penned

“Coca-Cola” in the unique flowing script that is famous worldwide even today. He suggested

that “the two Cs would look well in advertising.” The first newspaper ad for Coca-Cola soon

appeared in The Atlanta Journal, inviting thirsty citizens to try “the new and popular soda

fountain drink.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store awnings,

with the suggestions “Drink” added to inform passersby that the new beverage was for soda

fountain refreshment.

By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton

sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color

associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent

$73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He

gradually sold portions of his business to various partners and, just prior to his death in 1888,

sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the

year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and

control of the Coca-Cola business. Within four years, his merchandising flair had helped expand

consumption of Coca-Cola to every state and territory after which he liquidate.

His pharmaceutical business and focused his full attention on the soft drink. With his brother,

John S. Candler, John Pemberton’s former partner Frank Robinson and two other associates, Mr.

Candler formed a Georgia corporation named the Coca-Cola Company. The trademark “Coca-

Cola,” used in the marketplace since 1886, was registered in the United States Patent Office on

January 31, 1893.

The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta

was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles,

California, the following year. In 1895, three years after The Coca-Cola Company’s


incorporation, Mr. Asa G. Candler announced in his annual report to share owners that “Coca-

Cola is now drunk in every state and territory in the United States.”As demand for Coca-Cola

increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the

first headquarters building devoted exclusively to the production of syrup and the management

of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for

$25 million. Robert W. Woodruff became the President of the

Company in the year 1923 and his more than sixty years of leadership took the business to

unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and

valued brands around the World.

CCBPL Management Structure

CCBPL has divided the whole Pakistan in two regions named as “Southern business unit” (SBU)

and “Central business unit” (CBU). Karachi, Rahim Yar Khan and Multan plants are monitored

by SBU General Manager (GM) while the other plants Lahore, Faisalabad, Gujranwala,

Rawalpindi and Peshawar are monitored by CBU General Manager (GM). You can better

understand from this organization chart. It is shown in this diagram that the whole country is


divided in to two parts on the basis of geographical regions. And the whole country is controlled

and monitored by a “Country Manager”.


2020 Vision of CCBPL

Vision

Be the outstanding beverage company leading the market, inspiring people, adding value

through excellence.

Mission

Build a sustainable and profitable business through refreshing consumers, partnering with

customers, delivering superior value to shareholders and being trusted by communities.

Values

Passion: We put our hearts and mind into what we do.

Accountability: We act with high sense of responsibility and hold ourselves accountable.

Integrity: We are open, honest, and ethical and we trust and respect each other.

Teamwork: We collaborate for our collective success.

Our Goals

People and Organizational Leadership: Build a highly capable organization and be the

employer of choice.

Commercial Leadership: Profitably deliver superior value to consumers & customers at the

optimal cost to serve.


Supply Chain: To be the best in class consumer demand fulfillment organization that

exceeds customer expectations highest in quality, lowest in cost, in a sustainable, socially

responsible manner.

Operational Excellence: Create a culture of Operational Excellence to support continuous

improvement of our business process and systems.

Sustainability: Ensure the long term viability of our business by being proactive and

innovative in protecting the environment and be recognized as one of the most responsible

corporate citizens by all stakeholders.

Coca Cola is in-listed in New York Stock Exchange with abbreviation of “KO”.


MANAGERIAL VIEW OF Coca Cola

Organizing the Coca Cola Human Resources:

Human resources at Coca Cola is organized by the HR department

Make a team who works under department head.

Arranging and structuring work to accomplish organizational goals.

Communication within Coca Cola:

Formal Communication:

A proper systematic flow of information follows at all levels

Top - Downward Communication:

In Coca Cola, the flow of information is downward.

Top management makes the decisions.

All the necessary information is passes through the head of department to the group

members.


Leading

Groups and Teams in Coca Cola

Each department at Coca Cola has its own team. Routine discussion among the general manager

and head of departments are to set goals and targets. Every head of department is responsible for

his team member and their collective targets. Head of department focuses on individual

performance of the employees to help them out if they have any weak areas.

Motivational Techniques Used to Increase Productivity

Coca Cola motivates the employees in various ways like:

Increasing in the salaries of the employees

Increments

By filling the little need

Personal grooming of the employee

And some functions are arranged for the employees and their families children come and

enjoy this is another way to motivating the employees

Leadership Styles of Managers at Coca Cola

In the Coca Cola, the leadership style is BUREAUCRATIC leadership. Managers impose strict

and systematic discipline on the staff. Managers are empowered via the office they hold means

their position power. However, they also have an open door policy for their employees; if they


come to any problem they just ask help from their manager. So they have both styles of

managing their employees.

Controlling

Basic Controlling Authorities in Coca Cola

GM and HOD`S have major controlling authority. They take major decisions and set goals.

Managers or HOD`s of each department control its own department working and are liable to the

GM. There is proper check and balance in each area because of tough competition they don`t

afford any waste of customer.

Control Approaches Used by Coca Cola

Training

Monitoring

Correcting work

Human Resource Management (HRM) Practices at Coca Cola


Human Resources Division/Department at Coca Cola

Coca Cola considers human resources as a key department. A responsibility of Human Resource

department is to provide a method of employee recruitment and retention that produce maximum

employee satisfaction and performance on the job. Coca Cola place great emphasis on people

development so that people and organization perform at maximum capacity in a highly effective

manner.


Talent AcquisitionCompensation & BenefitsLearning and DevelopmentTalent Management and Organization DevelopmentHealth Safety and EnvironmentEmployee RelationsOperationsSecurity DIRECTOR HR

Talent Acquisition

Talent acquisition is a person who brings in new talent in company .like Ko tranee and

new employees.

Compensation And Benefit

This area deals with payrolls and benefits of employee. This department also deals with

the new accounts of their employees.

L&D

Learning and development is that department of HR in which we give employee chance

to learn and acquire best knowledge.

Talent Management

This role is really important if we see in company’s perspective. It is the one who

arranges its best and plays a really important role in organizational Development

.

HSE

Health Safety and Environment is one of the most important department in plant its that

department which helps in maintaining safety issues in plant. And take steps to stop

damaging environment.

Employee Relation

It deals with assembly line employees.

Operations

Operations is that area in CCBPL also comes under HR. it is the area in which we have to

maintain the plant sides.

Security


Security is really important in over-all CCBPL as it is a multinational and there are many

threats to them.

Adopt proactive approach instead of reactive. Coca Cola provides the highest priority to its

people. Following are the main activities of Coca Cola HR department:

Recruitment & Selection

Training & Development

Compensation & Benefits

Employee Relations

HR manager have coordination with all managers and supervisors of the company in order to

serve all parties in the best way. They also have a coaching role to all employees.

Job Analysis

Job analysis deals with quality of people that which type of people or the department requires

employees. Through job analysis, we also determine that what will be duties of the hired person

and which type of skills he should be have for the job. The information is usually collect by

communication with the required department.

HR Planning

HR planning is the basic function of the department. It is the base of all other departments. It

deals with the demand and the supply of human capital in different departments of the

organization. It also includes future hiring plans for the upcoming projects of the

organization.HR planning depend upon the functions performed by the Coca Cola. So according

to operations they arrange and made all planning.


Recruitment & Selection

HR also creates a pool of eligible candidates and with the collaboration of other managers, hires

the best candidate for the position.

Recruitment process

Their recruitment process is well established first of all they give ads, company website,

institutions job fair etc.Once they receive an application form, candidates with required

documents and CV.

New vacancy

Position advertise

Short listing of CV`s

Interviews

Hiring

Probation Period

Confirmation of Service

External


Selection process

The selection process will vary depending on the position you’re applying for, as one

process can’t fit all the different roles. However, in most cases a combination of any of

the following tools will be used:

Interview

Group exercises

Presentations

Role plays/Situational Exercises

Interview

The interview is designed to reveal more about you and your experiences. They will ask

for examples of how you behaved in different situations, maybe at school, university, a

club, at home or in previous jobs.

Group exercises

They are a very much a team at CCBPL 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 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.

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. They may be given facts and figures to

review, or a report to complete; they may also have an assessor acting as a customer or

employee to simulate a situation that could occur in the workplace.

Orientation

After hiring the suitable employee informal orientation is given, there is no such kind of formal

orientation program is available at Coca Cola. As there is no such kind of rocket science in this

organization, so they don`t need any formal orientation program. They verbally tell about the

organization and employee duties and responsibilities that he or she have to perform at the job.

They also tell the employees about the do`s and don’ts and what kind of dress code and behavior

is required at the job.

Training & Development

There is formal training and development are given to the employees, even they provide formal

couching train their employees that how to handle mistakes and solve problems, they provided

formal induction buddy, formal necessary training and necessary rules and regulations guidelines

to their employees. When the manager points out some mistake of the employee while

performing his or her duties, immediately manager corrects them and guide his or her employee

that how he or she should have to perform the task.

CCBPL KO learning center


CCBPL owns its own training center for employees. It also owns a university known is KUODS

in it. Employees are given change to diversify their skills in this learning center. Suppose an

employee is masters in Mechanical engineering, but he is goo in marketing so CCBPL is having

capability to diversify and enhance the skills of its employee according through its learning

center in Lahore.

Employee Development

Career progression at CCBPL is based on potential. They carefully analyze abilities through

experience, performance ratings, qualifications and competencies and in of strive for excellence,

they ensure that your potential is put to its best and most efficient use in our various department


CCBPL Capability Development Wing

Capability Development is a fundamental strategic objective of CCBPL and an integral part of

one of the main pillars of CCI’s Vision 2020 – People and Organizational Leadership.

The CCBPL Capability Development Wing would be focusing on organizational competencies

in order to bridge the skill gap leading to superior performance as well as create focused training

& development plans for our employees. With the introduction of new training methodologies in

the Sales Capability Development they would be developing a superior Sales Force that is


Business driven.

CCBPL Capability Development Wing is striving to achieve the objective of Living Positively,

Adding Value, Making a Difference…!

Training on Wheels

Learning and Development teams are continuously challenged by demand for better, more cost-

effective trainings. These challenges have led to some rather innovative employee training ideas.

This also helped reduce learner seat time and ensured the transfer of skills to everyone any every

Capability Development Wing at CCBPL has taken the initiative and created something unique

for its target audience by introducing a new product with the name “Training on Wheels” which

ensures the very concept of training just-in-time for everyone.

The idea was to convert a regular delivery truck into a modern, state of the art mobile training

unit. The mobile training unit consists of a training room, with all the necessary training

equipment’s i.e., LCD, AC, Cooler, and seating capacity for 15 retailers during a session. The

plan is to use this unique concept to train the target audience throughout Pakistan but initial

sessions will be conducted at Lahore and Gujranwala and Faisalabad territories.

Since learning is a constant process, CDW (capability development wing) encourages employees

from commercial sales function to come on board and conduct trainings as well in order to

deliver a better understanding and also to share the experience with the audience. This for sure

will enable all volunteers for the project to indulge themselves in activities other than their

regular work and to contribute towards HR initiatives. Primarily the target audience is the small

grocery retailers.


Appraising and Managing Performance

HR department conduct performance appraisal and have to keep an eye on every employee

throughout the year. Top management has regular meetings to check that they are achieving the

goals or not and what necessary precaution they have to look after.

Coca cola performance appraisal is annually they appraise the employee due to their

performance about goals of the organization .they set the goals started the year and tell the

employees about the goal if the employees achieve this goal they appraise the employees.

Steps in appraising performance

The performance appraisal process contains three steps;

Define the job

Appraise the performance

Provide feedback

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 make plans for any development

required.

Compensation and Benefits

HR department manager says that employees are our assets, there for we are careful about their

health and benefits. We give following compensation and benefit

Following are the benefits provided by the CCBPL.

Annual incentives

Provident fund & gratuity

Health & life insurance

Competitive compensation

Engaging wok environment

Roles of HR

Some basic roles of HR

Develop rules and procedures.

Provide recruiting services & support.

Manages the performance appraisal and feedback forms.

Dyer & Holder’s Typology of Strategies


Practices Investment Inducement Involvement

Contribution Very high initiative

creativity ; very high

performance

expectation ;high flexibility ;

self managed

Commitment Very high ;strong

identification with

work ,team and company

Staffing Careful selection ;extensive

career development ;some

flexibility ;minimal lay offs

Development Extensive continuous

learning

Extensive continuous

learning

Rewards Tall structure ;competitive

fixed; job based ;merit any

many benefits

Work system Enriched jobs ; self managed

work teams

Dyer & Holder’s Typology of Strategies shows that which logic they fit into whether they are

investment; inducement or involvement by focusing on some of the practices it is discovered

they fall into different categories which are explain above in the table.


Possible Roles Assumed by HR Function

By using this diagram and with the help of analysis coca cola lays in the quadrant of change

agent. They are not the followers they are the initiators. They are much focused on the strategies

and people of their company


Lepak & Snell’s Employment Models

With the help of Lepak & Snell’s Employment Models and the study of coca cola HR functions

it is clear that CCBPL strategic value is very high and also the factor of uniqueness is high .so

coca cola fits in the first quadrant of this model which shows that they hire on knowledge and

commitment based.

CCBPL are Relationship builder which means HR Develop Such structure, work practices, &

culture that allow individuals to work together and Develops networks that focus on strategic

objectives


Traditional HR versus Strategic HR

Coca cola is using strategic HR

Factors Strategic HR Evident

Responsibility

for HR

Line managers By observing their hierarchy

Initiatives Fast, proactive ,integrated As they are not followers

Control Organic –flexible ,whatever is necessary

to succeed

Analyzed from their managerial

view

Job Design Broad ,flexible ,cross training ,teams Analyzed from their managerial

view

Key

Investment

People ,knowledge KO learning center

Role of HR Transformational ,change leader and

initiator

As they are change agent

The above table represents that the coca cola is not using the traditional HR practices instead

they are very much focus on the strategic HR which is evident in the table.


Conclusion

After reviewing the complete report one thing is clear that is CCBL is working very well its

strategies are successful towards the whole world and this is making progress by the passage of

time. It is definitely clear that CCBPL are using the concept of SHRM instead of Traditional

HRM. The main reason why they are so much developed is due to the people. According to

CCBPL employees are the assets of their company.
