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The Human Resource Issues Faced By Coca Cola
This assignment will give you an overall idea about human resource issues because Coca-Cola brought 10,000 employees, and thus doubling its
workforce. In such conditions, as stated, Coca-cola faced complexity with unnecessary employees and, resignations and sacks. Under these circumstances
HR management needed to conduct staff appraisal to setup objectives to achieve companys goals.
1a) Critically appraise varied human resource management
perspectives and their impacts on the development of business
strategy.

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Three varied human management perspectives are Universalist approach, fit or contingency approach and resource-based approach.
Positive impacts of the Universalist approach are: not dependent on competitive strategy of organization, based on four HR policy goals (strategic
integration, commitment, flexibility and equality), clarify organisational goals, considers stakeholders influence on employees performance. The negative
impacts are: the goals are often unachievable, internal consistency difficult due to contradictions, some elements lead to confusion.
Positive impacts of the fit or contingency approach are: provides a simple framework showing how selection, appraisal, development and rewards can be
mutually geared to produce required employee performance. Negative impacts of this approach are: does not address what to do if unable to produce
required employee behavior and performance, assumes employees will behave as requested.
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Positive impacts of the resource-based approach are: its concerned with the relationships between internal (HR) resources, strategy and firm
performance, focuses on achieving competitive advantage using human capital, focus on behavior, skills, knowledge, attitudes and competencies, involves
measuring, reporting and managing human capital, organisation can loan human capital. Negative impacts are: requires coherent framework in order to
decide on the measures, and refers to people as human capital.
1b) What are the current situations/difficulties regarding these issues in
Coca-Cola and Dabur companies?
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Coca-Cola changed their pay rate in line with other Indian companies, thus meaning it was dependent on their competitive strategy. This does not follow
the Universalist approach as it contradicts their decision. Coca-Cola instead adapted the resource-based approach; they focused on achieving competitive
advantage by investing in developing human capital. The fact they concentrated significantly on human resource development satisfied several criteria of
this approach.
Dabur to some degree maintained the universalist approach as it provided clarity of goals (the three-fold recommendations), and it recognized the
majority stakeholders (the Burman family) influence in creating a family-oriented working environment for its employees. Dabur met the criteria of the fit
or contingency approach by aiming for consistency across workforce; recognizing it had to give rewards to junior sales officers and representatives for
achieving target, they allowed certain employees to club their leaves and enjoy a vacation.
1c) How can they improve this situation?
The best way for Coca-Cola and Dabur to improve their situation was to meet more criteria for any certain approach. E.g. Coca-Cola should concentrate on
the resource-based approach as it has already met some of its criteria, whereas Dabur should concentrate on the fit or contingency approach as it has
already met a lot of its criteria. By maintaining and meeting the criteria of any one approach both companies can hope to be in a better situation.
2a) Critically analyse the importance of alignment between an
organizations corporate strategy and objectives, and its human
resource strategy.
Each of the five steps to the alignment of an organisations corporate strategy and objectives, and its human resource strategy, contribute and are of
significant importance:
1. separation no relationship at this stage, thus unimportant.
2. fit recognises importance of people in achieving organizational strategy.
3. dialogue recognises need for two-way communication and some debate.
4. holistic recognises people as the key to competitive advantage rather than a way of implementing organisational strategy.
5. HR Driven places HR strategy in prime position.
2b) Then by considering the case study compare real activities about
alignment between an organizations corporate strategy and objectives
in Coca Cola and Dabur with best practice (theoretical view) to identify
what the difficulties are regarding this issue in these companies?
Coca-Cola began by recognising human resources significance in the restricting process. This led to appointment of managers in the six regions, and an
area general. They then recognised the importance of two communications by ensuring the Regional General Managers report to the VP, who in turn
report to the CEO. Coca-Cola then took the fourth step by recognising their employees as the key to competitive advantage by bringing together
employees from different work cultures and value systems. Their final step was to put the employees in prime position by taking a strategic level decision
to turn itself into people-driven company.
Dabur used HR strategy as an important part of its restructuring process. It started by recognising the importance of people in achieving the
organisational strategy by introducing employee friendly initiatives like annual sales conferences. It then recognised two-way communication by
introducing an interactive newsletter. It further recognised employees as key to competitive advantage by commissioning consultants to formulate an
employee stock Option Plan. To put HR in prime position they decided to extend the scheme.
2c). How can you solve these problems?
Coca-colas problems were the number of employees leaving the company. By better control of the unrest among employees, and by other means such as
not downgrading the centres, would have allowed Coca-Cola to avoid this crisis. Problem was Dabur didnt use HR strategy as significantly. If HR strategy
played a bigger role in the organisational strategy it would have been more beneficial to the Dabur.
3a). Judge the required processes of assessing the effectiveness of a
given human resource strategy and its impact on overall corporate
strategy.
In assessing the effectiveness of a HR strategy we use the below issues: the HR approach by reaching the corporate strategy objectives. We evaluated the
impact of human resource (HR) managers' capabilities on HR management effectiveness and the latter's impact on corporate strategy. Effectiveness is
associated with capabilities and attributes of HR staff. We also found relationships between HR management effectiveness and productivity, cash flow,
and market value. Findings were consistent across market and accounting measures of performance and with corrections for biases.
3b). What are the existing condition/difficulties regarding this issue in
these companies?
Coca-Cola HR carefully revised plan to achieve goals, or developing/carrying-out planned strategies. Coca-cola decreased payment and additional facilities
for the employees. Virtually they compact the needless extra facilites. At the first phase Coca-Cola HR strategy could not develop leadership and
management released a flow of records which led the company to loss with extra outlay.
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Darbur has a people-leaning work culture, therefore has no proper HR development to target. The evaluation of companionship earnings and expenses is
not vigorously monitored it was a stride following its competitors. From the case study we could not find any loot system from the Dabur before
restricting. According to information given Dabur is a family business so the relation between family members are okay but the relation between
employees and higher management might be problematic.
3c) How can these companies improve their situation regarding this
issue?
The companies need to reform their organization and make sure that changes need to be accepted by people. The concern is Coca-cola need a stable
leader. Because need of business chiefs will affect companys direction and profits. The rewards are incentives, oversee operation etc. Also, employee
encouragement needed for better outcome.
4a) Argue the appropriate human resource strategies for organizations
facing mergers, acquisitions, strategic alliances and joint ventures.
Mergers and acquisitions (M&A) and corporate restructuring are a big part of the corporate finance world. We have little information regarding these
events. To understand and study the authors mainly developed a connectional framework. HR management gives a border process of leaning model. This
model represents similarities and complements of merging companies. The HR strategies are different for each company, and also depend on
circumstances. The merger, acquisition, strategies and joint venture take place because of four motives. Those are enlargement and synergy. Actually
human resources management will study both motives of these companies. They will decide whether they will merge or acquisition a company for faster
growth synergy, if these companies rapidly increase. We can say using the change in technique. In some company merger or acquisition planning, we
need to understand what we are getting into (Do I go ahead? Adjust the price? Walk away?). This is your one shot in understanding the business before
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closing the deal. You also want to reduce any post-acquisition surprises (what will we need to work on after acquisition; integration issues, personnel
issues, obsolete equipment requiring replacement, warranty exposures, major contracts, and customers base). An important key to remember is Its not
only the numbers!
4b). After that by relying on the given information in the case study
compare current situation of HR strategies in the occasions of mergers,
acquisitions, strategic alliances and joint ventures in Coca Cola and
Dabur with best practice (theoretical views) to detect possible
difficulties regarding this issue in these companies?
In the case study Coca-cola used the HR management strategy. Coca-Cola merged with four bottling companies. Coca-cola used growth and synergy for
these merges. This means harder HR issues because of merges, Coca-Cola brought 10000 employees, meaning doubled work force. In this condition Coca-
cola faced complexity with unnecessary employees and, resignations and sacks. Under these circumstances HR management needed to decrease outlay.
With too much labor they cannot be so, they discharge people so it threats an unstable situation.
4c). How these problems can be solved?
As of the company outlook, if they want to reduce employees, then they can do so, but from employees view these dismissals affect their families. So
companies could consider the employees experience with them. By providing compensation for dismissal there is fairness (HR management has to
balance both side).
5a) Appraise different methods of employees selection.
The different methods of employees selection are as follows:
Interview:
Positive sides of interviews are: have the chance to see how the person dress, speak, communicate, behave, whether clean or not, and learn their
personalities. Negatives are: stressful for interviewees, very subjective, talking is not everything, unable to explore technical skills, and personality clashes.
Assessment centres:
Positives are: candidates like them and generally predict job performance accurately. Negatives are: slow process, costly method and not always reliable.
Psychometric tests:
Psychometric tests (test for normal or abnormal personality, ability or intelligence, interests or attitudes) are used along with assessment centres, as it
gives a better evaluation than either used alone.
Work simulations:
Candidates are put into small scale job situations.
Full Reference checks:
Consider the reference letters, contact people who recommended applicants, contact applicants manager or colleagues, get information from
independent assessors.
CV/Biographical information:
Positive side: its a very good source of information regarding the applicant. But, negative side is that it is useful only if real and true.
Graphology:
Involves analyzing handwriting in relation to human psychology. Positive side: helps understand applicants personality. Negative side: based fully on
psychological decisions.
5b) What are the current situations/difficulties regarding these issue in
these companies?
Coca-cola appointed a new CEO, a VP (Operations), six Regional General Manager. They also appointed Arthur Anderson to inspect accounts in North
India.
Dabur appointed a new CEO and 3 vice presidents.
5c) How can they improve this situation?
Coca-cola needs to ensure they hire trustworthy and uncorrupted employees in order to avoid scandals like the one they faced with the North India
operations.
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As it is the first time Dabur is taking such a step by reorganising their structure, it would be best to hire a professional external recruitment agency as they
would have better experience and knowledge regarding hiring employees then Dabur would.
6a) Critically assess strategies for employee deployment, redeployment,
poor performance and retention.
Employee Deployment is the number of employees required in each department, time period for which they are required and the skills required.
Employee Redeployment is transferring employees from one department/position to another for effectiveness. Poor Performance is mainly due to Lack of
Ability (lack of training or resources) and Low Motivation (lack of desire and commitment). Employee Retention is the policies and practices used by
companies to stop valuable employees from leaving (mainly because they spend considerable time, effort and money to find, recruit and train
employees).
6b) Then by considering the case study compare real activities about
employee development, performance and retention in Coca Cola &
Dabur with best practice (theoretical views) to identify what the
difficulties are regarding these issues in these companies?
Coca-cola decided to employ new managers and senior officers, which required Employee Deployment, during their restructuring. They used Employee
Redeployment in order to ensure the new 10,000 employees brought from merger were being used efficiently. They tried combating Poor Performance by
introducing talent development meetings, training and foreign internship. But, couldnt prevent Employee Retention as 40 managers and some senior
personnel left.
Dabur used Employee Deployment to employ new senior officers (i.e. a CEO and three Vice Presidents) and restructure their business. Dabur tried to
prevent Poor Performance by introducing newsletters for better employee communication. Dabur maintained Employee Retention as they successfully
kept hold of employees.
6c) How can you solve these problems?

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Coca-cola can solve this problem by preventing Employee Retention by putting in place policies and practices to stop employees leaving. Dabur could be
more efficient by using Employee Redeployment.
7a). Assess the relative importance of the creation of the learning
organization through self-managed learning, the promotion of
intellectual capital and knowledge management.
Learning organization is the organizations ability to use mental capacity of its members to create the processes that will improve its own. The technical
view assumes that organizational learning is about the effective processing interpretation of, and response to, information both inside and outside the
organization.
The points below will help understand why the learning organization is important to both companies, they are:
Awareness of new and different perspectives.
Personal growth and development.
Ability to see complexities in making decisions.
Awareness of new options and ability to create options
Companies to thinking about reduce to the work force, as they have double than required.
Sense of career directions.
The promotion of intellectual capital and knowledge management:
Intellectual capital is knowledge that can be exploited for money making or other useful purpose. The term combines the idea of the intellect or brain
power with the economic concept of capital, the saving of entitled benefits so that they can be invested in producing more goods and services.
Enhance productivity through improved creation, access and distribution of knowledge. Promoting changed organization to achieve more effective
knowledge management. Coordinating technology and human resource development. The management of the intellectual capital in the knowledge
intensive organization might also contribute positively to individual well being, as well argue.
Knowledge management is the first competency that an organization needs to develop for the management of intellectual capital. Knowledge
management constitutes the ability of an organization to learn, to remember what it learned, and to leverage what it learned internally and externally.
Internally by transferring it to different workers and department. Externally by sharing it with suppliers distributors partners and customers.
7b). What are the existing condition/difficulties regarding this issue in
these companies?
There were difficulties in Coca Cola and Dabur. They are: learning organization, intellectual capital, knowledge management.
Difficulties of learning organization: there is no problem with teaching workers presentation skills. Coca cola and Daburs scheme did not. Companies
thought about reducing employees.
Intellectual capital is more difficult to put a value on, the extent to which it has loyal customers, how it is regarded in the local community and the extent
to which it has long term satisfactory relationship with key external agencies. For company recruitment of pupils from the local catchments area might
seem an obvious surrogate but it is not a good measure on its own as parents often have no choice.
Difficulties of knowledge management: reports about successful and failed knowledge management initiatives using various IT systems exist, it is
important to analyse the reports before defining the requirement of a knowledge management. The following list shows the problems and they are;
Restructuring are a big part of both company, it has to resolve.
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System not accepted. Lack of user uptake due to insufficient communication.
Information is not classified properly in knowledge management system.
Using theoretical knowledge for practical problem.
Lack of time and training.
The knowledge distribution system does not make sense.
Knowledge management not integrated into normal work procedures.
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7c). How can these companies improve their situation regarding this
issue?
Difficulties in Coca Cola and Dabur: negative media reports, heavy investment in India and Japan, accommodation and foreign trips for bottlers. Both
companies think about reducing employees.
Hence, we believe the below discussions may help to improve their situation regarding the above mentioned issues:
We must be completely updated on current assignments and accomplishments of employees. If employees do not have own initiatives to work, then HR
consultants need to review the situation with the employee to achieve more work progress and to reduce employees.
Specify problems with productivity, quality of work, interactions with co-workers, clients or any other problematic behaviour/incidents in the office. If
there are specific complaints from supervisors, clients and customers we should read them and conduct necessary investigation to obtain full details and
follow proper procedure regarding how we are handled Coca Cola and Dabur evaluation.
8a) Critically evaluate the role of performance review and strategies for
management development.
The Appraisal Scheme aims to identify the management development needs of staff in order to improve the performance of individuals and of the
organisation to achieve companys key objectives.
We believe, itss responsible for the line manager to check and review each objectives every year. 6-monthly interim reviews are optional. Such as:
staffs need to know how they can contribute to organisational success
review past performance
develop potential and help improve current performance
maintain high performance
set up both companies objectives to achieve companies goals
assess learning and management development needs
Appraisal link assessment for future development with current performance. It provides a stronger role for line management in development. It gives the
individual the opportunity to discuss his or her career intentions concerns and views with somebody else. It becomes a vehicle for mentoring where the
manager is supported and provided with development opportunities.
Performance management is strategic in the sense it is concerned with the broader issues facing businesses if its to function effectively in its environment
and with the general direction in which the business intends to go.
8b). After that by relying on the given information in the case study
compare current situation of performance review and management
development in Coca-cola and Dabur with best practice (theoretical
views) to detect possible difficulties regarding this issue in these
companies?
Both companies have difficulties with media reports, heavy investment in India and Japan, accommodation and foreign trips, we also believe both
companies managers hasnt conducted the staff performance review and havent given objectives to employees. They had other staff during that period
and so was having financial looses.
As best practice management development is best described as the process from which managers learn and improve their skills, investment in
management development can have economic benefits to the organization.
8c). How these problems can be solved?
Discussion below may help improve Coca Cola and Daburs problems:
leadership and motivation creates and maintains an effective/motivating environment where people strive for quality of service and is supportive of all
staff; fosters a commitment for achieving companies goals
consultant managers will meet with employees at the end of the evaluation period to formally discuss, evaluate and develop companys new goals.
reduce employees
requires promotion and advertising
talent managers have to setup objectives for the employees to achieve companys goals for the coming years
identify and implement changes to improve performance to provide a clear understanding of how to be successful
provide feedback regarding employees performance and development
role-based performance metrics and look at training needs across a group
Conclusion:
The company outlook to reduce employees, so companies could consider employees experience, provide compensation for dismissal.
Advertising and promotion required for both companies to achieve goals. Performance of employees is evaluated. We also found relationships between
HR management effectiveness and productivity, cash flow, and market value.
The companies need reorganization with expert employees to overcome the issues faced.
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