Reference no: EM132403563
CASE STUDY
Global Human resource Management at Coca Cola
The Coca Cola Company is one of the most successful MNC. Coca Cola however, like to think of itself as a multi local company. The philosophy is best summarized by the Phrase "Think Global Act Local". Coca Cola manages it global operations through 25 operating divisions. The Corporate HRM function is charged with providing the glue that binds these various divisions into Coca Cola family. The Corporate HR function achieves this in two main ways, First, by propagating a common human resources philosophy within the company and Secondly by developing a group a internationally minded mid level executives for future senior management responsibility.
The Corporate HRM group sees its mission as one of the developing and providing the underlying philosophy around which the local businesses can develop their own HR practices. For example, rather than have a standard salary policy for all its national operations, Coca Cola has a common salary philosophy-- the total compensation package should be competitive with the best companies in the local market.
Twice a year the Corporate HRM group conducts a two week of HRM orientation session for the HR staff from each of its 25 operating divisions to give them an overview of the company's HRM philosophy and talk about how local businesses can translate it into HR policies. Coca Cola believes in information sharing, for instance a problem in Brazil division could be learning experience to improvise in Australia operations. The sessions provide a medium through which HRM professionals can communicate and learn from each other, which facilitates the rapid transfer of innovative and valuable HRM tools from region to region.
As much as possible, Coca Cola tries to staff its operations with local personnel. To quote one senior executive "we strive to have limited numbers of international people in the field because generally the local people are better equipped to do business at their home locations".
However Expats are needed in the system for two main reasons, one is to fill a need for a specific set of skills that might not exists at a particular location. For example, when Coca Cola started its operations in Eastern Europe, it had to bring in an expat from Chicago, who was a polish descent, to fill the position of finance manager. The second reason for using expatriates is to improve the employees own skill base. Coca Cola believes that because it is global company, senior managers should have had international exposure. Coca Cola also tries to build a cadre of internationally minded executives from which the future senior managers of Coca Cola would be drawn.
- What is Coca Cola's staffing policy for managerial positions, Ethnocentric, Polycentric or Geocentric? Does this policy make sense? Support your stand.
- What is the strategic role of the HRM function at Coca Cola? How does HRM help Coca Cola to become a more successful international business?
NOTE: Kindly answer each question in about a bit of detail.