MODULE: HUMAN RESOURCE MANAGEMENT

QUESTION 1

1. One of the most important variables of successes within companies,

according to William Egbe, CEO of Coca Cola, is when employees are allowed
to develop, and their talent is leveraged resulting in a high employee retention
rate.

Introduction

In this review, we examine how Coca Cola develop their employees and employee
retention. Employ retention refers to all the strategies, actions plans and methods
used to retain talent, or valuable employees, in the organisation in order to achieve
and sustain competitive advantage. The reasons for regarding it as important vary
from the current level of skills shortages to the realisation of the importance of
human capital in an organisation. (Eisenberger, Cummings, Armeli, &Lynch, 1997;
Eisenberger, Huntington, Hutchison, & Sowa, 1986; Rhoades & Eisenberger, in
press; Shore & Shore, 1995)

A review by Dibble (1999) suggests that retention starts long before an employee is
recruited, that is, when describing the position intended to be filled. Job descriptions,
recruitment, selection and orientation are the imperatives of retention.

Kerr and Slocum (1987) and Kopelman and colleagues (1990) argued that the
variation in employee retention across Organisations may be related to
Organisational culture values. Those authors suggested that an Organisation‘s
cultural values influence its human resource strategies, including se-lection and
placement policies, promotion and development procedures, and reward systems.
Different strategies result in psychological climates that foster varying levels of
commitment and retention among employees working in different Organisations.
Sheridan 1992 1037

If retention levels are in line with the norm for the type of organisation, then the
productive employees should be encouraged to stay and the poor performers

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encouraged to leave. If this were measurable the then organisations would retain
employees whose contribution produces a positive risk adjusted profit for the firm.
These employees would have a positive influence on the firm. This is not the case,
through various factors that will be discussed in this paper they leave, which forces
cost onto the organisation. These employees leave an organisation because they
become dissatisfied, underpaid or unmotivated (Sigler, K. 1999).

Cost to the organisation

A major factor of a high level of employee turnover that impinges on an organisation

is the cost. The costs can be broken down into the costs of leaving, replacements,
transition and indirect. The leaving costs are the payroll and the personnel
administration of the employee leaving. The replacement costs are spent on
recruitment of potential employees, the money and time spent on interviewing and
any placement fees involved. Transition costs for a company include the training
costs of new employees the unproductive time while the new employee is learning
the skills required and any induction costs for the new employee. The indirect cost to
a company is the potential loss of revenue because of decreased levels of customer
service.

Hacker, C.A. (1996) discussed the process of recruitment and advises that
employers should consider three areas when they are preparing to employee, these
are the cost per hire of an employee; turnover rate; and productivity. The recruiting of
an employee contains hidden costs; these include advertising and the time that is
employed on screening and interviewing the prospective employee. Therefore, if the
recruitment of people is not cost effective option, then high turnover of employees
must be avoided. Retention of the current workforce is the most economic solution to
an organisation (Hacker, C.A. 1996).

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Employee Retention Best Practices

Recruitment

Key to retaining the right employees is recruiting them in the first place. This process
must give consideration to their long term value to the organisation. The attraction
and retention of key talent, is increasingly pivotal to organisational success. The
ability to achieve competitive advantage through people depends in large part on the
composition of the work force. This, is the function of who is hired, and how they are
developed, these factors will lead to who is retained (Sturman, M 2003).

As Beardwell and Holden (1994) emphasise essential to a good HRM practice is

recruitment and selection, which must consider correct fit between personnel and job
in order to maximise efficiency in terms of retention and HRM strategic planning. The
organisation can use the recruitment process to continue, enhance or even change
the organisational culture. When a change of strategic direction is required, recruiting
the right candidates is an important factor to increase the chance of success
(Beardwell, I. & Holden, L. 1994:225).

Reward systems

Amongst the theorist there a several key areas of management, which affects the
retention of key employees, this includes motivation, job satisfaction, reward systems
and the psychological contract. The first area reviewed is reward systems; these can
be both intrinsic and extrinsic.

Reward systems are one of the four key policies within strategic HR. the organisation
can use this tool to raise commitment, competence, and congruence and it is cost
effective. With individuals having more control on their reward, at a basic level this
can motivate, at a higher level can introduce self-esteem and self-worth. These
values are congruent to the organisations values and principles (Beardwell, I et al
2004). PRP is an individualised form of payment which reflects individual‘s
performance. These increases may determine the rate of progression through an
organisation (Farnham, D. 2002). (Sigler, K. 1999:3)

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Job Satisfaction

Apart from using compensation, an effective component to retaining talented

employees can be accomplished through improving their job satisfaction. Employees
that are satisfied with their job will have no reason to seek alternative employment.
Management can insure talented employees are given autonomy in their job
functions and are given meaningful assignments, allowing them to be involved in the
decision making for their area of expertise. Pleasant working conditions can entice
productive workers to stay in their organisation and not look elsewhere. In addition,
offering these employees training to keep them current on their job functions and
allowing them to learn new skills can also be utilised to improve employee
satisfaction with the organisation (Sigler, K.1999:3).

Monitoring Leavers

To help retain current employees it is useful to find out why individuals have left. This
can highlight areas within management practice that can be reviewed, to prevent
further wastage of employees. (Sturman, M, 2003).

Changing nature of work

The changing workforce and the ―free agent movement‖ which accounts for a quarter
of the workforce are contract workers. That proportion is projected to grow to 40% or
more by the end of the decade. Employee commitment and appointment remain
central to building high-performance organisations. Building employment policies and
practices around the ―free agent‖ concept alone may undermine whatever chances
the organisation has of holding top performers. The top businesses understand the
need for differentiated policy frameworks. They understand that commitment and
reciprocity are the basis for retaining high-value employees (Risher, H. and Stopper,
W. 2002).

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Psychological Contract

Organisations no longer offer a job for life there is no longer guaranteed

employment, with a pension as a reward for loyalty and compliance. The
―psychological contract‖ between employer and employee has shifted. Employees
are increasingly mobile, changing employment for promotion, reward and job
satisfaction; top employees have more choice as to where to work. To retain these
key employees the organisations culture needs to allow an environment of personal
growth (Thomas, K. 2000). With less job security, the best reward an organisation
can give an employee is transferable skills (Marchington, M and Wilkinson, A. 1997)

Management

Management has a direct effect on retention, the behaviour and their skills all
contribute to how an employee feels valued. Buckingham (2000) argued that
employees are more likely to remain with an organisation if they believe that their
managers show interest and concern for them. Buckinham added that They are
know what is expected of them, if they are given a role that fits their capabilities and
they receive regular positive feedback and recognition (Buckingham (2000) in
Beardwell, I. et al 2004:177).

Graduate Retention

Organisations that have management training schemes retain a higher percentage of

graduate recruits, than the average in their industry sector. This process builds
ensure mutuality in career development, with both party‘s knowing what is expected
of them. The most successful of these programs are when the employee plans their
own career development (Mullins, L. 2005).

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1.1 Examine how Coca- Cola subscribes to the above philosophy as stated
by the CEO; and in so doing.

A Case Study: An overview of Coca- Cola Employee Retention

According Neethling career at the Coca-Cola Company is truly a one-of-a-kind

experience. It's more than working for the global beverage leader; Coca Cola South
Africa it ensure to employ the best and the brightest experienced professionals.
Many employees feel it's an opportunity to be a part of something that impacts the
world. From their product portfolio to the planet itself, they offer you not only the
chance to build a successful career; we offer you an opportunity to make a difference
in the world.

Coca- Cola values the relationship with their employees. The success of their
business depends on every employee in our global enterprise. The are committed
on fostering open and inclusive workplaces that are based on recognised workplace
human rights, where all employees are valued and inspired to be the best they can
be.

The-Coca-Cola Company‘s Workplace Rights Policy is guided by international

human rights standards, including the Universal Declaration of Human Rights, the
International Labour Organisation‘s Declaration on Fundamental Principles and
Rights at Work and the United Nations Global Compact. Coca- Cola South Africa is
guided by Labour Relations Act, Employment Equity Act and Basic Condition
Employment Act and other laws.

Creating a culture: One of main strategic priorities is to attract, develop and retain
the very best people. Creating a 'diverse and inclusive culture' is one of Coca-Cola
Commitment 2020 goals. They states that it will "create a culture where diversity is
valued, every employee is a respected member of the team and our workforce is a
reflection of the communities in which we operate."

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1.2 Analyse Coca-Cola Talent Management and Development Strategy.

Introduction

This chapter will explain the concept of talent, what is talent development, why an
Organisation needs talent development and factors that influencing talent
development in an Organisation. By understanding the theory of talent development,
it will helps this study to analyses the development of talent at Coca Cola South
Africa. The Human capital theory suggests that some labour is more productive than
other labour simply because more resources have been invested into the training of
that labour, in the same manner that a machine that has had more resources
invested into it is apt to be more productive (Ramlall, S. 2004).

One of the major areas of the HRM function which has relevance to the effective
management and use of manpower is training and development. In order to sustain
economic and effective performance it is of vital importance to optimize the
contribution of employees to the aims and goals of the Organisation.

Concept of Talent

According to McKinsey; talent is the sum of a person‘s abilities, his or her intrinsic
(natural) gifts, skills, knowledge, experience, intelligence, judgment, attitude, and
character, his or her ability to learn and grow.

Professor and HR guru David Ulrich takes a holistic view with his definition:
talent=competence commitment contribution (Ulrich, 2006). In his formulation,
competence means that individuals have the knowledge, skills and values that are
required for today and tomorrow.

Talent Development

Maximizing everyone‘s potential, developing capabilities and competency more

extensively, interventions include a broader range of learning and development
interventions at all levels, from training to management and leadership programmers
to international assignments, coaching and mentoring. (Steward & Rigg, 2010).

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Need of Talent in the Organisation

According to Drucker (1977), ―the one contribution a manager is uniquely expected

to make is to give others vision and ability to perform. A basic operation in the work
of the manager is to develop people and to direct, motivate and train subordinates‖.

There are various factors why Organisation needs talent development. It is because
to compete effectively in a complex and dynamic environment to achieve sustainable
growth. The Organisation needs talent development to develop leaders for tomorrow
from within an Organisation. İt is also to maximize employee performance as a
unique source of competitive advantage. Talent development also helps empower
employees by cutting down on high turnover rates and reducing the cost of
constantly hiring new people to train.

Factors Influencing Talent

There are many factors which cause instability in an Organisation‘s workforce. Some
of these factors are illness, retirement, attrition or finding better jobs. Considering this
unstable environment and in order to create stability for the future of the
Organisation, they need to hire capable people for key positions. One of the
important tools for attracting, developing, and retaining the talent in the workforce is
succession planning. There are many factors influencing the implementation of an
effective succession planning system in Organisations.

Most Organisations found that they must rely on their employees as the only way to
become stable in this competitive age. Organisations need to develop their
employees‘ knowledge, skills, talents and capabilities. Many Organisations use
succession planning to develop and maintain powerful leadership and other key
employees to make sure that they address all the skills and competencies required
for the economic environment. (Haraf, 2005).

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A Case Study: an overview of Coca-Cola Talent Management and Development
Strategy

Coca-Cola Training & Development activities: In Coca Cola South Africa their
objective is to attract and retain the best people, hence the company recognizes the
need to invest in training and development process. Being a global company both
Coca-Cola Enterprises (CCE) and Coca- Cola South Africa take training and
development process very seriously to improve the business performance.

The Learning tools: Coca- Cola South Africa has developed a mechanism to assess
one‘s performance in terms of contribution to the company and there after its
benefits for both company and employee, it has designed so-called ―My Career‖ - an
online personal development and career-planning tool - as well as other printed tools
that they can use to help manage and review their personal development.
Coca Cola South Africa provides training and development programmes, on-the-job
learning and coaching and feedback, to ensure that their employees have the
resources and methods they need to learn.

To help employees practice their learning skills, the company offers an annual
Learning Allowance. This can be used on a choice of learning activities outside of
work - anything from sailing to wine tasting.

The company runs a comprehensive 90-day induction programme for all new
starters. This includes specific training, formal reviews and external coaching to
support employees' transition to the company.
Development plans: Every Coca-Cola SA employee has a development plan, which
they review twice a year. This plan helps them ensure that we match individual skill
development with available roles, training interventions and project opportunities.
Their plan also plays a major part in the development of employee career paths.
The company offer skills labs to all employees before they review their plans with
their leader. These help employees prepare for the meeting to make it as successful
and productive as possible. In 2009, all employees and leaders also took part in a
workshop designed to provide the tools and resources needed to drive successful
career development.
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Talent management: At Coca Cola South Africa, talent management is important for
making sure that all employees have the chance to explore new opportunities and
grow within their role. Typical career moves for employees have included cross-
system moves, secondments to the Global HQ, international career moves and
promotion from within. Lateral career moves also help to gain breadth and depth of
experience.

Diversity and inclusion opportunities in Coca Cola South Africa

The company is committed to providing an inclusive working environment in which
everyone is treated fairly. It believes that having people from different backgrounds,
with different life experiences and talents is a real bonus for its business.
Respecting and valuing the diversity of people is central to the company‘s vision and
values. Its employment policies and practices have been developed to protect
against discrimination and ensure equal opportunity and fair treatment for all.

CONCLUSION

Talent management is a process that emerged in the 1990s and continues to be

adopted as more companies come to realize that their employees‘ talents and skills
drive their business success. In order to see its impacts, a talent management
system must be worked into the business strategy and implemented in daily
processes throughout the company as a whole. Coca Cola must continue with their
talent and development strategy. Their strategy focused on development of their
employee.

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QUESTION 2

Making reference to the case study given, discuss how Coca-Cola, through
their various HRM Practices, aspired to attain the title as one of best
employers of South Africa.

The Importance of Good HRM Practices Management.

The study entails the analysing of how Coca- Cola though their various HRM
Practices, aspired to attain the title as the one of the best employers. We outline
Coca- Cola Human Resource Practices: Recruitment, Training, Performance
Management, Labour Relations, Employee Relation, Incentives, Benefits, Job
Analysis, Job Design, Selection, Development and Pay Structures within Coca Cola
Company.

John Storey (1989 and 2005) defines the need of Human Resource System and
Management in the functioning of the Organisation. Every Organisation needs the
planning and execution to achieve its objectives—mission and vision which cannot
be done without the manpower resource planning and personnel management
hence the role of HR manager comes into effect, the module covers these aspects
and hence the assignment is based about the application of theories and concepts to
analyse the issues faced by an Organisation in terms of HR policies implementation.

HRM Practices

Recruitments and selection: Recruitment is seen to be one of the most important

aspect of a company, according to (Bratton and Gold, 2007) he describes
‗recruitment as the process of generating a pool of capable people to apply to an
Organisation for employment‘ and selection ‗is the process by which managers and
others use specific instrument to choose from a pool of applicant(s) the person most
likely to succeed in the job, given management goals and legal requirement.

Training and development: companies looking to sustain competitive advantage

should help to improve employee skills by giving them extra training so that they can
learn new thing to ensure quality of the product improvement and also the growth of
the company.

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Job Design: Coca-Cola applied some standardized operating procedures in order to
carry out their working, formal chains of command, various rules and regulation. The
processes are basically used to shape the structure of the organizations that is to
check out how decisions are made, how responsibility are defined and wideness of
accountability is also checked.

Employee and Organizational Development: It is considered as best practice out of

all HRM practices where desired outcome of development is seen in the form of skill
building, team building, conceptual understanding and problem solving. There has
been provision of training program to the employees in order to develop their skills
and bring out hidden talent in each employee.

Performance Management: There are various standard formed for the employees in
order to maintain their performance throughout the financial year and the feedback is
also provided after an employee goes through whole set of standards. The feedback
is provided continuously in emirates for example there is performance measurement
on the quarterly basis which provides a base for the employees to check on their
performance. (Human Resource Management "An Organization's Tool for
Competitive Advantage", 2012)

Reward Systems, Benefits and Compliance: There are various financial incentives
provided to the employee, that is based on short term or long term and some of the
company also provide their employees with non-financial rewards such as some
titles, recognition programs or some informal status symbols.

An overview of Case Study: how Coca-Cola, through their various HRM

Practices, aspired to attain the title as one of best employers of South Africa.

Coca Cola is committed towards a mode of management that aims at building a

workforce that is motivated and aligned to Organisational objectives: Planning, Job
description, Interviews, Hiring and Training.

Human resource practices at Coca-Cola are strongly interlinked with motivational

output of employees, they not only improves the living standards of employees but
also nurture the relationship exist between employee and employer not only this but
image of the company also effect by this.

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Recruitment process at Coca Cola: Recruitment process is well established first of all
we give ads in newspapers, company website, institutions etc. Once we receive an
application form, from candidates with required documents and CV. Internal
recruitment External recruitment

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.

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 we have here at Coca Cola
SA. 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

Group exercises: We‘re very much a team at Coca-Cola 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.

Ethical and Legal Issues at Coca Cola: There are a wide range of areas which come
under ethical issues in business, ranging from professional ethics, particularly
relating to certain professions. Employee rights include the right to a fair wage, a
safe working environment and non-discriminatory policies. Ethical issues in business
also exist in areas such as sales and marketing.

Work place rights policy coca cola: The Workplace Rights Policy applies to The
Coca-Cola Company and all of the entities that it owns or in which it holds a majority
interest. The Policy includes the following components: Freedom of Association and
Collective Bargaining Forced Labor Child Labor Discrimination Work Hours and
Wages Safe and Healthy Workplace Workplace Security Community and
Stakeholder Engagement.

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Conclusion

The impact of HRM practices on the organization is very effective in their nature.
HRM practices mostly influence the employee skills through the development and
acquisition of human capital of a particular firm. The recruitment procedures provides
an opportunity of a large pool of qualified applicants having pair with reliable and
suitable selection regimen with substantial influence over the kind of skills which a
new employee possess. HRM practices could also affect employee motivation
through encouraging them to work harder and smartly. It is important to note that
goof behavior of employees is necessary for better performance of organization and
in which HRM practices can effect each employee‘s motivation and behavior. HRM
practices is also related with the two dimensions of its performance where firstly
superior HRM practices make increment in the discretionary effort of employees and
secondly if the returns comes from the investments in superior HRM practices
exceeds true cost, then it will lead to lower employee turnover and greater efficiency.
(HUSELID, 1995)

These practices are followed at every level in Coca Cola as the chairman of the
company indicated; there are various rules and regulations made by him. The
employee recruitment procedure is of most importance in the company. The
rewards which are given to employees in the company are of two kinds financial and
non-financial whereas the HRM practices also consists of these kinds of rewards.
The performance is analyzed on the regular basis in the company which also shows
that practices are aligned to strategies of the company.

Coca cola reward system is highly functional to make employees more loyal to
Organisational goals, values and standards. On the other hand it also motivates the
employees. And reward management system should be in a group task because the
Organisations are more tend toward in group task rather than individual
performance. One of the important and appealing reasons is that it requires
interaction between groups and sharing of ideas which brings more effectiveness
and efficiency results in better outcome for the company.

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QUESTION 3

‗We pay for performance; this derives how reward and differentiate our talent’.
In line with the above statement;

3.1 Discuss Coca- Colas results approach to performance management.

Performance Management Process

The process of management involves a continuous judgment on the behaviour and

activities of staff. It is important that members of the Organisation know exactly what
is expected of them and the yardsticks by which their performance and results will be
measured. Performance management is a formal system through which one can
review the performance and potential of staff (Fisher et al., 2003; Anthony et al.,
2002)

A comprehensive system can provide the basis for key managerial decisions such as
those relating to allocation of duties and responsibilities, pay, empowerment and
levels of supervision, promotions, training and development needs, and career
progression. (Shen, 2005)

Benefits of Performance Management

The underlying objective of performance management is to improve the

performance of individuals leading to improvement in the performance of the
Organisation as a whole. An effective scheme, therefore, offers a number of potential
benefits to both the individual and the Organisation: It can identify an individual‘s
strengths and areas of development and indicate how such strengths may best be
utilized and weaknesses overcome.

It helps to identify and reveal the problems which may be restricting the progress
and cause inefficient work practices. It can develop a greater degree of consistency
through regular feedback on performance and discussion about potential. This
encourages better performance from staff. It provides information for human
resource planning, roadmap to succession planning, and determining suitability for
promotion and for particular types of employment and training. It can improve
communications by giving staff the opportunity to talk about their ideas and
expectations, and how well they are progressing.

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The elimination of bias

Tackey refers to the importance of eliminating bias in performance management.

―The elimination of the performance of individuals in the workplace is fraught with
difficulties even at the best of times. The difficulties are compounded when there are
allegations of bias in such evaluation; and magnified out of recognition when the
alleged bias has racial undertones.‖

Regular review of performance

It is particularly important that a formal PM system does not result in managers

failing in their responsibilities for reviewing performance on a day-to-day basis.
Reviews should not be limited to a formal event occurring once or twice a year but
should be a continuous process of monitoring, feedback and review. There should
be regular communications and contacts between managers and staff, and
discussions of problem areas and plans for the future.

According to Kermally, many Organisations still do not fully understand the

importance of measuring employee performance effectively. ‗Managers need to
value and measure the contribution of those that work them for in order to
understand how people contribute to organisational success. For this reason, it is
also imperative that performance reviews and measurement are undertaken
continuously‘.

Performance Appraisal

As human resources become increasingly critical to the growth of businesses,

measuring human capital, identifying, developing, rewarding and managing
employee performance is being looked at more strategically than ever before. With
investors and other stakeholders evaluating company performance on a quarterly
basis, appraisal systems are being tweaked regularly to suit changing Business
needs.

It is the process by which Organisation evaluates employees‘ job performance. It is

an essential function that supervisors and employees perform informally as an
ongoing process. It is necessary for every employee to know as to how he/she
performs [as feedback] and those who manage should know how to evaluate the

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individual performance in order to take necessary step or action i.e. when
performance is not unto the mark supervisor should take corrective action and when
the performance is good the said employees should be rewarded by the supervisor.
Informal and ongoing evaluation ate necessary but they are inefficient as it does not
leave behind any documentation of either good/bad performance. But on the
contrary with a systematic feedback system, the manager can identify good and bad
performers.

Performance appraisal can also be taken as one aspect of motivating applied in

Organisation context. Job performance is partially determined by the motivation to
work hard. Increased motivation results in greater effort and improved performance,
which results in increased productivity.

Performance = ability + motivation

Analysis of Performance Management in Coca Cola South Africa.

The goal of global performance management strategy is to enable peak performance

in the enterprise. This means creating an environment where employees can excel,
develop skills for improvement, and move toward their career goals.

All the employees of Coca-Cola South Africa are made a part of the Peak
Performance Process, which includes performance, development, and career
planning elements that are recorded in the company‘s online tool. The
Compensation and bonuses are linked to this process every year.

The process is a cycle that includes several key phases throughout the year: Setting
objectives and establishing core competencies, creating a development and career
plan. Reviewing both of the above regularly, through mid-year and year-end formal
reviews, Calibrating output across departments throughout Coca-Cola South Africa.
This is managed through face-to-face meetings. There are online tools available to
support the process too.

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Coca-Cola South Africa recently replaced its five-point rating system with a four-point
grading methodology to force reviewing managers to take that tough call on rating
appraises, and not take a median approach. They found out that in many cases, that
the appraiser would take the easy way out and assign a score of 2.5 or 2.7.

Working at Coca-Cola South Africa

The Coca-Cola South Africa offers flexibility to its employees in terms of working
hours, pensions and dealing with redundancies, the brief of which is discussed below

Summertime hours

As part of performance management processes to help employees achieve a good

work-life balance, Coca- Cola South Africa has an initiative that gives employees a
longer weekend during summer. Over the three summer months of the year, they
can work a four and a half day week.

Pensions

All employees of Coca- Cola South Africa can enter pension schemes. At CCSA,
they are eligible from their start date. Pensions are held in funds separate from the
Coca-Cola System's financial assets. The fund is looked after by Trustees, who have
the legal requirement to act in the best interest of members. Employees' pensions
are secured by purchasing an annuity from an insurance company. In 2007, the
Coca Cola South Africa contribution to employee‘s pensions was increased to 6%
from 4%.

Dealing with redundancies

Coca- Cola South Africa redundancy practices conform to legal requirements and
offer an additional package of support, including outplacement.

The responsibility of a multinational company is to work for people and society,

Coca-Cola South Africa in this regard has displayed efficient and friendly process
and procedures for its employees in assessing the individual performance and
motivating them to strive for company‘s success as one‘s success. My analysis
believes that Coca-Cola South Africa should continue this process as a long-term
strategy to infuse zeal of satisfaction to its employees. (Lunnan et al., 2005)

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The role compensation plays in creating the motivated workforce of Coca-
Cola employees.

Performance appraisal and reward management

Definitions: Reward management and Performance appraisal Armstrong and Murlis

(2004) said ―reward management is concerned with the formulation and
implementation of strategies and policies that aim to reward people fairly, equitably
and consistently in accordance with their value to the Organisation.‖ Performance
appraisal is process with the help of which, management examines and evaluates
employee‘s effectiveness and efficiency, which can help management to learn about
employees, how to improve their work order, etc. Mainly it is used to take decision
about promotions, demotions, etc.

Objectives of reward system and Coca cola‘s reward system

In general the rewards should support Organisation‘s strategy, should help

Organisation to recruit more people and continue to have experienced people,
increase motivation, increase psychological and emotional contract, etc. Employee‘s
motivation and determination in work plays a vital role in Organisation‘s development
and growth, one of the best ways to increase motivation and determination is
acknowledging the employee‘s hard work in terms of rewards. Which not only
increases confidence of that employee but it also motivates other employees.

Reward management is an internal part of Human resource management in coca

cola; it is not only designed to support business strategies but also designed to take
care of motivating employees, increasing the performance of employees, in long
term process for the Organisation. When employee realizes that Organisation is
monitoring and acknowledging his/her activities, employee would make sure to give
the best performance he/she can give. That is exactly what the Organisation wants.

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Financial and non-financial rewards

Rewards, in general are of two types extrinsic and intrinsic. Extrinsic rewards /
financial rewards consist of performance bonus, special prizes to increase
performance, presenting gifts in festivals to increase attachment with employees.
Non-financial rewards include experience of autonomy, choice of which employee
wants to work with or allowing employee to choose area he/she wants to work in or
department they want to work in, this approach believes that financial rewards are
not necessary for employees to work more effectively.

Coca cola‘s intrinsic reward system

Coca cola provides monthly, half-yearly, yearly rewards. It provides AIP, annual
incentive plan and annual appraisal for personal progress report for performance,
employee salary increment, designation change reward. The Organisation provides
health insurances for its employees with respect to their health and safety, and also
provides protection and coverage for their vision, dental, disability, etc. Other
provisions include life insurance, pension plans, saving plans, paid time off,
maternity leave with half and full pay, etc. Under non-financial, Organisation also
allows its employees to study further in their interested areas in Coca Cola
University. Provides training to increase performance of the employees with respect
to their jobs and knowledge. Some of the key areas to judge employee efficiency are
work environment and quality, work presence / working hours, problem solving,
customer satisfaction, improvement in work performance

QUESTION 4

Discuss how Coca-Cola, through their various HRM functions, has allowed the
company to be considered a ‘role model’ in terms of how you take HR as a
serious business partner and how HR can lead the business to the next level.

Introduction.

This sub section illustrates the processes involved in executing the HRM functions.
Each of the functions: planning, recruitment, selection, orientation and training,
performance appraisal etc. goes through a process. Unless otherwise stated, the

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rest of this section will be drawn from (Dessler et al., 1999)‘s literature based on
pages 165 to 533.

Human Resource functions

There are several HRM functions, naming some of the many methods are
recruitment and selection, HR skills training, improving working lives, operational and
employee relations.

Recruitment and Selection

The process of filling an organisations job vacancies by appointing new staff. It is

important to have a well-defined recruitment policy in place, which can be executed
effectively to get the best fits for the vacant positions. Selecting the wrong candidate
or rejecting the right candidate could turn out to be costly mistakes for the
Organisation.

HR Skills Training

The provision of work-related education, either on-the-job or off-the-job, involving

employees being taught new skills or improving skills they already have. Employees
must attain behavioural competencies skills necessary to perform tasks and
assignments. The development and training of employees contributes to effective
production performance at lower costs with increased successful employee retention
and motivational levels (Beardwell & Holden, 2004).

Remuneration

Remuneration occupies an important place in the life of an employee as it refers to

their wages, salaries, incentives, fringe benefits and perquisites

Performance appraisal

An assessment and review on employees on how to become better more motivated,

and eventually more successful The work performance of the employee is examined
and discussed in great detail in order to identify strengths, weaknesses,
opportunities for improvement, and skills development (North, A. 2006).

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Employee Relations

Ensure that there is a good relationship between the employees and the employers
with the objective of increasing the productivity, morale and motivation. Make sure
the employees discipline and conduct adheres to the rules of the Organisation.
Oversee that the problems of the workers are solved and preventing such problems
occurring.

Role of HRM function.

For, Flint et al., (2005) the field of Human Resource Management (HRM) has in
recent times been seen as moving away from a supportive - selecting, training, and
retaining (Porter, 1996) to a strategic role (Bartlett & Ghoshal, 2002). The latter
explained that rather than being supportive, focusing on recruiting, training and
taking care of benefits, HRM‘s role has become strategic building and using human
capital to ensure competitive advantage.

According to (Bratton and Gold, 2007:37) strategic human resources management is

―the process of linking the human resources function with the strategic objectives of
the Organisation in other to improve performance‖ they also added that it is actually
a managerial process which require HR policies and practices to be linked with the
strategic objectives of the Organisation.

Human resources should be considered as a significant Organisational asset. In this

context, the application of the appropriate strategies for its development, can lead to
the improvement of the corporate performance both in the short and the long term.
However, there are also companies where human resources are not considered as
having particular importance for the firms‘ growth. In this context, Haines (1997, 95)
supported that there are firms that ―view their human resources as an expense rather
than an asset an element that is expendable and perhaps discarded when the skills
possessed becomes obsolete; however when human resources are viewed as an
asset, companies enhance individual value through training and human development
and ensure continued contribution to the Organisation‖.

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An overview of how Coca-Cola, through their HRM functions, has allowed the
company to be considered a ‘role model in terms how it takes HR as business
partner and how can lead to the next level.

At Coca Cola Human Resource is closely attached tied to strategic planning, In

order to effectively meet their strategic goals and objectives, a world leading
company, hire or develop staff with the required skills, knowledge and attitudes.

Human Resource Plan has a great value to achieve of an organisation‘s overall

strategic objectives and it is clearly explain that the human resources role completely
understands and supports the route in which the organisation is touching. A
complete HR plan will also support other exact strategic objectives undertaken by
the marketing, financial, functioning and technology departments.

Coca-Cola believes in delivering better performance requirements better capabilities.

So its HR policy is planned in procession with this approach and stand on attracting
and retaining the brilliant people and developing them constantly. Employee‘s
development is the main issues for human resource management. It constantly
educated on ‗How to Develop People‘. Employees, business objectives and ability
levels are followed up by the performance management.

Reward system and career management systems are considered on job family
model. As a fraction of career management system, internal appointment procedure
is used so as to grant them career and job upgrading opportunities. In 2007 there are
97 placement have been filled through internal assignments.

Winning and potential employees are reviewed efficiently and exclusively. Talent re-
evaluate meetings are planned for next steps with individualized development
programs.

The HR policies can help an Organisation both internally and externally. It meets
requirements for diversity, ethics and training as well as its commitments in relative
to instruction and commercial governance. The HR policy of Coca-Cola establishes a
cultural diversity. HR policies also played a very effective at supporting and building
the desired Organisational culture.

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