NAMA : BAYU DWI P.

ANITA CINTYAGA A.

DESI RIZKY AMALIAWATI

KELAS : S1 MANAJEMEN TRANSFER ‘18

MATKUL : INTERNATIONAL HRM

COCA COLA CASE

1. What are the reasons Coca Cola transfer their employees to the host countries?
The reason of sending staff for international assignment in Coca Cola is to
achieve three major goals within short and long terms: to fill positions, develop the
management and to fulfil Coca Cola’s development. And to transfer technical or
managerial knowledge, training of subsidiary managers, or lack of qualified local
personal.
To fill positions the reasons are because the level of education in host country is
low, subsidiary is young,subsidiary is under-performing, subsidiary is greenfield
establishment, and gain international experience develop global awareness. To develop
the management because MNC is more internationalized, MNC is large, and control and
coordination of subsidiary operations.
2. What are the disadvantages or risk transfer Coca Cola’s employees to the host countries?
The Coca Cola’s selection use the traditional way of selecting their international
employees, it needs several steps until they select the right international employees which
is it take a long time and a bigger cost. The selection system may lead to significant
problems. Selecting people who have equivalent skills, information, and organizational
expectations is more complex, someone who has been successful somewhere else in a
related position may not always be a good selection. The selection in most organizations
is not as useful as it could be because it is not based on an analysis of job necessities, it
may involve unrelated, and sometimes unlawful, it allows the candidates to express actual
job skills. The other risks are the level of cultural distance between home and host
country is high, the political risk in host country is high, the risk terrorism, it can
influence the employee performance consequences of the failure are more severe.
Mistakes whether by design, bad management or by accident, canbe financially costly
and has the potential to badly damage the worldwide reputation of anorganisation found
culpable.