A Report on Organizational Behavior and Leadership at Coca-Cola

This report provides a detailed analysis of organizational behavior and leadership within The Coca-Cola Company. It begins with an introduction to organizational behavior, defining its core concepts and highlighting its importance. The report then presents a case study of Coca-Cola, examining its organizational design, history, and the application of various organizational behavior theories, including Clayton Alderfer’s ERG theory. It explores the company's motivational strategies, leadership approaches, and the impact of authority and control. The report also discusses different models of organizational behavior, such as autocratic, custodial, supportive, collegial, and system models, and how they are applied within Coca-Cola. A SWOT analysis is included. Finally, the report reviews literature on the subject and concludes with recommendations for the company.

Running Head: Organizational Behavior and leadership
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Organizational Behavior and Leadership
2019

Organizational Behavior and Leadership: 1
Table of Contents
Introduction......................................................................................................................................2
Organizational Behavior..................................................................................................................2
Organizational behavior within Coca-Cola using models and theories...........................................4
Organizational behavior and theories..............................................................................................5
Leadership Theory...........................................................................................................................6
Authority and Control......................................................................................................................7
Models of Organizational Behavior.................................................................................................7
Possible Solutions............................................................................................................................8
Increase in the revenue streams from all fronts:..............................................................................8
Recommendation.............................................................................................................................9
SWOT analysis of Coca-Cola:.......................................................................................................10
Literature Review..........................................................................................................................11
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

Organizational Behavior and Leadership: 2
Introduction
This assignment is totally based upon the organizational behavior; the brief explanation of term
is conducted in report. The part of the introduction includes with the fundamental of
organizational behavior is also discussed. A case study of an organization is taken which face the
change from this factor; the case study is started with the introduction of the company which
includes history and profile of that particular company. In the report the deep analysis is
conducted on the leadership and organizational behavior of the company which is chosen for
case study. In the research of the company some literature sources are examined which described
the strategies for the organization which have the information about leadership goals and
behavior of organization.
Organizational Behavior
It is the study of behavior of any individual according to settings of an organization also it can
simply explain that it is a bond between the person and the organization where he/she is working
is known as Organizational Behavior. Aim of organizational behavior is to fortify the theories of
organization and design new and better formulation in life of organization. There are some
cultures which act internally in any company and they are mandatory as well. Every single
employee has responsibility towards the behavior in the organization apart from their
contribution by skills, as these behavior are connected with values, and beliefs of company and
these values or beliefs are responsible for interaction with management, other employees and
towards the work so organizational behavior is key factor that should be examined in an
organization (Lee, Schwarz, Newman, and Legood, 2019).
Organizational behavior plays key role for organization and employees to develop mutual
understanding between them. Most of the companies where the Organizational behavior is not in
trend in that company which affects the relation between managers and employees which leads
to several issues impacts on the working efficiency of company as well. The organizational
behavior helps not only employees to build up their career in organization but also manager to
find out the potential of the employees who are medium to increase productivity of company and
its growth in market. It motivates employees in organization towards their job satisfaction
because if employee will not satisfied with their job role or if they will demotivated due to
policies of the company and its environment it will effect on productivity and growth of

Organizational Behavior and Leadership: 3
company. Organizational behavior helps the workers to understand their job role and
environment of their company as well as it helps them to act according environment of company,
It also helps all supervisors and senior authority to make change or in decision making for
feature of any company. The benefits which observed by implementing organizational behavior
of company are mentioned (Islam, Ahmed, and Ali, 2019).
 It improves performance of Job
 It helps to develop satisfaction with the work
 It promotes innovation
 Organizational behavior helps leadership to act with courage
 This factor helps to maintain and improve the relationship and communication with
customer.
 It develops the ethical behavior in an organization that helps to maintain a positive
environment.
Fundamental Concept of Organizational Behavior
Organizational behavior is based on following concepts which are mentioned below and these
concepts are completely linked with the employee and organization (Jordan, Ferris, Hochwarter,
and Wright, 2019):
 Differences in Individuals
 Impression
 An individual
 Motivated Behavior
 Wish for participation
 Value of Person
 Human Nobility
 Mutual Interest
 Integrated Concept
Organizational behavior also comes with some challenges due to which its implementation
becomes complicated or not easy in an organization, these challenges are described below:
 For Increasing skills of people
 For improving productivity and quality

Organizational Behavior and Leadership: 4
 Management in total quality
 In managing the diversity of workforce
 Respect for Globalization
 In empowering persons
 Transiency with coping
 Developing change and innovation
 Promoting E-commerce
 Maintaining Ethical behavior
 Improvement of Customer service
Organizational behavior within Coca-Cola using models and theories
Introduction of Organization:
Coca-Cola is an international company which is working and producing the products associated
with the beverages, syrups. The company was founded in the year of 1886 by John Sitih
Pemberton, he was a pharmacist. It was acquired as a brand in the year of 1889. The methods of
Asa Griggs Candler when implemented with the product it came to be known as Coca-Cola
Company. Company has the patent of its formula and it is still not revealed along with that many
other brand more than 400 are currently in rotation around the globe. Headquarter of operation of
company is working in Atlanta, (Georgia Makagiansar, Worang, and Tielung, 2019).
Organizational Design of the Company
The management of the company examined that there was need to change in the policies of
company as per the demand from end of customers. There are two types of operating
departments are acting of Coca-Cola in which Botelling investment and corporate are included.
Their work is also divided according to regions in which Africa, Eurasia, Latin America and
pacific and North America are included When an organization which is working on global level
than it is quite difficult to manage the departments for the higher authorities and for this when
the company divides its working sector in small local level zones than it becomes very easy to
execute tasks also the communication can be made with the higher authorities and this method
will work as long term plan for the growth of company (Bingham, and Nabatchi, 2019).

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Organizational behavior and theories
Organizational behavior comes with different theories which are mentioned below (Birasnav,
Chaudhary, and Scillitoe, 2019):
a. Theories of Intelligence
b. Theories of Personalities
c. Theories of Motivation
d. Theories of perception
e. Theories of attitude and behavior
The system for which Coca- cola is known for is their motivational concept. This can be easily
explained by Clayton Alderfer’s ERG theory. Accoriding to this theory the need of any
individual is categorized into three categories which are defined as existence, relatedness and
growth.
Existence: It includes the entire component and the psychological desires.
Relatedness: It connects with the relations and their significance for example family, friends, co-
workers and employers (Coccia, 2019).
Growth needs: It explain about the desires and creativity and productive and to complete the task
which are meaningful.
The output which is generated by the company cannot be matched with work place of any other
company around globe. The vital components of the theories are:
i. The main focus of the company is existence in the market.
ii. There should be presence of patience always within the company.
iii. In last the company has focus on the development.
Company has a council which is working for the cultural alertness of its environment among
employees. The council has the responsibility to maintain the professional and personal support
with each other. The company provides perks or incentives on the daily basis according to the
working efficiency to an employee. The main target of the company is youth generation so they
keep organizing the events related with the same (Duan, Wong, and Yue, 2019).

Organizational Behavior and Leadership: 6
Strategy Use by Coca-Cola
The main strategy on which the company is working is paying a good package to their
employees, and this factor motivates their employee to work efficiently and with proper
dedication. This policy is not only to attract employees for their company but also to get the
performance out from them. They also adopt the plan of 401k and according to this plan an
employee can invest some money in company so they can have saving later on. Coca-Cola have
trend which is termed as ‘employee forum’, in this program employees have freedom to create a
group on their area of interest and they can discuss or they can work on that act or that area once
in a week by meeting with each other, this thing motivate and provide a positivity to employees
and they can work in the company in much better way (MAANI HESSARI, N.A.S.O.N.,
RUSKIN, McKEE, M.A.R.T.I.N. and STUCKLER, 2019).
Leadership Theory
The leadership can be explained in many ways as for any organization supervisors have not to
discover only the educational qualification or other employment qualification but they also have
to consider that either the candidate have the capability to work individually on daily basis.
When anything goes wrong in company than the employee is criticized on the negative outcomes
of that work which effect the individual on its working efficiency and also develops a mental
pressure and for that the supervisor has to suggest the employee not to consider about the
negative situations which surrounds him/her but to focus on the positive points of the results
from which there are lot of areas to learn (Stewart, Courtright, and Manz, 2019). This skill of the
supervisor provides motivation to each and every employee. Coca-Cola gives respect to their
each and every employee or worker for their performance and which makes comfortable to their
employee for working and maintaining the quote “They Feel Good” working at coke. They have
the process which is known as ‘Open door policy’ this policy allows every employee to put their
point or their concern in front of their supervisors so that it can be resolved. Mangers of Coca-
Cola keep the employee in the loop to communicate with them and for that weekly meetings are
arranged with the employees for sorting out their employees (Viladrich, 2019).

Organizational Behavior and Leadership: 7
Authority and Control
Company has large number of employee which are more than approximately 94800 in number.
Due to its vast network problem which arise in the company is related with the communication.
The companies with the wide network employees over there face the issue with their goals due to
which they lacked in the motivation. This is the reason for which the company set the goals with
the employees so that they remain engages in their work and goals. The intranet system of the
company connects the employees with each other also this helps the authorities to remain in
communication in effective way with the employees of the front line (Tran, 2019).
Models of Organizational Behavior
Basically there are 5 models of any organizational behavior which are defined below:
i. Autocratic
ii. Custodial
iii. Supportive
iv. Collegial
v. System
Autocratic Model: This model helps the Coca-Cola to get over from those issues for which the
manager have not any alternates to act and when the issue is not very well known. Some times
this model is also used for the Organizational disaster.
Custodial Model: This model is base of the economic structure of the company. By this model
employee of company gets security towards their job, employees feel responsible towards their
task. As company supports their employee, so it create a positive impact on their employees for
the company and they become more dedicated towards the work and productivity of company.
Supportive Model: This model is associated with the aspect of the managerial support and help.
With this model Coca- Cola provides opportunity to take part in the activity of company. Coco-
Cola motivates their employee because for the company their status and their requirements
matters a lot for them.
Collegial Model: Basis of this model is partnership or cooperation in the team. This model is
used by the company because it make employee realize themselves as useful and responsible
which leads company to get better productivity and output from them.

Organizational Behavior and Leadership: 8
System Model: Supervisors of Coca- Cola always treat their employee as important part of the
company. They keep each and every employee together so that there is better productivity and
can provide a quality level of service. It helps the employee to assume their long term and short
term goals regarding their work (Lee, Schwarz, Newman, and Legood, 2019).
Possible Solutions
Coca-Cola is one of the largest multinational group around the globe and its business is
expanded in almost every country, every corner and maintaining such wide group is not easy task
because there would be pressure of several issues on headquarters of company to handle and
control from one office. Apart from that as company is providing services only in beverages
which is the only major source of its economy so here are some solutions of their major issues.
Increase in the revenue streams from all fronts:
For achieving the target of 10 years associated with the revenue, company has to sell their
products in different and new locations in order to expand their business and service. As the
customers keeps on changing their preferences according to availability. In the developed market
company has to maintain their size associated with the sales while they have to increase their
supplies of products in developing market.
Diversification: The main source of economy of Coca- Cola is totally depending upon the sale
of their carbonated beverage. Company has to increase their sales in all other remaining drinks
such as bottled water, juice, ready to drink tea. The company has to maintain sales of their share
of other products. Company has to continue with their strength in their loyalty, innovation and
expand in their products category (Schneider, and Bowen, 2019).
Diet products cannibalizing standard variants: Customers now days are much concerned
about their health and they have also start reducing in the consumption according to the same.
The launching of diet coke was successful investment of company, but it also creates a challenge
as diet coke reduced the consumption of its normal drink. The company has to find the solution
to overcome from this issue and to maintain the selling of both categories.
Communication: Due to large group some time company has to face communication issues with
for different operations it might be due to technical issues or because of internal issues. The
communication gap in any company results to demotivation in employees if there concern not

Organizational Behavior and Leadership: 9
get any support from higher authorities, proper data or information collection about the annual
sale and product cost or other factors may results to error in the record which also affect the
company to gather the annual report by which an organization get to know about the progress in
the operations (Sultan, Akram, Abdulhaliq, Jamal, and Saleem, 2019).
Recommendation
Continue with the expansion of low calorie drinks, particular to low calorie carbonates:
People of every country are now concerned for their health due to which government also plot
some rules and regulation with the ingredient of the drinks and for that government keeps on
surveying in plant of company.
Capitalize on the wider health and wellness trend with in soft drink markets:
Terms like “naturally”, “functional” fits for the soft drink. Most of the companies have multiple
varieties of drinks, juices, and water and they are also good competitor of Coca-Cola. So they
have to find out new techniques and new products (Pierce, and Velliaris, 2019).
Equal Opportunity Policy:
The company supports each of their employees for their work and contribution which are
performed by them. The environment of company is supportive as their management system
supports and respect of their employee in order to motivate their employee it will not only build
trust on employee for the company but also improve the productivity of the company. For them
each and every employee is equal and important they never violates the policies of the company
if there is any issue which is related with the caste, religion, gender discrimination. They provide
equal opportunity for every employee.
Position of company in next 10 years
The history of the company is very famous and strong as company covered almost 30% market
of beverages around the globe. So by the 2020 the company will be able to increase its market up
to 90 billion dollars (Nomani, Moghadam, Emami, Mohammadpour, Johnston, and Sahebkar,
2019).

Organizational Behavior and Leadership: 10
SWOT analysis of Coca-Cola:
Strength: The strength of the company is categorized in following parts which are included with
the:
1. Advertisement:
The expense of the company on advertisement is 6.9% of its total revenue. In the year of
2014 company was the largest advertiser of beverages product in the world. It helps the
Company in following types (Nofrizal, Soviyanti, Khairani, Ciptono, Mada, and Hanafi,
2019):
 It will help to introduce to launch new products in market
 Promotion of the brand.
 The feature of product information will be reach to people.
 The mission and vision of the company will get to know about to public
 Increase in sales.
2. Geographical Strength from geographic speed
The company has vast global business; its large sales are made outside developed and
developing markets.
Weakness:
1. Heavy dependency on carbonates: The income of the company is from the sale of
carbonate beverages and that is the most dominant drawback factor of company.
2. Image of ‘High Sugar’ carbonates: As customers are aware about the health issue
which is affected by the content of sugar of regular Coca-Cola (Lee, 2019).
Opportunities:
1. Health and Wellness: The issues which are getting increase in number related with
health, as customer are getting understand the importance of health with the healthy diet.
2. Emerging market: India and china who are having the largest number of population are
the area of opportunity and company should focus on market of these countries.

Organizational Behavior and Leadership: 11
Threats:
1. Strong Competition: In recent these years many brands are introduced in the same
industry out of them PepsiCo is one of the biggest competitors of Coca- Cola.
2. Cannibalization in low calorie categories: Sometimes the brands can be found in
competition with each other directly and there are at risk of the cannibalization.
Literature Review
This literature provides the information about the organizational behavior and its importance in
which affect the complete working environment and operations. In this research various topics
are discussed along with the challenges and their possible solution. The complete literature is
explained by the analysis of multinational company Coca- Cola and its complete operational
process. In the literature information can be understand about the challenges which Coca-Cola
face these challenges are related with its production, competition, other major factors which
affect the company many times, so by the organizational behavior the resolutions are provided to
get over from those issues .
Conclusion
In this report organizational behavior is discussed for the multinational company Coco-Cola with
the theory of the motivation. Leadership phenomenon on which company is working for favor of
its employees. In the report the organizational behavior is discussed with the fundamental
factors. In this report challenges which the company is facing are discussed in the market apart
from that SWOT analysis is mentioned of the company. In this research is also discussed with on
the recommendation for Coca-Cola.

Organizational Behavior and Leadership: 12
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