Strategic Human Resource Management Practices at Coca-Cola Company

This report provides a comprehensive analysis of Coca-Cola's strategic human resource management (SHRM) practices. It defines SHRM and human resource management (HRM), highlighting their distinctions. The report examines Coca-Cola's company background, strategic business goals, and objectives, including cost leadership, differentiation, and focus strategies. It details the company's strategic HR goals and objectives, such as refreshing the company's culture, and outlines specific HR strategies for recruitment, induction, staff training and development, employee engagement, retention, and grievance handling. The report assesses the effectiveness of these strategies on employees and the organization, while also addressing challenges related to legal, contemporary, and ethical issues. Furthermore, it explores the impact of SHRM on Coca-Cola's company policies, including organizational culture, changing demographics, industry trends, and employee engagement. The report also covers company policies linking to international law, corporate social responsibility initiatives, and concludes with a list of references. This analysis offers valuable insights into how Coca-Cola manages its human resources to achieve its business objectives.

Strategic Human
Resource Management

Strategic Human Resource
Management
Definiti
on:The practice of developing, attracting, rewarding and retaining employees so
that it benefits both the employees and the organizations at the same time.
Human Resource Management
Definiti
on:Main focus is on the recruiting and hiring the best candidates and providing
them with resources like compensation, training, benefits and professional
development in the workplace.

SHRM vs. HRM
Point of distinction HRM SHRM
Focus Employee Relations Partnerships with internal
and external groups
Role of HR
Reactive and Transactional Proactive and
transformational, change
leader
Initiative for Change Slow and not integrated
with larger issues
Fast, systematic & flexible
Time Horizon Short-term Consider both short and
long time frames
Control Bureaucratic control Organic Control
Job Design
Focused on the design of
job
Focus on not just
employees, but broader
aspects
Important Investment
Capital, technology,
products and finance
People and their
knowledgeable skills and
abilities

Company Background:
• Headquarters: Atlanta, Georgia US
• Started in 1886
• Company Status: Publicly Traded Company
• Market Position: World’s largest beverage company
• # of Employees: 146,000 worldwide
• Revenue generated by per employee (TTM): $325,595
• Market cap: $163.39B

Strategic Business Goals and Objectives:
Cost Leadership:
• Focus on price strategy and cost of packaging to make it available to more
people
• Changing to the producer that offers the lowest price
Differentiation:
• Eliminate diversification of the market
• Goal is to be exclusive and unique in the whole beverage industry
Focus:
• Company selects only a narrow competitive scope which is available in the
industry.

Strategic HR Goals and Objectives:
Refresh the Company’s Culture
• Formulate a clear direction and common purpose for the business and the
employees
• Employee engagement survey showed low morale
• Encourage face-to-face meetings across the global organization’s
executives
• Ensure that employees are able to work as a unified team
• Business model needs to be focused on getting short term results.

HR Strategies
• Regional franchises employ their own recruitment
processes once they have been approved to hire more
employees
• Job advertisements are published in newspapers, company
website, recruitment websites, etc.
To fulfil the requirement for talent bank, company
representatives visit universities and colleges.
Recruitmen
t

• Company is in charge of both internal and external recruitment
Internal: Promotion, transfer, retirement, employee
recommendation
External: Employment agencies, campus recruitment, walk-in
interviews
• Major recruitment avenue is for their e-commerce sector
HR Strategies
Recruitmen
t

HR Strategies
• Fresh employees go through a three months training
process, after which they start getting paid as they
become a confirmed employee.
• Training and development of the employee to make them
understand the procedures of the company, along with the
rules and regulations that should be followed.
Induction

HR Strategies
• New employees go through a training process of three months
• Training is also given to existing employees depending on their
professional condition
 For example, when new technology is introduced, HR formulates
full training process in order for them to get accustomed to the
new process.
• Promote mentorship programs so the higher level executives are able
to establish a relationship with each other
Staff Training and
Development

HR Strategies
• A strong importance given to company executives having an open-
door policy for all the employees
• Availability of compensation and benefits packages for employees that
are the high-performers in the organization
• Using the Peak Performance System
 Managers and their associates regularly discuss the possible
development or succession plans which are available around the
world.
Employee Engagement

HR Strategies
• Understand the employee’s aspirations and needs for their
well-being
• Performance appraisal of all employees is performed every
year
• Innovate and create synergies between the employees,
managers and the organization as a whole
Employee Retention