Strategic HR Alignment with Business Goals: Coca-Cola Nairobi Case

This case study investigates the alignment of human resource (HR) practices with the business strategy of Coca-Cola Bottling Company in Nairobi. Using primary data collected through interviews with top-level management, the research explores how HR practices are integrated into the company's business operations. The findings reveal a high degree of integration, with HR practices aimed at enhancing employee competence and customer delivery aligning with the business strategy of enhancing competitiveness. Strategic HRM objectives are outlined in the organization's business strategy, and training and development programs equip employees with skills that improve customer satisfaction and contribute to the achievement of business goals. The study highlights the importance of linking HR activities to specific business objectives and ensuring that line functions are trained to deliver on their tasks. Furthermore, the research indicates that HR practices involve knowledge exchange and learning from activities and projects to enhance business continuity. The integration of HR into business strategy formulation, particularly through competitive HR practices, has led to management prioritizing activities aligned with business objectives. The study concludes that aligning HR practices with business strategy is crucial for achieving organizational success and competitive advantage at Coca-Cola Bottling Company in Nairobi.

ALIGNMENT OF HR PRACTICES AND BUSINESS STRATEGY AT THE
COCA-COLA BOTTLING COMPANY IN NAIROBI
CHRISTINE KAGWIRIA
A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILMENT OF
THE REQUIREMENTS FOR THE AWARD OF A MASTER OF BUSINESS
ADMINISTRATION DEGREE, SCHOOL OF BUSINESS, UNIVERSITY OF
NAIROBI
August, 2015

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DECLARATION
I declare that this research Project is my original work and has not been submitted to
any other university for award of a degree.
Signed…………………………………. Date………………………..
Name REG NO.
This project has been submitted with my authority as the university supervisor.
Signature……………………………………. Date....................................................
PROF K’OBONYO
Department of Business Administration,
School of Business,
University of Nairobi.

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ACKNOWLEDGEMENTS
I take this opportunity to give thanks to the Almighty God for seeing me through the
completion of this project. The work of carrying out this investigation needed
adequate preparation and therefore called for collective responsibility of many
personalities. The production of this research document has been made possible by
invaluable support of many people. While it is not possible to name all of them,
recognition has been given to a few. I am greatly indebted to my supervisor Prof.
K‟obonyo for his professional guidance, advice and unlimited patience in reading
through my drafts and suggesting workable alternatives, my profound appreciation to
you. The entire staff of Coca-Cola Bottlers ltd cannot pass without my special
acknowledgement for taking time off their busy schedule to provide me with all the
information I needed in the course of the research. Without their immense cooperation
I would not have reached this far. I would also wish to extend my sincere gratitude to
all the MBA students, staff, lecturers and the entire University of Nairobi fraternity
for changing me from what I was to what I am. Thank you all. May the Almighty God
bless you abundantly?

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DEDICATION
I dedicate this work to my family and all those who supported me in the completion of
this project.

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TABLE OF CONTENTS
DECLARATION......................................................................................................... ii
ACKNOWLEDGEMENT ........................................................................................... iii
DEDICATION ............................................................................................................. iv
LIST OF TABLES ..................................................................................................... viii
ABBREVIATIONS AND ACRONYMS .................................................................... ix
ABSTRACT ...................................................................................................................x
CHAPTER ONE ..........................................................................................................1
INTRODUCTION........................................................................................................1
1.1 Background of the Study .........................................................................................1
1.2 Research Problem ....................................................................................................6
1.3 Research Objectives .................................................................................................8
1.4 Value of the Study ...................................................................................................8
CHAPTER TWO .......................................................................................................10
LITERATURE REVIEW .........................................................................................10
2.1 Introduction ............................................................................................................10
2.2 Theoretical Review ................................................................................................10
CHAPTER THREE ...................................................................................................19
RESEARCH METHODOLOGY .............................................................................19
3.1 Introduction ............................................................................................................19

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3.2 Research Design.....................................................................................................19
3.3 Data Collection ......................................................................................................19
3.4 Data Analysis .........................................................................................................20
CHAPTER FOUR ......................................................................................................21
DATA ANALYSIS, RESULTS AND DISCUSSION ..............................................21
4.1 Introduction ............................................................................................................21
4.2 Background Information of the Interviewees ........................................................21
4.3 Alignments of HR Practices and Business Strategy ..............................................24
4.4 Discussion of the Findings .....................................................................................27
CHAPTER FIVE .......................................................................................................29
SUMMARY, CONCLUSION AND RECOMMENDATIONS .............................29
5.1 Introduction ............................................................................................................29
5.2 Summary of the Findings .......................................................................................29
5.3 Conclusion .............................................................................................................30
5.4 Recommendations for Policy and Practice ............................................................32
5.5 Limitations of the Study.........................................................................................34
5.6 Recommendations for Further Research ................................................................36
REFERENCES ............................................................................................................38
APPENDICES .............................................................................................................44

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APPENDIX I: INTERVIEW GUIDE ..........................................................................44

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LIST OF TABLES
Table 4.1: Response Rate .............................................................................................22
Table 4.2: Length of Time in the Beverage industry ...................................................22
Table 4.3: Level of Education ......................................................................................23
Table 4.4: Summary of the questions and their responses by the interviewees ...........24
Table 4.5: Analysis of responses .................................................................................26

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ABBREVIATIONS AND ACRONYMS
HR - HUMAN RESOURCE
HRM - HUMAN RESOURCE MANAGEMENT
SHRM - STRATEGIC HUMAN RESOURCE MANAGEMENT

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ABSTRACT
The purpose of the study was to determine the alignment of human resource practices
and business strategy of Coca-Cola Bottling Company in Nairobi. The study was a
case study and utilized primary data. The research involved interviewing top level
management of Coca-Cola Bottling through the use of interview guide, to get their
opinion on how human resource practices are aligned to business strategy. The
interviewees comprised of top management at Coca-Cola bottling company ltd .total
12 out of the 17 targeted interviewees provided feedback. All the interviewees had
enough experience in their fields of work. Individual interviewees were interviewed
and their perception on the level of alignment of identified HR practices to business
strategy was recorded inters of environment The results of this study indicate that
HRM is highly integrated into the company‟s business operations. The findings
indicate that HR practices aimed at enhancing employees core competences in
delivery to customers more efficiently and effectively are to a very great extent in line
with the business strategy of enhancing business competitiveness. The findings
indicate various sections of Strategic HRM objectives were outlined in the
organizations business strategy to a very great extent .The findings indicate that the
training and development programs helped employees with new skills that enhanced
customer satisfaction and the achievement of business strategic goal of
competitiveness. Explain the findings indicate that the training and development
programs helped employees with new skills that enhance customer satisfaction and
the business strategic goal of competitiveness The findings indicate that HR
department ensured that activities are linked to specific business objectives and that
the line functions and trained to enhance deliver on their tasks as stated in the
business objective of enhancing business competitiveness The findings indicate HR
practices to a very great extent entail exchange of knowledge and learning from
activities and projects for purposes of enhancing business continuity as stated in the
organizations strategic plan? Explain The findings indicate lately human resource
management is part and parcel of business strategy formulation since the introduction
of competitive HR practices program. The findings indicate management no longer
approve financing of any activities that are not in line with business objectives and
therefore HR activates have had to be aligned to key business objectives.

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CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Organizations today have increasingly become aware of the importance of aligning
human resource practices to organizational strategy .This awareness in a system is a
critical dimension in the performance of organizations (Rees, 2006). The real life
experiences substantiate the assumption that no matter how sophisticated and modern
the business activities of the organization may become, it will be extremely difficult
to sustain its growth and effectiveness unless there are strategies that complement its
operations. Business competitiveness is a recurring theme examined by academicians,
consultants and practitioners. The frequent and uncertain changes, greater competition
between firms, the need for continuous innovations, quality enhancement and cost
reduction force companies to face the challenge of improving their competitiveness
and consequently their performance.
This realization has propelled strategic human resource practices as a major field of
study and the renewed interest has facilitated the development of newer approaches in
managing organizations and human resource (Wright, 2005). According to Armstrong
(2009), aligning human resource practices to organizational strategy emphasizes the
need for the human resource plans and strategies to be formulated within the context
of overall organizational strategies and objectives and to be responsive to the
changing nature of the organization‟s external environment. It is an approach which
requires interpretation and adaptation by practitioners to ensure the most suitable fit
between human resource business strategies and plans. Thus, the overall themes of

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strategic human resource practices are the integration of all strategic human resource
practices and functions, adherence to broad organization goals and responsiveness to
the external environment (Armstrong, 2009).
The quest for competitive advantage has long been a central tenet of the field of
strategic management (Armstrong, 2009). Within this field, the configurational theory
has emerged as a new framework for analyzing the sources and sustainability of
competitive advantage. Most organizations view the department of human resources
as an administrative function and ignore the need and opportunity to align it with its
strategic plans. Consequently, organizations are less likely to expect these practices to
have an impact on bottom line business results (huselid, jackson, & schuler,1997).In
recent past Nairobi coca-cola bottling company has adopted competitive business
strategy in which it aims to align all departmental practices to the overall
organizational business strategy. One of those key areas is aligning HR practices to
business strategy.
If HR strategies are not aligned with business strategy, it will point towards complete
lack of understanding of business requirement on the part of HR department hence,
working out human resource strategy, which is in tune with business strategy, is of
utmost importance, (Armstrong, 2009). Many a times, it is said that HR department is
not given due importance in a corporate management system however importance is
to be acquired through shouldering of more responsibilities of non routine nature and
delivering the desired result for fulfillment of corporate objective, which will
ultimately will lead to the fulfillment of employees' expectation from the job.
(Huselid, Jackson, & Schuler, 1997).