Business HRM: Workforce Planning, Practices & Legislation at Coca-Cola

This report provides an in-depth analysis of Human Resource Management (HRM) concepts and their application within The Coca-Cola Company. It begins by explaining the purpose and functions of HRM, focusing on workforce planning and resource management, and examining the strengths and weaknesses of different recruitment and selection approaches used by Coca-Cola. The report then explores how various HRM practices benefit both management and employees, evaluating their effectiveness in enhancing organizational profit and productivity. Furthermore, it analyzes the importance of employee relations in influencing HRM decision-making and identifies key elements of employment legislation and their impact on HRM within the company. The report concludes by illustrating the practical application of HRM practices in a work-related context, using specific examples from Coca-Cola, highlighting the company's strategies for adapting to diverse business environments and maintaining a competitive edge through effective human resource management.

HRM concepts and their applications
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Table of Contents
Introduction...................................................................................................................3
LO1...............................................................................................................................3
[P1] Explain the purpose and the functions of HRM, applicable to workforce planning
and resources in your chosen organisation. [M1]........................................................3
[P2] Using examples from your chosen organisation, explain the strengths and
weaknesses of different approaches to recruitment and selection. [M2].....................6
LO 2..............................................................................................................................9
[P3] Explain how different HRM practices benefit the management and employees of
your chosen organisation. [M3]....................................................................................9
[P4] Evaluate the effectiveness of different HRM practices in your chosen
organisation in terms of raising organisational profit and productivity.......................10
LO 3............................................................................................................................13
[P5] Analyse the importance of employee relations in your chosen organisation in
respect to influencing HRM decision-making.............................................................13
[P6] Identify the key elements of employment legislation and the impact it has upon
HRM decision-making in your chosen organisation. [M4]..........................................13
LO4.............................................................................................................................15
[P7] Illustrate the application of HRM practices in a work-related context, using
specific examples from your chosen organisation. [M5]...........................................15
Conclusion..................................................................................................................22
References.................................................................................................................23
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Introduction
Human resource management is important for the functionality as well as for
structural integrity of business organisations. Business organisations are functioning
in the environment through continual engagement in human resource management.
This reports aims to discuss the purpose of human resource management in Coca
Cola and its effectual workforce planning strategies directed at business objectives.
The Coca-Cola Company has seen changes in leadership styles and ultimately
reached its unsurpassable success through the years of committed efforts towards
leadership in the market. The effectual HRM policies of such successful businesses
elicit the way to perform in contemporary business environment effectively. The
report shall further enable the comprehension of internal and external factors that
affects the human resource management and thus the business organisation in the
long run. Finally, an application of the human resource management concludes the
rationale of the discussion by applying the understood concepts and fundamentals of
human resource management.
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LO1
[P1] Explain the purpose and the functions of HRM, applicable to workforce
planning and resources in your chosen organisation. [M1]
Human Resource management is defined as intelligible strategic managerial
approach towards the most crucial attribute involved in business organisations- the
people working collectively toward attaining the shared goals and objectives of the
business (Banfield et al. , 2018). There are distinct approaches that differ across the
business organisations and shape it human resource management policies
effectually.
Best fit approach-
The best fit approach targets at attaining competitive advantage through the
collective attempts directed at innovation, quality and cost leadership. The best
approaches mainly propose congruency amongst the HR practices and business
policies (Oke, 2016). The vertical integration in case of best fit approaches is a key
attribute that drives the business and it strategically enhances the HR engagement
by adapting to the current needs of the people, which is essential for the multi-
national functioning of the business organisation in context, Coca-Cola. The
approach is coherent with life cycle models, strategic configuration model and
competitive strategy models stated below.
Life cycle model
Figure 1: Lifecycle model
(Source: Cascio, 2018)
The lifecycle model clearly identifies there are precisely 4 stages of product
development and sustenance including the introduction, growth, maturity and
decline. Consequently, There requires substantial changes in human resource
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management in order to successfully introduce, sustain the growth phase as long as
possible and allow the maturity phase to be retained until decline is inevitable
(Cascio, 2018). Meanwhile, human resource management needs to be integrated
with the sales and time stats to assure the performance of the people contributing to
the business is optimal and in aligned with business strategies.
Competitive strategy models
Figure 2: Competitive strategy models
(Source: Bratton and Gold, 2017)
The business goals and objectives that are regarded for the constructivism of best-fit
approach involve the strategic competitive model development. Every business
ideally directing its activities towards cost advantage or differentiation advantage
needs to align the human resources and the capabilities of the company needs to be
realised in order to succeed in dynamic business environments (Bratton and Gold,
2017).
Strategic configuration model
Figure 3: Strategic configuration model
(Source: Armstrong and Taylor, 2014)
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The model aims to establish a vertical system of organisation where the context and
circumstances are taken into consideration for framing policies in the organisation
and thus aligning the human resource forms pivotal factors for the successful
functionality and sustenance.
Figure 4: Contingency theory
(Source: Wadongo and Abdel-Kader, 2014)
Thus, the coherence with the contingency model is evident in case of best-fit
approaches where the dynamicity in the environment determines the strategic
planning of workforce for attaining business objectives.
Coca-Cola being an international company operates in multitude of business
environments and thus it follows the Best-fit practices in order to adapt to the cultural
barriers and micro as well as macro-environment factors effectually. The contingency
theory further validates the strategic management where communication is formal
and usually top-downward form where the managers take the decisions and then
these are communicated to sub-ordinates (Snell et al., 2015). Teams are led by their
individual departmental managers who are led by a territory manager who is led by a
country manager specific for every country the company operates in. The structure
favours authoritarian conduct and since the stable environments of the countries
permits the operations of such a rigid structure which fits the business model, the
practices I prevalent since many years. However, the system despite its structure
rigidity focuses on it human resource and soft HRM policies are applied to ensure
the employees with talent and experience are retained as ‘assets’. Furthermore,
Workforce planning is done precisely to ensure at any point, where no shortage of
labour and the existing needs of the employees is are properly met. Monitoring the
economic trends and forecasts while evaluating the rivals and training needs of the
organisations enables Coca-Cola to effectually execute workforce planning.
However, recruitment and the staffing procedure require additional organisational
skills to ensure the annual productivity appraisal yield positive results in terms of
organisational progress.
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[P2] Using examples from your chosen organisation, explain the strengths and
weaknesses of different approaches to recruitment and selection. [M2]
Recruitment at Coca-Cola is conducted through both internal and external
channels since entering the labour market and consequently distributing information
about the process of recruitment and generating interest are ambiguous events,
which require time and precision of public relations activities.
Figure 5: Recruitment process
(Source: Marchington et al. 2016)
The recruitment aims to obtain right type and quantity of human resource for
substantial contribution to organisation objectives.
Strengths of external recruitment: To generate a suitably qualified candidate pool
for the recruitment and selection process, Coca-Cola mainly resorts to advertising on
several online platforms and head-hunting through agencies to ensure senior
managerial posts are occupied by experienced and qualified candidates capable of
dealing with the complacencies associated with the job role. The private and
institutional recruitment through campus drives ensures there is a fresh boost of
creativity and new ideas for developing innovative sales and marketing strategies,
but on the contrary due to continual recruitment of fresher, company suffers from
issues intricately oriented with induction process (Marchington et al. 2016).
Strengths of internal recruitment: It assists in selection of the right candidates and
ensures time is saved since internally selecting and recruiting candidates is cost-
effective inherently (Kew and Stredwick, 2016). Promotion of vacancies and time
required for screening, selecting and training new employee is reduced. This further
ascertains strong relations are built amongst the employee and the management
which carets provision for employee retention.
However, there are some caveats of both the internal and external practices of
recruitment and selection including:
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Limitations of Internal recruitment- It reduces the flow of ideas and limits the
potential applicants for the job profile. Meanwhile, new vacancies are created for the
position occupied by applicant if promotion is granted. Furthermore, at times internal
rivalry amongst colleagues for the position disrupts the ambience of the work
environment as a result of this recruitment process.
Limitations of external recruitment- It extends the recruitment process as strategic
advertisements has to be designed, the pool of applicants have to be scanned for
qualification and aptitude and then after diligent appraisal systems, vacancies can be
filled. It also requires additional engagement in training programs to align the
individual personnel with the company objectives and there is a significant scope of
selection of ineffective candidate despite the rigorous and expensive practice
(Mazur, 2014). Studies show that there is a high chance of employee turnover after
external recruitment in the next 1 year and there is fraction of the same who never
show up after the first day at work that can be prevented by strategic human
resource management regarding the on boarding process. The process for Coca-
Cola can thus be improvised through thorough alignment by displaying, integrity,
transparency and discussing the story of the company’s growth with the candidate
along with assuring them, of job roles and responsibilities during interview and
employment process.
Recruitment involves the pivotal component of selection so that the right candidates
recruited and the additional wastage of resources inclusive of time and money can
be minimised. The selection is thus carried out through a staged approach where
the application forms are circulated, followed by screening, the right group of
candidates are requested to appear for interview and then their skills are tested in
groups to assess the potential of the candidates comparatively (Lasserre, 2017).
Thus, structuring the schedule of selection and recruitment is of paramount
importance for workforce planning and professional conduct. Efficient time
management and accurate judgement with minimal judgement errors are required for
ensuring effective human resource management functions throughout the
organisation across the globe.
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LO 2
[P3] Explain how different HRM practices benefit the management and
employees of your chosen organisation. [M3]
The key elements of HRM involve learning, developing and training effectively. The
combination of the three can give the desired results from the recruitment and
selection procedure. The short-term training and thee long-term development both is
equally important for reducing employee turnover associated costs effectually. The
company in context, Coca-Cola focuses on the training needs of new recruits and of
old recruits by assessing the training gaps and inconsistency in their work and
capabilities displayed during selection. The organisational analysis assist in resource
allocation and related in competencies identification, whereas the task analysis help
in identifying the shortcomings in terms of skills, knowledge and the workforce
analysis assists in identifying the internal and external environment’s impact on the
performance (Gamble and Thompson, 2014). Coca-Cola bridges the gap by
actualisation of the gap between the desired results and the original results obtained
and then aims to pin-point the arena or department that requires training activities.
Training can be of two types:
1. On the job training methods- The process on the job training involves the
rotation of job roles, coaching and committee assignments that ensure the
employees draft personal development plans to mediate the gap between
expectation and original employee performance.
2. Off the job training methods- There are several ways of developing the
performance without engaging in the practice directly. This involves
enhancing the productivity through case studies, role play, in basket methods,
grid training, business games, lectures, management education, conference
and simulations which emulate the work place situations.
Coca-Cola engages in on the job training to effectively induce the employees and
instil employee loyalty within them. Such training ensures the management and their
attributes resonate the sense of responsibilities and roles within the newly appointed
personnel. Consequently, the investments on the new recruits are lowered and the
involvement of expert managers in the process ensures the work ethics and
techniques, learning needs are correctly assessed by the organisation. Additionally,
the unskilled instructor might also negatively impact the new employees and destroy
their work morale (Mazur, 2014). For new recruits engaging in jobs for the first time,
apprenticeships is recommended for initial years to inform the candidate of roles and
expectations while training them for future independent functioning. Orientation
training to inform about practices, policies and rules is performed by Coca-Cola
which has ensured the employee satisfaction I the past years. Alternatively, Self-
directed learning might also be practised in the organisation to ensure trainees learn
and develop at their own pace and the responsibility is taken up solely by them were
the organisation simply provides instructors as ‘facilitators’ for the desired
transformation.
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[P4] Evaluate the effectiveness of different HRM practices in your chosen
organisation in terms of raising organisational profit and productivity.
The effectiveness of different HRM practices is reflected in the form of productivity of
the workforce. The workplace design and the employee reward management system
in place determine the satisfaction, motivation and the tendency of human resource
to continue in the company, performing the same job roles. The supportive
environment prevailing in the workplace and the retention rates along with motivation
which is reflected in the sales growth are evident sources for validation of the
existing policies and for understand the requirements of changes in the HRM
practices.
Coca-Cola takes into account the Maslow’s hierarchy of needs which depicts the
fundamental needs in increasing order. The pyramid represents the need and
expectations that re to be satisfied by the employer in order to retain skilled
employees in the long run.
Figure 6: Maslow’s hierarchy of needs
(Source: Brewster et al. 2016)
But, the concept lacking form current HRM practices is a descriptive, strategic
rewards scheme for the employees, team and organisations. Total reward strategy
can be implementing in this context to ensure motivation levels are high and
employees have the sense of direction, and persistence to align their efforts with the
company’s objectives. Extrinsic rewards in form of tangible benefits and intrinsic
rewards through psychologically parsing team efforts, cooperation and
acknowledging contribution of individuals is important. The need for social rewards
is no less persistent than other and hence shared beliefs, values and sense of
common purpose instilled with every employee can contribute to enhancement of
productivity eventually, which is in line with the expectancy theory.
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Expectancy theory proposes that employees can only direct their goals towards the
business goals if there is a high probability of getting the desired rewards that
suffices their own needs effectively (Storey, 2014). The desirable outcomes and the
probability of getting it thus control the tenacity of employee.
Figure 7: Expectancy theory
Source: Storey, 2014
In order to achieve high level job enrichment by creating more autonomic job roles
and opportunities and developing a learning environment and flexible attitude in the
workplace is necessary. Herzberg’s two factor theory comes into play here and the
hygiene factors and motivators can evidently enhance productivity and efficiency of
the employees (Albrecht et al. 2015).
Figure 8: Herzberg’s two factor theory
Source: Albrecht et al. 2015
Hygiene factors involve security, quality of management, rules and procedures,
facilities, and interpersonal skills. The motivator factors include sense of
achievement, recognition, responsibility, nature of work, and personal growth as well
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as advancement. Thus, human resource management in Coca-Cola has immense
scope of attaining higher efficiency through the utilisation of human resource by
striving to achieve a state of ‘no dissatisfaction’.
Furthermore, the company in context also needs to employ the Equity Theory to
evaluate the success of the strategic human resource management in order to
critically eliminate the chances of comparison amongst employees. The competitive
outlook needs to be eliminated in case of teams to ensure cooperatively and team
work and public criticism of employees has to be avoided to successfully
management the HR (Brewster et al. 2016). The activities directed towards the
business goals have to be accredited and the healthy work environment has to be
maintained. This has been partially accomplished by Coca-Cola but complete
elimination of rivalry requires stringent cooperation enhancing group projects and
elimination of authoritative management.
Additionally, Handy’s Flexible organisations models is followed at Coca-Cola
where the core team is often assisted by contractual workers working on particular
project for limited period of time, which adds to the efficacy of the workforce and its
productivity. The model also creates provision of another fringe involving flexible
workforce who is temporary and added to the core when needed. The capital gains
out of such diverse engagement for the company and the productivity are at par with
one another and thus, such a system which is efficient and productive is employed
by the company.
Figure 8: Handy’s Flexible organisations models
Source: Wilton, 2016
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