HRM in Coca Cola, Great Britain

Human resource management is defined as a strategic and coherent approach to the management of an organization’s most valued assets -the people working there who individually and collectively contribute to the achievement of its objectives.

There have been many definitions given to HRM but the prominent one’s are described below by John Storey who had defined and redefined the definition of HRM in 1989 and 2005.

John Storey (1989) defined HRM as ‘Set of interrelated policies with an ideological and philosophical underpinning’.

Storey (1995) defines HRM as ‘a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural and personnel techniques’.

He suggests 4 aspects that constitute the meaningful version of HRM:

A particular constellation of beliefs and assumptions,

A strategic thrust which informs decisions about people management

The central involvement of line managers

Reliance upon set of ‘levers’ to shape the employment relationship

The module defines the need of Human Resource System and Management in the functioning of the organization. Every organization needs the planning and execution to achieve its objectives-mission and vision which cannot be done without the manpower resource planning and personnel management hence the role of HR manager comes into effect, the module covers these aspects and hence the assignment is based about the application of theories and concepts to analyze the issues faced by an organization in terms of HR policies implementation.

1.2 Company Profile

Coca-Cola Great Britain, is a wholly-owned subsidiary of The Coca-Cola Company. Based in West London, this team of around 110 people is responsible for marketing and developing new and existing brands.

In Great Britain Coca-Cola Enterprises employs around 4,650 people and has seven manufacturing sites across the country, as well as a number of regional offices and depots.

The parent company is Cola-Cola Enterprises Inc., an international organization listed in the US that manufactures markets and distributes ‘Coca-Cola’ products in North America and Western Europe.

Coke U.K. makes, sells and distributes Coca-Cola Company products in Great Britain.

1.3 Objectives of Study

The study undertaken requires expertise in research of the subject but due to limitations of the words for the assignment covering all the HR policies is next to impossible; my objectives were to study the key processes and policies for which the company provides vital information hence I have choose:

Performance Management Process

Training and Development

Employee Relations

2.1 Performance Management Process

The process of management involves a continuous judgment on the behavior and activities of staff. It is important that members of the organization know exactly what is expected of them and the yardsticks by which their performance and results will be measured. Performance management is a formal system through which one can review the performance and potential of staff

A comprehensive system can provide the basis for key managerial decisions such as those relating to allocation of duties and responsibilities, pay, empowerment and levels of supervision, promotions, training and development needs, and career progression.

According to ACAS, the identification of individual training needs will best be supported by a performance review system that focuses on future development needs. The system should be used by managers and workers to:

Create career plans which encompass not only training proposals but also areas of work experience, job goals and personal development;

Consider career tracks which may be as much about lateral moves designed to expand learning and competence as upward promotion.

Benefits of Performance Management

The underlying objective of performance management is to improve the performance of individuals leading to improvement in the performance of the organization as a whole. An effective scheme, therefore, offers a number of potential benefits to both the individual and the organization:

It can identify an individual’s strengths and areas of development and indicate how such strengths may best be utilized and weaknesses overcome.

It helps to identify and reveal the problems which may be restricting the progress and cause inefficient work practices.

It can develop a greater degree of consistency through regular feedback on performance and discussion about potential. This encourages better performance from staff.

It provides information for human resource planning, roadmap to succession planning, determining suitability for promotion and for particular types of employment and training.

It can improve communications by giving staff the opportunity to talk about their ideas and expectations, and how well they are progressing.

The elimination of bias

Tackey refers to the importance of eliminating bias in performance management. “The elimination of the performance of individuals in the workplace is fraught with difficulties even at the best of times. The difficulties are compounded when there are allegations of bias in such evaluation; and magnified out of recognition when the alleged bias has racial undertones.”

Many problems with performance management systems arise from the application of the systems rather than inherent deficiencies in the systems themselves.

For example, it is important to understand whether certain behavioural descriptions are used more frequently to describe different groups. Questions also arise about issues of assessing actual, as opposed to perceived, performance and whether there are differences in perceptions of organizational and managerial support, career progression, etc. that may help explain ‘poor’ performance of minority ethnic employees. Success in general career development programmes for different organisational groups is more likely only when there is immense commitment in the top echelons of the organisation to equality of opportunity.

Regular review of performance

It is particularly important that a formal PM system does not result in managers failing in their responsibilities for reviewing performance on a day-to-day basis. Reviews should not be limited to a formal event occurring once or twice a year but should be a continuous process of monitoring, feedback and review. There should be regular communications and contacts between managers and staff, and discussions of problem areas and plans for the future.

According to Kermally, many organizations still do not fully understand the importance of measuring employee performance effectively. ‘Managers need to value and measure the contribution of those that work them for in order to understand how people contribute to organisational success. For this reason, it is also imperative that performance reviews and measurement are undertaken continuously’.

Source: http://www.pdri.com/opm/performance.htm

2.3 Analysis of Performance Management in Coca Cola Great Britain

(Source: Coca-Cola Great Britain Website, http://www.cokecorporateresponsibility.co.uk)

The goal of global performance management strategy is to enable peak performance in the enterprise. This means creating an environment where employees can excel, develop skills for improvement, and move toward their career goals.

All the employees of CCGB are made a part of the Peak Performance Process, which includes performance, development, and career planning elements that are recorded in the company’s online tool. The Compensation and bonuses are linked to this process every year.

The process is a cycle that includes several key phases throughout the year:

Setting objectives and establishing core competencies

Creating a development and career plan

Reviewing both of the above regularly, through mid-year and year-end formal reviews

Calibrating output across departments throughout CCGB

This is managed through face-to-face meetings. There are online tools available to support the process too.

Working at CCGB

The CCGB offers flexibility to its employees in terms of working hours, pensions and dealing with redundancies, the brief of which is discussed below

Summertime hours

As part of performance management processes to help employees achieve a good work-life balance, CCGB has an initiative that gives employees a longer weekend during summer. Over the three summer months of the year, they can work a four and a half day week.

Pensions

All employees of CCGB can enter pension schemes. At CCGB, they are eligible from their start date.

Pensions are held in funds separate from the Coca-Cola System’s financial assets. The fund is looked after by Trustees, who have the legal requirement to act in the best interest of members. Employees’ pensions are secured by purchasing an annuity from an insurance company. In 2007, the CCGB contribution to employee’s pensions was increased to 6% from 4%.

Dealing with redundancies

CCGB redundancy practices conform to legal requirements and offer an additional package of support, including outplacement.

The responsibility of a multinational company is to work for people and society, CCGB in this regard has displayed efficient and friendly process and procedures for its employees in assessing the individual performance and motivating them to strive for company’s success as one’s success. My analysis believes that CCGB should continue this process as a long-term strategy to infuse zeal of satisfaction to its employees.

3.0 Training and Development

One of the major areas of the HRM function which has relevance to the effective management and use of manpower is training and development. In order to sustain economic and effective performance it is of vital importance to optimize the contribution of employees to the aims and goals of the organization.

According to Drucker (1977), “the one contribution a manager is uniquely expected to make is to give others vision and ability to perform. A basic operation in the work of the manager is to develop people and to direct, motivate and train subordinates”.

Training is considered necessary to ensure an adequate supply of staff that is technically and socially sound and competent, which is capable of career advancement into specialist departments or management positions, for this a continual need for the process of staff development, and training fulfils an important part of this process.

The Benefits of Training

The purpose of training is to improve knowledge and skills and to change attitudes. It is one of the most important potential motivators. This can lead to many possible benefits for both individuals and the organization.

Training can:

Increase the confidence, motivation and commitment of staff;

Provide recognition, enhanced responsibility and the possibility of increased pay and promotion;

Give a feeling of personal satisfaction and achievement and broaden opportunities for career progression; and

Help to improve the availability, quality and skills of staff.

Training is hence a key element in improving organizational performance. Training increases the level of individual and organizational competence. It helps to reconcile the gap between what should happen and what is happening – between desired targets or standards and actual levels of work performance.

Although many employers continue to have reservations about the cost and the extent of tangible business returns from training, the development of vocational skills has been identified as a key factor in sharpening competitiveness and delivering hard, bottom-line improvement in profits.

Essential components of the training policy will be:

The view that continuous training is the norm;

The assumption that training will be a life-long process;

Recognition of the need to update existing skills, replace redundant skills and train for new skills;

The need for multi-skilling to cope with change

The Management of Training

The Training process should be considered as an investment in manpower of the company. This is important at any time, but it becomes necessary with the increasing pace of technological, structural and social change.

Stern argues that ‘staff training and development have become matters of vital strategic importance’.

A planned and systematic approach

In order to secure the full benefits of successful training there must be a planned and systematic approach to the effective management of training.

There should be a clear commitment to training throughout all levels of the organization, which should include seeking the co-operation of line managers and, where appropriate, trade unions or staff representatives of the organization.

There should be an objective assessment of training needs related to:

A vision of where the organization is going;

The need to be responsive to changes in external environmental influences;

A comprehensive system of human resource planning; and

A process of job analysis leading to the preparation of job descriptions and person specifications.

It is vital that the staff themselves feel a sense of involvement in organization’s success and know how they can play their part in achieving the goals and objectives of the organization. The employees thus should be given ‘ownership and partnership’ in the training process.

There should be a clear set of objectives and a defined policy for training. The programme should address questions such as:

Who needs to be trained and why?

What should they be taught?

Who is to be given the responsibility of providing training?

How will the training be assessed and evaluated?

The expected results of training should be understood clearly and realistically and be seen as reasonably attainable.

It has been observed that assessing information over a considerable period of time helps the employees to assimilate them. The training programme should therefore be planned carefully and staggered over a reasonable period of time. Consideration should be given to the priority, loading and pacing of information; timing and sequence, common or related items; variety of subject matter and methods of presentation; review and consolidation.

Consideration must be given to the choice of the most appropriate methods of training. The methods must be selected carefully according to the particular needs of the organization and the employees.

There should be an effective system of review and evaluation including the ongoing monitoring of progress, a supporting performance management system and the maintenance of suitable training records. Evaluation should involve assessment by the trainers, line managers and supervisors, and the trainees.

2.3 Training & Development activities in Coca-Cola Ltd.

(Source: Coca-Cola Great Britain Website, http://www.cokecorporateresponsibility.co.uk)

In Coca Cola Great Britain the objective is to attract and retain the best people, hence the company recognizes the need to invest in training and development process. Being a global company both CCE and CCGB take training and development process very seriously to improve the business performance.

The Learning tools

CCGB has developed a mechanism to assess one’s performance in terms of contribution to the company and there after its benefits for both company and employee, it has designed so-called “My Career” – an online personal development and career-planning tool – as well as other printed tools that they can use to help manage and review their personal development.

Coca Cola Great Britain provides training and development programmes, on-the-job learning and coaching and feedback, to ensure that their employees have the resources and methods they need to learn. Many of their programmes are pan-European – allowing all employees to network and learn from other colleagues across Europe.

As per the CCGB website the following initiatives are taken towards training and development:

The average training spend per head in 2008 was £1,413.

A total of 2,504 hours of training were completed during 2008.

Using a range of flexible learning initiatives, the company focuses on three core areas:

Functional expertise – this aims to build the skills required to be ‘best in class’ in marketing, commercial and franchise leadership (known as the three pillars)

Leadership

Personal development

The leadership programmes include:

Personal development – business fundamentals, communication skills, influencing and negotiation, personal effectiveness, planning and project management

Leadership development – accelerating sustainable growth (overall leadership), people management, developing women leaders

Consumer marketing – the Coca-Cola way of marketing

Customer and commercial leadership – planning for market success, collaborating with customers, executing to win, immediate consumption

Franchise leadership- system alignment, business awareness, system knowledge, enabling execution, partnership skills.

The company runs a comprehensive 90-day induction programme for all new starters. This includes specific training, formal reviews and external coaching to support employees’ transition to the company.

All of company’s activities of training are set-up and managed by the ‘Coca-Cola University’ – which is the internal name for comprehensive programme of training and development. It’s available to all employees through intranet and offers a choice of courses across Europe – including a variety of E-learning and classroom training.

Development plans- Every CCGB employee has a development plan, which they review twice a year. This plan helps them ensure that we match individual skill development with available roles, training interventions and project opportunities. The plan also plays a major part in the development of employee career paths.

The company offer skills labs to all employees before they review their plans with their leader. These help employees prepare for the meeting to make it as successful and productive as possible. In 2009, all employees and leaders also took part in a workshop designed to provide the tools and resources needed to drive successful career development.

To help employees practice their learning skills, the company offers an annual Learning Allowance. This can be used on a choice of learning activities outside of work – anything from sailing to wine tasting.

Talent management- At CCGB, talent management is important for making sure that all employees have the chance to explore new opportunities and grow within their role. Typical career moves for employees have included cross-system moves, secondments to the Global HQ, international career moves and promotion from within. Lateral career moves also help to gain breadth and depth of experience.

Leadership development – Training for managers

It is to be believed that learning is an individual responsibility and a skill in its own right. The company believes that a leader’s ability to offer coaching is very important in developing people. For this reason the company runs regular programmes for managers to develop coaching and feedback skills. There are also specific training programmes for leaders at all levels in the organisation. This training is designed to be part of targeted individual development plans and covers everything from overall leadership skills to people management techniques. There’s also a specific course for developing women leaders.

3.0 Analysis of Employee Relations

3.1Equal opportunity & diversity

The terminology differs from organization to organization: some call them equal opportunity policies, others diversity policies and still others use both terms. The rationale for such policies can be based on a mix of justice and business sense arguments.

The ten points that follow are from the website of the UK’s Commission for Racial Equality (www.cre.gov.uk) and are typical of the recommended good practice that employers are encouraged to adopt. The initiatives from 3 to 10 are often described as ‘positive action’ (or ‘affirmative action’) and organizations are encouraged to adopt some, if not all, of these.

1. Develop an equal opportunities policy, covering recruitment, promotion and training.

2. Set an action plan, with targets, so that you and your staff have a clear idea of what can be achieved and by when.

3. Provide training for all people, including managers, throughout your organisation, to ensure they understand the importance of equal opportunities.

4. Assess the present position to establish your starting point, and monitor progress in achieving your objectives.

5. Review recruitment, selection, promotion and training procedures regularly, to ensure that you are delivering on your policy.

6. Draw up clear and justifiable job criteria, which are demonstrably objective and job related.

7. Offer pre-employment training, where appropriate, to prepare potential job applicants for selection tests and interviews; consider positive action training to help ethnic minority employees to apply for jobs in areas where they are under-represented.

8. Consider your organization’s image: Do you encourage applications from under-represented groups and feature women, ethnic minority staff and people with disabilities in recruitment literature, or could you be seen as an employer who is indifferent to these groups?

9. Consider flexible working, career breaks, providing childcare facilities, and so on, to help women in particular meet domestic responsibilities and pursue their occupations; and consider providing special equipment and assistance to help people with disabilities.

10. Develop links with local community groups, organizations and schools, in order to reach a wider pool of potential applicants.

The willingness of organizations to adopt such guidelines varies considerably. Moreover, there is also considerable variation in the extent to which all the points are adopted. This can be thought of as a sliding scale: at one extreme are those organizations that adopt a policy that meets very few of the points and at the other extreme those organizations that have addressed all 10 points. Another way of looking at this is to think of different categories into which an organization might be placed according to its approach to equality and diversity.

One particular technique recommended by advocates of equality and diversity is ‘discrimination proofing’ the organization. This entails auditing the processes to assess the potential areas where unfair practice might occur. This might be through an absence of clear policy or procedures, or from managerial lack of knowledge or training. The purpose of such an exercise is to identify the areas of vulnerability and to take action to make improvements where they carry an unacceptable level of risk.

3.2 Diversity and inclusion opportunities in Coca Cola Great Britain

The company is committed to providing an inclusive working environment in which everyone is treated fairly. It believes that having people from different backgrounds, with different life experiences and talents is a real bonus for its business.

Respecting and valuing the diversity of people is central to the company’s vision and values. Its employment policies and practices have been developed to protect against discrimination and ensure equal opportunity and fair treatment for all.

3.2 Creating a culture

One of main strategic priorities is to attract, develop and retain the very best people.

Creating a ‘diverse and inclusive culture’ is one of CCE’s Commitment 2020 goals. This states that it will “create a culture where diversity is valued, every employee is a respected member of the team and our workforce is a reflection of the communities in which we operate.”

It aims for a workplace where people feel respected and valued – regardless of any differences – and can contribute to their fullest potential.

Managing goals

The company is committed to attract and retain a diverse team. One particular source of pride is the women in leadership statistics. It continues to partner with key external groups to ensure that employee population is representative of the community where its employees work.

CCGB is currently reviewing all of its employee policies – in the UK and Ireland these steps were completed in June 2009.

Age awareness

Both CCE and CCGB welcome candidates of all ages. The policies and processes are in line with the current age legislation. CCE took specific action to address the issue of age awareness in anticipation of age legislation introduced in 2006 and an ageing population.

European Diversity Scorecard

The company publishes the European Diversity scorecard on a quarterly basis. This tracks its progress across Europe by:

Business unit

Job level

Location

Function for gender

Age

Nationality

Ethnicity

The scorecard also compares profile to data for the industry and the wider communities in which it operates.

Compliance with its policies

The company monitors compliance with its policies principally through employee engagement surveys. This asks questions on discrimination and diversity. It also assesses employees’ understanding of company’s approach to these issues.

CCE does not tolerate discrimination. It tackles this issue through robust polices that are available to all employees. Any discrimination cases are monitored and assess how it can learn from them.

Corruption, anti-competitive behavior and compliance

These issues are covered in The Coca-Cola Company Code of Business Conduct. This covers a range of issues relating to the behaviour and conduct of employees such as:

Conflicts of interest

Working with government, customers and suppliers

Financial records

Use of company assets

Protection of information

Bribery and corruption

Implementing the Code

CCE employees are given a handbook to the Code of Business Conduct as well as training on competition law.