GLOBAL HUMAN RESOURCE MANAGEMENT

AT COCO-COLA

INTRODUCTION

Coca-cola is one of the most successful multinational enterprise. Within about 200 countries & nearly 80% of its operating income is derived from business outside US

The company likes to think itself as a multi-local company that just happens to be headquartered in Atlanta but could be headquartered anywhere & that presents the Coca-cola brand with local face in every country where it does business.

The philosophy is best summarized by the phrase “THINK GLOBALLY, ACT LOCALLY”,

Conti…..

Freedom to conduct operations in a manner appropriate to the market. At the same time, the company tries to establish a common mindset which all the employees share.

Company has got 25 operating divisions, organized under 6 regional group--- N America, EU, Pacific region, east Europe/middle East Groupe, Africa, and Latin America.

The corporation HRM functions is charged with providing glue that binds these various divisions & groups into the Coca-Cola family.

It achieves this in 2 main ways

1. By propagating a common HR philosophy within the company; and

2. By developing a group of internationally minded mid-level executives for future senior-management responsibilities,

Local business can develop their own HR practices

1. Eg…rather tan having a standard salary policy for all its national operations, Coca-Cola has a common salary philosophy –the total compensation packages should be competative with best of the copmpnies in the local market.

2. Twice a year HRM orientation session is conducted for HR staff from each of its 25 operating divisions---to talk about how local business can translate that philosophy into HR policies.Eg , tools that have been developed in brazil to deal wth a specific HRM problems might also be useful in Australia this facilitates rapid transfer of innovative and valuable HRM tools from region to region

On Expatriates:

Limited number of international people in the field because generally local people are better equipped to do business at their home locations

However, expatriates are needed in the system for 2 main reason

1. for some specific skill that might not exist at a particular location

2. For inducting an expatriate is to the employee’s pwn skill base. As company thinks it’s a global company so its manager should have had international exposure.

Company has about 500 high level managers among whom 200 move each year. To ease the cost of transfer of these employees, Coca-Cola gives those in its global service programme, a US-based compensation package.

Thus, an Indian manager in his program who works in Britain will be paid according to US salary Benchmark, and not those prevailing either in India or Britain.

The ultimate goal of this programme is to build a cadre of internationally minded high-level manager from which future senior managers of Coca-Cola will be drawn

INTERNAL ALINGMENT:

Common HR philosophy within the country Internationally minded mid-executives

for future senior position

EXTERNAL ALINGMENT:

Alignment with other industry in different countries

Gathering and sharing knowledge

Work force

Operational level: Local personnel• Reason: better performance in home location

Strategic level: Expatriates• Reason: need of specific skill set

Improve employees’ own skill base

Bibliography:1. Charles W.L. Hil, International Business, pg 562-

5632. K Aswathappa, Human Resource Management, pg

665-666