International Human Resource Management_ Coca Cola (GC01883)

Table of Contents

Task 2: Individual Report

1.0 Introduction.

2.0 HRM structures, cultures and processes in global and domestic contexts.

Culture.

3.0 Investigate the importance of HR practices to the business strategy of Coca-Cola.

3.1 Improve performance. 7

3.2 Establishing positive influences of culture.

3.3 Competitive advantage.

3.4 Create people-driven work environment

3.5 Merger and acquisition.

4.0 Conclusion.

Task 3: Reflective Essay.

1.0 Introduction.

2.0 The Coca-Cola Company.

3.0 Career Management Practice.

3.1 Re-conceptualization of career systems.

3.2 Career management practice in Coca-Cola.

4.0 Performance Management

4.1 Principle and characteristics of performance management 1

4.2 Theoretical bases of performance management

4.3 Stages in a performance management system.

4.4 Performance management in Coca-Cola.

5.0 Conclusion.

References.

Task 2: Individual Report

1.0 Introduction

It was great news to the millions of Indian customers who had missed their beloved beverage “Coca-Cola” since 1977 when it returned again in 1993. Coca-Cola’s first coming in India was a tremendous success for the company but they had to leave when Janata Government demanded the secret formula of Coca-Cola and they refused to accept Indian laws under which had to dilute its ownership stake in its Indian subsidiary to 40%. 15 years later Coke stormed back into India with great plans to wrest control from Pepsi and the local beverage marketers that had risen up in its absence and started to produce Coke in huge numbers (Coca-Cola Annual Report, 2019).

2.0 HRM structures, cultures and processes in global and domestic contexts

Impacts of the host country on IHRM: Multinational companies’ subsidiaries started their employment in a diverse form. This is resulting in the impacts on the host country’s industrial and social features which include the production system, careers, social and industrial relationship systems, households and even gender discrimination system. MNC’s are being affected majorly by 3 factors continuing their IHRM practices which are, a) their norms and cultures; b) business conditions and marketing; c) random rules established by the employers in their institutions (Sparrow and Vernon, 2015).

Various challenges in international and domestic HRM: HRM mostly looks after recruiting employees, building strategies for business, planning for rewards, training the staff accordingly, administrative performance and motivating the workers (Boxall and Purcell, 2013). However, some other factors should also be looked after by the HRM. For example, language barriers, service and adjustment differences and taxation (Torrington et al., 2014). According to Bratton and Gold, since these factors differ from country to country, international HRM should also focus on various matters to function properly. For example, cultural diversity, different public demands accordingly to the countries and visa affairs. Similarly, Schuler (2019) also claimed that HRM is in need to concentrate on political phenomena, legal affairs and ethical issues of various nations. Whereas, local HRM must focus on these same factors relating to their country. David et al. (2015) explained that regional HRM is easier to handle since it involves less complicated than global HRM. Global HRM also faces challenges in controlling terrorism, international environmental affairs and even politics in business. PESTLE analysis concluded that impacts of global HRM activities are greater in number than domestic HRM. For example, in the UK the labor cost is higher than India in the international companies as India is a developing country. The five variables that distinguish international HRM from domestic HRM are in the following diagram:

According to David et al. (2014), five variables of global and domestic HRM are cultural barriers, international industries among local industries, attitudes of managements, chaos in operating various countries with their categories of employees and complexity in establishing the international markets. Boxall and Purcell (2013) identified the key reason for these variables is the employees of host companies. In the international HRM systems workers from various religions, cultures, ethnicity and nationalities are always working together. HR role and organizational behaviors bring out the verities of factors that influence the performance level of different HRMs Mullins (2015). Their selection of workers, training them, building strategies and inspiring them to work are different from nation to nation.

Culture

Coca-Cola Company needs to establish an analytical method to understand IHRM situations in order to involve the culture of one particular country. The impacts are various from many points of view while dealing with the culture of a country. To involve the culture in IHRM the following facts should be considered: cross-cultural management, industrial behavior, psychology of the different cultures and comparative systems of management with culture. Coca-Cola industries face challenges to deal with cultural issues among the worker from different countries in various contexts such as a) Interaction of people with their appropriate behavior; b) Establishing people’s fundamental rights in the workplaces; c) Grouping system to influence workers (Schuler, 2019).

Model of IHRM by Morgan: International HRM differs from local HRM since it depends on various types of industries according to Dowling (2016). For instance, big companies such as Apple or Coca-Cola are more capable of handling HRM than small local companies since the big companies have many workers from various backgrounds. Moreover, domestic companies have fewer employees who are most similar to their background. Morgan’s statement from (Schuler, 2019) explains three factors handled by the IHRM rather than regional HRM which are: performance of HRM, country’s operating system and categories of employees.

VRIO: The term VRIO stands for value, rarity, inimitability and organization where value refers to come up with creative ideas for companies like Coca-Cola in order to set their values. Likewise, rarity stands for developing the characteristics of human resources and inimitability explains how Coca-Cola can build nurture characteristics to imitate the competitors. Finally, organization means Coca-Cola Company’s guaranty to add value to the industry which will eventually help them to be famous and enable staff to reach their potential (Briton and Gold, 2014).

3.0 Investigate the importance of HR practices to the business strategy of Coca-Cola

3.1 Improve performance

The performance of an organization mostly depends on the environment where the workers are working. Therefore, the improvement of these environments is necessary. However, multinational companies like Coca-Cola are the source of merging different companies together with various cultures which might result in a discomfort work environment. Based on Six different regions the merging system can sometimes reduce company performances and tends to regionalization. This works as a negative impact on the worker and they prefer to leave their jobs more and more. Therefore, to avoid this problem the company provides proper training among employees and opportunities to be more familiar with new cultural instincts of other countries. This results in improving the workstation and good performance level (Sparrow and Vernon, 2015)……………………………..

Human Resource Management

International Human Resource Management_ Coca Cola (GC01883)