Human Resource Management within Coca Cola
Human Resource Management is an essential part for any organization. Moreover, development of this department is the first step, the ground on which the future of the company depends. It is essential for every single business unit and especially for such international company as Coca Cola. It is people, not technology who create the company. Human Resource Management at Coca Cola Company has many advantages as well as disadvantage. It is the global company and it is impossible to create certain policies or procedures applicable in all divisions of the company, cultural and political differences need to be taken into account. Therefore, the focus of this paper will be on four tasks and duties of Human Resource Management (performance management, compensation, career development, succession planning) based on the United States procedures.
Coca Cola develops the performance evaluation system centrally: at its headquarters and applies the same procedures in all division in United States. Under this system, performance evaluations are one by managers who have excessive discretion with little or nor oversight of the determinations. All salaried employees of Coca Cola receive annual performance evaluation . The overall rating on this evaluation can have an impact on the employee's compensation and promotion.
In United States Coca Cola Company at least since 1994, the predominant evaluation system is based on the following ratings :
Clearly Exceeds (CE, the highest rating)
Meets and Exceeds (ME)
Meets Requirements (MR)
Meets Minimum (MM)
Fails to Meet Minimum (FM)
Therefore, employees receive evaluation of their performance based on these rating. They can get a plus or minus rating in addition, for example MR+ or FM-.
The employee's score on performance evaluation relates to a percentage range of increased compensation. In such a way the raise is determined. For example, in 1997 according to salary guidelines at the company, employees who were at the midpoint of their salary range and received CE ratings were eligible for the 8 percent salary raise . The employees at eh midpoint of their salary range who received MR rating were eligible for the raise in salary only of 2 percent.
Even though from the first sight everything is quite clear and fair, there are several important notions about such system: disadvantages in other words.
The actual amount of the raise is determined solely by the supervisor who makes evaluation
System permits discrimination on the basis of race evaluation
Coca Cola failed to standardize evaluation to provide meaningful oversight and review of individual managerial decision
The criteria used in the performance evaluation form permit biased and inconsistent application: "communication", "work relationships", "problem solving"
Managerial training in practice...