Managing Global

Talent

Topic: Talent Management at Coca-

Cola Company
 Group Members

Arpit 21099437

Charandeep Singh
Kohli 21093853

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 Aims and Objectives
Aims and objectives

 To understand the context of Coca Cola’s

business.

 To comprehend Coca Cola’s talent management

and focus on Human Resource systems.

 To critically review and link Coca Cola’s activity

to HR and talent management theories and
models.
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History
The Coca-Cola Company is the world's largest beverage company.

It is no.1 brand according to fortune 2009 survey.

The company operates a franchised distribution system dating from

1889.

The Coca-Cola Company is headquartered in Atlanta, Georgia.

Its stock is listed on the NYSE (New York Stock Exchange).

Its current chairman and CEO is Muhktar Kent.

Key Result Area - KRA is the basis of Talent management at Coca-

Cola Company.

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Organization Structure of Coca-Cola

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 Challenges for TCCC’s Talent
Management
Using staff to Innovate and create competitive advantage sounds simple but
is it?

“…How do we ensure we get the capabilities we need to ensure maximum

knowledge . The roles will be very consultative focusing on career and
progression.”
(Lorreine Sastrias EU HR Director –www.thecoca-colacompany.com)

In an industry driven by human creativity it has become essential for TCCC

to ensure they attract the cream in relation to their human capital

We can clearly see the importance of the HR function via TCCC’s strategy
that stresses the importance of innovative staff. “Dedication to every clients
success…Innovation that matters – for our company and the world”
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 Defination- Talent Management
“Talent management is the systematic attraction,
identification, development, engagement/ retention
and deployment of those individuals who are of
particular value to an organisation, either in view of
their high potential for the future or because they are
fulfilling business/ operation-critical roles” (
www.cipd.co.uk/talent-management.htm)

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 SWOT Analysis (TCCC)
Strengths: Worlds leading brand.
Large Scale of operations.
Increased growth in revenue.

Weaknesses: Negative Publicity

Dismal performance in North America

Opportunites: Growing bottled water market

(30 Billion liters in 2007 to 38.6 Billion units in 2010)
Growing hispanic populations in US
(11.6 million in 2006 to 60 million in 2010)

Threats: Intense competition

Dependence on bottling partners
Sluggish growth of carbonated bevreages

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 PESTLE Analysis (TCCC)
Political: Non alcoholic beverages fall under FDA. Government plays a vital role in the
manufacturing of these products.

Economic: Economic analysis examines the local, national and world economy impact
including issues of recession and rates of inflation prevalent in the country
of operations.

Social: Analysis the ways in which societal changes effect the operations of the
organization,(lifestyles and attitudes, culture).

Technoligcal: Analysis that focuses on the introduction and emerging technological

techniques that creates opportunities for new product development.

Legal: Focuses on the effect of national and world legislations.

Enviornmental: It lays emphasis on the local, national and world environmental issues. In case of TCCC
all the factors of production are strictly monitored according to the environmental laws
imposed by the government of a particular country.

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 Theoretical discussions

‘Schuler’s strategic HRM model’

explains how factors such as industry
characteristics and strategy tie into
staffing issues and to the eventual
nature of the relevant firm (TCCC).

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Schuler’s et al 1993: Strategic HRM Mode
Exogenous Factors
• industry characteristics
• country/ regional
characteristics
SIHRM
Functions
• orientation
SIHRM Issues • resources
Strategic MNE • inter-unit links: • location
Components control / variety MNE concerns
• inter-unit links •internal operations and goals
• internal local sensitivity/ • cost-effectiveness
operations strategic fit •efficiency
•local responsiveness
SIHRM Policies/ •flexibility
Practices •learning and transfer
Endogenous Factors • staffing
• structure of • flexibility
international operations • compensating
• HQ international • developing
orientation
• competitive strategy
•experience in
managing international
operations

(Brewster et al, 2008)

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Main points regarding TCCC’s use
of Schuler’s SHR model
• Appreciation that cultures differ and the HR
departments should realise this fact.
• To compensate for the globally less standardised
process TCCC’s have integrated national HR service
centres across various locations across the globe.
• Weakness: As a result of the above strategic
manifestations, training processes are heavily reliant on
IT. Removing the one-on-one communication during
training which often differentiates organisations in the
long run.

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 Global Divergence
Canada
U.S. Human
Resource
Department Latin America

Western
European Human
National Resource
Human-Resources Department Centre
Service Center (England)
(NHRSC)
Eastern

Asian-Pasific
Human Resource
Department

Schuler’s et al 1993: Strategic HRM Model @ TCCC

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 How IBM benefit from the ‘Flexible firm
model’ (Atkinson)

The Flexible firm model seen

here is a blueprint to enable
organisations to use several types
of employees (in relation to their
employment contracts). The
model should enable companies
like TCCC to benefit from the
range of employees available to it.

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How IBM benefit from the ‘Flexible firm model’
(Atkinson)
• The areas of the business reliant on creative and innovative
individuals needs to and does come from its ‘core group’
• Although TCCC provide strategic and HR/talent
management guidance, they do not actually outsource their
own business and HR strategies.
• Outsourcing strategies for themselves is an initiative they
keep firmly within their ‘1st peripheral’ group or ‘core group’
• TCCC uses a limited amount of ‘short term contracts’ and
‘agency temps.’ The main justification behind this is that it
creates scope for conflict.

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 How does this help?
The discussed theories help TCCC to:

• Reduce their administrative complexity

• Aid the deployment of new HR/TM technology
• Manage talent @ A global level
• Increases the capability to comply to legal and regulatory
issues

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Attracting talent is one thing, but
what is the point unless you have the
ability to retain it?!

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Answer: The talent Loop

www.cipd.co.uk

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 Performance Measurement Stages of
Coca-Cola

Stage 1 Stage 2
Stage 3 Stage 4
Annual Plan
Reward and Mid-term
Performance performance
Recognition Review
Review for the year

•Assess results •Set KRAs •Review

•Performance‐
•Prepare current linked pay results
•Finalize •Competency
year current year
development •Recognize Top development
Development
plan plan Performers plan

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Parameters of Performance

Key result area Business Plan

#1 Achievement

People development
Key result area #2
weightage 20%

Key result area Competencies

#3 weightage 60%

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Performance Review Objectives

Performance Delivery and Results Review

• To assess progress on ‘What’ - Business Results

• To assess progress on ‘How ’ - Self/ People Development and
Competencies
• To clarify the actions to be taken next year to maximize performance.

Performance Development Programme

• To review progress on Performance Development Programme for
KRA1, KRA 2 and Competencies
• To credit and compliment good progress
• To train Associates so that he / she can maximize performance
following Year

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Performance Review Objectives (Cont’d)

Recognize Top Performers

• To recognize and provide positive feedback to Top Performers to
ensure they are motivated and also challenged / stretched to enhance
their growth

Performance Improvement Programme

• To review status of Bottom Performers already under PIP and take

appropriate actions.
• To prepare Performance Improvement Plan for newly-identified
Bottom Performers.

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Steps in the performance review process

Step 1: Associate
Self Assessment

Step 5 : Rating Step 2 : Admin manager

Assessment &
Communication , Plan Alignment with
KRA for next year. Functional Manager

Step 4 : Calibration Step 3: Performance

meetings Review Discussion

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 Performance Appraisal of
Coca-Cola
Coca cola performance appraisal is annually. They
appraise the employee due to their performance about
goals of the organization. They set the goals at the start
of the year and tell the employees about the goal if the
employees achieve this goal they appraise the
employees.

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STEPS IN APPRAISING EMPLOYEES
PERFORMANCE OF COCA-COLA

Define the
Job

Appraise the
performance

Provide the
feedback

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 Performance Management System and Appraisal

What is the big picture? Processes that are going to enable How are they going to execute?
them

Talent Talent Differentiated

Strategy Assessment & Reward &
Segmentation Development
Interventions

Closely Aligned to Business Strategy

Measurement Driven

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Recognizing & Managing Top Performers

 Role Expansion
 Assignments to work on Regional/National issue taskforce.
 Sponsorship to conferences, and visits to other countries (on rare
occasions).
 Advanced Learning and Development Opportunities
 Appreciation Letter / Certificates
 Recognition for accomplishments /OE Certification etc. etc
through Bottling HUB / Forum/ Buzz
 Differentiated Compensation

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Accelerating Performance of Solid Performers

 Build on their Strengths. Help them leverage what they are best at.
 Identify critical tasks for which performance needs to be enhanced
 Create a Development Action Plan to enhance performance on critical
tasks
 Assign Projects to utilize their skills & build confidence
 Challenge with appropriate stretch objectives to enable peak
performance
 Facilitate problem-solving so barriers to performance are removed
 Encourage progress and recognize contribution
 Ensure that they are fairly compensated.

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Managing Bottom Performers

 Prepare robust 30-90 day Performance Improvement Plan (PIP) – include

specific, measurable actions with clear timelines

 Guiding Principles
– Longer for Senior people with newly identified performance issues.
– Shorter for more junior people, or people with a history or pattern of
performance issues.

 Review & Take appropriate actions

– If PIP results completely on-track, then align back to KRAs for the role.
– If results not on track, but demonstrates maturity and drive to improve
performance, revise PIP with shorter timelines (e.g. 30-60days)
– If results not on track, and does not demonstrate enough drive to
improve performance, exit. – Failure, exit Guidelines

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Main parameters used as a base of reward system

•Inflation rate factor

•Market potential (what of individuals worth according to

his/her expertise, job experience etc.)

•Matching with his/her presence career path

•Personal development of an individual

•Sales rewards

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Supporting practices
•Safety
•Re-creational activities
•Training and development
•Individual goal setting

Above parameters are used by Coca Cola to make their reward system
practices well in the market, object is to make their employees feel
comfort, satisfied, motivated towards achievement of organizational tasks,
competent to perform to the extent to attain organizational mission and
vision terminologies and compete with outside rivals successfully. Because
the management believes that if employees are loyal to the organization
then they perform better to the way to overcome any competitive goal
with accordance to desired results with remarkable customer satisfaction.

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Criteria of rewarding employees

They are using different techniques to define their reward criteria to work according to define
standards of organization. System is developed by doing great market search so as to compete rivals
to the way to satisfy their internal employees more than that to get more profitability and customer
loyalty.

•Grade jump
•Designation change
•Special assignments (inter departmental transfer)
•Financial aspects
•Grade jump and designation change
•Training and development
•Personal development of an individual
•Career grooming

They make close collaborative or communication system with employees so as to fetch information
on the part of their problems to satisfy them all to increases their efficiency and effectiveness.
Because need and wants of employees are changing day by day to satisfy meaningful needs and
wants are very important in the behalf of organization so as to use best potential of both physical
and mental competencies is very important. That’s why defining criteria of rewarding them have a
significant importance for the mutual benefits of both employees and organization.

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Types of Rewards of Coca Cola

Yearly Basis
•Employee salary increment
•Grade Jump
•Designation change
•Annual incentive Plan (AIP) (for business performance, but fixed)
•Personal Progress report (PPR) (Annual Appraisal)

Monthly Basis
• Making the move (MTM, sales target achieve)
•Monthly turn hall (extraordinary performance)

Quarterly Basis
•Employee of the Quarter (EOQ, non sales)
• Sales Dangle context

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Recommendation

Appraisal system is an effective technique to

support and change culture of the organization
optimistically; it would only be possible if the
system is equal for all employees of organization.
Therefore, company’s management should utilize
this system to all employees so as to increase
effectiveness and productivity.

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THANK YOU

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