Strategic human resource management at COCA COLA BEVERAGES PAKISTAN LIMITED

Strategic HRM Page 1
Table of content
Description Page No.
Acknowledgement 2
Executive Summary 3
Industry Profile 4
Company Profile 5
CCBPL Management Structure 7
Vision and mission of CCBPL 9
MANAGERIAL VIEW OF Coca Cola 11
Communication within Coca Cola: 11
Motivational Techniques 12
Leadership Styles 12
HRM Practices at Coca Cola 14
Human Resources Division/Department at Coca Cola 14
Recruitment & Selection 17
Training and development 19
Appraising and Managing Performance 23
Compensation and benefits 24
Dyer & Holder’s Typology of Strategies 25
Possible Roles Assumed by HR Function 26
Lepak & Snell’s Employment Models 27
Traditional HR versus Strategic HR 28
coclusion 29

Acknowledgement
We are very grateful to Allah who blessed us the strength and courage to stand by the difficulties
that came in the way and who enabled us to complete this project effectively. As plants cannot g
row without seeds, birds cannot fly without wings. Similarly knowledge cannot be attained witho
ut proper direction and supervision. We are, therefore, also thankful to our respected Professor
Madiha Rehman , because of whose generous co-operation and help, the accomplishment of this
Project became possible.

EXECUTIVE SUMMARY
This report gives a detailed account of the Coca cola brand. It starts off by briefly examining the
history of the brand to see how it becomes the world's largest beverage company. It also
introduces the various products that the company offers.
The report goes on to introduce the various strategies that the company employs in conducting
their operations. The report show the managerial view to the company along with the Humana
Resource Management .the report cover the strategic HRM point of view of the coca cola that
illustrate the HR is playing role to bring the positive impacts to the business. Also different
models of HR practices have been explained for the better understanding. The report breaks
down into different concepts which studied in SHRM

OVERVIEW
Industry Profile
The beverage industry in Pakistan has grown over the time. The industry produces soft drinks,
juices, syrups, milk, and squashes. With about 170 units currently in operation throughout the
country, both upstream and downstream industries have grown and are flourishing.
The beverage industry in Pakistan, currently having a size of little over 120 million cases per
annum with an annual growth of around 10-15 per cent, has the potential to double its size in the
next 3-5 years, if the government's taxation policies towards this industry are corrected. There
are 34 beverage plants in the country and this is one industry, which is very well organized. Job
oriented in nature, the beverage industry employees over 500,000 people directly and indirectly
and also supports many other up/down stream industries such as crown corks, glass bottles,
plastic shells, sugar, transport, advertising and media, P.E.T bottles, concentrates etc. due to this
industry a huge number of outlets/shops are supported to generate wide-spread economic activity
in the country.
Soft drinks market in Pakistan is growing rapidly. And the carbonated category is the leader in
the soft drink market with a share of 63.7 %. This reflects such a huge market to cater. The
beverage industry in Pakistan has a lot of potential and room for growth and development. It is
one of the few sectors that have shown measurable growth and the incremental augmentation in
consumption is more likely to continue in future as well and will certainly benefit in the long run.
Also, flourishing consumerism and establishment of stronger brands with innovative and
superior products has contributed towards the beverage industry’s growth. There exist a lot of
opportunities for new entrants and local players to exploit the untapped facets of the market, for
instance the energy drink market or juices, by strategically positioning their products and by
resorting to innovative and effective marketing strategies.

However, there exist certain serious threats to this industry as well. According to a recent report
on Pakistani Food and Beverage Industry, dated January 20th 2014, the two primary threats to
this industry are; political instability and continuous militant activity, which have the tendency to
obstruct foreign direct investment in this industry. Never the less, the report further emphasized
that Pakistan remains one of the most potentially profitable markets. Another major hazard is the
increasing inflation rate, which was reportedly 9.20% in December 2013, which ultimately
translates into depreciated purchasing power of the household which could lower consumption of
certain drinks.
Challenges faced by beverage industry are the high prices and unavailability of sugar and also
the taxes, excise duty, and sales tax at the rate of 15 percent on the retail price. This is the reason
that beverage industry at the moment has very low per capita consumption of 20 serves whereas
in other countries of our region it varies from120-250 on the basis of single serve of 250 ml.
Based upon the aforementioned facts, on can conclude that the beverage industry is Pakistan has
gained momentum and is more likely to continue the growth in coming years as well. Although,
certain macroeconomics factors certainly do have the potential to corrode this industry’s
profitability
Company Profile
The Coca Cola Company
The Coca-Cola Company (TCCC) was first introduced by John Syth Pemberton, a pharmacist, in
the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged
brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the
street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain.
Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a
drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today
wherever Coca-Cola is enjoyed.

Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name and penned
“Coca-Cola” in the unique flowing script that is famous worldwide even today. He suggested
that “the two Cs would look well in advertising.” The first newspaper ad for Coca-Cola soon
appeared in The Atlanta Journal, inviting thirsty citizens to try “the new and popular soda
fountain drink.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store awnings,
with the suggestions “Drink” added to inform passersby that the new beverage was for soda
fountain refreshment.
By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton
sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color
associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent
$73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He
gradually sold portions of his business to various partners and, just prior to his death in 1888,
sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the
year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and
control of the Coca-Cola business. Within four years, his merchandising flair had helped expand
consumption of Coca-Cola to every state and territory after which he liquidate.
His pharmaceutical business and focused his full attention on the soft drink. With his brother,
John S. Candler, John Pemberton’s former partner Frank Robinson and two other associates, Mr.
Candler formed a Georgia corporation named the Coca-Cola Company. The trademark “Coca-
Cola,” used in the marketplace since 1886, was registered in the United States Patent Office on
January 31, 1893.
The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta
was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles,
California, the following year. In 1895, three years after The Coca-Cola Company’s

incorporation, Mr. Asa G. Candler announced in his annual report to share owners that “Coca-
Cola is now drunk in every state and territory in the United States.”As demand for Coca-Cola
increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the
first headquarters building devoted exclusively to the production of syrup and the management
of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for
$25 million. Robert W. Woodruff became the President of the
Company in the year 1923 and his more than sixty years of leadership took the business to
unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and
valued brands around the World.
CCBPL Management Structure
CCBPL has divided the whole Pakistan in two regions named as “Southern business unit” (SBU)
and “Central business unit” (CBU). Karachi, Rahim Yar Khan and Multan plants are monitored
by SBU General Manager (GM) while the other plants Lahore, Faisalabad, Gujranwala,
Rawalpindi and Peshawar are monitored by CBU General Manager (GM). You can better
understand from this organization chart. It is shown in this diagram that the whole country is

divided in to two parts on the basis of geographical regions. And the whole country is controlled
and monitored by a “Country Manager”.

2020 Vision of CCBPL
Vision
Be the outstanding beverage company leading the market, inspiring people, adding value
through excellence.
Mission
Build a sustainable and profitable business through refreshing consumers, partnering with
customers, delivering superior value to shareholders and being trusted by communities.
Values
 Passion: We put our hearts and mind into what we do.
 Accountability: We act with high sense of responsibility and hold ourselves accountable.
 Integrity: We are open, honest, and ethical and we trust and respect each other.
 Teamwork: We collaborate for our collective success.
Our Goals
 People and Organizational Leadership: Build a highly capable organization and be the
employer of choice.
 Commercial Leadership: Profitably deliver superior value to consumers & customers at the
optimal cost to serve.

 Supply Chain: To be the best in class consumer demand fulfillment organization that
exceeds customer expectations highest in quality, lowest in cost, in a sustainable, socially
responsible manner.
 Operational Excellence: Create a culture of Operational Excellence to support continuous
improvement of our business process and systems.
 Sustainability: Ensure the long term viability of our business by being proactive and
innovative in protecting the environment and be recognized as one of the most responsible
corporate citizens by all stakeholders.
Coca Cola is in-listed in New York Stock Exchange with abbreviation of “KO”.

MANAGERIAL VIEW OF Coca Cola
Organizing the Coca Cola Human Resources:
Human resources at Coca Cola is organized by the HR department
 Make a team who works under department head.
 Arranging and structuring work to accomplish organizational goals.
Communication within Coca Cola:
Formal Communication:
A proper systematic flow of information follows at all levels
Top - Downward Communication:
 In Coca Cola, the flow of information is downward.
 Top management makes the decisions.
 All the necessary information is passes through the head of department to the group
members.

Leading
Groups and Teams in Coca Cola
Each department at Coca Cola has its own team. Routine discussion among the general manager
and head of departments are to set goals and targets. Every head of department is responsible for
his team member and their collective targets. Head of department focuses on individual
performance of the employees to help them out if they have any weak areas.
Motivational Techniques Used to Increase Productivity
Coca Cola motivates the employees in various ways like:
 Increasing in the salaries of the employees
 Increments
 By filling the little need
 Personal grooming of the employee
 And some functions are arranged for the employees and their families children come and
enjoy this is another way to motivating the employees
Leadership Styles of Managers at Coca Cola
In the Coca Cola, the leadership style is BUREAUCRATIC leadership. Managers impose strict
and systematic discipline on the staff. Managers are empowered via the office they hold means
their position power. However, they also have an open door policy for their employees; if they

come to any problem they just ask help from their manager. So they have both styles of
managing their employees.
Controlling
Basic Controlling Authorities in Coca Cola
GM and HOD`S have major controlling authority. They take major decisions and set goals.
Managers or HOD`s of each department control its own department working and are liable to the
GM. There is proper check and balance in each area because of tough competition they don`t
afford any waste of customer.
Control Approaches Used by Coca Cola
 Training
 Monitoring
 Correcting work

Human Resource Management (HRM) Practices at Coca Cola
Human Resources Division/Department at Coca Cola
Coca Cola considers human resources as a key department. A responsibility of Human Resource
department is to provide a method of employee recruitment and retention that produce maximum
employee satisfaction and performance on the job. Coca Cola place great emphasis on people
development so that people and organization perform at maximum capacity in a highly effective
manner.
Talent Acquisition
Compensation&
Benefits
Learning and
Development
Talent Management and
Organization Development
HealthSafety and
Environment
Employee Relations
Operations
Security
DIRECTOR
HR

 Talent Acquisition
Talent acquisition is a person who brings in new talent in company .like Ko tranee and
new employees.
 Compensation And Benefit
This area deals with payrolls and benefits of employee. This department also deals with
the new accounts of their employees.
 L&D
Learning and development is that department of HR in which we give employee chance
to learn and acquire best knowledge.
 Talent Management
This role is really important if we see in company’s perspective. It is the one who
arranges its best and plays a really important role in organizational Development
.
 HSE
Health Safety and Environment is one of the most important department in plant its that
department which helps in maintaining safety issues in plant. And take steps to stop
damaging environment.
 Employee Relation
It deals with assembly line employees.
 Operations
Operations is that area in CCBPL also comes under HR. it is the area in which we have to
maintain the plant sides.

 Security
Security is really important in over-all CCBPL as it is a multinational and there are many
threats to them.
Adopt proactive approach instead of reactive. Coca Cola provides the highest priority to its
people. Following are the main activities of Coca Cola HR department:
 Recruitment & Selection
 Training & Development
 Compensation & Benefits
 Employee Relations
HR manager have coordination with all managers and supervisors of the company in order to
serve all parties in the best way. They also have a coaching role to all employees.
Job Analysis
Job analysis deals with quality of people that which type of people or the department requires
employees. Through job analysis, we also determine that what will be duties of the hired person
and which type of skills he should be have for the job. The information is usually collect by
communication with the required department.
HR Planning
HR planning is the basic function of the department. It is the base of all other departments. It
deals with the demand and the supply of human capital in different departments of the
organization. It also includes future hiring plans for the upcoming projects of the

organization.HR planning depend upon the functions performed by the Coca Cola. So according
to operations they arrange and made all planning.
Recruitment & Selection
HR also creates a pool of eligible candidates and with the collaboration of other managers, hires
the best candidate for the position.
Recruitment process
Their recruitment process is well established first of all they give ads, company website,
institutions job fair etc.Once they receive an application form, candidates with required
documents and CV.
New vacancy
Position advertise
Short listing of CV`s
Interviews
Hiring
Probation Period
Confirmation of Service

External
Selection process
The selection process will vary depending on the position you’re applying for, as one
process can’t fit all the different roles. However, in most cases a combination of any of
the following tools will be used:
 Interview
 Group exercises
 Presentations
 Role plays/Situational Exercises
Interview
The interview is designed to reveal more about you and your experiences. They will ask
for examples of how you behaved in different situations, maybe at school, university, a
club, at home or in previous jobs.
Group exercises
They are a very much a team at CCBPL so these will show us how effectively you work
with people. They’re a good opportunity for us to see how you communicate, influence
and involve other people in the workplace.
Presentations
Presentations give the chance to show your ability to communicate to a group of people
on a specific topic. You may be given a topic in advance or on the day.

Role Plays/Situational Exercises
Designed to assess how you react in certain situations, these help to highlight particular
skills and how well you’re suited for a position. They may be given facts and figures to
review, or a report to complete; they may also have an assessor acting as a customer or
employee to simulate a situation that could occur in the workplace.
 Orientation
After hiring the suitable employee informal orientation is given, there is no such kind of formal
orientation program is available at Coca Cola. As there is no such kind of rocket science in this
organization, so they don`t need any formal orientation program. They verbally tell about the
organization and employee duties and responsibilities that he or she have to perform at the job.
They also tell the employees about the do`s and don’ts and what kind of dress code and behavior
is required at the job.
Training & Development
There is formal training and development are given to the employees, even they provide formal
couching train their employees that how to handle mistakes and solve problems, they provided
formal induction buddy, formal necessary training and necessary rules and regulations guidelines
to their employees. When the manager points out some mistake of the employee while
performing his or her duties, immediately manager corrects them and guide his or her employee
that how he or she should have to perform the task.

 CCBPL KO learning center
CCBPL owns its own training center for employees. It also owns a university known is KUODS
in it. Employees are given change to diversify their skills in this learning center. Suppose an
employee is masters in Mechanical engineering, but he is goo in marketing so CCBPL is having
capability to diversify and enhance the skills of its employee according through its learning
center in Lahore.
Employee Development
Career progression at CCBPL is based on potential. They carefully analyze abilities through
experience, performance ratings, qualifications and competencies and in of strive for excellence,
they ensure that your potential is put to its best and most efficient use in our various department

CCBPL Capability Development Wing
Capability Development is a fundamental strategic objective of CCBPL and an integral part of
one of the main pillars of CCI’s Vision 2020 – People and Organizational Leadership.
The CCBPL Capability Development Wing would be focusing on organizational competencies
in order to bridge the skill gap leading to superior performance as well as create focused training
& development plans for our employees. With the introduction of new training methodologies in
the Sales Capability Development they would be developing a superior Sales Force that is

Business driven.
CCBPL Capability Development Wing is striving to achieve the objective of Living Positively,
Adding Value, Making a Difference…!
Training on Wheels
Learning and Development teams are continuously challenged by demand for better, more cost-
effective trainings. These challenges have led to some rather innovative employee training ideas.
This also helped reduce learner seat time and ensured the transfer of skills to everyone any every
Capability Development Wing at CCBPL has taken the initiative and created something unique
for its target audience by introducing a new product with the name “Training on Wheels” which
ensures the very concept of training just-in-time for everyone.
The idea was to convert a regular delivery truck into a modern, state of the art mobile training
unit. The mobile training unit consists of a training room, with all the necessary training
equipment’s i.e., LCD, AC, Cooler, and seating capacity for 15 retailers during a session. The
plan is to use this unique concept to train the target audience throughout Pakistan but initial
sessions will be conducted at Lahore and Gujranwala and Faisalabad territories.
Since learning is a constant process, CDW (capability development wing) encourages employees
from commercial sales function to come on board and conduct trainings as well in order to
deliver a better understanding and also to share the experience with the audience. This for sure
will enable all volunteers for the project to indulge themselves in activities other than their
regular work and to contribute towards HR initiatives. Primarily the target audience is the small
grocery retailers.

Appraising and Managing Performance
HR department conduct performance appraisal and have to keep an eye on every employee
throughout the year. Top management has regular meetings to check that they are achieving the
goals or not and what necessary precaution they have to look after.
Coca cola performance appraisal is annually they appraise the employee due to their
performance about goals of the organization .they set the goals started the year and tell the
employees about the goal if the employees achieve this goal they appraise the employees.
Steps in appraising performance
The performance appraisal process contains three steps;
 Define the job
 Appraise the performance
 Provide feedback
Define the job:
Means making sure that you and your subordinate agree on his or her duties and job standard.
Appraise performance:
Means comparing your subordinate’s actual performance to the standards that have been set.

Provide feedback:
Means discuss the subordinate performance and progress, and make plans for any development
required.
Compensation and Benefits
HR department manager says that employees are our assets, there for we are careful about their
health and benefits. We give following compensation and benefit
Following are the benefits provided by the CCBPL.
 Annual incentives
 Provident fund & gratuity
 Health & life insurance
 Competitive compensation
 Engaging wok environment
 Roles of HR
Some basic roles of HR
 Develop rules and procedures.
 Provide recruiting services & support.
 Manages the performance appraisal and feedback forms.

Dyer & Holder’s Typology of Strategies
Practices Investment Inducement Involvement
Contribution Very high initiative
creativity ; very high
performance expectation
;high flexibility ; self
managed
Commitment Very high ;strong
identification with work
,team and company
Staffing Careful selection ;extensive
career development ;some
flexibility ;minimal lay offs
Development Extensive continuous
learning
Extensive continuous
learning
Rewards Tall structure ;competitive
fixed; job based ;merit any
many benefits
Work system Enriched jobs ; self managed
work teams
Dyer & Holder’s Typology of Strategies shows that which logic they fit into whether they are
investment; inducement or involvement by focusing on some of the practices it is discovered
they fall into different categories which are explain above in the table.

Possible Roles Assumedby HR Function
By using this diagram and with the help of analysis coca cola lays in the quadrant of change
agent. They are not the followers they are the initiators. They are much focused on the strategies
and people of their company

Lepak & Snell’s Employment Models
With the help of Lepak & Snell’s Employment Models and the study of coca cola HR functions
it is clear that CCBPL strategic value is very high and also the factor of uniqueness is high .so
coca cola fits in the first quadrant of this model which shows that they hire on knowledge and
commitment based.
CCBPL are Relationship builder which means HR Develop Such structure, work practices, &
culture that allow individuals to work together and Develops networks that focus on strategic
objectives

Traditional HR versus Strategic HR
Coca cola is using strategic HR
Factors Strategic HR Evident
Responsibility
for HR
Line managers By observing their hierarchy
Initiatives Fast, proactive ,integrated As they are not followers
Control Organic –flexible ,whatever is necessary
to succeed
Analyzed from their managerial
view
Job Design Broad ,flexible ,cross training ,teams Analyzed from their managerial
view
Key
Investment
People ,knowledge KO learning center
Role of HR Transformational ,change leader and
initiator
As they are change agent
The above table represents that the coca cola is not using the traditional HR practices instead
they are very much focus on the strategic HR which is evident in the table.

Conclusion
After reviewing the complete report one thing is clear that is CCBL is working very well its
strategies are successful towards the whole world and this is making progress by the passage of
time. It is definitely clear that CCBPL are using the concept of SHRM instead of Traditional
HRM. The main reason why they are so much developed is due to the people. According to
CCBPL employees are the assets of their company.

Strategic human resource management at COCA COLA BEVERAGES PAKISTAN LIMITED

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