Coca-Cola - Effectiveness of Diversity Training Programs - Case Study Example

International HRM International HRM International human resource management is required by the firms that are working across the border where different cultural affect the human resource of the firm. Moreover, the firms within a single country also require adopting different human resource management techniques according to the labour and government of that firm. Below a complete description is given that for internal human resource management diversity training programs works and is required by the firms while working across the border line. The very first important thing in managing human resource is to provide diversity training and a complete description on it is given below. Later the paper describes different cases that the global firm usually used for their human resource management. Our main emphasis is on European industries which were facing problems from the last few years due to worst human resource management techniques. Moreover, the paper describes the role of corporate governance in managing human resource that is required to manage the internal employees to the union formed within the firm. The example of Cadbury is given showing that their success is due to best management techniques sued by the firm. Diversity Training Program The purpose of my research article is to give authentic information about the effective impact of International Human resource management on an organization. My research paper includes the study of companies whose data will show the effect of diversity training program. Necessity of Diversity training programs1 in the organization is very important in order to increase the awareness of their employees to different skills, knowledge and information about the culture of different regions. The implementation of such training programs is essential when an organization decided to serve different regions of the world and in specific term organization diversify their workforce. The employees must know their civil rights when working outside their motherland and all this information is provided during the diversity-training program. Effectiveness of diversity training programs The diversity training programs affect cultural sensitivity, high communication level at abroad, more satisfaction with job. Coca-Cola implements a yearly diversity-training program for their employees in order to ease their employees. They not only train but also provide diversity director, and diversity advisory council. The only purpose of all this is to compensate their employees in order to meet with diversity goals. This all helps the employee to know about the environment of other regions, their lawsuits, how to deal with customers, understanding values and norms of other country. That is the only reason that coca-cola is now serving more then 200 hundred countries with 71000 employees trained for “leveraging the power of people and ideas” which also enhance motivation within the employee. A research in Québecor World, Inc., which is the world largest printing company, conclude that their customers claims that the employees at each plant of the company differ so much that each plant look like a separate company. Due to this reason the company implement a three session training program, each session remains for 3 days. The extraction of such training concludes that their customer level at their 160 plants doubles within few days. A research of companies in United States of America shows that 45% of top managers use to give formal training to their employees before diversifying their workforce. Effect of diversity training programs The effect of diversity training improves the interpersonal skills of the employees, their technical skills, reducing stress of the employee and socializing employees. After the training, the employees can better communicate with all the colleagues and customer abroad. IBM hires 30% of Japanese researchers for their employees who used to teach them about the culture of Japan before working in Japan.2 The most important effect of the training is that the employee improve their problem solving skills, they know that how they have to handle problems while working abroad. They know how different conflicts within the team and with the host country should be solved. Pacific Gas & Electric Company in USA use an approach Action-Forum process in which the employees use to handle all the problems without involving top management. They use to train their employees working through out the US and thus the company safe $270 million. Goals of diversity training programs The very first aim of the diversity-training program is to create a better cross-cultural sensitivity, which will cultivate the more harmonious working relationships among the employees and within the employees and customer when working outside the boarders of the motherland. The training motivates the employees and provides a clearer picture that will comfort the employees. The employees will show effective operational productivity and efficiency3. Employee’s interpersonal skills and technical skills are improved thus they will communicate better, their relationships with others will improve. Adams Mark hotel resort provides training programs to their 11000 employees working at different regions. The training enhances employee’s skills such as interpersonal skills and trains them in treating different customers belonging to different region of the world. They provide different videos and lectures which train them that how they have to treat customers. Other then providing skill, the major goal is to provide cultural adaptation. Most of the employees frustrated while working abroad due to different culture. However, Coca-Cola specially designs diversity-training programs for the region it is going to serve. Due to these trainings, cultural adaptation becomes easy for their employees. Coca-cola emphasize on the sensitivity to race, religions and norms while training their employees. Diversity training programs are very important while diversifying your workforce across the boarder. This training enhances skills and information of your employees that indirectly provide profit to your organization. This enhances the operational productivity and reduces time cost, thus increasing efficiency and effectiveness of your employees. Enhancing your employee’s abilities will enhance the overall organization productivity. Finally yet importantly, it improves the image of your organization and organization relations across the boarder. Case of Coca-Cola for International Human Resource Management The company has launched Coca-Cola University (CCU) specially to provide the better skills and knowledge to their employees. It provides different classes and particles to provide the employees a better way to enhance their productivity. The university also deals the employees in providing the latest technological information that enhances their work at field4. This usually helps in providing the basics for coca-cola franchise which indirectly impact on the company. The university increases their employee’s interpersonal skills, technical skills and provides information of how to deal with different problems in different cultures and regions. The company launches tailored-mode management training for their employees that specialized them in fulfilling the personalized need of the customers. That is the basic training that helps in the employees and comforts them in dealing various customers at various stations. Such training motivates their employees and enhances their skills. The company designs the special council that specially deals with employees. Other then basic salary and compensation, they also provide free medical services and other services. The company provides 60% of their employee’s free HIV/AIDS treatment in the region of Africa and other western countries. This activity actually captures the loyalty of their employees and employees serve them with whole-heartedly. Corporate Governance and Human Resource Management Corporate governance of any firm remains an important issue for the Human resource management. It was seen that the corporate governance is the one who can work to manage their human resource. For instance, European Industries are using the coordinated model for the corporate governance to manage their Human resource but still facing different problems in different sectors. Prominently three main sectors are taken, shipping industry; airline industry and financial sector are chosen to seek what problems are facing by these industries and what were the reasons. Enactment of different shipping polices within a tough political environment remain a problem in the shipping industry. Snap changes in the political conditions within the EU countries grounds serious problems in the late 19th century but later exclusive steps were made to enhance the logistics within the continent5. The Corporate Governance of the firm was unable to manage their Human resource in chaining political environment of the country and thus fails to boost the industry. The European airline sector from the last few years undergoes upheaval due to many reasons. The very first reason is that the sector faces the problem of liberalization, the economics downturn, the terrorist attacks and the high fuels cost and worst Human Resource management due to lack in training and education. These are problems faced by the European airline sector from many years. The airline sector has low cost tickets and services and these might be due to the strong competitive forces that are occurring in the European airline sector. In 2003 the life insurance company which was based in financial market of UK paid the fine of 675,000 pounds due to their mortgage endowment complaints which were not handled properly by their service department and many other different problems were their for the industry. Similarly in 2004, the same Life Insurance Company paid the fine of 725,000 due to their bad handling of mortgage endowment complaints, which they were facing the last year. The only reason was that the corporate governance was unable to provide a better rules, regulations and legislations for the firm that should be undertaken to provide a better performance. In 2005, High Street Bank paid the fine of 800,000 pounds due to their worst rules and regulations provided by the corporate governance. In 2006, again the same Life Insurance Company paid the fine of 750,000. In 2007, IFA paid 330,000 of pounds as fine against worst compliant handling of their customers. These all fines paid by the companies are the only reason of bad customer services they provide to the customers. The corporate governance was unable to enhance the internal conditions as they were unable to make efficient decision making and are unable to provide enough regulations for their corporation. Though the European corporations are using the coordinated model of corporate governance that enhances the quality and innovation but still they were unable to enhance the performance of their firms from the last few years. The result shows that the corporate governance plays and important role in the international human resource management, their best policies and decision making for their human resource can only be the best way to gain the success. Case of Cadbury and their International Human resource Management technique Another example that is used top provides a better conclusion for the working of corporate governance is the Cadbury firm. Cadbury, Sir Adrian, (1996) stated that the corporate governance of the firm is providing better decision making and regulations and that is the reason that this is the single firm providing the confectionery product all over the world. In March 2007, the corporate governance decided to reveal that the firm is planning to split it into two different firms6; one will focus on the main chocolate and confectionary market whereas, the other will focus on the US beverages and the reason was to provide better training to their employees that differ in two companies. The beverage company required different training programs where as the chocolate confectionary company required other types of training according to their products offered. The firm decided only as they can better manage the human resource in the two different companies. The decision was very useful as it causes the firm to earn from 12,600 million pound of money to 16,000 pounds of money. In October 2007, the Cadbury corporate governance decided to close its Keynsham chocolate factory and transfer the production to the plant of England and Poland. This affects the jobs from 500 to 700. The four groups of the company capture 43% of the global market. The company sale their non-core business in the year 2007 and these were Canadian bulk and seasonal candy business, Cottee’s food in Australia, Cadbury in Italia and Italian confectionery business. This results in saving 200 million pound of money in the year. Whereas, the corporate governance acquire three main companies causing profits in the year end. The brands of the companies working in 2007 were Cadbury, Schweppes, Halls, Trident, Dr. Pepper, Snapple, Trebor, Bassett, Dentyne and Bubblicious. The company owes 70,000 people in 2007. The Cadbury is the only single international company serving with organic food. The company earns 7971 million pound in the year 2007. Confectionery revenue grow to 7% where as the beverage sector earn the growth to 4%. The earning per share of the company increases to 2% and dividend growth was 11%. In May 2006, the company introduces electronic training for their human resource management and their technique was Electronic Training The electronic base training uses different techniques and tools to provide better training to the employee’s. Computerized and internet based training methods and tools has revolutionized the training process within the firms. Electronic training includes computer based training, electronic performance support system and learning portals. Computer Based Training The computer-based training is the most advance and cheapest mode of training that requires CD-ROM system which interactively increases the knowledge and skills of the employee. For instance, the employee can use the CD’s to know how to deal with different problems at task and how to handle the complaints of the people7. Moreover, different new strategies and idea’s can be gained through internet as it can provide different ideas to the employee’s. In computer based training, the questions are asked by the employee’s and the answers are directly provided buy the computer telling where the employee get wrong. Moreover, different questions are asked by the computer to know how well the performance of the employee is. Instead of sending the employee to any lecture room, the employee can be taught in his/her office room and saving much of the firm time and money cost. The programs on computer are graphic based providing best knowledge to the employee. The computer based training has many advantages in real. As this is interactive technology and provide learning with saving maximum time. Researchers show that 50% of the time is saved by the use of computer based training. The system is also cost effective as once the system is made than it will go for a longer time period without making any enhancement. Other advantages of the computer-based training are 1. Instructional consistency 2. Mastery of learning 3. Increased retention 4. Increased trainee motivation Graphic media of Portland is the specialist of multimedia software house producing computer based technology programs and content. Electronic Performance Support System (EPSS) Electronic Performance Support system8 is the support of technology to the employee at his/her work place by the use of computer, phones and other technologies. These systems actually help the employee and make his/her work more efficient and accurate. These are the computerized tools, displays; automate training, documentation and phone support that make the employee more responsive and more technical. These systems and their use are more cheap and effective than the traditional methods used by the firms. For instance, if the customer has nay problem than he/she might call your employee, by the use of EPSS the individual is send to an analytical process in which step by step his/her problem is noted and answered. This system not only comforts the employee but also reduces much of his/her time. By the sue of these electronic performance system, the employees get better training as with time they become expert with dealing these computer based and electronic system. These sets of computerized tools actually automate training as most of the applications are used to integrate this automation and provide much support that is not only cheap but also very responsive. These electronic performance systems are different from the Job Aids, as job aids are simple diagrams and methods available at the job site which used to taught or guide the employee but these can not support the overall function of the employee. References And Jackson Mathis and Jackson (2006) “Human Resource Management” First Edition, Publisher “Thomson South Western” Published at “Stamford, USA” Gary Dessler (April 2001) “Human Resource Management” Ninth Edition. Henry Unger, “Coca-Cola Employees to attend diversity training annually” Knight Rider/Tribune Business News, October 10, 2000, item 0028501d. John Bratton, Jeffery Gold (2001) Human Resource Management” Second Edition, Published by “Rout ledge” Published at “USA” Michael Armstrong (2003) “Human Resource Management” Ninth Edition, Published by “Kogan Page” Published at “United Kingdom” Michael R. Losey, Susan R. Meisinger, Dave Ulrich (2004) “The Future of Human Management” 1st Edition, Published by “John Wiley” Published at “USA” Sara Rynes and Benson Rosen, “What Makes Diversity Programs Work?” HR magazine, (October 1994). Tom Anderson, “Hotels Training Employees in Handling Customer Upsets,” St. Louis Business Journal (March 30, 2001) Read More