Human Resource Management of Coca-Cola - Case Study Example

Name: University: Course: Tutor: Date: 16, December 2010. An Aging Workforce, how should an Organization respond? Outline of the Organization The company by the name Coca Cola is a retailer, manufacture, and marketer of beverages that are not alcoholic, but concentrates and syrups. This firm is much known much known because of its Coca Cola product flagship, which was invented by John Stith in the year 1886. As brought up all the formula of Coca-Cola and brand in the year 1889. At the moment, the company produces over 500 brands in around 200 hundred countries world wide. This firm operates a distribution system called franchised from 1889 where the firm was still producing concentrated syrup, which was then sold to many bottlers in the whole world. The coca-cola has its headquarters in Atlanta. Its stock has been listed on both NYSE and part of DJIA. Starting by analysing the background of Coca cola Company, it is a fact that approximately, the company has employed around 4,600 workers in the United Kingdom. These employees are deployed at various sites in the United Kingdom, and they usually cover a range of operations starting with manufacturing operations, moving to distribution and then to sales and marketing. The company’s strategic approach to discriminations that are based on ageism began with the setting up of age diversity project team that ended up reviewing procedures and policies of Coca Cola Company, and made some recommendations that were to boost change in the cabinet. The recent trial by the company to buy a Chinese juice maker was unsuccessful because, the Chinese government rejected its $ 4.2 billion bid. This was based on the reason that, the market will be monopolistic. On top of that, another reason that led to the failing of the deal was nationalism. Nevertheless, Coca Cola Company has a history of acquisition, as for instance, in 1960, Indian Cola brand was acquired. The major lobby force in US is Coca Cola; it usually works hard to ensure best legislations are attained. This has made the company to have very high lobby expenses. The major lobby expenses experienced by the company results from the firm’s fight against tax increase on soft drinks. Generally, the company produces only concentrated syrups, that is then sold in different bottlers throughout the countries that that has Coca Cola franchises. Its bottlers hold contracts territorially, then produce finished products then distribute, sell and even merchandise. In the US, the company bypasses bottlers and sales directly to wholesalers and retailers. On the other side, the company has in one or the other got itself into controversies and lawsuits that are related to its lawsuits that deal with the violation of human rights, and other activities that are perceived by many to the unethical. Some lawsuits have been issued due to its monopolistic practices and other discrimination issues like the discrimination against the aging. Some of them have been dismissed, while others have resulted to the company changing it business strategies. On the other hand, some have been handled by courts. Outline of the Article The article is all about new times for the aged. It explains that, under normal circumstances as it has been happening, recession times comes as a frustration to many aged individuals; this is because they were the most laid off during such recessions. However, recently things have happened differently, because older people particularly men have re-entered employment with no troubles. This is because; employers have realized skill shortages that need to remain in different sectors of the company. Many organizations are unprepared for what is coming. According to different studies, it has been shown that aged employees will be having negative effects on employers businesses. This means that even United Kingdom companies are not prepared. This is because it has been shown that few organizations in the UK have age profile of their employees. According to many studies that have been conducted, the results supports that, many UK companies are not age diversified. Their workforce tends to be having more aged people, but the fact remains that experienced individuals are aging so fast. It has been indicated that, companies having a positive thought concerning aged individuals can be categorized as being either being faced with shortages in skills, hence want to retain aged, skilled workers, or categorized under organizations that have realized that their aged workforce is much engaged and can work better as customer attendants. The age diversity issues are becoming more and more common, especially after the introduction of anti-age discrimination laws in the year 2006. The problem that many organizations are that, they have not taken up the wider concept of age management. There exist many fragmented practices that are good, policies and ideas that are tied together by the Human Resource Managers that are very much committed. However, companies need to have holistic ways of that are much systematic, self-directed tries to ensure age management is sustained throughout companies. Amongst the issues, the most influential factor is flexibility. Research has shown that, aged people would like to work under reduced number of hours. Many families, employer’s legislatures among other people, have similar notion in their minds that on off transition in individuals’ lives is retirement. Interesting thing that research has found out about aged peoples desires for autonomy not forgetting flexibility is that, young employers are also demanding such like needs. The challenge that most companies are facing include dealing with the demands that are being made by young employees. However in dealing with such issues, it makes organizations at the same time knows how to deal with problems that are caused by the aged workforce. Companies need to make cultural changes in the process of welcoming the new era. Apart from the shortcomings that likely to be incurred, have up to date remained ageism in their attitudes and the majority of their deeds. There is also a problem about working with aged workforce. This force tends to wear physically and lose mental conscious. Particularly the eyesight and the memory, however such issues might be dealt with in case aged employees are still much vital especially to such like jobs, there are ways to contain them. Though the fact remains many companies desire recruiting aged individuals, others have maintained with employing youngsters. Other areas that are heavily geared towards the youths’ remains to be training and education. In many companies, training comes to an end when these involved clock 40 years, and the vicious cycle continues. In such conditions, aged individuals do not present themselves for training. Similar bias is also experienced in talent development, as it is geared towards youngsters, who then end up having more development chances. Such like bias is understood in most cases, however far much illogical. This is because much return on investment can easily be gotten through youngsters, however, aged employees tend to be very loyal to the current employees, hence not easy for them leave before education fees has been paid off. However, alterations in pension and retirement laws are assisting in shifting such like ideas. The major changes have the possibility of coming from demographic changes. If such like things continue, then sooner or latter, there will be individuals that are more aged in workplaces and this will boost the organization’s cultural change. Changes of Labour Market and their Impacts on the Organization By looking at how the labour market has been shifting , it signifies that there have been major changes that have happened in the field of work, that have resulted to a cut between the previous labour market regulations and institutions and at the moment, it is a reality. The changes that have been made include who is performing the work, how the work has been performed, the rising significance of skills and experience, on top of training and learning. Other changes include shifts that have been made on regulations governing employers and employees, trade unions and governments and so fourth at a working place. All these have been accompanied by the determination of low-wage labour at the markets. Other than serving as a highway that leads to more responsible, positions that have better salaries and wages, what has become of the low-wage jobs is just dead end for many employees. This has been the cause of wide income gap, (Nuala, 1992). The coming up of trade unions in the labour market, has reviewed the duty of employers. Organizations might not ever again have such a high concerns of integration that approximately provide nearly permanent employment and much vital benefits. In its place, they might have narrowed down to their main competence. They have ended up competing strenuously for skilled and experienced workers, readily outsourcing, and have ended up exploiting the advantages of globalization. This comparisons forms the challenges that established Companies like Coca Cola are faced with as they try to create a balance between rivalling claims of getting used to new market atmosphere and at the same time, trying to maintain commitments of theirs’ to their current workforce. Further more, Coca Cola and other companies and industries ranked at a similar position have turned to a strategy approach that entails labour management collaboration, with some successes that can be termed to be mixed in one way or the other. This is especially so in the field of airing problems that encounter at the labour market, and the necessity of adopting new models in business. Moving with such like an analysis, it means that individual companies and the efforts of union management will need supplements from the communities, markets of labour, and very wide industrial innovations. Of late, their have been issues concerning the voice of workers and the new ways of its implementations in the background of the diminishing the strengths of trade unions, which has always been traditional tool for the expression of employee concerns at the workplace. In place of coming up with a completely new method of expression, individuals have proposed strategies that are adapt to these union. Such like strategies are meant to enhance the voice of workers in four major segments of labour market. Such segments include; the sector of industries and crafts, mangers and scholars, contingent employees, and finally those that are trapped in sectors that are made up of low income earners. For example in the first group, unions like “Communications Workers of America have adopted various strategies to serve workers”, (Ferrie, 1999). This for instance the adoption of organizational memberships in regions that have never heard of anything like representational rights. The groups that have been organized by communities have mounted living salary campaigns all over the country, in combination with the organizations including the central labour committees, to ensure community based strands are provided in the networks that a appear to be new but very vital in addressing problems that are associated with the provision of voices to these who are lowly paid and not much skilled. Unions in the coming generation will have to address the problems that have occurred due to shifts in the labour markets, on top of representing professionals who are ever moving from one place to the other. Companies will have to expand their recruitment and training methods. With this in mind, necessary changes have to be made in labour laws, so that unions might have the possibilities of training and recruiting its members. As an effect, the management culture in the US, will have to reasonably change to enable it take-in simplified ideas that employees will have to have similar freedom of association at places of work as they have in civil society. Apart from different examples of employees-employer community corporations that are ongoing at the labour markets, there are still labour law reforms that have been clouding the capabilities of parties in working together in important areas that may seem to be out of the sphere of bargaining collectively. Changes in the labour law are far much important in airing the overarching the development of labour markets. This has included the reforms on Acts that gave right to employers to decide by themselves on if they do want to be represented by any association or union. This will make companies to look at the artificial boundaries that exist between employees and mangers in an organization. This is because, of the exclusive creation of supervisors from bargaining collectively on rights by such like Acts, for instance Act’s Traft-Hartley amendments, (Nuala, 1992). Leading Edge Employers Strategic Plan on Aging Workforce Due to the increasing age transformations, many employers are wondering on what next need to be done to ensure they have adapted to such like conditions. Many have derived different strategies that are much specific to every individual organization. However, they can all be grouped into three groups, namely; trends in retirement and shortages of labour, sharing of knowledge, and lastly quality employment and flexibility at workplace. Trends in Retirement and Shortages of Labour Concerning these who were the first individuals to adapt; the rising rates of retirement has at all times set in motion changes that can be described as dramatic in strategies that companies and human resource had set. With a problem of less suitable employees for recruitment, the retirement boom that was much anticipated, has become a passive trouble that affects leadership, staffing and general training, on top of overall continuity and engagements within a workforce. This happens at a time that aged employees also want to work longer. One of the specific problems with this is to involve late career stage employees in ways that are not familiar, (Fisk, et al. 2009), other of the organizations like the Pitney Bowes to develop and navigate phased retirement within their department of engineering. The management realized that a good percentage of employees want to go on with their work, hence they allowed them to continue on terms that were more suitable to their lifestyle that is really changing. The organization used this program with the hope of improving employee involvement and productivity, and in managing transfer of knowledge, the organization uses a measured method. This company has stressed that phased retirement is the best method of keeping them with the company for a longer time. However, it should not be taken as an attempt of pushing employees out before they become ready. In practicing this attempt, the company has supported phased retirement to take several shapes that include workweeks that are much condensed, and the reduction of workweek and telecommunicating. On the other hand, a retirement-based change has been implemented by the Fidelity investments. This is just a method of using aged workers as a vital resource in labour shortage context. Throughout the period that the population of US has been aging, Fidelity has been experiencing an increasing demand for retirement, and financial planning products. In trying to counter this problem, the company has come up with different strategies, for instance, retirement services model of staffing. This model was launched in 2007 with the aim of maximizing the fidelity efficiency of its workers and ensures that they are provided with flexibility. This company realized that in place of hiring employees that work fulltime for its cal centres, and make them be underutilized during off-peak hours, they usually hired part-time during peak seasons. As a consequence, fidelity has been ever recruiting workers, who are always looking for a most challenging but flexible jobs. It has concentrated on recruiting parents, those who are looking forward to be hired on second job and even aged workers. Fidelity has a feeling that aged workers in a special way are in a better place of dealing with their clients who are looking for retirement planning services. On the other hand, it is not just life stage that makes such employees attractive to this organization, it has been documented very well that workers aged over 50 years are always having high motivation, most reliable and more engaged than any other worker. Sharing Of Knowledge Due to many demographic changes that most organizations have experienced, they have brought in many challenges of retaining or replacing organizational skills and experience. Succession planning and phased retirement have been salient strategies among many adapters. However, there have been also the possibilities of creating opportunities for cross-generational monitoring. Edge employers like Mitre and GSK understands that by the creation of chances for sound communications in all the generations, they will be able to attain knowledge sharing tactic. Cross-generation networking was implemented in Mitre with the aim of creating opportunities for both scholars, and social connections amongst its employees. Such like program has boosted respect culture, fairness and inclusion, and in one way or the other has promoted constructive relations at a place of work. The circle of networking on the other hand, has led to the creation of chances for the development, advancement and learning for the workers via the discussion of a wide area of participants’ topic of selection. Another advantage of this program is that, is the issue of sharing company norms, values stood for, and the history of the firm from the organization’s most valued workers, to their latest staff combination. Other companies like GSK wanted to strengthen their flexibility approach transfer of knowledge, and cross-generational knowledge via early network of theirs. It was proved in the early career network (ECN) that after the realization it was very hard for some edge employers to make a relation with others in a similar life stage. The GSK participation in ECN has improved job satisfaction and assists workers in understanding their available benefits. Furthermore, the program has also created many chances for the sharing of knowledge from aged workers to their fellow youngster’s workers, and the reverse is true. Among many projects at GSK, members of ECN were connected with their aged colleagues in the prime time of 50+ networks to conduct training on social media usage, (Marius& Sven, 2006). Quality Employment and Flexibility at Workplace Flexibility in schedule and other employee work dimensions are emerging to be very popular as many employers consider the changing needs of their current workers. It is not by accident that many companies are using work arrangements that are far much flexible in both retention and recruitment of aged workers; in a special way value such like programs. However, it is looking as if the priorities of aged workers concur with broad changes at work place that might be targeted consciously towards aged workers alone. Boston Collage (BC) forms an example of an organization with long time serving employees, on top of younger workers who happen to like to advance in their career. In trying to balance rising chances of flexibility, BC has used “information technology service structure method” (Marius& Sven, 2006), to working while at home. The pillar of such like program is fact that this program has to meet first business requirements. This is to say that, this program empowers employees to a high level of being flexible as they fulfil their work duties, providing permission for those who are eligible to telecommute at least once per five days workweek. Since working from home is much attractive and very much feasible work property in BC’s department of IT. Having this in practice, the management has a belief that, this program works a recruitment and retention tool. Particularly concerning scheduling, location of working amongst other flexibilities, have become integral part of most companies scenarios. Edge employers have adapted this program emphasizing other aspects of employment quality for instance health and wellbeing, (Mitchell, 2002). St Luke’s Idaho is another NPO that has implemented program of employee wellness, as a result of strong workers’ interests and organizational take on workers’ health. This program entails opportunities in an awareness and training to motivate workers. Every component in the program has been designed in a manner that it educates workers about style, health awareness among other things. Conclusion It is a fact that approximately, the Coca Cola has employed around 4,600 workers in the United Kingdom. The company’s strategic approach to discriminations that are based on ageism began with the setting up of age diversity project team that ended up reviewing procedures and policies of Coca Cola Company. Companies need to make cultural changes in the process of welcoming the new era. Apart from the shortcomings that likely to be incurred, have up to date remained ageism in their attitudes and the majority of their deeds. There is also a problem about working with aged workforce. There have been major changes that have happened in the field of work, that have resulted to a cut between the previous labour market regulations and institutions and at the moment, it is a reality. The changes that have been made include who is performing the work, how the work has been performed, the rising significance of skills and experience, on top of training and learning. Other changes include shifts that have been made on regulations governing employers and employees, trade unions and governments and so fourth at a working place. The emerging changes in demography are met by different responses. References Ferrie, Jane. 1999. Labour market changes and job insecurity: a challenge for social welfare and Health Promotion. New Brunswick: Transaction Publishers. Fisk, et al. 2009. Designing for Older Adults: Principles and Creative Human Factors Approaches. Boca Raton: CRC Press. Marius, Leibold. & Sven, Voelpel. 2006. Managing the aging workforce: challenges and solutions. New Jersey: Wiley Mitchell, Daniel. 2002. The aging workforce and the next turning point. Bingley: Emerald Group Publishing Limited. Nuala, Beck. 1992. Shifting Gears - Thriving in the New Economy. Toronto: Harper Collins Publishers.   Read More