Application of Organizational Behavior Models in the Coca-Cola Company - Case Study Example

Organizational Behavior By Student Name Course Tutor Institution Date ABSTRACT There are many factors that must be put in place for the success of an organization. The organizational structure of any organization is important in growth and development of any organization. In any organization, balancing is extremely essential since it gives room for employees’ flexibility giving room predictability in the organization. The organic and mechanistic models positively contribute towards an organizational growth and production. The intranet gives room for the lateral exchange of information. Utilization of leadership theory ensures that an organization is run in the right ways since there is a defined channel of communication between the management and the employees. Utilization of the five models of organizational behavior help in catering for an organizational needs, as well as, employees’ needs. The supportive model is based on law of supportive relationships that explains how leadership and other organizational processes must ensure maximum probability, which in every relationship and interactions linked with the organization, all the members should, in light of their background, expectation and value, perceive the experience as one that maintains her or his sense of one’s personal importance and worth. The collegial models also deals with the employees needs, while the other models (System, Autocratic, and Custodial), highly emphasizes on the needs of the organization. Introduction Coca-Cola Company is one of the most successful companies in the world. This success is as a result of good organizational behavior within its structures. Organizations are of utmost significance in all facets of people lives. The existence of any organization is scheduled by a set of organizational behavior. These organizational behaviors dictate the way any organization function. The organizational behaviors of any company dictate its contribution to the economy, and its utilization of the technology. In the Coca- Cola Company, Everyone working in the company has a significant role to play. The success of Coca-Cola Company is expected to have an understanding of the code and its compliance. All the staff members are expected to utilize their good judgments, which help in avoiding improper behavior. In order to evaluate the staff’s judgment they must ensure that there is a consistence between their conduct and the existing codes, the conduct must also be ethical and legal. The existing codes attempts to capture most of the situations encountered by the employees. The managers in Coca- Cola Company are expected to promote an ethics and compliance culture. It is the responsibility of the managers in the Coca- Cola Company to ensure that people being supervised are conversant with the expected responsibilities under the Company’s policies and Codes (The Coca-Cola Company, 2009). The managers should also create opportunities where the significance of code and ethics are discussed in regards to employee’s compliance. Background of the Study Organizational design The Coca- Cola Company is conversant with its customer’s dynamic demand. This pushes the company towards the company’s decentralization. The organization is constituted of two groups of operation: the corporate and bottling investment. These groups are divided according to regions of operation. Other divisions are centrally located in the corporate division, these includes the human resource, finance, strategy and planning, marketing and innovation. When Neville became Coca- Cola Company CEO in 2004, he utilized much complex mechanism of integration. He utilized a team of managers in developing solutions to the company’s most pressing issues, as well as, dealing with the existing slow rate of growth. These included utilization of face-to-face meetings, which were conducted at local levels in order for the employees to remain informed. Neville also used intranet in provision of real-time information sharing. Complex mechanisms of integration are useful in tall and wide organizations, such as Coca-Cola Company. It is significant that every function of the company has the capacity to be shared among the employees. The Coca- Cola Company is doing a superb job in balancing mutual and standard adjustment. After the introduction of Isdell’s changes in the organization, the commencement of mutual adjustment was evident in the organization. The employees now feel engaged in the running of the company. Isdell’s leadership skills have resulted to an increment in the organization’s growth rate, from a negative return to about 20% return. In any organization, balancing is extremely essential since it gives room for employees’ flexibility giving room predictability in the organization. Coca-Cola’s structure is an example of a hybrid of both organic and mechanistic models. The intranet gives room for the lateral exchange of information. High standards and centralization are linked with a mechanistic structure. Combining both the organic and mechanistic structures is ideal for an organization. Flexibility is significant when attempting to appeal when dealing with large independent markets. In order to enhance organization’s production efficiency, high standardization is extremely significant. Centralization aligns organizational choices and goals. Application of Motivational theory by the Coca- Cola Company The motivational system utilized by Coca-Cola Company is in line with Clayton Alderfer’s ERG theory. Clayton, an American psychologist categorized the hierarchy in his ERG theory, ERG are initials of existence, relatedness and growth. Any existing group gives a high priority on the provision of the existence of basic material existence. This is inclusive of safety and psychological needs. The other group of needs is those of relatedness, it touches on people’s desire in the maintenance of significant interpersonal relationships. In order to have the status and social desires, it is vital to have an interaction with others. Alderfer further isolates the growth needs as an intrinsic requirement for personal development. These intrinsic components are characterized under self-actualization. Self-actualization is evident once the individuals acquire a state of understanding and harmony. Summary of ERG Theory RELATEDNESS NEEDS EXISTENCE NEEDS GROWTH NEEDS Key Satisfaction/ Progression Frustration/ Regression The theory also touches on the company’s development requirement. The employees’ existence requirement in the Coca-Cola Company is explained as the requirements with a wanted physiological effect on the company’s employees. In acquiring a company’s consistent; the employees have a responsibility of adhering to their present position and the power of growth in the company. Leadership Theory Leadership theory in the Coca-Cola Company talks more about the leadership and management structure of the Coca-Cola Company. Once an employee is employed in the Coca-Cola Company, the manager has the responsibility of ascertaining the employee’s employment qualification. The manager must have the capacity to work with these individuals on a daily basis. Leadership requires that managers to possess the capacity to motivate. Coca-Cola Company ignores negative managers. The company managers are encouraged to register their gratitude to workers to performing workers on a daily basis. The existence of positive motivation in the management of the company draws attention the absolute best in the organization and decrease in the employee’s turnover. The managers the Coca-Cola Company maintain their employees in the loop by holding weekly meetings with the company’s knowledge. Organizational Behavior Models The five organizational behaviors are five in number, namely; custodial, autocratic, supportive, system and collegial. Different companies adopt different organizational models in ensuring the smooth running of the organization. The Supportive Model This model is based on law of supportive relationships that explains how leadership and other organizational processes must ensure maximum probability, which in every relationship and interactions linked with the organization, all the members should, in light of their background, expectation and value, perceive the experience as one that maintains her or his sense of one’s personal importance and worth. The supportive model has its basis on an organizational leadership as opposed to money or power. Good leaders have the provision for a conducive environment where employees have a room for growth, as well as, helping an organization in achieving its expected objectives. In the supportive model, the managers understands that, a work climate that is not adequately supportive results in employees resistance, with this in mind, they attempt to provide a conducive environment where their employees are motivated to work contributing to organizational growth. In supportive model, the management has the responsibility of helping its employees to improve their performance. This model yields high production for the company since employees work extremely hard, as well as, striving to enhance their individual performance. The employees feel that they are not working under compulsion, but rather supported by management. This model does not put much emphasis on the organizational financial resources of the company. The working of this models call for the managers to change their attitude in regards to the organization’s subordinates and reforming the mode of interaction among the employees. The managers have the responsibility of attempting the problems being experienced by the workers, as well as, trying to come up with amicable solutions of these problems. The managers could also steer the employees in setting clear career goals and attempting to accomplish these goals. These gestures will automatically motivate the employees to delivering their best. This model is popularly utilized in the United States of America. It gives positive results to both the employees and the managers. The effectiveness of this model is felt in situations the employees’ needs at lower level are satisfactorily solved. This model portrays good managerial leadership skills for support or assimilation. In line with this model, Coca-Cola Company has adopted the pros of this model where they facilitate in their employee’s participation in task investment and in the company’s activities. Through the organization’s participation in the employees’ activities, these have resulted in positive motivation among the workers increasing the company’s productivity. The System Model In System model, the employees expect to produce a work that portrays a high degree of integrity, ethical and trust, as well as, provision of an opportunity in experiencing a growing scale of community among their workmates (Peterson and Mrksich, 2007). There also exists spirituality at work, where the employees show their desire to understand themselves better, personal growth, displaying integrity in their actions and making meaningful contributions to the society. The managers should highly demonstrate a sense of compassion and caring, and sensitivity when dealing with diverse employees needs. It is the manager’s responsibility to represent; social intelligence, and authenticity. Authenticity is the capacity for the managers to open themselves to others through being transparent in underlying values. In portraying social intelligence, the manager must show: empathy, presence, situational radar, authenticity and clarity. In this model, the employees attempt to work on ethical circumstances, which are trustworthy and sincere and offer an opportunity to experience a growing sense of community and association among the workmates. The manager at the Coca-Cola Company have the responsibility of showing the workers that, they are significant part of the organizational system. They tirelessly work towards uniting the employees so as to acquire better services or products and both local and societal association. This model helps the employees acquire both long and short term goals. These goals include; offering acceptable and timely feedbacks, building a productive and cohesive team work. The employees clasp the organizational objectives through the rearrangement the mutuality of responsibility by the company employee. The model also provides the employees with the psychological ownership for the company and the services provided. The Autocratic Model The basis of this model is power where there is authority assimilation by the managers. The models works in reminding the managers about their authoritative responsibilities, as far as, running the organization is concerned (Hariri, 2012). Those appointed in authority must exercise their ability to demand for quality services. The Coca-Cola Company acquires the model’s benefit once it intends to guide poor managerial behavior in circumstances where there are no adequate alternatives. These models in also significant for Coca-Cola Company when dealing with supreme conditions like organizational disaster. In autocratic model, the employees are oriented towards obedience and high dependence on the boss. This model indicates the existing organizational culture in the Coca-Cola Company. The subsistence needs of the employees are met in this model. In this model, the performance level of the employees is significantly reduced. Although the model could have its advantages, it also has other disadvantages, such as; it consumes an extensive human cost, more so, as a result of the micromanagement. Micromanagement is a natural pattern of existing autocratic managers. These managers control the organization’s operations on a daily basis. Generally, the employees dislike the micromanagers. The gap between the employees and micromanagers leads to reduction of working morale among the employees. It also paralyzes the chain of decision making since the employees fear having high turn-over and second guessed. The Custodial Model The basis of this model is based on economic resources, with high managerial orientation for money. The employees, on the other hand, are oriented towards benefit and security, as well as, high organizational dependence. The main employee’s needs met by the organization is their security. The employees in Custodial Model hold a reasonable contentment. This means that, the employees are not very motivated leading to reduced production by the organization (Lofchie, 2009). The employee’s results of performance are passive cooperation. Coca-Cola Company takes good care of its employees; this is achieved through giving numerous benefits meant to motivate the employees. This has positive psychological results to the workforce. The practice of offering motivation by the Coca-Cola Company’s human resources has greatly influenced the employees’ performances. The Collegial Model In collegial model, the orientation of the employees is towards displaying self-discipline and responsible behavior. Among the main needs that an employee is expected to meet is self-actualization. There is some degree of fulfillment, self-actualization and worthwhile felt by the employees (Goodman, 1990). The self-actualization leads to moderate enthusiasm in their performance. The Coca-Cola company adopts this model in making sure that all the employees in the organization feel useful and needed leading to self discipline and responsible behavior of the employees’ to the Coca-Cola Company. Conclusion Various organizational behaviors add value to organizations. Leadership theory utilized by the management of various organizations ensures that the employees put the instructions given by the management into practice. Good leadership helps in the success of an organization. Poor leadership qualities lead to a slow growth of an organization. Coca-Cola Company is among the world’s successful organizations since the management is utilizes the leadership theories in guiding its workforce. Conducting meetings on a weekly basis helps the managers in the Coca-Cola Company helps in solving any form of problem that the employees could be experiencing. The managers also use this opportunity in recommending best performing employees, a gesture that motivates other employees to working even harder. By adopting the Alderfer’s ERG theory, an organization ensures that, the needs of both the employees and the organization are catered for, since the growth of an organization prominently appears in this theory. The theory is also inclusive of safety and psychological needs. The other group of needs is those of relatedness, it touches on people’s desire in the maintenance of significant interpersonal relationships. In order to have the status and social desires, it is vital to have an interaction with others. Self-actualization is evident once the individuals acquire a state of understanding and harmony. All the five models have their advantages and disadvantages, as far as; the growth of an organization is concerned. The supportive model explains how leadership and other organizational processes must ensure maximum probability, which in every relationship and interactions linked with the organization, all the members should, in light of their background, expectation and value, perceive the experience as one that maintains her or his sense of one’s personal importance and worth. The supportive model has its basis on an organizational leadership as opposed to money or power. In the supportive model, the managers understands that, a work climate that is not adequately supportive results in employees resistance, with this in mind, they attempt to provide a conducive environment where their employees are motivated to work contributing to organizational growth. In supportive model, the management has the responsibility of helping its employees to improve their performance. This model yields high production for the company since employees work extremely hard, as well as, striving to enhance their individual performance. The system model, the employees expect to produce a work that portrays a high degree of integrity, ethical and trust, as well as, provision of an opportunity in experiencing a growing scale of community among their workmates. This is of advantage to the organization since it will help in the growth of an organization. This model helps the employees acquire both long and short term goals. These goals include; offering acceptable and timely feedbacks, building a productive and cohesive team work. The system model also provides the employees with the psychological ownership for the company and the services provided. The autocratic model bases its argument on power. Those appointed in authority must exercise their ability to demand for quality services. In autocratic model, the employees are oriented towards obedience and high dependence on the boss. One disadvantage of autocratic model is that, it consumes an extensive human cost, more so, as a result of the micromanagement, as well as, paralyzing the chain of decision making since the employees fear having high turn-over and second guessed. Bibliography Goodman, M. J. (1990). The review of tenured faculty: A collegial model. The Journal of Higher Education, 61 (4), pp. 408-424. Hariri, J. G. (2012). The autocratic legacy of early statehood. American Political Science review , 106 (3), pp471. Lofchie, S. (2009). Custodial decisions. Global Custodian, pp.15. Peterson, B. R., and Mrksich, M. (2007). Model systems. Current opinion in chemistry biology , 11 (6), pp.579-580. The Coca-Cola Company (2009). Code of Business Conduct. 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