Coca-Cola Company: Employer-Employee Relations - Essay Example

Employer-employee relations in Coca-cola Employees’ relation in organizations has been a controversial issue for a notable period. In fact, managements have used much of their important time solving issues among employees. Further still, performance in many organizations, especially those that do not employ strategies to address the issue has deteriorated significantly. Scholars have noted that proper relation contributes positively towards realization of organizational goals. As such, this essay will outline the reasons as to why conflicts occur between employers and their employees and some of the manner that the conflicts can be resolved. In so doing, the research will center the argument on Coca Cola Company as a case study. Thus, the essay will highlight some of the different strategies used to avoid the occurrence of conflicts in the organization. The coca-cola company is one of the largest producers of non-alcoholic beverages and branded in over 200 countries in different continents like Europe, Australia, Africa, N. America, and India. The popular drinks made by the multi-national corporation sold in various brands, which serve the diversified human tastes and preferences (Cant, 2006: 12). The company acts as a retailer, marketer and is the main manufacturer of the drinks. It also has a separate bottling plant that works together with the production plant. With its continued growth, the coca-cola company has provided jobs to people allover the globe and as a result reducing the unemployment levels (Fernando, 2010:517). In employment, all institutions should create proper employer-employee relations to ensure that there exist mutual benefits between the two. The coca-cola company being a multi-national corporation and with greater interactions with employees has to establish proper relations with the public also (Mansbach and Rhodes, 2009: 231). This has led to the formulation of policies aimed at governing their worker-employer relations to a healthier and legally regulated one (Daniels, 2006: 76). Some of the enacted policies have different issues that may affect employment like child labour, discrimination, working hours, and wages, Freedom of association and collective bargaining, safety and health of workers at the workplace, and on forced labour (Jack, 2008: 278). By adhering to these policies, coca-cola encourages other organizations to apply the same for success. Some of the policies are quite encouraging to employees and inspire them towards putting the best of efforts in production (Blyton and Turnbull, 2004: 423). The company also recognizes the community as another vital factor promoting the organization’s success. The community consists of the consumers, employees, and retailers at the grass root level. It also acts as part of the stakeholders in the corporation and hence this details the need why the organization needs to establish proper relations with the community (Cant, 2006: 13). They at some point seem irrelevant, but their presence is necessary. Through fostering the conditions at the community level, the corporation has significantly helped raise the people’s living standards and resulting to economic growth (Koekemoer, and Bird, 2004: 37). The coca-cola company has integrated with the communities at different levels in an attempt to eliminate poverty, empower the society, and giving financial support to some community projects (Gillespie and Hennessey, 2011: 101). The employees in the coca-cola company though given the best of environments for production purposes also come across challenging factors in their employer employee relations. For instance, several cases have been filed in court for allegations of misunderstandings between the employer and the employee and even severally discriminations from getting opportunities in the job market (Hollinshead, Nicholls, and Tailby, 2003: 245). The publicity of such allegations tarnishes the image of the organization before the public. The misunderstandings may be due to failure of employees to honor the salary agreements made during the signing of the employment contract (Shearn, 2012: 289). Such allegations can be ruled out in law courts where the party found guilty pays for compensation of the innocent one. Such cases happen in enterprises where the employers want to record high profits at the expense of the employee (Fernando, 2010:518). Some of the conflicts are due to discriminations practiced during recruitment of retailers and workers for the multi national corporation. Such was experienced in Somalia after the company set one of its branches in the country (Weygandt, Kieso, and Kimmel, 2011: 326). Somalia was viewed as a fertile ground on which the company would invest in for a large profit returns due to the high temperatures and all year round drought that the country experiences (Daniels, 2006: 77). By venturing in the market, only certain tribes in the nation were chosen to represent the brand. This resulted to inter tribal conflicts between the favored brands and the discriminated ones too. However, such conflicts between the distributing agents and the employer of the region resolved, and this created a favorable business environment for the coke brands (Jack, 2008: 279). In some instances, the discriminations on job opportunities done on the base of gender, age, and nationality are resolvable by law. Female workers sexually harassed in working environments have the right to file cases against their bullying seniors (Leat, 2006: 338). Some of them may post further threats on salary reductions, or lying off the workers since they are not answerable to any higher authorities (Salamon, 2000: 277). Such matters within the organization that affects the manner that the worker is treated raising conflict between the two can only be resolved through the actions by courts of law. Any retaliation by such inhuman employers is further determined by the court of law in determining the legal fate for such employers. The coca-cola company also has its laws, which punish their workers caught in sexual harassment attempts, or any related issues (Sims, 2002:160). In the coca-cola company, some of the supervisors were too authoritative and disrespectful to employees, and since the employees are aware of their rights, they had to report such to higher authorities (Blyton and Turnbull, 2004: 425). The companies desire to retain both parties in the conflict demands for better ways of resolving conflicts in the business structure. The workers felt belittled, this indirectly affected the rate of their output, and at the end, and it would result to failure of business due to the inability to make profits enough to cater for expenses incurred (Shearn, 2012: 290). Such conflicts between employers and the employees due to disrespect can be resolved through maintaining a distant healthy relationship between the two and ensuring that each feels important in the positions they serve (Gillespie and Hennessey, 2011: 103). All employees are equally beneficial to the organization and hence none should be discriminated due to the positions they serve. Equality is indispensable in building self-esteem; this later reflects in the workers levels of output and thereby increasing the institutions profit levels (Hollinshead, Nicholls, and Tailby, 2003: 246). With the Coca-cola serving as an international business, then it should integrate the human rights laws to ensure that the workers work in the best environment to enhance maximum output. Failure of clearly stated principles to govern such relation results to more intensified conflicts between the two (Kurtz and Boone, 2009: 284). Workers should have values to promote their relations with workers. Dishonest employees create distrust with their employers, and this hinders the healthy business practices and protects business policies. Employees suspected of violations within the business causes the employers to raise retaliatory actions against them (Mullerat, 2010:44). The coca-cola corporation may take unfriendly correction actions against the workers and hence destroying the relations between them. The employees can have default relations with the employers due to violations in work and harassments too (Williams and Adam-Smith, 2009: 106). No individual should tolerate offensive working conditions, but any resentment by the employees to employers in a respectful manner is professionally ethical. Harassment affects employee morale and legal and ethical measures are necessary to eliminate harassment (Maher, Stickney, and weil, 2008: 39). Work place conflicts may arise due to insufficient salaries that deny the workers the ability to satisfy their basic needs. Some of the workers paid insignificant wages compared to their works may demand for a pay rise and in cases of inflation, the workers have the rights to get increases (Cant, 2006: 14). Some of the coca-cola enterprises, who pay mere salaries to their workers, are likely to get silent or active signs for salary demands by the employees. Failure for salary increases results to conflict between the two parties and the employee feels betrayed. In return, the workers may lose morale resulting to significant declines in their productivity due to the salary conflicts. Basic needs are compulsory, and this should reflect in the salary rates offered (Lewis, Thornhill, and Saunders, 2003: 427). Workers and employers in coca-cola may come together in an attempt to resolve conflicts that they do not need legal involvement. Attempts to directly-resolve the existing conflicts may give rise to new conflicts and hence creating complexity of matters being resolved (Koekemoer, and Bird, 2004: 39). There are other types of conflicts that have been exhibited in the coca-cola corporation like conflicts due to personal factors that conflict with that of others. This may include differences in race, nationality, religion, and even gender (Plunkett, 2008:93). To other employers some workers may seem more competitive than others may and attempts of favoring such workers, the rest of the other workers develop hate feelings for both the working mates and the employers. The intensity of the conflict ranges from dislikes to conflicts that are more complex (Leat, 2006: 338). The coca-cola company has also released reports showing that at some point, difference in performance of similar tasks may raise conflicts between the employer and the employee. The different ways of performing tasks may end up with both parties unable to make peace resulting to animosity between the two parties due to incompatibility (Fernando, 2010:519). Though they may be taken as minor to some institutions, the coca-cola corporation effectively handles such cases effectively ensuring that such dislikes do not further obscure performance (Kurtz and Boone, 2009: 286). The types of jobs in the organization According to Government Printing Office (1996: 21), the Coca Cola Corporation has grown in many states and with the different brands needs effective management to overcome and stand the market pressures. Individuals serving within the institution range from managers, supervisors to the casual manual workers who serve as support staff. There also exist working relations between the corporation and its retailers in the different regions in the globe (Gillespie and Hennessey, 2011: 108). Some of the different careers hired by the coca-cola corporation include marketing, technical function, human resources, information technology, finance, marketing, manufacturing, administrative services, and also innovation and aviation skills. The coca-cola also helps the community by giving internships for both undergraduate and graduate students. With such long chains of individuals to deal with the corporation has developed on its moral ethics stated in the company’s handbook (Williams and Adam-Smith, 2009: 102). The combination of the different skills helps the institution serve the variety consumer needs effectively and have proper relations with the society (Jack, 2008: 280). Conflict Resolution Strategy The coca-cola corporation just like other enterprises has had to get methods of resolving the existing conflicts between their employers and employees. The existing strategies like incorporation of international human rights have helped reduce on worker-employer conflicts due to unfavorable working conditions (Plunkett, 2008:96). Humane working conditions resolved to some institutions may weakly adopt them their institutions and thereby causing conflicts. The charter for human rights has been an ardent guide to the corporation in making its policies and retaining healthy relations within the enterprises (Maher, Stickney, and weil, 2008: 42). At instances when the conflict between the employer and the employee is quite remarkable, there is a need for effective methods of handling the situations. Serious conflicts end up inhibiting the company’s performance and productivity and hence stronger individuals able to resolve the issue of disagreement (Kurtz and Boone, 2009: 284). The employees need handbooks stating their relations among themselves, with seniors, and with parties outside the business. There should be guides on solving issues within the place of work handling, reporting, and the manner of dealing with such to avoid distracting worker output (Rose, 2008: 344). The employees should ensure that workers get free environments to give them free environment for expressing complains to the administration. For organizations that do not have employee guidelines, they are likely to experience intensified and numerous issues between the employees and employers and this demands for drafting of policies to guide work place relations (Sims, 2002:164). Since different managers have different ways of solving conflicts, one of the coca-cola managers resolved to point out first the worker relations among other workers and worker relations with other seniors like supervisors (Lewis, Thornhill, and Saunders, 2003: 432). Through such actions, it gets easier to determine the workers with interaction problems and they can be handled individually through advice and observation for a change in their daily activities. The observation of the working relations helps the manager identify some of the possible moves to make in an attempt to restore the institutions productivity and environment friendliness (Fernando, 2010:521). According to London School of Economics and Political Science (1963), in the coca-cola corporation, some managers have resolved to promote employee relation skills with other individuals in the organization. Managers such efforts be expressed by conducting seminars, giving advice in direct interactions, and by placing worker relation policies in strategic points where workers and other senior staffs can access them (Leat, 2006: 340). Efforts to determine the reasons for conflict between employers and employees carried out with confidentiality of information gives the parties of the conflict the assurance, and they thereby end up giving out all the information they had held up. This helps withdraw employee’s fear of getting threats from employers for exposing internal matters of the institution (Daniels, 2006: 78). Supervisors from different departments may come together with managers to conduct silent research on the employer-employee relations either through interviews or through focus on the group (Weygandt, Kieso, and Kimmel, 2011: 328). This helps identify the conflicting matters between employees and employers within the corporation (Kurtz and Boone, 2009: 287). At some instances, the coca-cola company has corporate third parties from outside the organization who go about the research. The data received helps the seniors find ways of resolving conflicts. Depending on the employee-employer, relations then the manager can be able to determine the fit action to take for enhancing their working environment (Blyton and Turnbull, 2004: 425). Managers with the capacity to determine employer- employee conflicts have the opportunity to observe on the performance trend of their workers and determine the cause of the conflicts. Such efforts by the managers help them learn new ways of dealing with employees. They also get to establish training methods and techniques on how workers can attain the organizations goal without pressure towards performance (Lewis, Thornhill, and Saunders, 2003: 439). Such conflicts that arise due to performance disagreements are solvable by providing the necessary equipment and environment for performance. Employees should also be given realistic goals for achievement and in consideration of their professional capacities. If the corporation’s goals are too vital, then the employer can offer training guidelines to assist the employee in improving their output capacities (Rose, 2008: 345). The coca-cola corporations in some instances use outside bodies to resolve on conflicts, and thereby the resolutions got the need to get to the employees. Holding meetings where the resolutions are read for everyone to ensure that all workers get to know the factors governing them in their relations to one another in work (Cant, 2006: 16). Considering the working ethics, workers have the right to get clarity with unclear issues and to make decisions depending on their positions that are not abusive to other individuals in the organization. The coca-cola corporation usually conducts sessions in different plants for worker education and on adherence to their duties and respect with other workers (Mansbach and Rhodes, 2009: 236). Considering further ethics of conducting business and dealings within the worker environment, the coca-cola corporation has the capability to solve such (Mullerat, 2010:45). It solves cases of worker discrimination and assault by ensuring that employees retain their positions through merit and those caught in an attempt of giving bribes or sexual favors are presented to punishment by laws. The mode of conduct for businesses states that employees should remain loyal to their companies by strictly doing their jobs and in return to get their paychecks (Kurtz and Boone, 2009: 289). Employers in the coca-cola industry have their loyalties to maintain to both employees and third parties. By maintaining high loyalty standards to the organization, then the workers in return expect to get an increase in payments, rise in positions, and even positive recommendations about their efforts (Maher, Stickney, and weil, 2008: 43). The coca cola company advises their workers that they should stay away from disloyal, and any matters may arise conflicts. Such efforts have significantly reduced the numbers of conflicts that the organization deals with (Mansbach and Rhodes, 2009: 238). This has significantly reduced the allegations of dishonest employees and the workers do not take much interest in conflicting issues that do not affect their working environments and payment deals. The workers are able to overcome tempting issues that may raise conflicts, and that may term them as disloyal and affect their employment contracts or even performance (Leat, 2006: 345). To employers and senior staff who are exploitative, the coca cola Corporation has put regulations on their contacts with employees. Such employers who get disloyal to the corporation’s contracts and agreement disrespect the company’s profile and policies. The workers are given the protection from abuse and threats for reporting such cases. Law punishes individuals caught, and the corporation may terminate their employment contract with the individuals (Gillespie and Hennessey, 2011: 109). To conclude, the coca-cola companies with its branches allover the globe, it has an established culture with its employers and therefore, this has enhanced it penetration deep into different parts of the globe. Coca-cola has its official attires and daily job routines for their workers but in return, offer high benefits and rewards for their loyal workers which helps enhance their relationships with the community. According to Government Printing Office (1996: 21), the management strategy of holding regular meetings hopes ensure that the company deals with some of the possible conflicts and problems in its production. It has greatly helped in improving the poverty levels in most societies through its support services and jobs provisions too. Though conflicts do occur it is necessary to handle them with great professional touch and considerate of human rights. Conflicts in institutions should not hinder production and worker output (Sims, 2002:167). Bibliography Blyton, P. and Turnbull, P. 2004. The Dynamics of Employee Relations, 3rd Edition, London: Macmillan Cant, C. 2006. Marketing management. Cape Town, South Africa, Juta. Daniels, K. 2006. Employee Relations in an Organizational Context, London: CIPD Publishing. Fernando, A. 2010. Business ethics and corporate governance. Delhi, Dorling Kindersley (India), licensees of Pearson Education in South Asia. Gennard, J. and Judge, G. 2010. 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