Workplace Change System and Management in Coca-Cola Company - Case Study Example

Workplace Management Name Institutional Date Introduction Technological changes, changes in customers’ tastes, new innovations, and emerging management systems have constantly shifted organization’s structures, processes and outcomes. With these, has been a constant change in business legal environment and relations. While today, most organizations are moving towards neo-liberal system of management, many industries, which have long historical grounds from Marxism’s radical approach to neo-liberal system. The influences of globalization and increase in lobby groups have immense changed industrial relations in almost all companies across the world. Originating from Britain, industrial relations movements have swept across many nations across the nations. However, the impact of industrial relations in these nations differs a lot. In United States for example, industrial relations have wielded a lot of power in uprooting poor employment systems based on racial segregations and child labour. Industrial relations in United States are so strong that many organizations have given in to their demands. Contrary, nations like Australia have not experience the impact of industrial relations since Labour laws hinders their operations (Heery & Bacon, 2008). From industrial revolution times, three major industrial relations have been identified to date: radical, unitary and pluralist. The radical system is closely tied to industrial relations during Lenin and Marxism. During this time, power was vested upon the capitalists and employees purely acted as the subjects. In record, this was the duration that industrial relations were poorest and marked the birth of workers unions. The neo-liberal society system has come with two major industrial relations; the unitarism and pluralist perspective (Srinivas, 2004). From the word unity, unitarism perspective sees an organization as a family. Managers and employees are seen as single unit with same principles, goals and vision. The family share interest and work through mutual understanding and trust. Consequently, legal structures and industrial relations are deemed unnecessary powers in the family system. Industrial relations are foreign bodies that rarely get place in the unitarism system. Pluralist on the other hand, sees organization as a large body made up of cells of network. Each of these units is distinct and works separately. Every unit has its own management system, leadership and visions. They embrace industrial relations and legal structures as modes of augmenting and bargaining for their positions for coexistence. It is believed that the system precedes unitarism in industrial revolutions. Pluralist has given trade unions more strength than any other system. In augmenting their position, pluralist takes any mode from round table discussions to strikes (Marschall, Forthcoming). Management systems have also evolved to meet the organizational changes. Several methods have been developed through both scientific studies and trial and error methods. The most managements styles that have been observed in many organizations are: top-down approach, piecemeal approach, change negotiations and bargains and the systematic jointism. These methods were applied by different companies at different times depending on the management crisis they were facing (Luria,Vidal, Wial, & Rogers, 2006). Companies such as Nethew were known for their focus on communication as a management pillar. The management team in piecemeal systems ensure that employee’s grievances are addressed through open communication system. The approach banned communication barriers between the employees and the management team. Apart from problem solving, communication was used as a tool for organization decision making between the employees and the management. As a result, piecemeal is an approach of solving problem internally without involving external bodies such as the unions (Lasbury & Wailes, 2010). Some organizations based their management under Fayol’s management principles. In top-down system, management strategically follow a specific chain, both in command and hierarchy. Management body consist of top managers, middle managers and lower management team. Between the management team and the workforce are the supervisors. Employees with the help of supervisors are mainly charged with implementation of policies carried down from top management team. Nike and Toshiba for example, have been quoted of misusing this management system by failing to address employees concerns. Top-down management system attracts a lot of pluralist behaviour and inclusions of trade union bodies to create central bargain positions. Poor implementation of this system under the rule of thumb attacks strikes and poor work conditions as evident in most developing nations (Kochan, Eaton, McKersie, & Adler, 2009). Coca Cola, Ford and Eaton Companies are known for jointism management system. Coca Cola for example offered employment positions for some union officials who as well act in their advisory system. Jointism aims at reducing the line between unions and organizations. Consequently, they embrace the fact that unions are for employers as well as employees. Including trade union officials in the management system not only help the companies in sourcing advice but also protect the organization from adversarial perception by unions. However, jointism has only achieved success in areas countries where trade unions have taken less adversarial approach to the employers (King, 2009). Mix or situation approach of management is a management style devised based on the managers ability to conceptualize their organization. Based on the pressure on the ground, mix approach can include all the approaches discussed prior. Unilever at some time in its management applied this approach to balance both the unions and the employees. It was used to reduce the pressure groups from strikes by calling collective decision under top down management structure. While very complicated and delicate, situational management is seen as success by some managers due to its dynamism (Lasbury & Wailes, 2010). Concession bargaining is also a common managing approach that has prevailed in Britain and later United States. Companies such as Rail Royce are remembering for this management system. Many groups participate but purely under compensation. Industrial relations have negatively impacted on this system despite its presence still in some countries (Marschall, Forthcoming). This paper shows a workplace change system and management in Coca Cola Company. Since bringing Coca-Cola across the globe into a single sytem was difficult due to diver verse management systems, the paper analyses Coca-Cola Içecek Company (CCIC). Coca Cola has gone significant change in workplace management being a historic company. However, lack of data has forced the case study only to be conducted from year 2000. The objective of this case study was to place Coca Cola its system of management guided by the key systems i.e. pluralism, Unitarian and capitalism. In the study organization management structure, industrial relations and legal impacts in the company have been used. Some of the major considerations during the study includes, mode of decision making, human resource management, dispute resolution system, influences of legal systems, social response and the trends in change management system (King, 2009). Coca Cola Içecek (CCI) CCI is ranked sixth worldwide among all the Coca Cola industries. They produce and market still and sparkling beverages in The Coca Cola Company (TCCC). It has employment volume of 9000 across Kazakhstan, Turkey, Pakistan, Azerbaijan, Jordan, Iraq, Kyrgyzstan, Tajikistan, Turkmenistan, and Syria. The company has twenty plants with a lot of differentiated beverages. Some of these products includes: tea, juices, iced tea, juices and several brands of energy drinks. Through its vision statement of ‘be the outstanding beverage company leading the market, inspiring people, adding value through excellence’(The Coca Cola Içecek, 2010), the company not only achieved in its production but also in its human resource change management. The company core values are: integrity, accountability, passion, and team work. The Company as part of the TCCC has embraced sustainable management through Life Plus principles. The following chart shows core areas covered in TCCC Life Plus (Murray, 2008). Fig1. Life Plus Principles Life Plus describes all areas that all TCCC members put their efforts to achieve maximum management potentials. It encompasses all internal and external organization systems. Work place management is identified in this principle with goals of achieving the best corporate governance and quality of workplace life. Additionally, the company realizes environmental responsiveness as part of its core principles (The Coca Cola Içecek, 2010). Cooperate Social Responsibility CCI identifies government, unions, employees, investors, supplies, distributors, and customers as their key stakeholders. The Company approach toward corporate sector are guided by their values of accountability and transparently. Since the company has demonstrated one of the best management systems under quality and progressive development all its stakeholders are served with adequate and reliable information. They ensure that the stakeholders are accessible to the CCI objectives, operations and accomplishments with a lot of transparently. Consequently, CCI has created a system that allows stakeholders to contribute in the organization decision making (Murray, 2008). CCI uses its CSR report, which was first under publication in 2008. In Turkey, the CCI was the first Company to report information beyond annual financial performance as speared by Global Reporting Initiative (GRL). The second report became the first Company in Turkey to deliver B-Level information as per GRI G3 guidelines. In 2010, the company made its reports for two financial years to cover a whole year. Additionally, it covered all areas of its management and operations. Feedbacks from stakeholders have shown satisfaction with company’s level of accountability and transparency. Government reports have shown satisfaction with CCI operations and management. Consequently, the unitary and jointism approach taken by CCI has made it free from unions’ frictions. Life Plus principle has made the CCI successfully operate in almost all countries they have set their plants. In maintaining its product quality and transparency CCI has included audits of its products by different bodies as summarised by the table below (The Coca Cola Içecek, 2010). Fig2. CCI Quality Audits From the table it can be seen that CCI engages in a comprehensive audits for both quality and compliance with regulatory and corporate bodies standards. While many companies carry their audits themselves, CCI involves other bodies as part of TCCC’s Life Plus Framework. The frequency of their audits also signifies the stability of the CCI operations (The Coca Cola Içecek, 2010). CCI Suppliers and Distributors Chain CCI has approximately 3500 supplying groups. It shares its Life Plus Framework principle with its suppliers. Through its core principle of accountability and transparency, CCI believes on long-term supplier relationship. CCI works with its suppliers through strategic cooperation and partnership. In managing supply chain, CCI has direct and indirect procurement chains. Apart from just monitoring suppliers’ product quality, CCI communicate and renders research services to help their supply team. Supplier selection system is openly conducted based of product quality and supplier ability to meet company product specifications. The following table shows suppliers satisfaction audits based on top 5 TCCC countries in 2009 and Top 5 improved in 2010 respectively (The Coca Cola Içecek, 2010). Fig3. Top 5 TCCC Countries in Suppliers Satisfaction in 2009 Fig4. Top 5 Improved TCCC countries in 2010 From the figure, TCCC carries out annual audits including in the CCI to ensure that there suppliers are satisfied with the operations. Complains raised during the audits are addressed to ensures everyone is satisfied. 100% percentage satisfaction have not been achieved majorly because the company continue to venture into new markets with varied expectations from their suppliers. Consequently, CCI has instituted Coca Cola supplier academy that render training services to their suppliers (Oxford Business Group, 2010). CCI distributors sales amount to 75 avarage sales of the company. Additionally, CCI has over 1300 major distributors. For sustainable development, CCI has keen attention towards its distribution system. The Company offers guidance and training services through academies to their distributors. The major topics that are covered by CCI experts includes: human resource management, stock management, bussiness development, customer satisfaction and sales management (The Coca Cola Içecek, 2010). The company ensure they are abreast with their distribution team through field visits conducted regurlarly, constant open feedback cannel, dialogues and annual forums. Just like among the suppliers. Distributors also, are regularly audited. To mainatain relations harmony, CCI destributors dialogue platforms involve different parties such as: CCI bussiness partners, external distributors consultants and satisfaction surveyors, and government and union representatives (Oxford Business Group, 2010). The main supplying and distribution principles by CCI are: Freedom to collective bargaining and associations Prohibited labour abuse Free from child labour Non –discriminatory system Fair wages and work hours Safe and healthy working conditions Environmental safety and sustainability Work Place Management CCI CEO O’Neil says, “Our goal is to provide a fair and safe work environment for employees while providing strong s support for personal and professional development” (The Coca Cola Içecek, 2010). CCI continuous workplace management and improvement are its core values. Despite the diverse cultural where TCCC operates, its Life Plus strategy has enable its successfully achieved workforce satisfactions. Currently, CCI employees’ satisfaction and loyalty averages 87% from 2010 surveys. Some of the major CCI employee focus includes: (The Coca Cola Içecek, 2010). Improving employees’ participation and involvement in organization to ensure there is no gap between CCI and the employees Ensure equal and equitable employment in all CCI plants. Creating more open door meetings and reduce communication barriers between the management and the employees Ethical consideration in company’s recruitment, discipline and training system Encourage employees to develop representative to help them raise issues Developing Health and Safety work policies. CCI boast of being a leading company which has successfully integrated neo-liberal unitarism workplace management success. Employees in Coca Cola not only boast of good working environment but also of long term employment opportunities. Consequently, Life Plus principle has allowed this company to develop visions that have enable it mange its diverse workgroup. Today CCI gender employment ratio is almost equal with men leading with a 15 present margin. The company as well creates some employment opportunities to the elderly and physically challenged group (Y?lmaz, 2011). The company embraces policy of respect, fairness and tolerance towards employees. The company reinforces this through ‘Work Place Right Policy’, which was made by TCCC in 2007. The policy provides complete guidelines to employees’ management. Employees have open communication system to enable them raise their issues to be addressed. Normally, addressing issues in CCI involve dialogues and round table discussions. The following are employee’s breakdown in 4 major CCI areas of operations (The Coca Cola Içecek, 2010). Fig6. Employee Contract Breakdown, 2009-2010 Fig7. Employee Gender Breakdown, 2009-2010 Fig8. Employee Gender Breakdown, 2009-2010 CCI has a training academy for diffent groups. On job training programs are very effective in CCI. At the same time, the academy trains the employees in different field such as change management, workplace stress management and numerous other proffessional management fields. The training progrmans not only equip the employees with required skills but also prepair them for further employment opportunities. CCI ensure that their training programs apart from meeting their needs are are consistent with the required national and international standarts. On the other hand, CCI has reduced home and workplce gap by organizing family days, fun camps ands sports to facily members (Y?lmaz, 2011). Conclusion Jointism approach of including unions and government officials in major decision making in the CCI has enable the company easy penetrate several market segment into different companies. While CCI workforce management approach can be seen as top-down system, it has been liberalist to an extent that employees feel that they are part of mangement team hence the system can be seen a unitarism approach. CCI has been awarded several for its green movement and its focus on environmental friendliness in its operations. The company has also maintained free operating atmosphere with other industries and competitors. References Heery, E., & Bacon, N., 2008, The SAGE Handbook of Industrial Relations, SAGE Publication: London. King, K., (2009). Workplace Performance-PLUS: Empowerment and Voice through Professional Development and Democratic Processes in Health Care Training, Performance Improvement Quarterly, 21(4), 55-74. Kochan, T., Eaton, A., McKersie, P, & Adler, S., 2009, Healing Together: The labor- management partnership at Kaiser Permanente, Cornell University Press: Cornell, NY. 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The Coca Cola Içecek (CCI), 2010, Corporate Social Responsibility Report, Retrieved on 8th August, 2012, from Coca-colaIcecekSR.pdf Y?lmaz, Argüden, 2011, Keys to Governance: Strategic Leadership for Quality of Life, Palgrave Macmilla: New York. Read More