Facul teit Economi e en

Bedri j fs wet ens chappen

GROUP PROJECT
Diana BORISOVA (r0442606)
Denislava IVANOVA (r0441939)
Esra IBRAHIM (r0206704)
Simon GEVCEN (r0438137)
Marlena TZOCU (r0460908)

The Coca Cola Company

Human Resource Practices in Gujranwala, Pakistan

Strategic International Human Resource Management

Master of Science in International Business Economics and Management (MIBEM)
Hogeschool Universiteit-Brussel (HUB) Katholieke Universiteit Leuven (KUL)

Academic Year: 2013 2014

Due date: May 16th, 2014

Teacher: Dr. J. Griffith

I. INTRODUCTION
A.
B.
C.
D.
E.

History
Mission, Vision and Values
Products
Allegations
Coca Cola Pakistan

II. GUJRANWALAS ORGANIZATION

A. Human Resource Management
B. Organizational Structure
C. Company Culture
D. Employees as Assets
E. Total Quality Management
F. Environment
III. GUJRANWALAS HR POLICIES
A. Job Analysis, Competency Modelling and Work Design
B. Planning and Forecasting
C. Attracting Qualified Employees

D.

E.
F.
G.

H.

a. Recruitment
b. Selection
c. Motivation
Training and Developing a Competitive Workforce
a. Overview
b. Internship Programs
c. Mentoring Programs
Performance Measurement
Appraisal and Compensation
a. Performance Appraisal
b. Total Compensation and Benefits
Promoting Well-Being in the Workplace
a. Safety
b. Health and Nutrition
c. Climate Change
d. Waste Management
e. Time Management
f. Commitment to Diversity
g. Employees Social Platform
Labor Relations and Employee Relationship

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IV. CONCLUSION

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V. REFERENCES

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I. INTRODUCTION
A. History
Nowadays, Coca-Cola is the most universal consumer product in the world, but this was not
always the case. The Coca-Cola Company started out on May 8, 1886 in Atlanta, Georgia as
an insignificant one man business (Hayes). Branded initially as a French Wine Coca Nerve
Tonic the recipe was patented by an Atlanta pharmacist named Colonel John Pemberton. He
mixed a combination of lime, cinnamon, coca leaves, and the seeds of a Brazilian shrub to
make the fabulous beverage. In 1886, however, the prohibition law criminalized alcohol and
thus, enforced Pemberton to re-examine his secret formula. The product was re-launched the
same year as a non-alcoholic tonic. Coca-Cola was originally used as a nerve and brain tonic
and a medicine that was promoted to cure everything from morphine addiction, neurasthenia,
headaches, and impotence to dyspepsia. The products name originates from two of its
ingredients: the coca leaf and the kola nuts. Thinking that the two Cs would look well in
advertising, Dr. Pembertons partner and bookkeeper, Frank M. Robinson, suggested the
name and now famous trademark Coca-Cola (Pendergrast, 2000). The first Coca Colas
advertisement appeared the same year (1886), promoting the drink as delicious and
refreshing, a theme that is still being advertised by the company today.
Prior to his death in 1988, Dr. Pemberton sold his shares to Mr. Asa Candler, who continued
to drive the brand to success. In 1892, he formed the corporation Coca-Cola Company and
undertook aggressive marketing strategy. His efforts were well rewarded and just three years
later, Candler was proud to announce that Coca-Cola' was now drunk in every state and
territory in the United States' (Hayes). From then on, Coca-Cola was on the path to glory led
by the newly invested Woodruff family who for the next six decades would help spread the
brand to all corners of the globe. In 1923, Robert Winship Woodruff was elected President of
the company. By the time of its 50th anniversary, the soft drink had reached the status of a
national icon in the USA. Perhaps Mr. Woodruffs greatest contribution was his vision of
Coca-Cola as an international product.
Today Coca-Cola is one of the most valuable brands on the planet. It is sold in every country
throughout the world except for North Korea and Cuba- due to trade embargoes with the
USA. (BBC News). However, it is reported to be available even in those countries as a grey
import. (Weissert, 2007; Ryall, 2012).

B. Mission, Vision and Values

The Coca-Cola mission has three main objectives defined by the company as: To refresh the
world, to inspire moments of optimism and happiness, to create value and make a difference.
(Coca-Cola Company website). This mission is universal and it also applies for the Coca Cola
Company in Pakistan - Build a sustainable and profitable business through refreshing
consumers, partnering with customers, delivering superior value to shareholders and being
trusted by communities (CCBPL website). Companys values are determined to be: passion

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(put our hearts and mind into what we do); accountability (act with high sense of
responsibility and hold ourselves accountable); integrity (be open, honest, ethical and trust
and respect each other); teamwork (collaborate for collective success).
The US-based company believes in thinking global, but acting locally and this strategy
guides the company management of cross-border operations. The Coca-Cola HRM group sees
its mission as a developing one and providing underlying philosophy around which local
businesses can develop their own HR practices. We can take as an example Coca- Colas
common salary philosophy, stating that the total compensation packages should be
competitive with the best of the companies of the local market. The company gives freedom
to the national business to conduct operations in a way that is appropriate to the market but it
also establishes a common mindset for its employees.

C. Products
Coca-Cola is a carbonated soft drink, which main ingredients are carbonated water, sugar,
caffeine, phosphoric acid, caramel color and natural flavorings (their exact formula is kept in
secret). In addition to the Original Coke, there is Diet Coke, Coca- Cola- Zero and fruit
flavored colas like Cherry Coke, Coca-Cola Lime, and Strawberry Coke etc.
The company has a portfolio consisting of more than 500 sparkling and still brands, worth 17
billion-dollar with 1.9 billion servings a day. The most famous of them are: Diet Coke, Fanta,
Sprite, Coca-Cola Zero, Vitaminwater, PowerAde, Minute Maid, Simply, Georgia and Del
Valle. (Coca-Cola Company website). As impressive as the brand is, there have been a great
number of controversies concerning the company and its products. In this paper, we will pay
attention only to the ones relevant to Human Resource Management.

D. Allegations
Being an international employer, the Coca- Cola Company has a lot of challenges to face
when it comes to Human Resources. In some countries there have been doubts about the fair
practices of the company regarding its employees. For instance, in 2000 the company was
charged for racial discrimination in US. Coca-Cola agreed to pay $192.5 million to settle the
lawsuit and made a promise to change the way it manages and promotes its minority
employees.
Among the questionable labor practices there have been allegations against the company of
involvement with paramilitary organizations in suppression of trade unions. Such is the case
in Columbia, where Panamerican Beverages (Panamco), Coca-Cola's main bottler in Latin
America, have been accused of hiring paramilitary mercenaries to assassinate union leaders.
Several court cases aroused and boycott actions against The Coca-Cola Company were
undertaken (Campaign to Stop Killer Coke).

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E. Coca Cola Pakistan

Coca- Cola first stepped into the Pakistani market in 1953 with the following brands: Coca
Cola, Fanta, and Sprite. The Coca-Cola Beverages Pakistan Ltd.s first plant was opened in
Karachi in 1996, following the acquisition of locally franchised bottling operations
throughout the country over the next 10 years. In 2008, Coca-Cola ecek acquired 49% share
in Coca-Cola Pakistan and took over the management. (CCBPL website)
Currently, Coca-Cola Beverages Pakistan Ltd. (CCBPL) has 6 plants and 13 warehouses
throughout the country and serves a population of more than 170 million. It has a significant
role in the growth of Pakistans economy since it is one of the countrys top foreign direct
investments in Fast Moving Consumer Goods business and is one of the major tax paying
beverages companies of Pakistan (CCBPL website). The Coca-Cola System, according to the
press release, provides direct and indirect employment to more than 8,000 people in Pakistan;
while another 35,000 people are employed through its supply chain, and another 100,000
benefit through employment in allied industries (Baloch, 2013).

II. GUJRANWALAS ORGANIZATION

A. Human Resource Management
Nowadays HRM plays a vital role in the companys performance and success. Managers in
various global organizations constantly emphasize the importance of the effective human
resource management which inevitably leads to the establishment of sustainable competitive
advantage and subsequent growth (Birdi & Clegg, 2008). As a leading global organization
Coca Cola has developed various policies and practices which constitute one complete and
functional human resource management system. Not surprisingly, the Coca-Cola enterprise
has applied this system also in Pakistan.
The task of managing people efficiently is both thorny and challenging. It requires constant
cooperation among human resource professionals, line managers and employees i.e. the socalled HR Triad. The key responsibility of the HR Traid is to attract and retain the superior
talents by providing adequate monetary compensation, employment privileges and
opportunities, safe working environment, etc. (Garavan, 2007).
As HRM is the function that assists organizations in achieving goals by obtaining and
maintaining effective employees (US Legal.com), it is a key element for organizations and
the basis on which the organizations future depends on, because it is people, not technology
who create the company (Todd McKinnon, 2014). According to Susan Jackson et al. (2008),
HR activities include the formal HR policies developed by the company as well as the actual
ways these policies are implemented in the daily practices of supervisors and managers.

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Indeed, the aim of this paper is to analyze the four tasks and duties of HRM performance
management, compensation, career development, and succession planning based on the
procedures applied in the United States. Even though HRM is important, its practices arent
widespread in Pakistan. However, multinationals like The Coca Cola Company have their
own separate department of HRM and, according to Waqar Mahmood, HR Senior Executive,
the Gujranwalas HR department consists of 29 people.
In each organization, policies are implemented in a specific way in order to be adapted to the
company. However, policies and practices arent always aligned in all organization. In some
organizations, policies are considered as statements of expectations (Susan Jackson et al.,
2008) and arent then implemented in actual daily practices. In some other organizations, the
more policies and practices are closely aligned, the more effective the organization is likely
to be (Susan Jackson et al., 2008). However, as The Coca Cola Company is a global
company, its impossible to create certain policies or procedures which are applicable in all
divisions of the company (Krishna Kalyanam, 2010).

(Source: Nipuna Weerakoon et al., 2011)

HR policies and practices consists of many activities: Job analysis, Planning and Forecasting,
Recruitment, Training and development, Conducting performance management, Developing
an approach to total compensation, Using performance-based pay, Providing benefits and
services, Promoting wellness, and Understanding unionization (Susan Jackson et al., 2008).

B. Organizational Structure
The Coca- Cola enterprise in Gujranwala is divided into several departments. This division
improves its functionality. The employees are allocated to the different departments on the
basis of their key competences and common skills. The departments are headed by the
General Manager who is responsible for their proper functioning.

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Organizational members are crucial group of stakeholders which includes executives,

managers, supervisors and even part-time employees (Bigley, Felps & Jones). The
Gujranwala Coca- Cola enterprise is consisting of eight Departments which are all headed up
by a Managing Director (MD). The responsibilities of managing the separate departments are
delegated to the department managers who could take accurate day-to-day operational
decisions more effectively than the Managing Director (Narayan, 2010). The different
departments are listed herein:
Financial Department
Production and Engineering Department
Quality Control Department
Sales and Marketing Department
Fleet Department
Distribution Department
Human Resource Department
The Research and Development Department
The Financial department is led by the Financial Manager who is in charge of the assistant
managers (Narayan et al, 2010). The department of Production and Engineering is managed
by the Engineer Manager who is responsible for the performance of the Mechanical
Engineers, Mechanical Supervisors and the Assistant Production Managers (Narayan et al,
2010). The Quality Control Department is headed by the Quality Control Manager who is
supervising the Chief Chemist (Narayan et al, 2010). The latter is ensuring that the companys
standards of quality, product characteristics and appearance are satisfied and exceeded
whenever possible. The Sale and Marketing Department is managed by the Sales and
Marketing Management whose main responsibility is to expand the Gujranwala market to the
utmost, hence increasing the overall sales of the company. The logistics and transportation are
controlled by the Fleet Department which is headed by the Fleet manager. The latter is
supervising and ensuring that the transportation system of the company is efficient and wellorganized, avoiding any possible delays. In addition, the Distribution Department is operating
in close collaboration with the Fleet Department (Narayan et al, 2010).
The Human Resource Department is fundamental for the overall success of the entire
organization. The onus is on the Human Resource Manager to adapt to the cultural specifics
and to ensure that the company and its culture are embraced on a local level. In addition, the
local political organizations and labor market conditions are both crucial part of the
Gujranwala external environment which are also considered by the Human Resource
Management team (Hitt & Sirmon, 2007). Moreover, the Research and Development
Department is responsible for the companys constant evolution, growth and adaptation to any
new emerging trends on the ever- changing market.

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C. Company Culture
Appropriate business practices and innovative business approaches to managing human
resources sustain strong Coca- Cola culture which contributes to the overall productivity and
satisfaction level of its employees. (Friedman, 2009). These unique human resources practices
could not be easily replicated, hence creating a source of sustained competitive advantage
(Trawneh, 2010). A core value of Coca-Cola culture readily applied in Pakistan is diversity.
The organizations ability to adopt various multicultural perspectives and to utilize them in its
business practices at an operational level is integral part of its global success especially in a
historical city as Gujranwala (Samiti, 1954). The company is attracting, recruiting, retaining,
training and developing the superior talents from diverse backgrounds who could contribute
with innovative ideas and original approach to the Coca-Cola brand. Consequently, the
company is experience sustainable growth, increased market share and better market
positioning (Lee 2010).
In Gujranwala there are several aspects of Coca- Cola HR practices devoted to human capital
development which are strictly followed. Special training is provided to new employees by
experienced staff members who are introducing the companys values, visions and goals
(Dowling & Festing, 2008) In addition, a key objective of the companys HRM strategies in
Gujranwala is to create and sustain a workplace environment which is fostering the sense of
organizational loyalty and appurtenance in its employees (Kuvaas, 2008).

D. Employees as Assets
Employees of all occupations add value to the company by utilizing their professional skills,
experience and expertise in the different stages of the business cycle. These core employees
are adding value to the business in a wide number of ways: through research, production,
problem- solving, effective management, cost reductions, etc. (Herrero & Valle, 2006). As a
result of the rapid expansion of Coca- Cola in Pakistan and the consequent embrace of its
local culture, various advantages have accrued to the business. The different cultural
perspectives that have been embodied in the organisations practices have created diverse and
innovative teams which are extremely efficient and drive growth (Dowling et al, 2008).

E. Total Quality Management

Total Quality Management is a holistic approach to long-term success that views continuous
improvement in all aspects of an organization as a process and not as a short-term goal. It
aims to radically transform the organization through progressive changes in the attitudes,
practices, structures, and systems. [It] transcends the product quality approach, involves
everyone in the organization, and encompasses its every function: administration,
communications, distribution, manufacturing, marketing, planning, training. The most
important message for Coca Cola Company is building trust and continue to build trust
regardless where the company does its business.

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Coca Cola manages its business around the world with a consistent set of values that represent
the highest standard of integrity and excellence. These core values are essential to the longterm business success and will be reflected in the marketplace, the workplace, the
environment and the community.
First, when it comes to the Marketplace, Coca Cola strives to serve the people who enjoy the
brand through innovation, superb customer service, and respect for the unique customs and
cultures in the communities where Coca Cola does business. Second, regarding the
Workplace, Coca Colas aim is to treat everyone with dignity, fairness and respect. Coca
Colas workplace is a place where everyones ideas and contributions are valued, encouraging
all employees to perform to their fullest potential. Third, about Environment, what Coca Cola
Company cares about, is how to conduct its business in ways that protect and preserve the
environment. Coca Cola does this by integrating principles of environmental stewardship and
sustainable development into its business decisions and processes. Finally, for Community,
responsible corporate citizenship is at the heart of The Coca-Cola promise; creating higher
standards of living and quality of life in the communities in which they operate and being
socially responsible for meeting legal, ethical and economic responsibilities placed on them.

F. Environment
The Companys main goal is to increase its commitment to the community as well as the
environment. Touching the lives of billions of people around the world Coca-Colas
responsibility is to conduct its business in ways that help preserve the environment.
Coca-Colas bottlers helped solving environmental litter and solid waste issues for more than
20 years. The company supports litter prevention organizations including the Center for
Marine Conservation and Keep America Beautiful. Marine Conservation is an institute
dedicated to securing permanent strong protection for the oceans most important places for us
and for future generations. Keep America Beautiful is a non-profit organization founded in
1953. It is the largest community improvement organization in the US. It offers solutions that
create clean, beautiful public places, reduce waste and increase recycling, generate positive
impact on local economies and inspire generations of environmental stewards.
Keep America Beautiful and The Coca-Cola foundation have been working on the recycling
Bin Grant Program which provides recycling bins for public spaces. Groups interested in
receiving a bin must apply and recipients are selected based on criteria including; level of
need, recycling experience and the ability of applicants to sustain their program in future. This
year, Coca-Cola expanded its investment in the bin grant program to include a specific focus
on two-year community colleges. In addition, the bin grant programs also include four-year
colleges and universities as well as the traditional public space recycling bin grants.
According to Lori George Billingsley (Vice-President Community Relations Coca-Cola North
America), This collaboration effort not only helps the environment today. It also builds
more sustainable communities for the future.
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III. GUJRANWALAS HR POLICIES

A. Job Analysis, Competency Modelling and Work Design
Job analysis contains two elements called job description and job specification. The former is
a list of job duties, responsibilities, reporting relationship, working conditions and
supervisory responsibilities (Nipuna Weerakoon et al., 2011), that goes along with the latter
which is a list of a jobs human requirements that is requisites education, skills, personality
(Nipuna Weerakoon et al., 2011). Job analysis helps then in analyzing the resources and
establishing the strategies to accomplish the business goals and strategic objectives (Talha
Nazar et al., 2012).
Indeed, organizations usually split and distribute the work to be done by its employees into
specific jobs, and each one of these jobs includes a particular combination of tasks and role
responsibilities. For an HRM to be effective, it has to be based on a clear understanding of
the way that work is allocated among jobs, the competencies needed by employees who work
in those jobs, and a long-term view of how these are likely to change in the future (Susan
Jackson et al., 2008).
In the case of the Gujranwala plan, its HR department has its own job analysis from which
they get the information about employees work activities, human behaviour, performance
standard, job context and human requirements and also other information related to his
conduct (Krishna Kalyanam, 2010). Once all informations are collected via observation
methods, interview techniques, questionnaires, and headhunting (Talha Nazar et al., 2012),
the department is able to align competency modelling with work design. Based on that, the
HR department uses these informations for Recruitment, Selection, Compensation,
Performance appraisal, Training, and for improving Employees relationships.

B. Planning and Forecasting

The Gujranwala HR department is also involved in the strategic planning of the company.
Indeed, they make sufficient planning for hiring new employees in the future (Krishna
Kalyanam, 2010). Moreover, the HR department forecasts for the expected employees needs
in the company. They forecast their employees on the basis of change in technology and
increasing in productivity.

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C. Attracting Qualified Employees

a. Recruitment
According to Amara Bashir, the HR Director, We at CCBPL1 strive to attract, nurture,
mentor, develop and renew talent and strive for the Right Person in the Right Job at the
Right Time (CCBPL, 2014). Indeed, for the job to be done, companies have to attract
talented labor and retain those who perform best (Susan Jackson et al., 2008). Indeed, the
recruitment in the Gujranwala plan establishes ads in newspaper, on the companys website,
in institutions and so on. The HR department collects then all application forms, from
candidates with required documents and CV (Nipuna Weerakoon et al., 2011).
The recruitment process in Gujranwala is done in two ways. On the one hand, the internal
recruitment consists on recruiting people internally, so some job vacancies are allocated to
employees within the organization rather than to external persons. There are three main
sources of internal recruitment: present permanent employees, present temporary employees,
and retired employees. This allocation is based on sources like intranet, staff notice board, inhouse magazine and newsletter, internal notices, meeting, and personal recommendations. All
vacancies are then announced internally so that if there is someone who can fulfil the
requirements can get him/herself promoted or can refer someone of his relative to join if he is
capable of that job (Umer Farooq, 2012). On the other hand, the external recruitment is
where to fill the vacancy from any suitable applicant outside the organization (Umer
Farooq, 2012). This allocation is based on sources like press advertisement, educational
institute, placement agencies, employee reference, employee referrals, and labor contractors.

b. Selection
The position for which employees apply for leads the selection process to vary, because each
different roles in the plan cant fit with one unique and uniform selection process. Indeed, the
art of choosing men is not nearly so difficult as the art of enabling those one has chosen to
attain their full worth (Napoleon Bonaparte, cited by Michael Josephson, 2012). Many tools
are used to select employees.
First, interviews reveal more about the candidate with questions about how they usually
behave in different situations, at school, university and so on. Second, group exercises show
how effectively people work together and are a good occasion to evaluate how employees
could communicate, influence and involve other people in the workplace (Nipuna Weerakoon
et al., 2011). Third, presentations give the opportunity to express peoples ability to
communicate to a group of others about a specific subject. Fourth, psychometric tests are
exercises to be done in a given period of time and the aim is to evaluate candidates abilities
and potential. Examinators may also use personality assessment tool (Nipuna Weerakoon et
al., 2011) designed to find out more specific elements about candidates. Fifth, roles
plays/situational tests are made to observe how candidates react in a specific context. It helps
1

Coca-Cola Beverages Pakistan Ltd.

Page 11 / 24

to highlight competencies and to evaluate if candidates suit for a job position. Candidates may
be given facts and figures to review, or a report to complete (Nipuna Weerakoon et al.,
2011). Hence, once tests with the candidate are done, evaluation is made and the assessment
will be made with respect to the general profile of the candidate, his personality fit to the job,
his aptitude and competencies to do the job in the plant, and his motives to join the company.

c. Motivation
The company is careful about its employees motivation. To keep it high, the companys
policy includes promotions for hardworking employees. These promotions are based on the
performance which is a huge motivation: the higher the performance, the higher the reward
possibility. Moreover, promotions arent the only tool: A compensation strategy can also be
relevant as Coca Cola is paying industrial average in compensation (Umer Farooq, 2012).
In addition to these strategies, competition between employees about performance can also be
an important element for increasing motivation. In that case, managers are important as well,
as they give feedback to employees about regarding their performance. They help employees
with their problems (Umer Farooq, 2012).

D. Training and Developing a Competitive Workforce

a. Overview
A prime objective of the Coca-Cola is to raise awareness of the casual relationship between
education and high-quality of life. That is why the organization is funding various educational
initiatives at a global level i.e. prospective students are granted scholarships and internships
opportunities (Chew, Spangler & Zhu, 2005).
Regarding the employee development in the Gujranwala plant, the basis of the career
progression is the employees potential itself. The CCBPL Human Resources Department
analyses their abilities through experience, performance ratings, qualifications and
competencies (CCBPL, 2014). In order to achieve the best, the HR department has to ensure
that the employees potential are efficiently used in the different departments of the company.
Indeed, capability development became crucial in the HR policies of CCBPL. The aim is to
construct important organizational abilities, to detect and create talented people a high
performance level. Therefore, the company would be focusing on organizational
competencies in order to bridge the skill gap leading to superior performance as well as create
focused training & development plans for our employees (CCBPL, 2014). Hence, Living
positively, Adding Value, and Making Difference are the objectives. (CCBPL, 2014).
More specifically, for a workforce to be competitive, employees need to know what they are
supposed to do. So employers often provide instruction and training (Susan Jackson et al.,
2008) and, as changes in job requirements can rapidly change, employees who are already

Page 12 / 24

hired in the company should be able to develop new competencies, to become proficient in
new jobs, and even change their occupations (Susan Jackson et al., 2008).
At the global level, training and development programs have an extensive on the job training
program to focus on the day-to-day needs of their people and, in each of their office across
the continent, there are a number of local training initiatives catering to particular regional
needs (CCBPL, 2014). Moreover, the company created The Coca Cola University which is a
university talent program, organized for four main work: Sales and Marketing, Supply Chain,
Public Affairs and Communication, and Finance. It provides opportunities to lead people to
develop both personally and in business (University Talent Program, 2014).
At the Gujranwala plant level, resources are diverse as they include instructor led training
classes (in a range of areas like people, franchise and consumer and commercial leaderships),
e-learning to share knowledge, workshops to generate new ideas and apply them practically,
just-in-time training and development for critical skills, an extensive online library of books
and other resources, and external speakers reviewing the latest thinking on hot topics.
Therefore, it is the Gujranwala plants responsibility to train its employees as technologies are
evolving. After recruited, employees are trained and paid for three months. After this period,
they become part of the company.
Indeed, learning and development teams face challenges for more cost-effective trainings and
a new product called Training on Wheels has been introduced to ensure the idea of training
just-in-time for everyone (CCBPL, 2014). Moreover, Since learning is a constant process,
[the capability development] encourages employees from commercial sales function to come
on board and conduct trainings as well in order to deliver a better understanding and also to
share the experience with the audience. This for sure will enable all volunteers for the project
to indulge themselves in activities other than their regular work and to contribute towards HR
initiatives. (CCBPL, 2014)

b. Internship Programs
The Coca-Cola enterprise is committed to providing opportunities for young professionals
with little or no experience i.e. the company offers a wide range of Internship Programs both
for students and graduates. For a period of four years the company has completed the training
of 150 interns all coming from diverse backgrounds. Every year applicants from more than
225 educational institutions located all around the country are competing for the Summer
Internship Programs. The organization is covering the housing and the transportation costs of
the successful applicants in addition to comparatively high monetary compensation. These
favorable terms attract the very best young individuals who could add a real value to the
company and its culture. The graduate opportunities which are also quite competitive are in
the sphere of marketing and sales.

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c. Mentoring Programs
To ensure that employees are constantly maximizing their professional performance, the
Coca-Cola enterprise is providing mentoring programs which include one-to-one mentoring,
group mentoring and self-mentoring. These programs are designed to foster development and
growth and to stimulate employers to acquire new competences applicable to the everchanging external environment (Burkea & Ngb, 2006). In addition, the employees are offered
an innovative way of networking, coaching and career counseling. Mentoring is used also as a
method of exchange of information within the organization whilst encouraging critical
thinking and instructive learning (Hezlett & Gibson, 2005).

E. Performance Measurement
This measurement is the process whereby an organization establishes the parameters within
which programs, investments, and acquisitions are reaching the desired results (Ayesha,
2013). The company makes a link between the mission and vision, and its operations and
functions. The performance as a whole is managed so that the best is taken from it. Managers
and employees are committed at a high degree in the system to make choices that can lead to
loyalty from the employees.

(Source: Ayesha, 2013)

After the goals and strategy has been formulated, performance is measured in order to check
the implementation of strategy and goals. Monthly review is done to check the
implementation results. During review periods no changes in the goals can be changed.
During the mid-year stage, goals can be further refined or altered and new policies can be
designed to achieve the organizational level goals. At the final stage the performance is
matched with the standards and goals of the organization. If there are positive results with
increase in overall productivity, the individual performance of the employees is evaluated and
the rewards are then given on the basis of performance. (Ayesha, 2013)

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F. Appraisal and Compensation

a. Performance Appraisal
As stated by Waqar Mahmood, the HR manager of Gujranwala plant, regarding the
performance appraisal, We appraise the employees due to their performance about goals of
the organization. We set the goals, starting [from the beginning of] the year] and tell the
employees about the goal. If the employees achieve their goals, we appraise [them] (Likhon
et al., 2011). Indeed, the objective is to improve employees performance and to ensure them
about the fact that the company is loyal toward its employees, for one simple reason:
Employees are our assets. Therefore, we are careful about their health and benefits (Likhon
et al., 2011).
By definition, performance appraisal is a system that evaluate employees behavior in the
workplace, via qualitative and quantitative analysis of job performance (Likhon et al., 2011).
Indeed, it is an effective technique to support and change culture of the organization
optimistically; it would be possible if the system is equal for all employees of organization.
The companys management should then utilize this system to all employees so as to increase
effectiveness and productivity (Likhon et al., 2011).
To be specific, there are three steps in the performance appraisal process. The first step is to
define the job by ensuring that the manager and the employee agree the duties and the job
standard. The second step is the performance appraisal itself, in which the comparison
between the subordinates actual performances with the standards set. The third and last step
is to provide feedback by discussing the performance of the employee, and by developing
plans for its future development (Likhon et al., 2011)

b. Total Compensation and Benefits

In the Gujranwala plant, some specific parameters are used for the basis of the reward system:
the inflation rate factor, the market potential (job experience, employees expertise), and sales
reward. These types of reward are used by the plant to make its employees feel satisfied,
motivated and competent in achieving the organizations goals. The HR department of the
plant believes that if employees have a strong loyalty towards the company, they will perform
better to attain the desired results (Likhon et al., 2011). Hence, some of following
compensation and benefits are given to employees: basic salary, bonus, medical facility, pick
and drop, gratuity fund, social security.
As a progressive employer, The Coca-Cola enterprise is providing fair and sufficient
monetary compensation to its employees. Furthermore, the salaries are competitive
determined by years of experience, occupation and daily performance. Although it provides a
good salary, Coca-Cola is dedicated to supporting its employees in keeping their work-life
balance. This practice inevitably increases employees satisfaction and productiveness which,
in turn, enhance customer satisfaction (Beauregarda & Henryb, 2009). The annual leave

Page 15 / 24

policy differs among countries as it is integrated to the local accepted practices. The annual
leave policy regarding Gujranwala is as follows:
Occupation

Annual Leave

Managers
Supervisors
Workers

26 working days per annum

26 working days per annum
24 working days per annum

G. Promoting Well-Being in the Workplace

a. Safety
Offering medical and psychological care in the workplace creates competitive advantage
which helps Coca- Cola to retain its best talents (David & Grawitch, 2006). By addressing
employees main concerns the organization is ensuring safe workplace and healthy
employees- both mentally and physically.
Amara Bashir, Director of Human Resources, states that We are committed to helping you to
develop and mature as a professional. The company enables you to do what you can do best;
by providing you the conducive Environment to maximize your potential. Our goal is to
promote a positive and winning attitude in a Supportive Work Environment. (CCBPL, 2014)
The Gujranwala plant is involved in ensuring the highest level of safety for its employees but
also for its assets and visitors. It is a way to protect employees and to guarantee public safety.
Indeed, The Coca Cola Company believes that the prevention of losses is possible only via
the commitment of each individual in the company because the main effort for ensuring safety
is, actually, made by people themselves: Their contribution is essential for their own wellbeing in the workplace and thats the reason why the company created The Coca Cola Quality
System which incorporates quality, environment, occupational safety and health, and loss
prevention into a single framework (Coca Cola, 2014).
Managers of the Gujranwala plant aim to continuously improve safety standards. Therefore,
all necessary financial and personnel resources are made available to reach that aim. Indeed,
this allows the company to prove its compliance with governmental and international
requirements. For instance, the Gujranwala plant implemented sound safety practices
although no specific regulations are required in that specific case. That kind of policies can be
costs which in turn become benefits in terms of safety work environment. Moreover, in terms
of responsibilities, each employee is made accountable for his/her actions. The reason is that
managers at Gujranwala have a strong believe: We believe in safety. We adhere to our safety
principles. We deliver. (CCBPL, 2014)

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b. Health and Nutrition

Your Health and Our Beverages: Nowadays people are more and more concerned with health
and nutrition. They try to adapt themselves into a healthy lifestyle while at the same time they
know that delicious foods and beverage are an enjoyable part of life. Soft drinks and other
beverages have a place in a healthy lifestyle. A healthy diet incorporates the basic principles
of variety, balance and moderation without sacrificing enjoyment. The scale and reach of The
Coca-Cola Company and its brands are unique. Throughout history the company has been
distributing refreshing products or resources and information to help contribute to healthier
happier communities worldwide.
In 1976, Coca-Cola and FIFA launched world football development program. A program
designed with an educational purpose to share soccer technology, teaching and training to get
youth active in up to 100 countries where soccer was relatively young sport at that time. The
company produced dozens of instructional sport films from the 1950s through the 1970s,
which feature famous coaches and athletes. Coca-Cola Company has offered low-or nocalorie beverages for more than 50 years. It began with the introduction of TaB, the
companys first diet product in 1963. Three years later the company produced Fresca, a citrusbased sugar-free product. And finally the biggest launch of a diet product came in 1982 with
the introduction of diet coke.

c. Climate Change
Coca-Cola takes the issue of global climate change very seriously. Climate Change is a
significant and lasting change in the statistical distribution of weather patterns over periods
ranging from decades to millions of years. It may be a change in average weather conditions
or in the distribution of weather around the average conditions. Climate Change is caused by
factors such as biotic processes, variations in solar radiation received by earth plate tectonics
and volcanic eruptions.
Across the Coca-Cola system, the Coca-Cola team recognizes that climate change may have
long-term direct and indirect implications for their business and supply chain. As a
responsible multinational company, Coca-Cola has a role to play in ensuring that it uses the
best possible mix of energy sources, improve the energy efficiency of its manufacturing
processes and reduce the potential climate impact of the product as well. The Coca-Cola
company climate protection strategy is to find innovative ways to mitigate the environmental
effects of its operations and products. The company is linking climate change to their
leadership on water stewardship issues and to their work with supply chain partners on
packaging.
The three principal activities of the Coca-Cola business system which create greenhouse gases
are manufacturing plants, the distribution fleet and cold drink equipment. Coca-Cola
continually strive to improve the energy efficiency of its plants and fleet. In addition to that,

Page 17 / 24

the area where Coca-Cola has the greatest opportunity to make a difference is cold drink
equipment. And finally, Coca-Cola is making a great progress toward phasing out HFC use in
both refrigeration and insulation as well as to improve the energy efficiency of cold drink
equipment by 40 to 50%. HFCs (hydro fluorocarbons), are one of six gases which the Kyoto
protocol specifically called to be reduced.

d. Waste Management
Coca-Cola enterprise is committed to preserving the environment and saving scarce resources.
That is why recycling has been high on the companys agenda for a while. In fact, the
organization has built a recycling plant for bottles in Sydney, Australia investing a
considerable amount of money. On average, every one in five bottles sold to North America
contains recycled material.

e. Time Management
Effective time management is another prime objective of Coca- Cola as it stimulates growth
(Jackson, Schuler & Werner, 2012). That is why the organization values time as a limited
resource which shall be used intelligently. In order to achieve this, the Coca- Cola enterprise
in Gujranwala divides the working day into day and night shifts.
Shift

Time interval

Day
Night

8.00 a.m. to 4.00 p.m.

4.0 .m. to 12.00 a.m.

f. Commitment to Diversity
Coca-Cola enterprise started realizing the benefits of employing diverse workforce. Diversity
within the company is not only in terms of culture but also in terms of values, lifestyles,
sexual orientation, gender, marital status. That is why companys multicultural management
practices are sensitive to delicate issues related to various life experiences (Newman &
Nollen, 1996). The increased diversity of the companys workforce in combination with the
new attitudes within the contemporary society are both posing a challenge and providing an
opportunity to the company for obtaining an essential competitive advantage (Dowling et al,
2008). Diversity has a direct impact on several key aspects which lead to growth:
Increases understanding of local markets and consumer behavior.
Creates competitive advantage.
Improve companys working conditions.
Raises social awareness.
Adds value to the company.

Page 18 / 24

g. Employees Social Platform

Coca-Cola enterprise has established a sense of community which enhance its ability to
attract, retain and develop the diverse talents by using social platforms where employees from
different countries could share their experience, opinions and insights regarding the company.
The platforms are committed to equality irrespective of nationality, sexual orientation,
occupation or gender. The social platforms currently in operation are as follows:

Administrative Professionals Platform.

African- American Platform.
Asian/ Pacific Platform.
American Platform.
Latin American Platform.
Homosexual Platform.

H. Labor Relations and Employee Relationship

Most organizations are run by their employees: Labor is the main asset of the company and it
is in the companys interest to, therefore, give attention to these employees. The success of
the company is partly made by the satisfaction of its labor. If they are satisfied with the
companys policies, they will work hard to achieve the organizations goal. If they are not,
they will probably leave the company and it can become a loss for the organization as a
whole. Employees relationship is then crucial for CCBPL (Nipuna Weerakoon et al., 2011).
Each company decides what policies to implement for improving employee relationships. In
the Gujranwala plant, in case of problems faced by an employee, the person has the possibility
to directly share and discuss that point with the manager in order to find a solution. CCBPL
suggests that this kind of policy should, indeed, be adopted by every company as they believe
that an open door policy is the best [] because [they] feel very independent and they know
that if they get any problem, they can contact directly to the manager of their department
(Nipuna Weerakoon et al., 2011).

Page 19 / 24

IV. CONCLUSION
The purpose of this paper is to present the HR strategies adopted by The Coca Cola
Company. In the introductory part, the historical development of the company could be
observed i.e. the business commenced more than a hundred years ago in the U.S. and since
then it has continued to expand on a unprecedented scale due to its products quality and taste.
Although the company faced many allegations, it is at the pinnacle of the beverage industry.
In addition, in this paper the HRM concept is presented from a theoretical point of view, put
in the context of the organizational structure of the Gujranwala plant. An emphasis is put on
several core aspects related to HRM: the corporate culture as a whole which includes diversity
as a basis, employees as an asset, and the external environment.
The ultimate goal of this paper is to give an overview of The Coca Cola Companys HR
policies in its Pakistani plant of Gujranwala. Its HR strategy is comprised from several
essential concepts such as (1) Job analysis, (2) Planning and Forecasting, (3) Attraction of
qualified employees, (4) Training and Development, (5) Appraisal and Compensation, (6)
Promotion of well-being at workplace, and (7) Labor relations.
First, we explained that the Gujranwala plant has its own HR department which collects
informations at the employees requests. The department also delegates and determines the
different competences and tasks among its employees who fill various positions. Second, it is
mentioned that the Gujranwala HR department develops the strategic plans for hiring (or
firing) employees in accordance with the employment policy of the company. Third, the HR
department tries to meet this policy by recruiting, selecting and motivating only the superior
talents. The recruitment in Gujranwala can be done within the organization, or externally via
traditional vacancy forms. The selection process involves many methods tailored to find the
very best talents that would add value to the company. High motivation is required for the
employees participating in the production of the company.
Fourth, to obtain a competitive advantage, the company shall train and develop its labor
force. Indeed, the HR Department has adopted different leadership development programmes
such as internships (for students and graduates), mentoring programmes and so on. Fifth, the
HR management team took some specific decisions regarding performance appraisal (like
adopting pay-to-performance system) and other employment benefits. Sixth, the Coca- Cola
enterprise is committed to attain a safe, secure, and diverse working environment. Indeed,
safety rules are taken into account as employees health is a top priority of the company. The
Coca- Cola enterprise aims at reducing its footprint, so that it could contribute to the
environmental preservation. Moreover, a social platform has been developed so that
employees from all around the globe can share ideas, experience and opinions. Seventh,
employees are those who drive companys growth. All things considered, these main points
summarize the HR strategy adopted by The Coca Cola Company in its Pakistani plant of
Gujranwala.

Page 20 / 24

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