Global Human Resource Management at Coca-Cola Question Answers
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Question 1. What is Coca-Cola’s staffing policy for managerial position:ethnocentric,polycentric or geocentric ? Dose this policy makes sense ? Ans: I think Cocal-cola’s staffing follows a polycentric for managerial positions as they have to do that because they “Think Globally and act locally”. I say that because their policy is combination of ethnocentric as well as geocentric. Yes this policy makes sense because this is alligned with their global strategy in global expansion.Coca-cola is a customer driven company so they try to manage/expand their business by hiring the local candidate because they think that the local people can understand the local customers and employees better but at the same time they empower their local managers with global experience they have by sending 500 high-level managers under global service program.This way they add value to the local business from their learning experience from the other parts of the world.
Question 2. What is the strategic role of the HRM function at Coca-Cola ? How does HRM help Coca-Cola to become a more successful international business ? Ans: Coca-cola main strategic role is “Think Globally ,act locally”.HRM help Coca-Cola achieve these in the following ways: 1. By conducting two-week HRM orientation sessions for HR staff from 25 operations. 2. Empowering the local people for management positions,this helps manage the employees and customers in the best possible way and expansion of the business is easy. 3. 500 high-level managers are involved in its “global service program” 4. Coca -cola in one part of the world learns from the experiences from another part of the world.
Question 3.Do you think it is appropriate to pay expatriates according to US Benchmark rates,even when their home operation is not US ? What potential problems might such a policy cause ?What are the benefits of the policy ? Ans: Yes its appropriate to pay the expatriates according to US branch mark because it helps the Coca-cola moving professionals remain motivated.Coca-cola has so many global service programs which requires them to move their managers from the world head quarters to the other parts of the world to empower the local mangers with global tools via training.And by paying in terms of US standards its makes easy for the managers to move outside and still motivated.US standards by par is the world bench mark so they managers from the US do not mind moving to other parts of the world.Let us accept that global expansion comes with huge costs and this expatriate cost is one of them . Potential Problems:
1. Dis-satisfaction in the employees who do not go outside the country.
2. Race among the local employees to go abroad.
3. Costly affair.
1. It helps Coca-Cola achieve “Think Globally act locally”.
2. Employees remain motivated.
3. Business expansion at the local level is empowered by the global experience.