Analysis of Company Coca Cola

Table of Content

The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups, which is headquartered in Atlanta, Georgia. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia.

The Coca-Cola formula and brand was bought in 1 889 by Asa Griggs Candler (December 30, 1851 – March 12, 1929), who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 500 brands in over 200 countries or territories and serves over 1. 7 billion servings each day.

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The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments. Its stock is listed on the NYSE and is part of DJIA, 500 index, the Russell 1 000 Index and the Russell 1000 Growth Stock Index. Its current chairman and chief executive is Muhtar Kent.

Organizational structure of coca cola Existing Performance Management System: PMS is managed through 4 Stages during an Annual Business Cycle and has multiple Objectives as defined below: First all goal are formulated , from organizational level to employees, then monthly review has taken place in it only checking of goals implementations is going on. Monthly review is at interring departmental level, here no change an be offered as well as no record can be made but at goals getting both change and record can be happened.

Midyear stage comes with re alignment of goals as well as new policies ways can be designed to achieve organizational goals. At the end, final review comes in, in this step check and balance takes place, actual achievement can be matched with defined are standard one so as to measure out comes or results. Here after getting results, if organizations see optimistic results with greater productivity, then they analyze its true reasons so as to reward those ones who have done extraordinary yearly base performance.

These outcomes re already measured and rewarded via the Associate bonus. The intent of KRA’s is to capture the things which drive those outcomes. Value of KRAs. Identifying KRAS helps individuals: Clarify their roles Align their roles to the organization’s business or strategic plan Focus on results rather than activities Communicate their role’s purposes to others Set goals and objectives Prioritize their activities, and therefore improve their time/work management Make value-added decisions Description of KRAS Key result areas (KRAs) capture about 80% of the department’s work role.

The emainder of the role is usually devoted to areas of shared responsibility (e. g. , helping team members, participating in activities for the good of the organisation). KRA and KPI of key jobs in the coca cola company KRA of CEO Muhtar Kent Corporate objective / strategy and mission, vision statement. KPI of CEO Muhtar Kent Improve the company competitive positioning and productivity by 10%. KRA of Human Resource Director Recruitment and selection Workplace management Safety and health workplace KPI of Human Resource Director Reduce average time taken to fill vacancies by 15% Reduce average cost per recruit by

Reduce the labor turnover by 20% Reduce workplace accidents by 10% Key Result Area- KRA is the basis of performance management at Coca Cola. The performance management system (PMS) at Coca Cola links directly to rewards and recognition, and, career development . The PMS at Coke follows the basic steps of PMS from planning to coaching and feedback. However, there should be proper check and balance system between goals and performance have to be introduced, currently yearly bases performance evaluation has been going on, for high motivational level, high quality it demands quarterly bases.

There should be a system of consultation between mployees and management about employees’ career path, it is easier for management to understand and analyze what employees actually want and allocate them reward properly. Coco Cola is well aware of fact that higher management love to have non monitory rewards likewise, Achievement Feelings of accomplishment, Informal recognition, Personal growth, Status, while lower management are more thirsty to have rewards like incentives, bonuses i. e. ave more curiosity to take cash rewards. MasloWs theory can be best define social, self esteem and self actualization stage employees have inquisitiveness to take intrinsic ewards while other ones physiological, safety needs employees are more attracted by cash rewards of any kind. Along with KRA, KPI should be set for managing performance to ensure transparency in the system. Also, this would make employees clear about what should they keep in mind while striving to achieve their KRA’s.


Reward management is concerned with the formulation and implementation of strategies and policies the purposes of which are to reward people fairly, equitably and consistently in accordance with their value to the organization and to help the organization to achieve its strategic goals. It deals with the design, implementation and maintenance of reward systems (reward processes, practices and procedures) which aim to meet the needs of both the organization and its stakeholders.

Reward is special payments for special work. Reward refers to all forms of financial returns and tangible services and benefit employees receive as a part of an employment relationship. Coca Cola’s rewarding system to employee is excellent as they are caring with excellent rewarding parameters just to retain, motivate and influence employees towards organizational goals with their best potential utilization. They are rewarding relating with employees performance in a way to increase productivity and effectiveness.

They take holistic view of all the elements to reward and recognize employees to ensure a complete, comprehensive package of pay, benefits and learning and development programs. They are using in directly different motivational aspects like Maslow s hierarchy of needs, ERG theory and two factor theory of Herz Berg. But more importantly they are not specifically using one of them; they just relate their main concepts with their reward system to define it properly.

Main parameters used as a base of reward system Inflation rate factor Market potential (what of individuals worth according to his/her expertise, job experience etc. ) Matching with his/her presence career path Personal development of an individual Sales rewards Above parameters are used by Coca Cola to make their reward system practices well in the market, object is to make their employees feel comfort, satisfied, motivated towards achievement of organizational tasks, competent to perform to the extent to attain organizational mission and vision terminologies and compete with outside rivals successfully.

Because the anagement believes that if employees are loyal to the organization then they perform better to the way to overcome any competitive goal with accordance to desired results with remarkable customer satisfaction. Criteria of rewarding employees Coca cola is using different techniques to define their reward criteria to work according to define standards of organization. System is developed by doing great market search So as to Compete rivals to the way to satisfy their internal employees more than that to get more profitability and customer loyalty.

Grade jump Designation change Special assignments (inter departmental transfer) Financial aspects Grade jump and designation change Training and development Career grooming They make close collaborative or communication system with employees so as to fetch information on the part of their problems to satisfy them all to increases their efficiency and effectiveness. Because need and wants of employees are changing day by day to satisfy meaningful needs and wants are very important in the behalf of organization so as to use best potential of both physical and mental competencies is very important.

Management Incentive plan They operate a management incentive plan for all managers. This plan is based on annual business performance against volume, EBITDA and economic profit*, as well as individual accomplishments against annual objectives. Individual objectives set by senior management are stretched but achievable. The target award as a percentage of annual base salary increases with the level of responsibility. Exceptional business unit performance may result in awards in excess of the individual target awards.

Types of Rewards of Coca Cola international Yearly Basis Employee salary increment Grade Jump Designation change Annual incentive Plan (AIP) (for business performance, but fixed) Personal Progress report (PPR) (Ann ual Appraisal) Monthly Basis Making the move (MTM, sales target achieve) Monthly turn hall (extraordinary performance) Quarterly Basis Employee of the Quarter (EOQ, non sales) Sales Dangle context New performance management system Above all the points are doing coca cola in their existing performance management system.

Coca cola is having a good performance management system and now I will try my best to make a new PMS of Coca cola focusing on the reward management system. The main focus will be on reward system to encourage the employees and to align the employee’s objectives into organizational objectives. To encourage the employees, the coca cola company should reward their employees, so that employees can feel good the reward system will motivate other employees in the organisation to perform well in their work, so that coca cola can achieve their objective.

Though the Competency Framework is a well defined framework but goals should be made specific, measurable, achievable, and realistic and time bound (SMART), it would definitely increase overall effectiveness. I recommend Coke to design their system in specific way to define employees, career path, recognition and future goals; it would definitely boost organization’s performance. The performance management system should link directly to rewards and recognition, and, career development .

The PMS in Coke should follow the basic steps of PMS from planning to coaching and feedback. However, there should be proper check and balance system between goals and performance have to be introduced, currently yearly bases performance Also, to ensure job satisfaction and fairness in appraisal and PMS there should be a proper grievance handling machinery to handle apprehensions and grievance related to appraisals.

Also, since Coca Cola is a large organization; 360 degree appraisal implementation must be cumber some. ve chosen few points to make a new PMS and the main focus will be on reward system of Coca Cola Company, some of them are as: Pay system of Coca Cola Coca Cola should use a grade based reward system Rewarding may differ according to their grade, as from management grade 9 to onwards, their percentage of benefits rises. There are number Of indicators which coca cola should use to define ones grade as well as its designation in the company likewise, grid, education (educational institutes, degree worth & specialization), experience with regard high profile organizations, and industry experience and individual competencies.

Equity-related compensation of senior managers aligns the financial interests of senior management with those of the shareholders. Their emphasis will be on linking payment with performance by rewarding effective management of business performance with a long-term focus, as well as individual achievement. Incentive & Other Benefits Coca cola is using management incentive plan which is based on annual business performance against volume, EBITDA and economic profit, as well as individual accomplishments against annual objectives.

But the coca cola should focus on other incentive plans and also other benefits, such as: Long-Term Incentive Plan: All middle and senior management, excluding the executive team, should participate in the Coca-Cola Long-Term Incentive Plan. Coca cola should adopt the cash based plan as a replacement of stock options for middle-ranking employees. Incentive payouts are based on performance against three-year objectives, set every year.

The target payout from the plan will be determined for each individual based on the level Of responsibility, performance and potential. Exceptional business performance may result in awards in excess of the individual target payout. This plan will have a greater motivational impact on the participating employees because rewards are more directly linked to the performance of the individual employee’s specific business unit than under the stock option lan.

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