Dedicated to:

Our Honorable Teachers & Loving Parents Whose, Love, Affection,

Motivation, Patience, Support & Spiritual Inspirations Give us Encouragement,
To all those People who have quenched for Knowledge, To all those who have
dedicated their lives to others, To all of those who have served and sacrificed
for Sake of Freedom

To all of those people, who may be gone now, but they will never be Forgotten
Acknowledgement:
Thanks and again thanks to Allah Almighty, who pulled us through the times
when every stone was turned against us. He and only He dawned new horizons
for us when the darkest fog made us blind, who is really the Best Manager of
the entire universe. Without His consent, nothing is possible. Thank You Allah
Almighty.

Thanks from the recesses of our hearts to our Most Respected Teacher Maam
Mugheria for his Untiring efforts, her Valuable Guidance and Precious Advices
are rare Assets for Us. We would also like to pay a very special.
Purpose of the Study:
Practice makes the man perfect is a proved saying. So, the purpose of this
project is to get know how about the working procedure of H.R Department.

It is purely study base project, which we have accomplished by the grace of

ALLAH. We learned lot of experience and so more.
Contents

Executive Summary....................................................................................................................................... 1

INTRODUCTION ............................................................................................................................................. 2

Company profile............................................................................................................................................ 3

MISSION ........................................................................................................................................................ 4

Vision............................................................................................................................................................. 3

Values ............................................................................................................................................................ 4

HISTORY ........................................................................................................................................................ 4

BOARD OF DIRECTORS .................................................................................................................................. 6

Organizational Structure ............................................................................................................................... 8

Operating system: ..................................................................................................................................... 9

STAFFING....................................................................................................................................................... 9

Recruitment and selection: ..................................................................................................................... 11

Recruitment for Expatriates: ............................................................................................................... 11

Expatriates Selection process: ............................................................................................................ 12

Expatriates Roles: ................................................................................................................................ 13

International Training & Development ....................................................................................................... 14

TYPES OF TRAINING ................................................................................................................................ 15

Pre-departure training for expatriates: .............................................................................................. 15

On-site training for expatriates:.......................................................................................................... 15

Repatriation: ....................................................................................................................................... 16

Training for (HCNs) and (TCNs): .......................................................................................................... 16

Standardization ........................................................................................................................................... 17

Coca Cola; Standardization Strategies. ................................................................................................... 17

 Pros and Cons:..................................................................................................................................... 17

Brand Building: .................................................................................................................................... 18

Interior and Exterior of Coca Cola: ...................................................................................................... 21

Cultural:............................................................................................................................................... 23

Localization ................................................................................................................................................. 24

Localized strategy: .................................................................................................................................. 24

Cultural ................................................................................................................................................ 24

Meeting & training .............................................................................................................................. 24

Language/ Dress .................................................................................................................................. 25

Performance management ......................................................................................................................... 25

Issues in Performance Appraisal ............................................................................................................. 26

Religion and Performance Appraisal:.................................................................................................. 26

Gender Issues in Performance Appraisal: ........................................................................................... 26

Difficulty in defining the work: ........................................................................................................... 27

Biasing: ................................................................................................................................................ 27

CHALLENGES IN PERFORMANCE APPRAISAL SYSTEM ............................................................................ 27

INTERNATIONAL COMPENSATION .............................................................................................................. 28

The Going Rate Approach ....................................................................................................................... 28

The Balance Sheet Approach .................................................................................................................. 29

Base Salary .............................................................................................................................................. 29

Allowances .............................................................................................................................................. 29

Tax differentials ...................................................................................................................................... 30

Benefits ................................................................................................................................................... 30

Analysis ................................................................................................................................................... 30

WORKING HOURS ....................................................................................................................................... 31

Overtime ................................................................................................................................................. 31
 Improvement guideline: ......................................................................................................................... 32

Expatriate policies ....................................................................................................................................... 32

Expatriate Housing Policies ..................................................................................................................... 32

Success/ROI Metrics................................................................................................................................ 32

Tax Administration .................................................................................................................................. 33

Talent Management and Cross-Border Assignments ............................................................................. 33

Tracking Assignees and Business Travelers ............................................................................................ 33

On The Out-Sourced World Whats Left? ............................................................................................ 33

Election of New Company ....................................................................................................................... 33

Shared Service Centers ........................................................................................................................... 34

Conclusion ................................................................................................................................................... 34
 Executive Summary
The Coca Cola corporation is defined to be the most well-known trade mark in the
world, and it is justly so. Coca Cola owns over 400 brands that appeal to many
different people all throughout the world. They are able to satisfy the needs of all
their consumers and make their experiences with Coca Cola better. The Coca Cola
products appeal to a wide range of people from all races, genders, and ages. Coca
Cola is well known for its worldwide popularity as its products are sold to over 200
counties, while major competitors only sell in several countries, putting Coca Cola
ahead of all competition. Coca Cola is a obvious and easily recognized by all. The
popularity of Coca Cola has grown very recognizable company. It is known
worldwide and its branding is constantly earned by Coca Cola surpasses all other
beverage companies and these funds would over the years, is still growing to this
day, and will continue into the future. The finances prove vital in the future of
Coca Cola as it allows for the promotion of many other products. Many aspects of
Coca Cola prove to be superior to that of competitors, ranging from promotional
techniques to corporate structure. Some of these aspects include, positioning,
market mix strategy, and implementation plan. These aspects place Coca Cola
superior to competitors, instigating Coca Cola to aspire higher goals and missions.
It is our mission at Coca Cola to refresh and completely satisfy the world and it is
our vision to make a bottle of Coca Cola available within arms reach of every
person all around the globe.

1
 INTRODUCTION
The Coca-Cola Company is the world's largest beverage company and is the
leading producer and marketer of soft drinks. Today, Coca-Cola is consumed
throughout the world at the rate of more than 600 million times per day and this
figure is continuing to rise. However, Coca-Cola is not the sort of company to live
on its past glories; instead it looks to the future as a challenge and constantly seeks
new markets and ways of increasing its market share in areas where it currently has
a strong presence. It is the world's largest producer and distributor of syrups and
concentrates for soft drinks. Products developed by the Company are sold through
bottlers, fountain wholesalers and distributors around the globe. Brand Coca-Cola
accounts for about 75 per cent of the Company's unit sales volume of soft drinks.
The remaining 25 per cent consists of well-known soft drinks such as Sprite, Fanta,
Fresca, Mello Yello, Surge, PowerAde, Barq's Root Beer and many other brands.
The Company's soft drink operations are managed in 6 Groups: North America,
Latin America, Africa, Greater Europe, Middle/Far East and The Minute Maid
Company (the world's leading marketer of fruit juices and fruit drinks ).

2
 Company profile

Type Public/Private Company

Founded 29 January 1892, Georgia, United States
Headquarters Atlanta, Georgia, United States

CEO Muhtar Kent (1 Jul 2008)

Stock price KO (NYSE) US$40.88 -0.07 (-0.17%)

13 Jan, 4:01 PM GMT-5 - Disclaimer

Revenue 44.29 billion USD (2015)

President James Quincey

Subsidiaries Coca-Cola Enterprises, Energy Brands

Vision
Our vision serves as the framework for our Roadmap and guides every aspect of
our business by describing what we need to accomplish in order to continue
achieving sustainable, quality growth.

3
 MISSION

Our Roadmap starts with our mission, which is enduring. It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions.

To refresh the world...

To inspire moments of optimism and happiness...
To create value and make a difference.

Values
Our values serve as a compass for our actions and describe how we behave in the
world.

Leadership: The courage to shape a better future

Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, it's up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well

HISTORY
The Coca Cola Company is the world's largest beverage company. It is no.1 brand
according to fortune 2009 survey. The company operates a franchised distribution
system dating from 1889. The Coca Cola Company is headquartered in Atlanta,
Georgia.

Its major markets consist of USA, Brittan, Europe, Middle East, Asia, Russia and
North America. It has activities in 200 countries, about 3000 branches, and 55,000
employees across the world. Over 200 expatriates are assigned for international

4
positions every year, as region managers. Most of the expatriates are sent from
USA and Britain, and most often sent to Middle East, Asia and Russia

1886: Pharmacist Dr. John Styth Pemberton concocts Coca-Cola, a mixture of

sugar, water, caffeine, and extracts of the coca leaf and the kola nut.
1891: Asa G. Candler, a druggist, gains complete control of Pemberton's
enterprise.
1892: Candler incorporates The Coca-Cola Company.
1899: The first bottling franchise is established.
1905: Coca-Cola syrup is completely free of cocaine.
1916: The unique, contour-shaped Coke bottle is introduced.
1919: Ernest Woodruff and an investor group buy the company for $25 million;
the company goes public at $40 per share.
1923: Robert Winship Woodruff becomes president of the firm.
1943: Coca-Cola plants are set up near fighting fronts in North Africa and Europe,
helping boost American GI spirits and introduce Coke to the world market.
1960: The Minute Maid Corporation is acquired.
1961: Sprite makes its debut.
1981: Roberto Goizueta becomes chairman.
1982: Columbia Pictures is acquired for $750 million; Diet Coke is introduced to
the market.
1985: Coca-Cola is reformulated; New Coke is rejected by consumers, and the
company brings back the original formula, calling it Coca-Cola Classic.
1987: Company sells its entertainment business to Tri-Star Pictures.
1990: Sales surpass the $10 billion mark for the first time.
1997: Douglas Ivester succeeds Goizueta as chairman and CEO.

5
1999: Company acquires the rights to sell Schweppes, Canada Dry, Dr Pepper, and
Crush brands in 157 countries, not including the United States, Canada,
Mexico, and most of Europe.
2000: New CEO Douglas N. Daft launches major restructuring involving job cuts
of 5,200.
2002: Company launches Vanilla Coke.

2004: E. Neville Isdell was named chairman and CEO

2008-Now: Muhtar Kent is CEO of Coca Cola.

BOARD OF DIRECTORS

Name
Relationships Title Age
(Connections)

Muhtar Kent 330 Relationships Global Chairman of The Coca-Cola Company 63

and Global Chief Executive Officer of The
Coca-Cola Company

Other Board Members On Board Members

Name Type of Board

Relationships Primary Company Age
(Connections) Members

Naresh Chandra 82 Relationships Member of Balrampur Chini Mills 82

IAS (Retd.) Advisory Board Limited

Harish Salve 14 Relationships Member of Coca-Cola India Private 60

Advisory Board Limited

6
Name Type of Board
Relationships Primary Company Age
(Connections) Members

Vimala 14 Relationships Member of Coca-Cola India Private --

Ramalingam Advisory Board Limited

M . Ranjitsinh 14 Relationships Member of Coca-Cola India Private --

Advisory Board Limited

Deepak Parekh 311 Relationships Member of IDFC Private Equity 71

BCom, FCA Advisory Board

Sunil Munjal 113 Relationships Member of The Hero Group, Ltd. 59

Advisory Board

B. Kirpal 14 Relationships Member of Coca-Cola India Private --

Advisory Board Limited

Shayama Chona 14 Relationships Member of Coca-Cola India Private --

Advisory Board Limited

Amjad Khan 14 Relationships Member of Coca-Cola Private Limited --

Advisory Board

Susim Datta 133 Relationships Member of Transport Corporation of 80

Advisory Board India Limited

Subash Chander 14 Relationships Member of Farmers Fertiliser --

Advisory Board Cooperative Limited

Dilip Biswas 14 Relationships Member of Coca-Cola Private Limited --

Advisory Board

7
Name Type of Board
Relationships Primary Company Age
(Connections) Members

Ved Malik 44 Relationships Member of Hero MotoCorp Limited 76

P.V.S.M., A.V.S.M. Advisory Board

N. Singh B.A., 21 Relationships Member of HT Media Limited 75

M.A. Advisory Board

Organizational Structure
The Coca-Cola Company has a Separate International Division Structure or
Matrix structure because its international staffs operate separately and in
isolation from head office. It has various divisions in all continents around the
world with presidents that control each continental division. Coca-Cola has 5
continental divisions.

Asia & Africa Group North America Group

Europe Group Pacific Group

Latin America Group

Each Continental division has vice presidents that control sub-divisions based on
regions or countries. This structure is efficient for Coca-Cola since it is a very large
company.

8
Operating system:

Coca-Cola is as an ethnocentric MNC because its domestic operations are very

similar to its international operations. Regardless of the country or region, Coca-
Cola operates the same way and sells the same brand and type of soft drink. The
company has tight control over its operations from head office.

STAFFING
Staffing policy uses in international and domestic circumstance that contract with
training, acquisition and allocation of the organization human resources. The
staffing process keeps the organization with right people in the right positions at
the right time. Therefore, Coca Colas staffing policy for managerial position is
mixed among ethnocentric, polycentric and geocentric to establish both formal and
informal work. CocaCola is used ethnocentric to limit subsidiary autonomy that
we can see how the position in domestic and foreign operation is held by
headquarters personnel. The meaning of that, Coca Cola believes that local people

9
could understand their environment better than foreign management. Geocentric
approach is also applied when the corporate HRM group is establishing the global
service program that grants Coca Cola opportunity to develop its HR and build its
cadre of executives. The result of these approaches, Coca Cola becomes one of
the most successful multinational enterprises.

Multi-National Companies use expatriates in international management positions

and international transfer of managers. Coca-Cola MNC with an ethnocentric
mind-set that uses large numbers of PCNs for overseas management positions also
it uses a polycentric mind set to be HCNs, where is possible. Geocentric mind set
choose the best person for the job regardless of nationality (PCN, HCN, or TCN).
However, since Coca-Cola pay its expatriates according to U.S. benchmark rates
although some of employee's are not in the U.S. In my experiences of this case, it
is not appropriate because the autonomy of its international operations can result in
significant differences in the levels and types of compensation and benefits
programs that grants by each countries such as laws, the role of labor unions or the
standard of living in so. The development and coordination of compensation
systems for expatriate (PNC or TNC) managers constitute a complex and more
expensive task than that of HCN managers. However, Coca-Cola provides benefits
of its policy that all its employees share and participate their knowledge and
experiences. In addition, Coca-Cola has a common salary policy for all its national
operations.

10
Recruitment and selection:

Recruitment for Expatriates:

Recruitment refers to the overall process of attracting, selecting and

appointing suitable candidates for jobs (either permanent or temporary)
within an organization.
Recruitment can also refer to processes involved in choosing individuals for
unpaid positions, such as voluntary roles or unpaid trainee roles.

Managers, human resource generalists and recruitment specialists may be tasked

with carrying out recruitment, but in some cases public-sector employment
agencies, commercial recruitment agencies, or specialist search consultancies are
used to undertake parts of the process. Internet-based technologies to support all
aspects of recruitment have become widespread

Drivers for Recruiting & Transferring:

Strategic perspective:
Cultural diversity
Global core competency
Provide career opportunities in HC
Developing Market
Emerging
Create jobs for HCN
Expatriates are problematic to the Recruiting
International vs Domestic recruitment
External recruitment
Internal Recruitment
11
 Internal recruitment:
Selection risk
Post and present human capital investment

Expatriates Selection process:

Expatriate selection process starts when they need to fill abroad position due to
lack of local talent and/or management experience working in a multinational.
Selection process is not defined with rules at Coca Cola. Every international
assignment requires different criteria. Usually, familiarity within the exact area of
international assignments is recommended but not for all times a prerequisite.

Moreover, Coca Cola has lately changed their way when selecting expatriates. It
used to concern of sending executives as expatriates, while at the present it has the
concern of sending high potentials younger employee.

Coca Cola usually considered the recommendation and suggestions of candidate's

expatriates. Significant sides of the candidate improve his chance to be selected,
and can also raise the issues for instance, losing some employee within the
department or whether it can give advantage in the future. Coca Cola does not
focus on developing repatriation training programs for the expatriates. However,
the expatriates informed that at the end of assignment they will return home and
they will have their job back, which gives expatriates secure feeling once they
leave the international assignment.

12
Factors influencing the Expatriates selection:

For Individual

Technical abilities Dont be judgmental

Cross cultural abilities Cultural shocks
Check interpersonal skills Flexibility

For situational

Learning orientation Language

Family requirement MNEs requirement
Cultural requirement
Expatriates Roles:

There are many reason for transferring employees for international assignments as
expatriates linked to the intended purpose of the expatriate. Roles of expatriates are
listed as the following:

Shared cross international assignments:

Coca Cola use overseas agents of socialization, which is likely helps the
integration of corporate values and beliefs. It is a means of informal and non-direct
control. Label the expatriates as "bumblebees" since expatriates help in the transfer
of a common culture of companies. This formulates and creates more decentralized
organization.

Expatriates as agents:

Coca Cola can use expatriates as agents to build and enhance the network between
the host and home branches. Internationally, strengthen the links between

13
individuals is significance way of implementation of informal control. It is also a
way to transfer ideas and efficiency.

Increase the organization borders:

One of the expatriate role is to increase the organization borders. Expatriates would
have an exceptional ability to gather information on the market, and enhance the
representation of the company in the host country.

International Training & Development

International training and development is another aspect of IHRM. Training
intends to develop employee skills and behavior, whereas development objective is
to increase abilities in relation to some potential position, generally a managerial
skills.

Expatriates need a set of context-specific abilities, for instance industry-specific

knowledge, and a central part of certain skills, such as cultural sensitivity, ability to
handle responsibility, ability to develop subordinates and ability to exhibit and
demonstrate. These skills are measured as vital international competencies at Coca
Cola and all can be developed through effective international training and
management development. Moreover, pre-departure training will help expatriate
success more than failure.

Coca Cola focus on human resources development by concentrated on the

education and training of its employees as an important part of their development.
Coca Cola allegedly spent millions every year for training its employees. On the

14
other hand, Coca Cola undertook a cost cutting drive, and started looking for
methods to train its staff effectively at lower Costs. After significant investigation
and researches, Coca Cola In 2007, launched Coca Cola University (CCU) a
virtual, global university for all learning and capability-building activities across
the Company. E-Learning was used to train Coca Cola newly recruited managers
and expatriates.

TYPES OF TRAINING

Four types of training for international assignments

Pre-departure training for expatriates:

Once expatriates selected for international assignment, they will receive language
training and an orientation to the host country culture. Family will be included in
orientation training sessions. These training sessions will provide expatriates and
their family with information related housing, schools, shopping, and health care
facilities in the host country. During the training expatriates will have full
discussion with the organization about how the international assignment would fit
into their profession strategy and what future position they would have when return
to home country?

On-site training for expatriates:

At the host country the expatriate will receive additional onsite training to
familiarize the expatriate with the local working procedures and work
environment. These formal programs will deliver orientation about the host
country customs and cultures.

15
Repatriation:

Expatriates and their family will adapt the host country norms and culture
especially in long-term assignment. Usually they will experience high level of
stress and cultural shock when return to the home country as a result of changes
that have taken place since their leaving. Expatriates have to assume what ability
they want to build up and the sort of jobs that might be offered in the home country
with those new skills. As the expatriate a broad, many changes at the home country
company could happen such as colleagues or managers may leave. Therefore
expatriates should maintain contact with company. Otherwise expatriates will have
re-entry shock because of new employees, a new passion, and a new culture that
may have changes.

Training for (HCNs) and (TCNs):

To ensure the understanding of corporate strategy and culture, training will be

provided to HCNs and TCNs.

All employees from team leaders upwards are given an annual skills assessment
and development plan. The Company also invests in formal training. During 2008,
employees received on average more than 16 hours of formal training each. An
additional valuable means in expatriate pre-departure training is an initial visit to
the host country. These visits often give the expatriates and their family a clearer
idea about the new environment in which they will be living. Sometimes expatriate
will refuse the international assignment based on the initial visit. According to
(Coopers 1997) study shows that 53% of organizations which offer initial visits to
their employees and spouses to the host country, of those 13% refused the
international assignment. On the other hand, since the expenses and costs for an

16
expatriate failure are so high it is valuable to know of the refusal earlier to the
actual assignment.

Standardization
The process of making something conform to a standard "training ensured
standardization of procedures at all sites"

Coca Cola; Standardization Strategies.

Coca Cola was a huge success in the US and by the 1900s it had expanded into 8
other countries and counting. Today, it is enjoyed in over 200 countries worldwide.
(Coca-Cola Company, Heritage Timeline, 2011). There are two strategies that they
could have used to help them do this, Standardized and Localized strategies.

Pros and Cons:

Pricing

Standardized strategy involves the product and the price being made at a set level
across the whole organization across the world.

Product/Brand

This begins by minimizing the differences in your products, you are able to
rapidly increase production, streamline distribution, decrease raw material costs
and reinforce product branding.

17
Sensibility

By making the product the same across all markets the cost can be decreased, with
the economies of scale being put to use, (Buying in bulk will reduce the overall
cost) and the same format being laid throughout the organization will help
efficiency. The price for the product will also be at the same standard fixed world
price and applying it to all markets, taking into account exchange rates and
variations in laws and regulations. This would work for Coca Cola as it would
allow the product to be made efficiently with low cost, low risk and the product
being the same everywhere. This provides an opportunity for a rapid introduction
of any new products in international markets.

Brand Building:

Coca-Cola always share the happiness

At Coca-Cola our definition is just a little bit simpler. Happiness to us is anything

that can bring a smile to someones face. Were in the business of spreading smiles
and opening happiness every day all across the world. We know we might not
change the world over night, but if we can add just a few smiles to the world then
weve done our job.

18
The motto of Coca-Cola is happiness shares, from here you can see that the
strategy of Coca-Cola not only sell the product alone but also sell a good
relationship and communication with customers. And this happiness campaign you
can see on their site, where Coca-Cola just preach about happiness.

Coca-Cola is Consistent

It is our mission at Coca-Cola to refresh and completely satisfy the world. We

will give and provide supreme quality for an affordable price. We will be
consistent in and true in what we do well. It is our mission to fill hearts with joy
and happiness to make a difference across the globe. We will work to our potential
and always seek out the best in everything we do.

You can see, that Coca-Cola is consistently maintains the quality of its products
over the years.

Coca-Cola is have contour bottle

Here the Coca-Cola vision: It is our vision to make a bottle of Coca-Cola

available within arms reach of every person on the world.

Coca-Cola bottle is specifically design to save her coke with design will not be
outdated. Distinctiveness contour bottle has an easy grip handle and recognizable.
It aims to make it easier for consumers to drink straight from the bottle and felt the
cold temperature. When opened, the sensation of sound pop bottle cap and caramel
aroma sensation of Coca-Cola, until freshness while drinking.

19
Coca-Cola is have a lot of kind beverages

Coca-Cola wanted to be in all countries, so Coca-Cola Company creates a wide range

of products that are tailored to the preferences of the country.

Coca-Cola was sponsored much sport events

Our events in which we host and the opportunities we provide for people all
across the world is unique in the sense that we do our best to give back to the
world and make a difference the Core Competency and Sustainable Competitive
Advantage by Coca-Cola.

20
Interior and Exterior of Coca Cola:

Authenticity has long been prized at the Coca-Cola Company, starting with that
classic contour soda bottle that Andy Warhol loved so dearly. They like to say
theyre a curvy company, Gensler design director Michael Lutz explains. He
therefore used those curves and other brand hallmarks to reinvent the two lower

21
levels of the buildings that make up the Atlanta headquarters. A ribbon of shared
amenities as well as a circulation path, the combined 350,000 square feet represent
just one part of a visionary 10-year planand also won the firms Design
Excellence Award for a large built workplace. The project furthermore included an
outdoor component, a central courtyard that, like many similar campus spaces, had
once been underutilized, as employees tended to stick to whichever tower they
were assigned. The courtyard now pulses with the energy of sinuous islands of
vegetation.

22
Cultural:

Our inclusive culture is defined by our seven core values: leadership, passion,
integrity, collaboration, diversity, quality, and accountability. Our central promise
at The Coca-Cola Company is to refresh the world in mind, body, and spirit, and
inspire moments of optimism; to create value and make a difference.

Two assets give us the opportunity to keep this promise our people and our
brand.

The Coca-Cola Company leverages a worldwide team that is rich in diverse people,
talent and ideas.

As a global business, our ability to understand, embrace and operate in a

multicultural world -- both in the marketplace and in the workplace -- is critical to
our sustainability.

Our diversity workplace strategy includes programs to attract, retain, and develop
diverse talent; provide support systems for groups with diverse backgrounds; and
educate all associates so that we master the skills to achieve sustainable growth.
We work hard to ensure an inclusive and fair work environment for our associates,
all of whom undergo diversity training on a regular basis. We find ongoing
dialogue leads to better understanding of our colleagues, our suppliers, our
customers, our stakeholders, and ultimately, to greater success in the marketplace.

23
 Localization

Localized strategy:

Whereas, with a localized strategy its another matter; Localizing a product or

service is the process of adapting them to a particular language, culture, and
desired local look-and-feel.

Cultural

For Coca Cola this will be done through a number of actions, first and foremost
would be changing their method of advertising as that is their most powerful
tool. Advertisement would be changed to suit each individual culture, although it is
kept near enough the same structure certain aspects would be changed. This would
allow Coca Cola to maximize profits as its focusing on each market, however it
cost time and may create more difficulties.

Meeting & training

Localization can not only help a company convey their brand image and message
across cultures to gain a profit, but with proper planning, can help a company save
both time and money when planning to market their product or service abroad. Not
only is this ineffective, it costs more time and money and a company is more
susceptible to the pitfalls of localization. Additionally, doing this can hurt a
brands image almost instantaneously and may also result in lost promotional
opportunities in a new market. Taking the right steps to insuring that a brand is
culturally relevant will give a company quicker success internationally and a better
chance of gaining (and maintaining) loyal customers in a different
cultures market.
24
Language/ Dress

Few advertisements displaying the same Coca-Cola ad in different languages and

cultures. Each ad has children of a certain cultural background (based on the
country of the advertisement) singing about joy and happiness, and the ad
highlights different crises and troubles that are happening within the specific
country, i.e. localization of ads. Enjoy!

Performance management
Coca Cola manages its performance management system through 4 Stages during
an Annual Business Cycle and has multiple Objectives. Some of these include
Objectives leading to Significant Accomplishments, Breakthrough Objectives, and
Business Plan Achievement objectives. Furthermore, Coca Cola has an extensive
training and development programs for the employees to focus on the day-to-day
needs of the employees and to adapt new culture difficulties and differences.

Competency framework

Competency framework encompasses thought leadership, people leadership and

results leadership that Coca Cola uses to manage and assess its workforce. A point
ranking scale is used to define a system in an organized systematic form to avoid

25
ambiguity and bias when conducting performance appraisal and rating to
compensate employees based on performance and competencies as identified in the
appraisal process.

International assignment

When expatriate agree to have the job for international assignment, they will look
forward to having financial benefits from doing that assignment. Therefore
organization should take compensation packages into its consideration because it
has major affects at the expatriate's when making decision. Expatriates successes
will have big advantage for the organization especially in this competitive market.

Issues in Performance Appraisal

In Pakistan Coca Cola Beverages though the performance appraisals is conducted

in very fair way but still there are some wanted issues is seen sometimes during
appraisal period.

Religion and Performance Appraisal:

Although religion should not be considered in the appraisal process, Coca-Cola

make sure that all supervisors or employees to cognizant of the religious customs
and practices of employees they supervise. This will make sure that employees are
not held liable for actions inappropriately.

Gender Issues in Performance Appraisal:

Evaluate the employee on work related elements, which have been made

clear.
Do not evaluate on differences in communication style.

26
Difficulty in defining the work:

When conducting performance appraisals, supervisors should clearly convey work

expectations and make sure that employees understand expectations. This can be
accomplished by incorporating equal performance standards for all employees.

Biasing:

Equally important is realizing that some managers expect some workers to be

superstars and from others they will expect very little. Supervisors should
reexamine judgments to make sure that poor performance is not overlooked due to
being uncomfortable about providing feedback to those different than oneself. If
supervisors provide feedback often and equally to all members of the workforce
this issue should not prevail.

CHALLENGES IN PERFORMANCE APPRAISAL

SYSTEM

In order to make a performance appraisal system effective and successful, an

organization comes across various challenges and problems. The main challenges
involved in the performance appraisal process are:

Determining the evaluation criteria Identification of the appraisal criteria is

one of the biggest problems faced by the top management. The performance
data to be considered for evaluation should be carefully selected. For the
purpose of evaluation, the criteria selected should be in quantifiable or
measurable terms
Create a rating instrument the purpose of the Performance appraisal process
is to judge the performance of the employees rather than the employee. The

27
 focus of the system should be on the development of the employees of the
organization.
Lack of competence Top management should choose the raters or the
evaluators carefully. They should have the required expertise and the
knowledge to decide the criteria accurately. They should have the experience
and the necessary training to carry out the appraisal process objectively.
Errors in rating and evaluation Many errors based on the personal bias like
stereotyping, halo effect (i.e. one trait influencing the evaluator's rating for
all other traits) etc. may creep in the appraisal process. Therefore the rater
should exercise objectivity and fairness in evaluating and rating the
performance of the employees
Resistance The appraisal process may face resistance from the employees
and the trade unions for the fear of negative ratings. Therefore, the
employees should be communicated and clearly explained the purpose as
well the process of appraisal. The standards should be clearly communicated
and every employee should be made aware that what exactly is expected
from him/her.

INTERNATIONAL COMPENSATION

The Going Rate Approach

Going Rate approach is straightforward and easy to understand which make the
compensation package parallel to the host country nationals. In this approach the
base salary is linked to the salary structure of the home country. It is based on local
market rates. This compensation approach has some disadvantage especially when

28
expatriates return to home country. When going rate is different in the host
country, there might be some pay cut.

The Balance Sheet Approach

Balance sheet approach delivers a compensation package to balance an expatriate

manager's purchasing power between host country and home country. In other
words, since expatriate assigned to an international position by using balance sheet
approach expatriates will not be affected by spending power. The negative side of
the balance sheet can be its cost and unfairness between expatriate managers and
local national managers, and even among expatriates who come from different
countries.

Components Coca Cola takes into consideration when it comes to an International

Compensation:

Base Salary

Extra pay the expatriate receives for working outside his or her country of origin
which encourage to accept foreign postings

Allowances

(Housing allowances, Cost-of-living allowances, Education allowances, Relocation

allowances, Parent country wages everywhere ,Wean expatriates from allowances
,Pay based on local or regional markets ,Global pay systems)

29
Tax differentials

Coca Cola pays the expatriate's income tax in the host country when a host country
has a reciprocal tax treaty with the expatriate's home country.

Benefits

Coca Cola ensure that their expatriates receive the same level of medical and
pension benefits abroad that they received at home

The new host country environment and difficult to function efficiently are core
problems for the majority of expatriates. Pre-departure training is essential for
improving expatriates' culture knowledge and cross-culture adjustment. On the
other hand, many cross-culture training is not sufficient or incomplete. Since it's
hard to assess the efficiency of such training

Healthcare is another significant aspect when it comes to compensation package.

Many international organizations would have different health care insurance
company between home and host country.

Coca Cola rewarding system for employee is excellent to retain, motivate and
influence employees towards organizational goals with their best potential
utilization. Coca Cola uses Self-Assessment tools for staff to assess themselves on
top accomplishments in the previous year.

Analysis

Operating as agents of direct control is usually not the role of expatriates at Coca
Cola, which is not consistent with believed as they remark that expatriates are

30
often used to control and monitor local operations. Another role of expatriates is
agents of socialization, where expatriates are likely to share business values and
beliefs so as to build some informal control.

WORKING HOURS
The Coca-Cola Company (TCCC) is committed to ensuring that our entire supply
chain, including Bottlers, co-packers, direct & authorized suppliers, is in
compliance with local laws & the values reflected in our Workplace Rights Policy
(WRP) & Supplier Guiding Principles (SGP). Compliance with local work hours
and overtime laws is a fundamental component of WRP and SGP. In addition to
legal violations, excessive overtime in the workplace can lead to serious
operational consequences as well as disrupt employee work life balance.

Overtime

Overtime can be a complex and challenging issue that will not be solved overnight.
This guide is intended to share our learning to date and be a resource to help
facility management identify and address the root causes of overtime. The guide
includes the following:

An overview of the overtime issue

Practical strategies to reduce overtime
Real case study examples to help facilities drive continuous improvement

31
Improvement guideline:

Expatriate policies

Expatriate Housing Policies

The representatives from Corning and GM described their respective companys

approach to expatriate housing. A poll was taken of the group to see how many
companies have moved to providing Host-Country housing without a housing
contribution. About 20% of the participants now do this. The offset is that the
expatriates are fully responsible for their Home Country residences.

Success/ROI Metrics

Eileen Mullaney of Price water house Coopers presented on measuring the success
of cross-border assignments.

32
Tax Administration

The representative from McDonalds described their process for gathering

compensation data. The group then shared their respective companys processes
and issues.

Talent Management and Cross-Border Assignments

The representatives from Bank of America, Johnson & Johnson and PepsiCo.
described the increased focus on the use of cross-border assignments as a platform
for structured talent development.

Tracking Assignees and Business Travelers

There was an open forum discussion on the importance and challenges of tracking
cross-border business travelers and assignees. Very few companies mandate a
central source for making travel arrangements.

On The Out-Sourced World Whats Left?

The representative from Bank of America described their program and led a
general group discussion.

Election of New Company

The EMC welcomes Japan Tobacco International into membership. JTI is a Europe
headquartered business with expatriates primarily in Central/Eastern Europe;
Africa and Asia.

33
Shared Service Centers

The representative from CEMEX described the rigorous process they utilized in
choosing Budapest as the second Shared Services Center location. The group
discussed the function and location of their centers.

Conclusion
Obviously, Coca-Cola Company is a great company and has totally changed. This
company has a lot of useful experiences for all the beverage companies in
the world to learn. We can conclude several secrets for the company toe a success.
Firstly, build a brand with reputation, the trademark of Coca-Cola definitely
brought lots of benefits. Secondly, create an efficient supply chain and delivery
network, setting franchise stores can be a good way to boost sales for a beverage
firm. Thirdly, an appropriate human resource management method is
important for a multinational firm. Fourthly, for an international firm, quickly
adaption in foreign countries and acceptance of local cultures are another important
factors. Finally, a clear companys self-determination make Coca-Cola have a
distinct developing orientation. These strategies helped Coca-Cola Company to
become very competitive in the global market and beat down most of its
competitors

34