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Case Study of Coca-Cola: Performance Management System (PMS) and Training

The growth of businesses depends on the strategic plans , goals, values, cultures, and norms implemented within a given institution. Multi-national companies like Coca-Cola have dominated the global markets for the past five decades based on adopting performance management and training principles in running activities since its inception in the beverage industry. The organization has an ongoing process of job clarification and open communications within the workspace, a decision that promotes the productivity of workers and the profitability of the firm at large. Performance management promotes coordination between managers and workers through an open-aided communication approach to achieve organizational objectives. Training employees to align with organizational strategic goals starts with clarifying job responsibilities, workplace expectations, developmental planning, and priority setting. Analyzing the strategies of planning, monitoring, developmental, rating, and rewarding employees at Coca-Cola exposes the impact of performance management systems in improving workers’ performance.

Case Study of Coca-Cola: Performance Management and Training

The Current System in Coca-Cola

Coca-Cola’s management values healthy and strong relationships with its stakeholders . The performance management system in the corporation has three primary concerns in the attainment of the firm’s objectives and long-term goals. First, the human resource department emphasizes the significance of the planning phase, where performance agreements are signed. Coca-Cola invests largely in planning to reduce the probability of business failure and destruction of the business’s portfolio. The planning phase at Coca-Cola’s performance management system (PMS) trains employees about workplace expectations. Workshops and seminars conducted within and outside the premises expose workers to understanding the organization’s needs. Performance agreement forms are implemented in the attainment of individual expectations. As a result, Coca-Cola trains its employees in performance measurement to allow teams and individuals to understand their roles and responsibilities over specific business periods. In addition, the competence and required results are stated in the performance agreement forms to remind workers of the long-term plans and strategies needed for such achievements.

The second phase encountered in the PMS at Coca-Cola involves monitoring employees’ progress. Monitoring employees increase employees’ safety within the manufacturing circumferences. Therefore, Coca-Cola’s supervisory teams have created a strong connection between its managers and employees. Monitoring workers limits the chances of accidents in the production line and maximizes the understanding of procedures in manufacturing commodities. Coca-Cola monitors employees to avoid physical injuries in the packaging and bottling departments. Safeguarding staff reduces absenteeism in workspaces and increases time management efficiency at work. Correspondingly, Coca-Cola uses the policy of monitoring to reduce the occurrences of mistakes in the production departments to protect workers’ physical health. The outcomes of monitoring workers at Coca-Cola increased employees’ productivity by about 18% in 2020. Thus, PMS at Coca-Cola leans on monitoring frameworks to improve employees’ work rates.

The performance management system at Coca-Cola incorporates reward and appraisal strategies to improve the firm’s current position in the competitive market. Coca-Cola’s managing director confirmed to the New York Times that reward shows appreciation for workers’ efforts over the ended business periods. The company awards employees of the month through gift hampers and money to create a competitive working environment for the rest of the team. Moreover, rewarding employees at Coca-Cola boosts employee retention and creates a positive workplace. Therefore, Coca-Cola trains its managers in the approaches of employee motivation with the dreams of encouraging healthy competition and title promotions. The individual successes of employees at Coca-Cola lean on the firm’s choices to reward its juniors for the little growth they bring to the organization.

Process and Approaches of Communicating the Performance Management System

Coca-Cola depends on software, emails, memorandum, physical meetings, and training workshops to communicate the goals of performance management systems to its employees. Coca-Cola uses an android software freestyle mobile app to create awareness regarding its plans to employees and other stakeholders . The software permits recruits on matters of feedback and coaching, where workers are exposed to the importance of communication. The mobile app enables senior employees to issue feedback regarding workplace challenges and success, allowing the organization to trace its operation goals. Secondly, the beverage manufacturing industry uses emails to communicate performance management issues to its employees. Random emails composed by the human resource manager are sent to the worker to communicate their progress and productivity over their stay at the firm. Such emails appraise workers and create opportunities for employees to benchmark various countries to experience management diversity.

The use of a memorandum for internal communications aids goal setting within Coca-Cola. Workers at Coca-Cola receive monthly target news and plans through seasonal memoranda. The pinning of memoranda in different departments eases communication between the administration and the subordinate staff. For instance, the delegation of work to junior employees in the marketing department frequently occurs through a memorandum. The Marketing directors at Coca-Cola increase employees’ engagement in the firm by allocating marketing duties to such individuals. The realization of the end goals of marketing starts with the open communication systems addressed through memoranda.

Physical meetings and training workshops facilitate the communication of the performance management system among workers at Coca-Cola. The evaluation and review of employee performance in multi-national organizations work best during training workshops where workers are permitted to interact freely with their bosses. Likewise, Coca-Cola borrows evaluation insights through physical meetings by allowing workers to express their thoughts about performance assessments. The meetings promote trustworthiness and transparency in daily business transactions because workers and employers get to build their trust. PMS communications conducted through meetings aim at rewarding the performance of the top worker and teamwork motivation. In other words, the accurate and consistent evaluation of workers in Coca-Cola happens during training workshops.

Effectiveness of Coca-Cola’s Performance Management System

The policies incorporated in the company’s PMS are effective for the organization based on the productivity margins initiated among employees and the company over its implementation period. The PMS at Coca-Cola is effective because it has successfully aligned resources, systems and employees to meet the corporation’s strategic objectives . For example, the organization has risen to greater heights by using its leadership to create solutions to problems like pollution and poverty. The strategic planning of reducing pollution in the production of soft drinks is an outcome of the effective performance system adopted by the management. Coca-Cola strives to build a sustainable environment through channeled networking that promotes healthy relationships between the organization and the community. Recycling straws and plastic bottles reduce solid waste in the environment. The management cites open communication during training in the attainment of sustainable environments.

The performance management systems at Coca-Cola are prolific because they help the company understand its goals and its employees’ abilities. Company goals determine the success stories of untested businesses. Coca-Cola educates its employees regarding the primary reasons for their existence in the beverage industry. The orientation offered to recruits enables such individuals to familiarize themselves with the organization at the start of every contract. Therefore, the continuous and prolonged success observed by Coca-Cola depends on the ability of the company to implement excellent performance management of the stakeholders. The PMS in Coca-Cola is effective because it protects the rights and freedoms of employees. For instance, the employee-employer relationships in the company are strengthened through the open communication frameworks created during annual general meetings. The efficiency of the PMS in Coca-Cola is observed by its prowess to prioritize organizational goals over individual plans. Coca-Cola anticipates a better future based on the current policies implemented in rewarding workers and strategic planning for a better workspace.

The changing business dynamics call for certain changes in Coca-Cola’s performance management systems. An organization’s relevance leans on the creativity of such entities to entice more buyers to remain loyal. As a result, the Coca-Cola PR team should make a few changes to the current performance management system to increase and maintain its target audience. The current trends in management dictate a change in the conveyance of information between top offices down to junior workers. Coca-Cola should expand its use of technology to cascade its goals and monitor its workers to increase the accuracy of attaining company objectives. The organization should design a technology that monitors and tracks employees’ performance to increase the work rate of every individual in the production, marketing, and sales department. Trust building begins from knowing every employee’s personality, skills, experience, and talents within work. The technology will increase trust among stakeholders because it will have all the data and information printed against workers. The delegation of duties can also be improved through technology for a better and more stable operation for future generations.

To conclude, every organization wishes to have top-notch employees to keep the portfolio of such institutions ahead of their competitors. Coca-Cola is one such entity that values performance improvement for the company’s well-being. The firm adopts certain practices and behaviors to develop productive employees to remain relevant in the beverage industry. First, Coca-Cola rewards high performance to inspire staff to sacrifice more time to improve the production and sales of products and services. Rewarding employees improves the performance of staff based on the motivation behind the monetary awards and gifts. The rewarding staff promotes the retainment of talent and boosts the loyalty and trust of workers. Secondly, setting SMART goals, empowering employees, and tracking individual progress helps Coca-Cola and other organizations improve workers’ performance. Empowering workers can occur through empathy, growth opportunity support, delivery of honest feedback, and delegation of tasks.

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