International Human Resource Management at Coca Cola

Introduction1

Internationalization and HRM1

Top 10 Human Resource Management Challenges1

Background3

About Coca Cola3

Industry Analysis3

Vision3

Mission4

Values4

Themes of IHRM5

Global Trends in HRM5

Hiring and Outsourcing5

Compensation & Benefits6

Institutional Duality7

Findings and Conclusions9

Role of HR Executives at Coca Cola11

Recommendations12

References15

International Human Resource Management at Coca Cola

Introduction

Internationalization and HRM

According to researchers, the competitive advantage can be gained only if the organizations follow certain conditions in order to deal with international and global trends. In order to translate the global challenges into opportunities, Gupta and Govindarajan identified in 2001 the main factors. These are integration of the local market differences with global economies of scale, transferring technology and knowledge across borders and within the local range effectively (Krell 2012, pp. 89). There are many examples when the best practices could not translate into success due to cultural and other differences like in case of Lincoln Electric. The company faced difficulties in implementing profit sharing plans and pricing strategies across US border. In such situations, the role of HR is critical. According to Ulrich and Brockbank proposition in 2005, Human resource management can play a key role in adding value to organizations at times of globalization and internalization impacts (Christensen 2005, pp. 29). This is also supported by investors and employees. It requires the refined role of HR towards contributions of organizations. It has also been found through research conducted by Stroh and Caligiuri in 2005 that in countries including United Sates, Taiwan and India, the role of effective international human resource management has a significance effect on the financial performance (Klein 2004, pp. 131).

Top 10 Human Resource Management Challenges

PricewaterhouseCoopers on behalf of the World Federation of Personnel Management Associations (WFPMA) conducted a survey that revealed the most crucial challenges that HRM faces in today's competitive world. These challenges are created due to the fast advancements in local and global trends as well as unpredictable fluctuations in the economy. These challenges have highly affected the HR in a wide range (PR, 2012). The survey called as Global HR Challenges: Yesterday, Today and Tomorrow, identified that the challenges were mostly similar across the world despite the local and regional differences in organizational practices. The top 10 challenges are:

HR Challenges

% of Companies

Change management

48%

Leadership growth

35%

HR usefulness capacity

27%

Organizational effectiveness

24%

Compensation Derivation

24%

Recruitment and Hiring of local workforce

20%

Succession planning

19%

Retention of workforce

16%

Benefit Policies

13%

Globalization has affected the whole business environment of the world. It has created a pressure on organizations to compete more efficiently. Customers now expect better performance, quality and lower costs due to increased competition (Truss 2002). In such a scenario, the role of Human Resource Management has also become crucial and more diverse than before. It is the duty of HR management to adapt itself according to changing global trends in HR practices and organizational needs. This not only fulfils the criteria of globalization but also adds value to the organization (Klein 2004, pp. 137).

This assignment aims to review the global trends that affect the HR practices and how HRM roles are modified according to the latest trends at Coca ...