Coca-Cola Hr
Case 1: Global Human Resource Management at Coca-Cola
8/16/2013
1. What is Coca-Cola’s staffing policy for managerial position: ethnocentric, polycentric, or geocentric? Does this policy make sense? I believe Coca-Cola’s staffing policy for managerial positioning is primarily polycentric; however, I also believe it involves many characteristics of both ethnocentric and geocentric staffing policies as well. According to Dowling, et al, a polycentric staffing approach involves the multinational enterprise treating each subsidiary as a distinct national entity with some decision-making autonomy. This is evident in Coca-Cola’s “think globally, act locally” strategy, in which they strive to staff their operations with local personnel. Coca-Cola’s belief that local people are generally better equipped to do business in their home locations than foreign employees aligns with an overall polycentric staffing policy. However, Coca-Cola’s decision to employee expatriates for a specific need or position of high demand or trust (start of Eastern-European operations, for example) reflects certain characteristics of ethnocentric policy, such as the reliance on staff from home country. Geocentric staffing policy also applies to Coca-Cola in the way the corporation strives to instill a common philosophy in all its employees that reflects the values of the entire corporation on a global scale. This policy makes sense for Coca-Cola because the corporation relies on local managers’ familiarity and understanding with local consumer base and employees, while also providing their managers with a level of global experience through their 500 manager global service program.
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? The strategic role of the HRM function at Coca-Cola is to develop and provide the underlying philosophy around which local businesses can develop their own human resource
8/16/2013
1. What is Coca-Cola’s staffing policy for managerial position: ethnocentric, polycentric, or geocentric? Does this policy make sense? I believe Coca-Cola’s staffing policy for managerial positioning is primarily polycentric; however, I also believe it involves many characteristics of both ethnocentric and geocentric staffing policies as well. According to Dowling, et al, a polycentric staffing approach involves the multinational enterprise treating each subsidiary as a distinct national entity with some decision-making autonomy. This is evident in Coca-Cola’s “think globally, act locally” strategy, in which they strive to staff their operations with local personnel. Coca-Cola’s belief that local people are generally better equipped to do business in their home locations than foreign employees aligns with an overall polycentric staffing policy. However, Coca-Cola’s decision to employee expatriates for a specific need or position of high demand or trust (start of Eastern-European operations, for example) reflects certain characteristics of ethnocentric policy, such as the reliance on staff from home country. Geocentric staffing policy also applies to Coca-Cola in the way the corporation strives to instill a common philosophy in all its employees that reflects the values of the entire corporation on a global scale. This policy makes sense for Coca-Cola because the corporation relies on local managers’ familiarity and understanding with local consumer base and employees, while also providing their managers with a level of global experience through their 500 manager global service program.
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? The strategic role of the HRM function at Coca-Cola is to develop and provide the underlying philosophy around which local businesses can develop their own human resource