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Global Human Resource Management at Coca-Cola

Essay by   •  October 2, 2011  •  Case Study  •  639 Words (3 Pages)  •  4,589 Views

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The Coca-Cola is firm is one of the most successful multinational company in the world. Although it is an American company 80 precent of its profits comes from outside the United States. The story behind that it is the success in home country .the success in United States has inspired the executive in the enterprise to expand their business outside the firm's home. When the company implemented its plan to set business in foreign countries, the company had been forcing difficulties that the executive had taken into consideration .the executives then realised that there is no trouble with the product but the trouble is with how to manage the company in a country which has a different culture.

In this essay, we will answer some questions that are talking about the policy and strategy that Coca Cola applied in foreign country.

What is Coca Cola's staffing policy for managerial position; Ethnocentric, Polycentric, or Geocentric? Does this policy make sense?

First of all, it is obvious that multinational companies vary in implementing the international human resource policy. Ethnocentric policy means that company receives grants and decisions from head quarter .the significant point in local and external procedures have been managed by headquarter staffs, and the grants are execute by workers in the headquarter.

Polycentric means that subsidiary is considered as an international unit which is managed by native residents who are not often sent to work in headquarter, and the workers in the original company are not often sent to foreign countries.

Geocentric means that each part (headquarter and subsidiary are shared in all the tasks, and the headquarter applies a global approach to manage its operation in distant countries.

Coca Cola company realizes its assignment to develop and provide local businesses relying on philosophy approach by getting the workers in foreign country salary which is the same amount that workers in the headquarter get.in addition to the same salary, the employees in subsidiaries can share information ,and the operations are managed by local people.

All these clarify that Coca Cola's staffing policy for managerial position is mixed between Ethnocentric and geocentric.in fact, each policy supports to the other resulting benefits to the company.

What is the strategic role of the HRM function at Coca Cola? How dose HRM help Coca Cola to become more successful in international business?

The strategic roles of the HRM function are three types. The first type is called centralized. The main actions of HRM firms are; designing international tasks and act management internationally.

The second type is called decentralized. The main actions of HRM companies are; influencing operating units to improve the international assignments.

The third type

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