18-04-2013, 02:32 PM
Performance Management at CocaCola
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EXECUTIVE SUMMARY
The Coca-Cola Company is the world's largest beverage company. Along with Coca-Cola, recognized as the world's most valuable brand, it markets four of the world's top five soft drink brands. In 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets and 8000 distributors.
INTRODUCTION TO THE COMPANY
The Coca-Cola Company is the world's largest beverage company. Along with Coca-Cola, recognized as the world's most valuable brand, it markets four of the world's top five soft drink brands. It is no.1 brand according to fortune 2009 survey. The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA and S&P 500. Its current chairman and CEO is Muhtar Kent.
Coca Cola India
Coca-Cola, the corporation nourishing the global community with the world’s largest selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving a new thumbs up to the Indian soft drink market. In the same year, the Company took over ownership of the nation’s top soft-drink brand and bottling network. It’s no wonder our brands have assumed an iconic status in the minds of the world’s consumers.
A Healthy Growth to The Indian Economy
Ever since, Coca-Cola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems, and marketing channels. Coca-Cola India is among the country’s top international investors, having invested more than US$ 1 billion in India in the first decade, and further pledged another US$100 million in 2003 for its operations.
Pure Commitment to the Indian Economy
The Company has shaken up the Indian carbonated drinks market greatly, giving consumers the pleasure of world-class drinks to fill up their hydration, refreshment, and nutrition needs. It has also been instrumental in giving an exponential growth to the country’s job listings.
Creating Enormous Job Opportunities
With virtually all the goods and services required to produce and market Coca-Cola being made in India, the business system of the Company directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 people in related industries through its vast procurement, supply, and distribution system. The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with another 25 being owned by franchisees. That apart, a network f 21 contract packers manufactures a range of products for the Company.
REWARD MANAGEMENT SYSTEM
Reward management is concerned with the formulation and implementation of strategies and policies the purposes of which are to reward people fairly, equitably and consistently in accordance with their value to the organization and to help the organization to achieve its strategic goals. It deals with the design, implementation and maintenance of reward systems (reward processes, practices and procedures) which aim to meet the needs of both the organization and its stakeholders.
Reward is special payments for special work. Reward refers to all forms of financial returns and tangible services and benefit employees receive as a part of an employment relationship.
.Coca Cola’s rewarding system to employee is excellent as they are caring with excellent rewarding parameters just to retain, motivate and influence employees towards organizational goals with their best potential utilization. They are rewarding relating with employees performance in a way to increase productivity and effectiveness. They take holistic view of all the elements to reward and recognize employees to ensure a complete, comprehensive package of pay, benefits and learning and development programs, including Coca-Cola University—all designed to unleash your full potential.
They are using in directly different motivational aspects like Maslow’s hierarchy of needs, ERG theory and two factor theory of HerzBerg. But more importantly they are not specifically using one of them; they just relate their main concepts with their reward system to define it properly.