Organizational culture is one of the strategies employed by most of the companies

Abstract

Organizational culture is one of the strategies employed by most of the companies. It is vital in that: it defines the destiny of the company, brings on board solutions to the problems likely to arise, and serves as a base for a company’s improvement.  Similarly, effective management of the company ensures the progress of the company towards the realization of the set goals. There are five functions of management which include; planning, organization, motivation, staffing and control. These helps in the daily operation of the activities in the company and they act as a basis for evaluation of the company. The researcher chooses to discuss the organizational culture in chapter four, the five functions of the management, and their application in the Coca-Cola Company. The researcher also gives recommendation to the Coca-Cola Company useful for further improvement. This research is helpful in increasing knowledge; the researcher gets to know new strategies helpful in future strategic planning.

Organizational Culture and Five Functions of Management

The following is a discussion of organizational culture and the five functions of the management. The paper expounds on organizational culture in general and then discusses Organizational culture in the Coca-Cola Company focusing on the main characteristic of organizational culture. It then proceeds with the discussion of the five functions of management, which includes planning, organization, motivation, staffing and controlling, the paper highlight the necessity of these functions for success of any company.  The paper further investigates on how these functions of management are applied in the Coca-Cola Company. Additionally, it gives recommendation to the Coca-Cola Company.  Organizational culture and the five functions of management are vital for the growth and development of any company.  The Coca-Cola Company’s global success is largely due to its well defined organizational culture and well coordinated management.

Organizational culture

Organizational culture refers to a system of relationship between the stakeholders in an organization and the public. The unique system of relationship begets shared values, customs and beliefs. This provides guidelines as well as boundaries for the members, in relations to behavior and the mode of execution of tasks within an organization (Richard, 2013).  Organizational culture has a number of characteristics that vary in priority from one organization to another. Summed up, these characteristics make up distinctive traditions of an organization.

One of the characteristic is innovation; it implies creativity in execution of tasks.  The employees are given a room for taking risks in order to come up with new ways of improving the work performance. Emphasis on the outcome is another characteristic of organizational culture whereby the company pays attention to the results, regardless of the way in which they are achieved (Richard, 2013).

Another characteristic is emphasis on the people that sees to the treatment of human resource with dignity and respect. Teamwork is also an essential characteristic of organizational culture. Strategies are put in place to ensure that people work together as opposed to individual performance (Richard, 2013). In addition, aggressiveness as another characteristic of organizational culture takes into account the competition with other companies. Companies with aggressive culture do all they can to outdo their competitors. Lastly, stability is another characteristic of organizational culture whereby a company ensures a consistent level of output, while at the same time looking for markets for such outputs.  Evidently, organizational culture impacts on the performance and productivity of the company. Besides, it also sets guidelines on issues related to customer care, quality production and provides a safe working environment (Gilhuly, 2014). Put together, these characteristics bring about growth and development of a company.

Organizational culture in Coca-Cola Company

The Coca-Cola Company is a vast beverage company leading in production and selling of soft drinks around the globe. The huge success of Coca-Cola Company is largely attributed its organizational culture which factors aspects such as: uniqueness of its brand, high quality products, creative marketing of its programs, wide distribution the products and constant innovation (The Coca-Cola Company, 2014). The Coca-Cola organizational culture contains various aspects as discussed below:

Mission and vision is one of the aspects of Coca-Cola Company. The mission of Coca-Cola Company is to refresh, inspire optimism and create value that makes a difference. On the other hand, the vision provides a framework for the steps that guide the company. It is build around key words such as people, planet, partners, portfolio, profit and productivity. In order to make its vision a reality, the Coca-Cola Company is build on co-values which include, innovation, entrepreneurship  and respect for diversity. Other important values include leadership, integrity, collaboration, accountability, passion, diversity and quality (The Coca-Cola Company, 2014).

The Coca-Cola Company encourages innovation as a key aspect of the organization culture of the Coca-Cola Company.  All the employees are encouraged to be creative in their tasks while taking risk in invention of new methods. There is a system of rewarding the employees for taking risks and coming up with better ways to solve the problems.

The Coca-Cola Company is committed to respect of Human rights. The company has a well defined human rights policy and principles that guide their interaction with their suppliers. Undoubtedly, this provides a background against which their transactions are managed around the globe. In addition, the respect for human rights guides the company’s interaction with all the associates including customers, consumers, employees’ suppliers and the community at large. Reports indicate that the Coca-Cola Company endorsed and adopted the UN Guiding Principles on Business and Human Rights in 2011. This demonstrated the company’s commitment to human rights. Moreover, the company instructed its bottling partners and supplies to evade causing harm and to adopt measures that prevent violation of human rights (The Coca-Cola Company, 2014).

The Coca -Cola Company around the globe has build on a strong organizational culture characterized by motivation of the employees. Evidently, the company places high value in every single employee. It offers the best benefits and compensation packages to its employees. Opportunities for development are also offered to the Company’s associates.  In their turn, the employees work to their level best to keep up the standards of the company (The Coca-Cola Company, 2014).

Teamwork is another aspect of the organizational culture in the Coca-Cola Company. The employees are assigned duties in teams, for instance there is a team for marketing and a team for production. In these teams, innovation is highly encouraged and every individual’s contribution is valued. This kind of culture inspires trust within and without the Company, leading to the development of the entire Company.

The Coca-Cola Company is also characterized by clear communication channels. This ensures that issues are communicated in time, and feedback is received and worked on in time. Clear communication channels help the company to solicit valuable innovative ideas from all its associates around the globe. Some of the communication channels put in place includes weekly departmental meetings, surveys, monthly employee’s briefings for various teams and consultations (The Coca- Cola Company, 2015). Information acquired promotes business strategies and provides forums to share on any available opportunities. For instance, the company’s engagement with associates and bottling partners brought in initiatives that saw to its participation in Beijing 2008 summer Olympic. This turned out to be a good opportunity for marketing Coca-Cola products as well as give insights in designing of the vision, mission and values of the company. In addition, focused on the needs of the customers, the Company possesses a worldview, which bears in mind the diversity of the local needs and strategizes on responses to such needs (The Coca-Cola Company, 2014).

Five Functions of Management

Planning

Planning is a significant function of management; it is an ongoing course of action whereby the management takes into account every detail in the running of the company. It involves: deciding in advance on the tasks ahead, materials needed to accomplish the task, the time limit, and the persons responsible for every single action. Evidently, proper planning involves detailed work and involves of as many stakeholders (Richard, 2013).

Organizing

This is the second function of the management where physical, human and financial resources are brought together, and a productive relationship is established in view of attaining organizational goals. Organization involves identifying and grouping of connected activities, assigning of tasks to different stakeholders, distribution of resources, delegation and coordination of authority to key stakeholders (Richard, 2013).

Motivating

Motivation is an imperative feature of the management.  It is a process whereby the organization focuses on the stakeholder in order to inspire and encourage them in their work.  They are given incentives to ensure that they maintain zeal as they carry out various responsibilities assigned to them.

 

Staffing

Staffing is a vital function of the management that entails the recruitment, selection and appointment of competent personnel in the organization. Appropriate staffing ensures that right personnel are placed for the right responsibilities in the organization. Additionally, remuneration, promotions and transfers are necessary aspects of staffing (Richard, 2013).

Controlling

This involves measurement of the achievement against the set standard and correcting of any variation. The general performance of employees is checked against the resources distributed for various tasks. Similarly, suitable record of inventory is taken, control of production and budget alongside quality and the cost of production. This helps the organization to establish whether the plan was successfully followed and if the goals were met (Richard, 2013).

Five functions of management in Coca-Cola Compan Planning

Planning is a key function of the management in the Coca-Cola Company, as discussed earlier, in planning a Company takes account of every detail that entails the running of the company; this is evident in the Coca-Cola Company. For instance, recent reports indicate that the company plans to generate high single digit currency neutral earning per share growth.  In order to realize this, the company has developed five initiatives including simplification of operating model, expansion of its productivity program, focus on great brands alongside strong bottling partners, targets investment that influence global strengths and provision of local operations with clear goals. In expanding its productivity program, the company is targeting to save three billion US dollars every year by the year 2019. The Coca-Cola Company plans to acquire strong brands sold predominantly in one market and find markets globally in order to increase the sales (The Coca-Cola Company, 2014). Evidently, this demonstrates a clear plan as vital function of management of the entire Company.

Organization

The Coca-Cola Company has a very good organization structure that spells out duties and responsibilities of every stakeholder. It is organized into various departments which are collectively headed by a general manager. In every department, there are employees who are recruited depending to their competence. These departments include the organizing department, the industrial relation department, management production department, sales and marketing department and Human capital department. Organization in the Coca-Cola Company further encompasses work specialization, delegation and accountability, resource allocation and general organization of the human resources (Gilhuly, 2014). Evidently, he detailed organization of the Coca-Cola Company provides a space for the implementation of the plan.

Motivation

The Coca-Cola Company has put in place strategies for the motivation of the employees. Firstly, the Coca-Cola Company places a strong emphasis on the well being of its employees as a way of motivating them. In this, the employees are highly respected despite their varied backgrounds. In the same line, upon the date of appointment, every employee receives a package that makes him or her eligible for dental, medical, vision and life disability insurance. In the same line, the hardworking employees are promoted to senior positions. This sparks the other employees to work hard so that they too can be promoted. Besides promotion, the Coca-Cola Company has undertaken arrangement for the compensation of employees. (The Coca-Cola Company, 2014).

Staffing

The Coca-Cola Company has well established staffing practices. Competent workers are identified and hired as a result of their aptitude to perform the work given. The hired employees have values that are consistent with those of the organization. Adequate information is given to the employees during the selection process. This guides them in making informed decisions on what is expected of them and on what to expect from the company upon the day of employment (The Coca-Cola Company, 2014).

Controlling

Controlling is a vital aspect of the management of the Coca-Cola Company. It consists of measurement of the output against the input in line with the set goals.  In the Coca-Cola Company, the sales person is required to give a comprehensive account of the daily sales to the market developer. In turn, the sales person solicits assistance from the market developer whenever in need. The attendance of the sales person is taken using the punch card system. He is then given a route card in which details of visits outlet, time spent, number of sales, name of the loader and time taken when travelling from one outlet to another are recorded. Additionally, the sales person gives a filled up form for the orders of the following day at the end of each day. This helps the manager to account sales every day. The information is later used by the human resource department in evaluation of the total performance (The Coca-Cola Company, 2014). The evaluation of the sales is then carried out on a quarterly basis, and the employees who have recorded the highest or sale is either rewarded monetary or promoted to a senior position.

Conclusion

The success of every company lies in its organizational culture, and the appropriate coordination of the five functions of Management. Since its foundation, the Coca-Cola Company has proofed to be one of the vast beverage companies in the world. It portrays a good organizational culture focused on its mission, vision and the co-values.  Besides, the Coca-Cola Company demonstrates an excellent coordination of the five functions of management. Consequently, the company has seen a vast growth around the globe demonstrating its ability to outdo any competitors in beverage production.  This notwithstanding, the Coca-Cola company has failed to give back to the society in terms of creating projects which benefits the society. The researcher therefore recommends that the Company initiate more charitable projects that can benefit the public particularly in the developing countries.

 

References

Richard, S. (2013). How we built a workplace people love. Penguin. Inc.

The Coca-Cola Company, (2014). The Coca-Cola Company Statement on 2014 Equity Plan. Retrieved on 22 November, 2015. From http://www.coca-colacompany.com/press-center/company-statements/the-coca-cola-company-statement-on-2014-equity-plan/

The Coca-Cola Company, (2015). Coca-Cola’s 2014 Results & Future Growth Plan. Retrieved on 22 November, 2015. From http://www.suredividend.com/coca-colas-2014-results-future-growth-plan/

The Coca-Cola Company, (2014). Vision 2020 Road for winning together: TCCC & our bottling partners. Retrieved on 22 November, 2015 from http://assets.coca-Colacompany.com/22/b7/ba47681f420fbe7528bc43e3a118/2020_vision.pdf

Gilhuly, J. (2014). Coca-Cola Organizational Complexity. Retrieved November 22, 2015 from http://juliegilhuly.wordpress.com/2014/03/01/coca-cola-organizational-complexity/

The Coca-Cola Company, (2014). Mission, Vision and Values. Retrieved November, 22 2015 from: http://www.coca-colacompany.com/our-company/mission-vision-values.