Organizational behavior is an important aspect of any company. Organizational behavior, according to Clegg, Komberger and Pitsis (2011), is defined as the processes and practices that provide the opportunity for individuals to perform to their utmost ability through interaction (2011). Based on this definition, businesses and companies should seek to understand the different types of personalities that work at their respective organization. In doing so, it not only allows for better operation, because employees and staff are continually motivated to do not only the right thing, but to be productive. One organization that thoroughly understands the concept of organizational behavior is Coca-Cola.
Effectively Managing Individuals
The Coca-Cola Company (2016) writes that it is relies heavily on its employees. "Each associate brings his or her unique talents and ideas to work to help the system achieve the goals" (p.1). Coca-Cola, essentially, seeks to foster an environment that promotes success and contentment among its associates. The Coca-Cola Company (2016) goes on to state that it strives to ensure that its work environment is inspirational and driven by engagement (p.1). This is an important element of the Coca-Cola Company in that the work environment directly affects the schemas of the individual.
Schemas as noted by Clegg, Komberger and Pitsis (2011), are the specific feelings and thoughts that are developed within a certain interaction (2011). With Coca-Cola, the relevance and importance of interacting and engaging its employees is necessary, because individuals would not necessarily want to achieve the goals that the company has set without an environment that encourages interaction and constant communication.
The Coca-Cola Company (2016) states that it engages employees through encouraging open communication, which allows for seamless dialogue about information such as business strategies, awareness of what is going right and what is going wrong, and affords employees the opportunity to share their successes and to offer suggestions, where appropriate. The company also seeks to continually develop its employees and reward them. This is done through benefits and compensation packages, that it states are "among the best in the world, [and] benchmarked against other global, high-performing employees" (p.1). The company explains that it seeks to fully manage and develop each and every individual apart of its staff.
It is essentially the motto of the company to help others succeed and to develop their skills and talents. In having open communication and developing employees as much as possible, this assists in helping to develop the individual schemas by improving performance and productivity. It also allows for the employees to fully assess and state whether Coca-Cola Company is a good organization to work for. The Coca-Cola Company (2016) writes that it utilizes a "peak performance system, which is a development and performance management system that effectively trains and proper articulates the vision of the business" (p.1) and works to effectively strengthen individual talents and skills.
Ganta (2014) believes that motivation and engagement are highly effective when seeking to manage individuals. There is a need for employees to feel good about the jobs that they are hired to do, and to optimally perform. It is true that not all employees need engagement to do the tasks and duties they are given, but most individuals appreciate when they are both motivated and recognized for executing their professional and personal objectives. Motivation and engagement are ultimately, psychological dynamics that an organization can use to not only be widely acknowledged by its staff, but recognized for their stellar reputation (p.222-223).
Although motivation and engagement are key characteristics that companies should employ, Ganta (2014) states that many leaders and managers find it difficult to employ them. It appears as though, the approach by which certain companies seek to motivate their employees is either not accepted, or missed altogether by the very individuals (the staff) (p.223). The Coca-Cola Company however, seems to, based on the information provided, know how to motivate and engage its staff. It can be reasoned that the company has not always known the buttons to push to adequately do this. The company recently crafted what is referred to as its 2020 vision. One of the aspects of the vision that the company states is being a great place for employees to work, so they feel inspired (The Coca-Cola Company, 2016). This means implementing and integrating strategies into the environment that not only have been tested, but work for each individual that works at the company.
It is almost a must for companies to effectively implement engagement tactics into their modus operandi, so that employees and staff take that company’s operations seriously. Ganta (2014) observes a correlation between motivation and employees, and why some companies tend to fold, or perform poorly. Simply put, it is because employees are not encouraged to do their jobs, so certain duties and tasks fall and slip through the cracks (p.223). It is essential to note that the Coca-Cola Company is not without blemishes in terms of motivating and engaging its staff, but has effectively striven to hold its employees in high regard. This allows the individuals to not only be effectually managed, but for the company to value their employees. When people feel valued by the company they work for, they feel as though they can properly and effectively perform what the company is asking them to do with minimum hassle or issue.
Managing Knowledge
Managing knowledge is another area that the Coca-Cola Company needs to ensure does not falter. Knowledge management is a specific form of organization of both the information and knowledge of a specific company. Koenig (2012) writes that knowledge management is a way of capturing, identifying, retrieving and evaluation informational assets (p.1). There are two types of knowledge that can be transmitted through an organization and this includes: explicit and tacit. The former is defined as understanding that can be discussed and elaborated on, while the latter is a specific type of knowledge that can be used to execute certain tasks and/or responsibilities (Clegg, Komberger and Pitsis, 2011).
Jelenic (2011) explains that when knowledge management is implemented, that it allows for a continual assessment and evaluation of the core principles and values of a company. Companies and organizations through the use of knowledge management can increase their overall reputation. When information and knowledge is transmitted across an organization, it allows for better decision making. The ultimate goal of knowledge management is to make sure that employees within a company are fulfilling the responsibilities that have been given them, and the overall objectives and strategies related to that company are fulfilled (p.35-36). When looking at the Coca-Cola Company, there are some issues with how they are managing their knowledge management.
It appears as though the company is faltering in the area of better positioning itself amidst changing consumer preferences. Hartung (2014) details that many consumers are opting for iced tea, coffee, or water throughout the day as opposed to soda. While it is true that Coke is a giant in the area of beverage manufacturing, the core product within the overall company is losing its relevancy. Consumers are starting to look at the healthfulness associated with soft drinks like Coca-Cola, and the various sweeteners that are used within the company’s products. The vigor and vitality that is connected to the reputation of Coke is no longer applicable in the 21st century (p.1). It would seem as though there have little decisions made to shift the taste of Coca-Cola in order to satisfy the changing palates of consumers. When looking at a bottle or can of Coke, the same formula is still being used. This suggests that knowledge management practices are not be effectively implemented. Essentially, the research and development team is not trying to create a healthier option of consumers since they are moving toward purchasing alternative beverages, or sodas that utilize natural sweeteners.
Even with the recent implementation of Coke Life, which was slated to have a substantially less quantity of sugar, Dean (2015) notes that the company has simply health washed in terms of trying to appeal to consumers. Coke Life has a relatively high amount of sugar even though it is targeted toward health conscious soft drink lovers. Given the recommended dosage of sugar that individuals should consume which is 25g, the 22g that Coke Life has in it does not bode well for the image of the company in trying to appeal to the changing preferences of consumers (p.1). The company does not appear to be effectively transmitting the necessary information and knowledge across each of its departments. As such, the management of knowledge surrounding one of the its largest and most profitable products is failing considerably, in spite of the reputation that the company has for having a tight grip on the consumer marketplace.
Managing Organizational Design
When examining Coca-Cola's organizational design, it is a very automatous organization. These types of organizations according to Clegg, Komberger and Pitsis (2011), are much stabler environments than that of organic businesses, which typically have a certain level of uncertainty (2011). The Coca-Cola Company (2016) notes that it has several divisions, which have allowed it to become automated and bureaucratic in nature (p.1).
The Coca-Cola Company is very structuralized in terms of each department and division having designated duties and specializations. This is problematic, however, because it does not allow for an extensive amount of innovation. While the company touts its ingenuity, the truth of the matter is that because of its bureaucratic approach, there are limitations to the amount of innovation that individuals within the organizational design can come up with.
Latif, Baloch & Khan (2012) detail that structures are important in organizational design, but that learning can also be hindered when there is too much regimented hierarchical operation. When there is a bureaucracy in place at a company, there is often cost-cutting that takes place at the expense of promising innovations because of managerial positions being in control and making the final decisions (p.10-11). Essentially, companies that operate within a bureaucratic structure tend to implement certain strategies and suggestions late because there is a significant amount of red tape that has to be navigated through in order for them to be approved. If suggestions and recommendations are made by employees and staff, regardless of division, they have to be approved by multiple people, which often leads to ideas being implemented late, or not being as innovative enough because they have passed through numerous hands within the organizational design. Larger companies are typically structured in a bureaucratic organizational design, which does not always allow for innovative ideas and strategies to be implemented effectively, if at all. Does this mean that Coca-Cola needs to change its organizational design? Not necessarily. It simply means that how it is operating presently needs a revamp.
Recommendations
Managing Individuals
Employee retention plays a significant role in effectively managing individuals. While Coca-Cola Company states that it offers competitive benefits packages for its employees, it seems as though the company has become lackadaisical in other areas. Employees need to be valued, and while compensation is warranted and necessary - it is not the only reward. There are intrinsic rewards that employees need. Intrinsic rewards are intangibles, such as recognition for one's endeavors and simply put, a job well done. Given the nature of the Coca-Cola Company, it will be important and essential for managers to express the gratitude for their teams and for the company to thank staff and employees with more than just compensation. This is a given when working for a company.
Other types of intrinsic rewards that Coca-Cola should integrate into its system is meaningful work. While it is believed that employees enjoy working for the corporation, this does not necessarily mean that they actually do. Much of the information obtained on Coca-Cola was from the company itself rather than employees and staff. As such, the company needs to ensure that it is giving its employees work that they find meaningful, so it does not end up becoming a corporation that sees and views its employees as just another number in the system.
Additional intrinsic rewards that the company should consider in order to manage individuals better, or rather – motivate them to do their job and achieve the specific objectives and strategies of the company – is collaboration and teamwork. There is a strong likelihood that the teams at Coca-Cola meet frequently to discuss the changes and provide updates on what is happening. However, this does not mean that the company is doing a good job at fostering collaboration and teamwork in terms of new ideas and concepts being presented, or projects that are in need of being accomplished. Here again, the information obtained on the management of individuals came directly from Coca-Cola, so the information is not necessarily balanced.
Managing Knowledge
This appears to be one of the larger areas where Coca-Cola is struggling. There does not seem to be an understanding of the changing preferences of consumer tastes. This is evident by the rollout of Coke Life, which only minimally has a reduced amount of sugar. Thus, the company needs to go back to the drawing board and derive new ideas through analysis and examination of consumer data to innovatively release products that are appealing. It can be argued as expressed by Dean (2015), that consumers are simply refusing to or limiting their Coke product purchases because the company has not changed as consumer preferences have. This essentially points to the company’s need to update the way it handles its knowledge management.
There are significant gaps in terms of what is being relayed across the various teams, which suggests a lack of thorough comprehension of the 21st century consumer. Even if those within the particular departments are making suggestions for changes associated with the company’s products, it would seem as though they are not being looked at or being implemented. There is reason to believe that if the company does this, then there will be a better facilitation of information and subsequently, learning across the entire organization as to what works and does not work. The company will come to discover that by changing products like Coke Life to better suit consumers that are conscious of their health, they will in turn, have better success and profitability. The responsibility will fall on the shoulders of many, particularly the president and CEO, in terms of making sure that the newly implemented revamping of the ways in which knowledge is transmitted is implemented timely and effectively.
Managing Organizational Design
It is recommended that the Coca-Cola Company needs to limit its bureaucratic operations. The company stands to benefit tremendously by allowing for smoother synergy. Certain decisions and strategies are either not implemented at all, or implemented late. As a result, the company's relevancy is faltering substantially. It is recommended that the company take a step back from the current design of its structure, and gravitate more toward listening to its employees and making changes, where and when applicable in terms of who does what and when ideas are executed.
The company, presently believes that its extrinsic rewards are beneficial to employees and staff – and while this is true, intrinsic rewards need to also be considered by the company. Employees want to feel that they are performing meaningful work and are valued above the compensation that is due them simply for working at said company. By redesigning the current organizational structure, Coca-Cola stands to provide more intrinsic rewards to its employees and staff, which will in turn, allow for more profitability, success, and more recognition among consumers worldwide.
References
Clegg, S., Kornberger, M., & Pitsis, T. (2011). Managing and Organizations: An Introduction to Theory and Practice. Thousand Oaks: SAGE Publications Ltd.
The Coca-Cola Company. (2016). The Coca-Cola Company. [online] Available at: http://www.coca-colacompany.com/ [Accessed 7 Apr. 2016].
Dean, S. (2015). The 'low-calorie' Coke drink that still has SIX teaspoons of sugar. [online] Daily Mail. Available at: http://www.dailymail.co.uk/news/article-3018850/Coca-Cola-accused-health-washing-single-Coke-Life-maxes-daily-recommended-SIX-teaspoons-sugar.html [Accessed 7 Apr. 2016].
Gunta, V. (2014). MOTIVATION IN THE WORKPLACE TO IMPROVE THE EMPLOYEE PERFORMANCE. International Journal of Engineering Technology, Management and Applied Sciences, [online] 2(6), pp.221-230. Available at: http://www.ijetmas.com/admin/resources/project/paper/f201411201416479373.pdf [Accessed 7 Apr. 2016].
Hartung, A. (2014). Coca-Cola's Problems Reflect a Giant Losing Relevance. [online] Forbes. Available at: http://www.forbes.com/sites/adamhartung/2014/10/28/coca-colas-problems-show-us-a-giant-losing-relevance/#17ece6eb290b [Accessed 7 Apr. 2016].
Jelenoic, D. (2011). THE IMPORTANCE OF KNOW LEDGE MANAGEMENT IN ORGANIZATIONS – WITH EMPH ASIS ON THE BALANCED SCORECARD LEARNING AND GROWTH PERSPECTIVE. [online] Conference Report. Available at: http://issbs.si/press/ISBN/978-961-92486-3-8/papers/ML11-1.pdf [Accessed 7 Apr. 2016].
Koenig, M. (2012). What is KM? Knowledge Management Explained. [online] KM World. Available at: http://www.kmworld.com/Articles/Editorial/What-Is-/What-is-KM-Knowledge-Management-Explained-82405.aspx [Accessed 6 Apr. 2016].
Latif, K., Baloch, Q. and Khan, M. (2016). Structure, Corporate Strategy and the Overall Effectiveness of the Organisation. Abasyn Journal of Social Sciences, [online] 5(2), pp.1-13. Available at: http://aupc.info/wp-content/uploads/2013/02/V5I2-1.pdf [Accessed 6 Apr. 2016].
