Organizing is the second management function of coca cola. The following steps or organizational designs are seen in the Coca-Cola Company for accomplishing their goals and objectives:
The Coca-Cola Company is divided into various departments. Grouping of employees is based on their knowledge, skills and work activities. Such kind of approach helps the company in solving their difficulties and employees also need less training. As the general manger is head of all the departments so, all the departments have to report to the general manager in the company. There are five major departments in the coca cola company which are a following:
Industrial Relations Department
Sales and Marketing Department
Human Capital Department
Production Department: This department deals with all the production of the company. All the plants in the country are under this department.
Industrial Relation Department: This department manages the difficulties of the employees. The department listen the queries of the employees and send them to the high authorities for settling them up and stop them from becoming a hurdle in the work progress.
Sales and Marketing department: This department deals with the availability of products in the market for the customers to buy and deals with the problems of advertisement, promotion, and supply of the product.
Human Capital Department: This department looks after the efficient workers of the company. They promote these workers so that they remain happy and don’t leave their jobs. Management level employees are also dealt by this department.
Finance Department: This department deals with the cost and price of the products. It also sort out the import related issues. Finance department is helped by the sales and marketing department in making invoices and payroll entries.
The organization structure of Coca-Cola has shown the company’s operation in two broad geographic areas the North American sector and the international sector, which includes the Pacific Rim, the European Community, and Northeast Europe, Africa and Latin America groups.
2) Centralization and decentralization:
Before the nineties the company was having a centralize system , but after sometime they realized that if they had to meet the needs and wants of the customers they should have a decentralized system of control in which the power or the authority of decision making is distributed so that every sector can be managed effectively and efficiently. This system was implemented in the nineties by the company’s board of directors.
There is balance standardization and rules and regulations are clear to everyone. The organization has made the Code of conduct which is a guidebook for the employees on how they should act? The disciplinary actions are the major point of the code of conduct.
4) Chain of command:
The Chair of the Executive Committee plays the role of figurehead and chairs the board meetings. He is also the CEO as well as senior decision maker. Each division of the company has a public affairs director, finance director, marketing manager etc. When one of these divisions is executing some new plan, an advertising campaign for example, the division has to report their superiors. Since the company’s hierarchy is so tall, information has to travel back to corporate headquarters in the Unites states, where the Executive Committee has the final decision making authority.
5) Span of control:
Coca-Cola currently has more than 93,000 employees who are all under the supervision of the different levels of corporate management. There is a top managerial staff that controls the assembly authority and plan functions. The CEO is also a part of the Senior Leadership Team and even there are just six individuals that report directly to the CEO, he or she has the power to obtain information from different members of the leadership levels. Both the CEO and CFO have six people who represent them.
6) Work Specialization
There is a high percentage of work specialization in the Company because every manager is appointed in the task in which he is skilled so there is no monotony or boredom. All the promotions of the workers are based on their conduct and act. Therefore, no favoritism is allowed.
7) Delegation and Accountability
There is a high percentage of delegation in this company. The work is done with proper authority, power and responsibility. Every manager is made accountable for the performance of his subordinates. All the subordinates are directed very actively by their respective managers at the time of completing some goal. Managers also motivate their subordinates to boost up their energy, performance and make them more effective. They make them think that they have to give their highest performance to their managers which increase their quality of work.
8) Resource Allocation
When the company has to deal with the issue of resource allocation they give the authority to managers to use the resources of the wherever and whenever they are needed. Only they are required to get the acceptance from the manager if those assets or resource belong to his department. The resources can be labor, capital, machinery or anything else.
9) Organizing the Human Resources
The company does the recruitment process when there is a position empty and the recruitment is always done on permanent basis in Coca-Cola Company. In Coca-Cola firstly all the vacancies are announced within the organization so that if there is someone who is able to fulfill the requirements can get him/herself promoted or can refer someone of his relatives. If there are no suitable persons than the company searches its bank where there are huge amount of application of the candidates. If, by this way they don’t find someone capable they give advertisement in newspaper.
Muhtar Kent is Chairman of the Board and Chief Executive Officer of The Coca-Cola Company. He is on this position since April 2009. Previously he was President as well as Chief Executive Officer and earlier, President and Chief Operating Officer. Coca-Cola Company is “Tall” in terms of organizational chart. It is controlled through a vertical hierarchy, with decision-making power residing with the company’s top management. Daily and routine decisions are made by the line managers at the middle level. Coca-Cola has more than 700,000 system employees, moreover, their bottling partners. The company’s functioning has reach over 200 countries, with six geographic divisions or segments. The head office is responsible for providing the company with the direction and support to the regional structure.
STRUCTURE OF COCA COLA
The structure of the Coca-Cola Company is made up of both “Mechanistic & Organic” organizational designs. This Beverage Company mostly focuses on the responsiveness. All the complex integrating mechanisms are the characteristics of the organic structure. The company uses interviews and survey for the flow of information from bottom to up, latterly the information is exchanged through the intranet. The surveys have made the Company to believe of simplification and standardization. Standardization and Centralization are connected with mechanistic structure. The mix of the two structures is ideal for the company. When company wants to attract a huge independent market, on one hand it requires to be fluid and on the other hand to be more efficient in production. Coordination is easy for the company by using complex integrating mechanisms. Now that the information in the company is flowing very freely, the top level of management will get the information much faster due to the organization’s flexibility and responsiveness. Recently there was a change in the organization to make it more decentralized and organic which did not go well because of uncertainty.
Coca-Cola is effective as well as efficient, as they have made it their aim to succeed in these areas. Coca-Cola is more fascinated with efficiency than effectiveness, but they still achieve in both. They aim to maximize profits for shareholders by selling Coca-Cola products worldwide to a wide range of customers. They are able to do this all by vertical hierarchical organization that allows them to take benefit from a low cost strategy, increasing revenues and limiting expenses.
• Coke could invest more in diet programs, such as associate with schools and design healthy improved programs or invest more diet soft drinks, which will convert the obesity images of Coke and regain the younger market.
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