Proposal of a reward and pay strategy to best benefit employees at Coca Cola
Order Instructions:
Project
For this project, you will research a well-known multinational company or a multinational organization that you know well and propose an appropriate reward and pay strategy that you believe would best motivate employees to meet the overall organizational strategy and objectives.
The task is to prepare and hand in a proposal including:
1)The nature of the project.
2)The sources of information you plan to use.
3)The most important concepts and techniques to be applied.
The following conditions must meet in the project:
1)Assess the organisation in terms of its organisational strategy, objectives, mission and values.
2)Analyse the environment in which the organisation operates with regards to industry, business life cycle, etc.
3)Evaluate the organisation’s current reward and pay strategies on two criteria: for meeting its overall organisational strategy and for maintaining competitive advantage in the face of new challenges and changing conditions.
4)Reach a reasoned and evidence-based conclusion about the level of success achieved by the organisation in motivating employees to reach organisational objectives and propose a reward and pay strategy that may better serve this purpose.
5)Your analysis and discussion should have a theoretical foundation based in library research and should demonstrate an awareness of the effect of cultural values on successfully managing a diverse workforce.
6)I want a typical and a quality answer which should have about 1700 words.
7)The answer must raise appropriate critical questions.
8)The answer must include examples from experience or the web with references from relevant examples from real companies.
9)Do include all your references, as per the Harvard Referencing System,
10)Please don’t use Wikipedia web site.
11)I need examples from peer reviewed articles or researches.
Appreciate each single moment you spend in writing my paper
Best regards
SAMPLE ANSWER
Abstract
The global economic environment is increasingly becoming competitive, more turbulent and full of uncertainties. Most organizations are yet to understand the direct impact that worker have on an organization’s level of performance, profitability and ability to sustain competition. To attract and retain well qualified, talented, innovative, committed and motivated employees, who are key to sustaining an organization’s competitive advantage, appropriate reward and pay strategy need to be implemented, yet most organizations prefer using the best practise strategy, a pay and reward strategy used by most organizations, instead of adopting the best-fit approach, which involves adopting a reward and pay strategy that is relevant to the organization’s existing circumstances, and aligned to both the human resource and the organization’s strategy. Reward and pay strategy provide a pathway that links the organization’s and staff’s needs to the compensation policies within the organization. This research shall investigate the best and most appropriate reward strategy that the Coca-Cola company may adopt to increase worker’s motivation and sustain competition, performance, productivity and profitability. To achieve this, various literature and articles on reward and pay strategies shall be analysed and appropriate one suitable for Coca-Cola identified. The research shall begin by looking at the Coca-Cola company, in terms of its mission, objectives, values and visions, analyse the company’s life cycle, industry and environment, as well as the current reward and pay strategy existing in the company. Next shall be methodology, the literature review and finally discussion. The proposed reward and pay strategy shall be presented to the company for consideration.
Introduction
A good pay package for employees is no longer a guarantee that a company will attract and retain skilled, talented and motivated labour, and neither will it guarantee success and performance if it is not aligned with expected performance and organization’s objectives (Mujtaba & Shuaib 2010, 112). Research is increasingly showing that a goods basic pay alone is not enough in raising a company’s performance. Reward and pay strategy refers to the adoption of a pay and reward policies that are relevant and aligned not only to an organization’s strategy, but also to the human resource strategy and organization’s objectives. Companies need to constantly design and develop pay and other reward strategies that are relevant and that match or fit in their strategy (Yi & Hai2011, 12). Pay and rewarding system that a company adopts can be either rewarding or devastating to a company, calling for thorough planning when designing these compensation policies (Mujtaba & Shuaib 2010, 113). Employees are the most important resources in any company and therefore, all possible ways to keep them motivated need to be adopted. A motivated employee, whose performance is recognized and appropriately rewarded, is likely to perform even more and become innovative in his work. Most organizations do not understand the link between strategic reward system and organizations’ success, yet reward policies practises by an organization have the potential of making an organization very successful or succumb to competition. The Human resource department is vital in influencing the pay and reward strategies that companies adopt. Successful organizations perform periodical evaluation and upgrading of the company’s performance and compensation strategies. As organizations strive to succeed, register increased profits, out-perform each other and meet their objectives, they have to overcome hurdles emanating both from their internal operations such as reward and pay policies, management or from the external environment such as recession, taxation policies, cultural values and demographic factors. While there are many factors that may influence an organization’s performance, employees within an organization play a key role in influencing an organization’s performance and achievement of its objective. Pay and reward strategies tell a lot about a company and it is the most visible and crucial aspect to employees (Mujtaba & Shuaib 2010, 115). It is against this background that this proposal seeks to make further research regarding the pay and reward strategies practised in organizations, with special focus on the Coca-Cola company, and identify the link between strategy adopted and performance and the best strategy that the company may adopt to increase employees motivation.
Coca-Cola Company is one of the most stable multi-national companies in the world operating under the manufacturing industry (Geisel 2012, 15)
Mission
The company’s mission is to ensure that the world remains refreshed, happy, inspired and optimistic. It is also keen on creating value and making a difference to its customers ((The Coca-Cola chronicles, n.d))
Vision and Values
Its values include leadership, accountability, integrity, quality and collaboration, while its vision is to become a great working place where employees are inspired to produce their best, to supply to the world high quality beverage that satisfy customer needs, to maximize profits while at the same time remaining responsible and realize rapid growth and efficiency (The Coca-Cola chronicles, n.d)
The company’s micro and macro environment
The company operates in a very competitive environment, just like other manufacturing companies. Both micro and macro environmental factors influence the company’s performance. Micro environmental factors such as competitors such as Pepsi, suppliers, pressure group and customer are forces that the company needs to deal with, especially due to the fact that the company operates in various parts of the world which may present difficult challenges to the company’s performance. For example, the company has had to deal with pressure groups from several Muslim countries who at one point boycotted consumption of the company’s products (‘Coca-Cola freezes expansion at Varanasi due to protests, approval delay 2014, 8-10). Macro factors such as economic cycles, demographic factors, natural disasters and political factors also play a role in influencing the company’s performance. The company for example has registered a decline in profits during the resent global recession and profits from politically unstable environments have caused the company’s profits to dwindle in the affected regions. Despite these environmental challenges, the company has managed to maintain a commandeering lead in the supply of beverages across the globe, with its product and brand gaining worldwide popularity (Eavis ,2014)
The company’s life cycle
The company has made tremendous gains since its inception or birth to the point of reaching maturity. The company can be said to have attained the highest point of growth, maturity, characterised by rapid expansion, and increased departments, large number of employees and financial resources as well as extensive formalization. Management style can be categorized as synergist, indicating a sophisticated and efficient management.
The current reward and pay strategies
The company’s pay and reward strategy and policies are intended to help the company achieve its strategic goals, missions and visions. Its reward system incorporates basic pay or salary, compensations, and other benefits such as healthcare policies. Coca-Cola company has incorporated a number of rewards in order to enhance performance of the employees. An eclectic approach include compensation that is the usual basic salary and other monetary incentives, ability to get loans and also incentives like promotions and other career growth opportunities. The working environment facilitates a good co-existence amongst the employees and also with those in management. Trainings are organised to facilitate personal growth that will in return lead to competence and achieving of the set targets. The Human resource is key in maintaining the staff that is essential to the good performance of the company. The release of performance results also means extra bonuses and recognition of individual workers’ contribution that is good for esteem growth and identification with the company. The individual assignments given will also lead to opportunities to identify the weak personal points and offer training to fill these gaps and in future lead to better performance both at the individual targets and the company’s targets (Anfuso 1994, 112)
Methodology
This research shall be based upon review of various literatures examining of documents regarding the reward and pay strategies that can motivate employees and enhance their performance. The main literature reviewed shall be articles, books, business journals and periodicals, and other relevant human resource related publications related to reward and pay strategies, so as to find out the best reward and pay strategies that human resource most recommended by HR experts and practised by most successful and modern organizations.
Literature Review
For an organization to succeed and maintain a competitive edge over the rest, it has to effectively reward and motivate its employees. The human resource department has the responsibility of managing performance of both employees and managers. The reward and pay policies an organization adopts is responsible for motivating workers, especially when it is timely, effective and comprehensive (Yi & Hai 2011, 15). Studies show that there is a positive relationship between an employees pay and reward, to general organization’s performance. If employees perceive the pay and reward to be fair, they are more likely to be motivated towards their work (O’Byrne & Gressle 2013,28). Organizations need to reward any improvement in performance and employees’ quality work because if workers link the reward and pay to their performance and work, then they are more likely to strive towards producing quality results. To encourage employees to always be ethical at the work place, then managers may find a need to reward workers behaviour to motivate such ethical behaviours. The HR department has also the responsibility of ensuring that the reward systems adopted are in line with the organization’s values, missions and objectives. The pay and reward systems should also be based on merit and highly performing employees should receive higher rewards (Zenger 1992, 200). Most HR specialist recommend adoption and implementation of a total reward strategy. This whole-some strategy encompasses compensation, which includes basic pay, pay increase, promotions and merit pay. It also includes benefits such as health care benefits and retirement benefits, as well as off-time considerations. A comprehensive reward system should also allow for personal growth through regular training, provide opportunity for career development, and fair performance management ((Gross & Friedman 2004, 8))
Conclusion
To further sustain its competitiveness, provide quality product that refresh the world, and increase employees innovation, a total reward strategy would be the best for the company to adopt. Various employees are motivated differently, either intrinsically or extrinsically. A total reward system will address all the different types of worker expectations (Gross & Friedman 2004, 8). This will keep them motivated and productive. The company will also be able to retain them and make use of their talent.
List of References
Anfuso, D 1994, ‘HR unites the world of Coca-Cola’, Personnel Journal, 73, 11, p. 112.
‘Coca-Cola freezes expansion at Varanasi due to protests, approval delay’ 2014, FMCG Snapshot, pp. 8-10.
Eavis, P 2014, ‘Coca-Cola, yielding to criticism, revises its proposal for executive pay’, The New York Times, 2014, Opposing Viewpoints in Context.
Geisel, J 2012, ‘Coca-Cola designs innovative captive plan’, Business Insurance, 46, 19, p. 15.
Gross, S, & Friedman, H 2004, ‘Creating an Effective Total Reward Strategy: Holistic Approach Better Supports Business Success’, Benefits Quarterly, 20, 3, pp. 7-12.
Mujtaba, B, & Shuaib, S 2010, ‘An Equitable Total Rewards Approach to Pay for Performance Management’, Journal Of Management Policy & Practice, 11, 4, pp. 111-121.
O’Byrne, S, & Gressle, M 2013, ‘How ‘Competitive Pay’ Undermines Pay for Performance (and What Companies Can Do to Avoid That)’, Journal Of Applied Corporate Finance, 25, 2, pp. 26-38.
The chronicles of Coca-Cola, n.d. assessed on 15th December, 2014 from http://www.theCoca-Cola company.com/heritage/chronicle_birth_refreshing_idea.html
Yi Hua, H, & Hai Ming, C 2011, ‘STRATEGIC FIT AMONG BUSINESS COMPETITIVE STRATEGY, HUMAN RESOURCE STRATEGY, AND REWARD SYSTEM’, Academy Of Strategic Management Journal, 10, 2, pp. 11-32.
Zenger, TR 1992, ‘Why Do Employers Only Reward Extreme Performance? Examining the Relationships among Performance, Pay, and Turnover’, Administrative Science Quarterly, 37, 2, pp. 198-219.
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