Running head: CASE STUDY; COCA COLA COMPANY 1

Management Case Study.

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Part a;

Management theories are the perceptions on different ways to run a business based how

the employees and the systems operate. The theories used in our coca cola case study include;

scientific management theory, human relations theories, systems theory, and bureaucratic

management theory. The parent company’s head is quartered in Singapore. The mission of the

coca cola company is to refresh the world, inspire happiness, create value and, make a

difference.

Frederick Winslow Taylor an American engineer was the father of scientific management

and a major contributor to the development of the scientific management theory in the 19th

century. The theory emphasizes on efficiency and rather than addressing employees on every

mistake, the theory emphasizes the managers to reward and encourage the workers on their

achievements more instead. Productivity is a valuable result of this practice. The theory operates

under these principles: monitored performance, giving delegate responsibilities and training

workers, work allocation between managers and employees and, breakdown of assignments into

subtasks[ CITATION Sam19 \l 1033 ]. The managers of the coca cola company annually reach their

overall goals with the consultation of the lower employees. The board advices the senior officers

on how to safeguard the company’s asset maintaining good control over the company under the

laid rules and regulations. They also consult with the workers and acknowledge them before

making any major decisions. Management comprises of process planning, policy making and

execution. Therefore, for this to be achieved the administrative management has to include the

operative management.

Max Weber was a modern thinker who developed the bureaucratic management theory,

which structures an organization into a hierarchy. Authority is centralized and decision making
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under this theory requires following a strict chain of commands with reference to levels below

and above. The theory has a number of principles that organizations operate under. They include;

task specialization, formal selection, hierarchy of authority, rules and requirements, career

orientation and impersonation[ CITATION Mad18 \l 1033 ] . Impersonal relationship in Coca Cola

Company are not allowed especially nepotism when it comes to hiring employees or acquiring

ranks in the company. All employees in the company are selected based on skills and

competence through evaluation on their level of education and experience. Such principles aim at

only the success of the organization.

Systems theory developed by McGregor mostly entails that worker attitudes defines their

management theory they choose to utilize. The managers who strongly believe that the workers

need to set their goals right lean towards theory x management style while theory y believes the

workers are driven naturally to take responsibility. Coca cola company having such a sheer

number of employees and tight scheduled deadlines employs theory x in its operations majorly.

The managers are more authoritarian to get things done and their control firmly centralized in

order to monitor the large number of workers. The company is global thus; management is really

a difficult task.

The contingency theory explains that there is no best way to lead an organization. The

theory developed by Fred Fiedler explains that there are too many constraints both internal and

external, which change the best way to lead an organization in a certain situation. A leader must

be able to identify which management style will help achieve the organization’s goals in a

certain situation without failure. The theory measures the manager’s leadership skills in an

oriented manner[ CITATION Kha15 \l 1033 ]. Such environmental variables help to make the

managers and, other leaders understand that there is no general leadership style in all situations.
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The coca cola company produces syrup and concentrates. A sudden low supply of the raw

materials can lead to poor business and the management should be ready to handle such an event

when it happens.

Part b;

Staff transfer and turnover is a major managerial issue nowadays. High staff and top

talent in an organization are difficult to retain and to replace those leads to massive losses to the

organization. The staff of course leave with their knowledge and expertise and this is a drawback

to the success of a company. The manager’s priority should be to retain and attract more such

talent and it is a challenge. Annual promotions and grants can help retain high staff in such a

competitive world. Change in the business environment is another challenge affecting the

mangers. Such a rapid change in the modern business world may become a problem for a

manager who have remained in that post for more than 20years.

Change in technology, culture and growth opportunities bring competition and an

outdated manager may lose in the competition. This will make the organization end up losing

loyal customers and closure of the business. Competition also disadvantages managers in terms

of maximizing the organization’s resources. They therefore end up terminating new goal plans

due to lack of enough resources. Getting the best skilled employees is also an issue. The manager

needs to update the work force but with the constantly changing world, the work force is

constantly needed. The requirement is hard to acquire as it comes with a cost and each time an

employee is hired they get outdated after sometime. The problem can be solved with offering

training regularly to evolve the learner’s requirements and needs in the organization [ CITATION

Iba12 \l 1033 ]. The managers also fail to understand diversity laws that can ensure the workers

are in harmony.
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The managers are entitled to the role of ensuring the organization has protocol to deal

with complaints and harmonizing the diversity. Without harmony at a workplace, a business will

end up with low productivity due to low morale of the workers. Businesses are regularly

accompanied with regulatory issues and if the manager is not updated with the new policies, it

can lead to penalties and lawsuits for the organization. This is a challenge for the managerial

staff. Globalization is also key in the modern world. Managers are burdened with the task of

globalizing their organizations. The world is a global village due to the new technologies. The

managers need to acquire talented employees across the world in order to achieve growth as per

the economy. Global reach will increase the potential customers and help business find

economies with affordable costs globally.

Part c;

An organization’s culture comprises a set of the shared values, beliefs and norms and

which have characterized the organization as a whole. Individuals always look for the

organization with great cultures for the sense of belonging and aspiration to accomplish

something remarkable. Elements such as effective communication, purpose, ownership, good

leadership, and community are essential to sustaining positive organization cultures. Solid

communication involves allowing free and open door communication between the managers and

upper level executives and, the employees. Effective communication will indoctrinate new

members into the employee community effectively. In board meetings in coca cola companies,

the number of individuals are allowed to speaker at equal number of times with no

discrimination. Social interactions get the job done a concept that is illustrated in scientific

management by Winslow’s theory that proper communication between the employer and the

employee before decision-making will lead to success of the organizations’ goals.

Leadership of a company with integrity and compassion is what people want. Respect

between the management and the lower level employees will improve performance of the

organization[ CITATION Mic19 \l 1033 ]. A more commanding and respected leader will make key

decisions and the workers do as they are told. Such a leader should also take time to coach the

employees and listen to them, which entirely increases the bond between the two. This strategy is

an advantage in organizations like coca cola with shire numbers of employees as explained in

McGregor’s systems theory. Good leaders actually spare their time and engage hand-on activities

with the employees and such simple acts will develop more compassion on their leadership.

Many companies have clearly defined mission statements or goals that each individual in

the organization look. Organization with no goal and strategies definitely remains in the
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competitive world of other businesses[ CITATION Tho08 \l 1033 ] . A clear mission will set the

organization in a common course and the despite any internal or external factors, the achieved of

the goal is a success due to commitment. External and internal constraints are part of the mission

as explained in the contingency theory and the management has to be ready to encounter such

situations. Innovations between the management and the employees together with cooperation

will reduce competition when employed in the main strategy.

Norms in an organization represent the typical and accepted behaviors in an organization.

Norms reflect values and beliefs in an organization. This is the way of doing things in an

organization. For instance, the chain of commands in an organization is observed for the

organization to perform effectively. In addition, one cannot take another higher-level role in the

organization as it can lead to chaos in the way of doing things. Max Weber’s bureaucratic theory

explains this notion about chain of commands for an organization to function well. The

employees should incorporate new employees into the organization through solid communication

and advise them on the organization’s norms. This way the management will have an easy time.

Part d;

Initially the manager must be aware of the economic issues and status of other countries

before doing business. It can be a private economy where the resources are primarily owned by

the private sector or a planned economy system where all the economic decisions are planned by

a central government. A manager who understands these economic issues including the currency

exchange rates, diverse tax policies and the inflation rates of the other nation(s) will easily carry

out business. Global reach also allows a manger acquire more talented working personnel to

incorporate in his/her local or global organization. The global market is wide and has varying
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people with various skills that if a manager employs in an organization definitely will be a

success.

The global economy allows maximizing of resources as the market is larger and even

easier to purchase more resources[ CITATION Ste15 \l 1033 ]. Managers working in the global

economy have wide opportunities to expand an organization’s operations and performance. On

the contrary, the global economy can be a threat to a manger working in a global organization

severally. The strength or weakness of a nation’s currency constrains manager’s decisions in

business and the end profit. Price inflation can be a threat to an organization’s performance due

to increased revenues, affected pricing, sales volumes, and the overall budget.

High political risk assessment in other nations is a threat to a manger working in a

multinational organization. Such organizations suffer risks such as supply chain interference,

political disturbance, and unfavorable exchange rates due to political instability, regulatory risk,

and political violence. Such threats to the manager make maintenance of such an organization

difficult. Managers in other nations find it hard to do business, as some countries do not entertain

foreign businesses like China. For instance, coca cola companies in the Middle East and other

regions with high political risk assessment tend to perform lower compared to other regions like

in Singapore.

National culture tends to affect the employees in an organization more than the culture of

the organization. Cultural differences that encompass the history, religion, traditions and other

intense values make managing in a new environment or nation very complicated [ CITATION

Bye08 \l 1033 ]. The culture of a different nation is different and difficult to understand, as even to

tell someone else explain and narrate it to you is a problem too. This threat can make a manger in

a global organization hit an iceberg in his/her role. The manager can only develop a global
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mindset in order to blend in a new environment. Such a mindset is achieved by building a

trustworthy relationship and connecting with the different race, equipping yourself with

international business knowledge, and openness to new ideas and experiences in the other nation.

Managers with such skills easily sustain their businesses on the global scale. Different climates

can also be a drawback to managing a transnational organization. Climates vary widely and the

way a business is managed in America is very different in Africa in terms of climate. Such

threats hinder managers working in global organizations.

Part e;

Management diversity intends to create a positive work environment in which all the

personal differences are valued and everyone work towards the organization’s goals. Managers

in a diverse workforce environment need to collaborate and work effectively to allow normal

businesses operation. Such diverse environment includes sex, religion, race; personal differences

at work, culture differences, and others. Such differences affect team performance and

interaction. Managers must correctively plan their strategies that will be effective and inclusive

in the organization.

Managing diversity is more than simply acknowledging the people differences but also,

recognizing the value of the differences, battling discrimination, and promotion of

inclusiveness[ CITATION Mor05 \l 1033 ]. For instance, when new large number of first generation

employees are incorporated into the workforce, the induction system in the organization need to

be more inclusive. These can be achieved only by collaboration between the managers and the

previously employed workforce. The managers also minimize the negative elements in the

workforce like discrimination and group thinking. On the contrary, the positive elements and

other good deeds should be appreciated and rewarded to create a warm working environment.
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Performance appraisal manages diversity and equality widely in an organization. Collaborating

to a common strategy and laid rules among all managers will eradicate all levels of inequality,

differences and discrimination in their respective departments. Collaboration also allows sharing

of personal and professional experiences.

The level of equality between the men and women in an organization is diverse feature to

its operation. The managers’ work is to ensure that no gender is favorably approached and that

they interact in a health manner. For instance, if a female gives a complain to the management,

the manager should listen to both genders without ignoring any and find out the actual problem

with no favoritism. The manager’s collaboration can will also oversee recruitment of more

diverse employees who can understand global markets and cultures [ CITATION Emm14 \l 1033 ].

Globalization is at a high rate to increase diversity and development. Diversity must be pushed

from the higher levels. For instance, the board should have equality in terms of gender to allow

distributed functioning even at the employee level.

Actually, boards with higher number of women tend to function better as women are

given a chance at the lower levels to show progress. Other senior leaders improve diversity by

empowering women to work to their full potential. Managers also need to identify any

collaborative spaces in their board and the workforce that allow threatening conversations and

correct them. The managers should also collaborate and work together to understand cultural

stereotypes and avoiding personal biases. Culture awareness programs are one way the mangers

can lead by example and allow the employees believe in their ethical behaviors. All these

diversities when laid aside can allow a common objective of the whole organization become a

reality.
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