University of Botswana: Faculty of Social Sciences
University of Botswana: Faculty of Social Sciences
University of Botswana: Faculty of Social Sciences
MPA-601
FOUNDATION OF PUBLIC MANAGEMENT & INSTITUTION
TERM PAPER
TITLE:
ORGANIZATION EFFECTIVENESS ASSESMENT OF COCA-COLA USING
THE GOALS APPROACH MODEL & PARTICIPANT SATISFACTORY
MODEL
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This paper discusses organizational effectives and assesses the Coca-Cola Company
using the goals approach and participant satisfaction model. This paper goes on to
argues that using two out of the numerous organization approaches to assess an
organization most times might not yield affective and objective results due to the
diverse culture that exists in Organizations.
INTRODUCTION
Businesses spring up every day all over the World necessitating the need for a
services.
Staying globally competitive and at the top performance is an outcome of being excellent
The word ‘Organizational Effectiveness ’ is an equivocal term, which has sprung as one
of the most controversial issues in organization studies and research; various scholars
have given different definition and interpretations based on the context it is being used.
nature; often times it necessitates the organization to define the measurement for
effectiveness. (Cameron, 1986, p.87). Other complications that come with organization
effectiveness is the criteria chosen by researchers that might often seem right to them but
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This term paper takes a cursory look at the ideology and concept behind organizational
effectiveness, the second section presents the five concepts of organization effectiveness
studied in class and finally the third section examines the goals approach and participant-
furthermore elucidates on the strength, weakness, opportunities and threat (SWOT) of the
global brand.
Organizational effectiveness has been studied for a long time. The concept of
attainment. “In this sense it is rather functional than structural” (Basil & Arnold, 1957, p
534).
The task of defining organizational effectiveness spurred various researchers across the
globe to formulate models of various dimensions that was used as a yardstick to measure
The different models developed came with its own limitations, because the criterion of
effectiveness was predetermined and limiting to the specific organization for which it was
tested on, so when used in another settings it posed some challenges because it wasn’t
long and short term goals (Ashraf, 2012, p 80). Simply put Organization effectiveness
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refers to the ability of an organization to use its limited resources to achieve stated goals
and objectives.
To clear doubts, it is critical to state that organizational effectiveness is not the same as
organizational efficiency; the latter simply denotes how a company can use money
profitably. Organizational efficiency is about how well a company can maximize profit
based on the capital obtained through equity and debt. An Organizations return on
Brian & Company (2009) highlighted five key areas that help determine effective
organization they are: leadership, decision-making & structure, people, work process and
Scotch & Forbes (1998, p 121), in their review of empirical studies of effectiveness in
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organization observed the trends amongst researchers, they pointed out that researchers
tend to often draw from one, or more, of the three key approaches to measure
organizational effectiveness; the goal approach model, system resource approach and
Cameron and Whetten (1983, p.262), both arrived at two conclusions about
organizational effectiveness. First, they opined that there cannot be a single general
important that framework for assessing organization effective ness is developed rather
than trying to propound theories of effectiveness (Cameron & Whetten, 1983, p. 267).
In the course of the MPA 604 class on organizational effectiveness, Hal Rainey’s
classification of organizational effectiveness model was studied and will be the adopted
model for this term paper. According to Rainey (2008), the subject, organizational
effectiveness centers around the following approaches, they include: the goal approach,
internal process models and the competing values approach. Other approaches for
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measuring organization effectiveness are the process approach, strategic constituency
The above listed organization effectiveness model by Rainey (2008), will guide us
through the process of this study, a close focus will be thrust at the goals approach model
and the participant-satisfaction model which will be used to assess the organizational
The most widely used model in assessing organizational effectiveness is the goals
approach. It is an effectiveness framework that is more concerned with the output side of
organization, their ability to excel at a single or multiple output goals and how
organizations succeed in achieving its stated goals in line with desired output levels. In
general it is the bottom line that counts in the goals approach model
“as the extent to which organizations excel in attaining their goals”. Forbes further
pointed out that organization goals are commonly used to identify matching indicators of
effectiveness in organizations.
The goals approach model is often used for assessment as a result of the ease that comes
with measuring output goals. Business organizations usually assess performance in terms
of the return on investment, growth rate, market share and profitability (Daft, 1998, p.27).
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There is some fundamental postulation about the goal approach. The first postulation is
has to do with the limited number of goals and accomplishing them demands certain
essential resources in addition to that there should be an agreement on the specific goals
& all the parties involved should feel obligated to fulfilling them.
The goal approach nonetheless has its limitations. The most evident is that an
Organization may have multiple goals, which might be conflicting each other. In addition
to that organizations goal may change over time especially the short-term goals (Edyi,
2015, p. 461).
as an interconnected open system; it is believed that firms and corporations get inputs
from valued resources available within their environment, which is then transformed, into
outputs used to sustain itself. In essence what the system resource approach does is
Yuchtman and Seashore (as cited by Rainey, 2009, p 155) formulated the systems-
resource model. They focused on how possible it would be for Organization to exploit
and leverage on its environment for valued resources to sustain itself. Organizations are
not presumed to possess goals, nor are a goal accomplishment a relevant consideration
rather an organization is deemed effective based on the level to which it can exploit its
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1998). This model is a dynamic framework that operates in different environments
including political, economic, environmental, etc. The systems approach uses quantitative
data like annual general report, financial reports amongst other to indicate levels of
effectiveness in an Organization.
This systemic approach encourages executives to see the organization not only as a whole
but as a part of a bigger system as well. The dominating attitude is that any part of the
Rainey (2009, p.157), posits that the participant satisfactory approach involves the
process of asking participants who make up an Organization about their work experiences
and satisfaction in the organization. It seeks to find out whether members (employees,
This model measures effort and is largely accepted as an approach that should be used
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only where comparable organization results proves difficult to be measured accurately.
Rainey (2009, p 157), asserts that that this approach assesses organization effectiveness
The Human resource and internal process framework integrates multiple models of
effectiveness such as the system resource approach, the goal approach and process model
with their complete focus on the input, output and throughput division of an organization.
(Giti, 2012).
Connolly et al. (1980) argued and is of the opinion that the goal approach and other
approaches are insufficient because they only make use of use of single model for
assessment.
The Government Performance Project (GPP) is a dynamic tool used for measuring
efficiency of the government and its agencies. According to Park (2012, p 71), GPP is a
hub of information about state managements activity to improve service delivery to the
resource, and infrastructure; the four core areas that guarantee that the states’ policy,
decisions and performance produce a timely and professional delivery of the States
intended outcomes.
Rainey (2009, p 158), stated that the GPP does not assess performance directly; rather
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establishments and hence characterizes a variant of an internal process model. The
The History of Coca-Cola dates back to May 8, 1886 when an Atlanta pharmacist, Dr.
John S. Pemberton, created a distinctive tasting soft drink in Atlanta Georgia (Hess,
2008, p 4). Prior to Pemberton’s death in 1888, two years after creating what was to
become the world’s best selling beverage, Dr. Pemberton sold shares of his business to
various parties, with the Lion share sold to Atlanta businessman, Asa G. Candler. Under
the auspice of Mr. Candler’s leadership, supply of Coca-Cola increased to soda fountains
In 1894, Chandler being overwhelmed by the rapidly increasing demand for Coca-Cola
and the aspiration to make the drink portable, Joseph Biedenharn came up with the idea
of installing bottling machinery in the rear of the soda fountain, thus becoming the first to
put Coca-Cola in bottles. Five years down the lane in 1899, an industrialized large-scale
bottling system was put in place when three Chattanooga businessmen in Tennessee
obtained the sole rights to bottle and sell Coca-Cola. Benjamin Thomas, Joseph
Whitehead and John Lupton purchased the bottling rights from Mr Candler at the rate of
one dollar ($1). The three entrepreneurs developed what became the Coca-Cola global
Coca-Cola Company is widely known as the global foremost producer and supplier of
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non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage
brands in more than 200 Countries where it operates brands; the Company’s beverage
products comprise of bottled and canned soft drinks (Hariharan, 2014). Coca-Cola the
world's number one manufacturer of soft drinks, selling 1.3 billion beverage servings
every day ranks among the worlds top 10 private employers with 146,200 employees and
The Company aspires to increase shareowner value over time. This is achieved by
working with its business partners to deliver customer satisfaction and brand value
“Coca-Cola aims at managing their business well with people who are strongly
committed to the Company values and culture and providing an appropriately
controlled environment, to meet business goals and objectives. The associates of
this Company jointly take responsibility to ensure compliance with the framework
of policies and protect the Company’s assets and resources whilst limiting
business risks” (Schwer, 2012, p 7).
The Organizational effectiveness of Coca-Cola will be assesses using the goals approach
GOAL APPROACH
The Coca-Cola Company continues to excel and grow due to lessons learnt from many
years of mistakes and failures. The Company is a front-runner in the beverage industry
with an outstanding and remarkable array of products coupled with an excellent global
presence. According to the Company’s mission statement & vision, its official goals are:
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1). To be a great place to work where people are inspired to be the best they can be. 2).
To bring to the world a portfolio of quality beverage brands that anticipate and satisfy
people's desires and needs. 3). Nurture a winning network of customers and suppliers,
together we create mutual, enduring value. 4). Helping to build and support sustainable
communities. 5). Maximize long-term return to shareowners while being mindful of our
(Coca-Cola, 2015).
The Coca-Cola Company aims to be an organization rated globally for a good working
environment, earlier in 2014 the multinational corporation was placed in the top 25 places
Coca-Cola has been able to achieve the goal of good work place through various
engagement strategies e.g. human & workplace rights, workplace safety, encouraging
of the good working system put in place for employees of the company is the regular
dialogue system with the Coca-Cola associates, which is made possible through the
Global Employee Insights Survey (GEIS). In the year 2010, the results of Coca-Cola’s
global GEIS showed tremendous progress across all the categories; including an 84%
Over the last few decades, there has been a growing increase in the health awareness,
which has resulted to a drive towards a healthier lifestyle all over the World. Soft drinks
have been particularly pointed to as the cause of the type-two diabetes, which has
2012). Though this has led to decrease of Coca-Cola market share, market research was
carried out by the organization which has brought about production of products like Coke
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Zero, Graceu Vitamin water, Fuze tea, Simply Orange, Power Ade zero and Diet Coke to
meet the needs of the health-mindful consumers and sustain its market shares.
Coca-Cola now offers reduced (low or no calorie substitute drinks) in 191 Countries they
meeting the needs of the varying member of the public and providing alternative soft
drink that meets the need of every segment is very laudable and every organization
should take a cue from them to readily plan for alternative product and services that can
meet the needs of the minority or the marginalized. A relative scenario was when
Promasidor introduced Cowbell Milk to the Nigerian market; they sold milk in sachet as
opposed to the market front-runner at that time Peak, manufactured by Wamco who were
selling in can and were patronized by the above average Nigerians. Peak made mockery
of Cowbell, calling it “milk for the poor” but they were absolutely right, Cowbell made
milk affordable for three million Nigerians, two years down the line Cowbell toppled
Peak as the market Front-runner of Milk in Nigeria, even Peak had to start producing
Over the past few decades Coca-Cola have developed vast tremendous relationship with
partnership across the globe (Hess, 2008, p 12). This synergized partnership has
continued to help bolster their sales and increase their market share. Suppliers of the
Coca-Cola, provide the company with raw materials (labels, closures, glass bottles, sugar,
carton, pallets, PET performs, various films) including ingredients as well as goods and
defined standards of the Suppliers Guiding Principles (SGP) which communicates the
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responsible environment and workplace practices, in addition the SGP also clearly
defines standards in terms of labour and human right (which outright states that Child
labour and forced labour are explicitly prohibited). In order to minimize broader
environmental impacts, Coca-Cola works closely with suppliers on our three priorities:
packaging and water stewardship, energy and climate protection (Coca-Cola, 2015). This
partnership has continue to yield cutting edge industry innovation from the ‘quad-
generation’ combined heat and power (CHP) plants plus CO2 capture for industrial uses
which has helped to reduce CO2 emissions by up to 50%. The partnership Coca-Cola
developed with Customers has fetched both parties a win-win approach that has also been
beneficial to he public in the area of sustainable development and climate change, which
(CSRWire, 2015), The management of the organization ensure that people living in the
various community where they operate get as much benefit, where possible more than
what the company gets from the environment, this has immensely contributed to their
growth over the years. Coca-Cola’s commitment and drive towards giving back inspired
them to launch a ten- year CSR aimed at giving back to the society; the CSR is
categorized under three areas; women, water and wellbeing (Coca-Cola, 2013). The
approximately 313,000 women, making a total of nearly 865,000 since 2010 when the
initiative was launched; so far they have implemented programs in a total of 52 countries
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in Africa, Asia, Central America, South America, North America and Europe (Coca-
Cola, 2015).
In 2014, the 5by20 women empowerment program was launched in eight new countries:
Malaysia, Indonesia, Japan, Ghana, Lesotho, Botswana, Malawi and Burundi. In a bid to
ensuring sustainable society, The Coca-Cola Foundation and the Company together gave
back 1.3% of the Company’s operating income amounting to $126 million (Foundation
grant - $91 million; Coca-Cola Company - $35 million) (Kraft, 1991, p.488). These funds
Malta; Increasing access to sports and physical activity for young people in France;
Supporting a youth mentoring and employment skills training program for at-risk youth
in Spain; Hosting a leadership program for young African leaders and disaster relief
projects like the deadly Ebola outbreak in West Africa (Liberia, Sierra Leone & Guinea)
to the natural disasters that struck the Philippines etc. It is imperative to note that CSR is
a vital component for the survival of an organization whether big or small because all
organization have a binding connection with society in which they operate; every
organization in every market strive to win and hold on to the blessing of societies to
remain in business and that blessing will only be gotten if the society where the
environment (human and natural). What seems most evident in various scenarios is that
“Soft drinks have the major segment of the world beverages industry, and it accounts for
not less than thirty-five percent of the industry cumulative aggregate value” (MarketLine,
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2013). In their 2014 financial statement, Cocacola reported revenues of $45,998 million a
decrease of 1% compared to 2013 ($46,854). However the net income in 2014 was
$7,098 a decrease of 15% compared to 2013 (Coca-Cola Company, 2015). The 1.3%
decrease in the Net operating revenue of the company was due to “critical impact of
foreign currency instabilities in U.S.” however the company has taken five tactical
strategy to help make up for the in the coming financial year, they include targeted,
media spending while focusing on their most promising opportunities, Secondly, Coca-
Cola has taken an added concentration to revenue and profit growth, by adopting a more
definite and segmented roles for their markets, Thirdly, the company began to re-
strategize on their essential business model of developing brands and promoting a unique
productivity efforts; the plan was to ensure they deliver on cost savings to invest in their
brands and businesses $3 billion in increased annual savings by 2019 this action was
initiated in 2014.
Coca-Cola got it right from the on-set, they have been able to set realistic official goals
that are, Relevant, Attainable, Measurable, Specific and Time-bound. This has helped the
company grow over the years from selling 25 bottles in its first year to current daily sales
of 1.8 billion bottles and maintaining the front runner position in the beverage industry.
Despite the fact that the Coca-Cola goals are a bit diversified and a bit much they have
been able to leverage its multi-national nature coupled with the effective utilization of its
workforce in giving each goals the desired attention they deserve. The Company over the
years has made remarkable progress by continuously holding the frontline position in the
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Industry with a good goal achievement rate, they can continue at this pace and if possible
do better if they don’t fail to raise their standards and carry outa regular review system.
According to Locke and Latham (2002, p 706), an essential connection exists between
goals and performance. In addition the authors added that goals performance is possible
when goals are specific and challenging with feed back incorporated. Coca-Cola’s goals
The Participant Satisfactory approach seeks to look at how workers who contribute to the
goals attainment of an organization achieve and derive job satisfaction in doing so. Job
Organization, because its only when workers are satisfied with their job, then it will
Participants of the Coca-Cola Company include; the consumers, suppliers, customers etc.
Coca-Cola professes to make it their priority to treat their participant well and develop
them by giving them the benefit of a rewarding working life (Coca-Cola, 2015).
Coca-Cola in 2014 was rated among top 25 global companies to work for by Fortune (an
organization that ranks workplace comfort) alongside company like Microsoft, FedEx,
Google and Guinness etc. Their organization culture, which they developed over the
years, is one of the contributory factors to the developmental state of the company and
brand.
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According to Coca-Coca Company, its compensation and benefits packages are among
the best in the world, benchmarked against other global, high-performing employers. The
organization brags to offer limitless array of opportunities for employees and customers,
they provide ability to grow which bring out the best in their employee by affording
associates at all level of the organization education and development programs e.g. Coca-
Cola University (CCU), associates are trained at the company’s virtual global university
representing a one-stop shop for all learning and capability building activities across,
some others are sent out for short –term assignment and other functional development to
Motivated workforces are usually the engines that drive developments in organization.
Coca-Cola break their associates into groups to carry out operations, making them have a
sense of belongings and feel they are essential to the organization; this inspires them to
contribute innovative ideas that are implemented during operations (Coca-Cola, 2013).
This strategy adopted by Coca-Cola has helped to create an innovative and tremendous
culture that makes it possible for Coca-Cola to rely on the workforce for answers in
In 2005 Coca-Cola’s adopted the UN Guiding Principles on Business and Human Rights
to help provide human and workplace right for associates of the Company and prevent
workers from being abused, Open communication is another good value the multinational
Corporation is keen about which helps to promote engagement amongst management and
Coca-Cola is a good Company for its associate but suffice to say one might see all this as
just a lip service by the multinational Organization. A lot of human right abuses have
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been recorded against the giant brand as much as they try to strategically position
themselves as an upright brand before the media. The story of the good working
environment, which is applicable for Coca-Cola’s associate, is not applicable for all of its
over 700,000 “rank and file” (factory) workers, most especially the blacks and Hispanics
who suffer worse fate and don’t have access to most of the good working policies. The
Company doesn’t make adequate provision for this segment of her unskilled workers
According to the Rip off report, Coca-Cola forces her workers to work between 10 and 15
hours a day, while the Company claims that the shifts are only 8 hours knowing fully
well the workers cant complete the work in 8 hours and are not allowed to leave until the
work is completed. Other than the violation of human right, there are other cases of
discrimination and segregation against the company’s contract factory workers, ABC
News on November 17 reported that Coke paid $192.5 million to settle a racial
In addition to the maltreatment and exploitation Coca-Cola workers face, Coke has been
reportedly involved in the exploitation of over 5000 children working on sugar cane
right Watch (a private American NGO) in 2007 for a British documentary and published
by Mark Thomas’s book "Belching Out the Devil: Global Adventures with Coca-Cola,"
Colombian Coca-Cola bottling plants in 2009 to find out whether they exercised any
control of suppliers of raw materials (such as sugar) to ensure that there was no
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involvement of Child labour. The Coca-Cola plant manager in Cali said that the
company’s suppliers are not supposed to use child labour for production but added that
that Coca-Cola did not exercise oversight over the issue. (killercoke, 2009).
CONCLUSION
Coca-Cola Company has over the years built a global brand, which leads the beverage
industry globally. To a large extent the company has put in much effort in achieving its
goals except for the area of her financials where there seem to be few hiccups which has
led to a drop it in its market shares and acquisition. Smart enough, the management has
Coca-Cola brags over good working policies for all its workers but it is evident that it
isn’t fully enforced, segregation and racial discrimination exists in the organization which
helps promote social inequality especially to the blacks and Hispanics. The Organization
should management should walk their talk and bring professionalism to bear, on all round
place checks and balances mechanism to curb the excesses of their plant managers
globally.
RECOMMENDATION
In order to accomplish its set goal for 2019, Coca-Cola must look for new areas where it
can start operations and also diversify by increasing their number of products to meet up
with buyers changing preference globally. Retaining its current market size in the
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