Human Resource Management in International Companies

Human Resource Management in International Companies

The research was conducted on both Coca-Cola Company and the Microsoft Corporation.

The Coca-Cola Company is a multinational beverage firm that has its headquarters based in Atlanta, Georgia. It is listed on the Ney York Stocks exchange and focuses on manufacturing, marketing and retailing of coke beverages and syrups. The Company functions under a franchise framework where it grants other bottlers in distinct parts of the global distribution and sale of its products in their consequent territories. It is one of the most highly ranked firms regarding performance and profitability in the beverage retailing sector. The company manufactures distinct types of drinks ranging from soda, bottled water, and juices. Human resource management is a significant unit in any company. It serves a base for the future growth and development of the company. Human resource is given an upper hand over technology in the Coca-Cola Company.

Since Coca-Cola is an international firm, it becomes hard to initiate and formulate similar policies for all the firm branches since the company recruits workers from all parts of the world who are characterized by differences in customs and cultures. It is therefore critical for management to plan for the coordination and integration of the human resource function and other organizational resources. Organization of the human resource function involves labour division, job evaluation, and job delegation. The company focuses on acquiring and retaining employees with abundant skill sets and broad knowledge of management. They aim to strongly equip the senior management positions to boost and heighten its performance in the industry. The company ensures its workers have job securities to avoid distraction brought about by future uncertainties.

Human Resource Management within Coca-Cola Company

The Coca-Cola human resource department carries out job analysis, designs jobs, recruits selects, trains and develops appraises performances, compensates workers and manages the employee welfare. The Coca-Cola human resource department carries out job description and analysis by getting their workers information prioritizing on the quality of performance and job requirements (Friedman, 2009). The information obtained is utilized in recruitment and selection processes, appraising performance, training, and development and compensating the employees. The coca cola human resource department participates in organizational planning with the aim of forecasting on the human resource requirements. For instance, if the company aims to expand production, the human resource department sends the plan to the headquarters for commendation. On acceptance, the human resource department begins the process of recruitment.

The process of recruitment begins when the function advertises vacancies in the publications and organizational website (Veale, 1996). After recruitment, the selection process begins where employees candidates are chosen in accordance with the post applied for. After recruitment, the managers are now ready for training. They are trained on the managerial frameworks and organizational technology. The training aims to equip them to start work right away (Friedman, 2009).

Challenges Coca-Cola Faces on Recruiting International Managers

The social and cultural differences between the distinct managers will require the company allocate some period for adjustments and changes. Also, Coca-Cola faces communication challenges where the manager being recruited does not have proper eloquence in the local language. A lot of difficulties may be experienced before he or she becomes familiar with it. At other instances, the local communities may refute and demonstrate against the hiring of a foreign manager. Many prefer someone from their ethnic background, and this may pose difficulty for normal operations.

Coca-Cola Performance Appraisal

Coca-Cola Company carries out its performance appraisal once every year. Employees are appraised in accordance with their performance in trying to meet the objectives of the organization. The employees are enlightened on the goals and targets at the beginning of the year. Management describes rewards for a good performance to the organizational employees.

in Coca-Cola Performance Appraisal

The process of appraising performance encompasses three steps, which are job definition, performance appraisal and response provision (Dusterhoff, 2014).

Job definition: Management ensures they have a common agreement with their workers regarding the duties they delegate and the qualities of performance.

Performance appraisal: In this step, management compares the employee’s performances with the benchmarked targets.

Response provision: Here, management discusses the worker’s progressive performance and initiate plans for developing the employee’s skill sets.

The Coca-Cola human resource department gives high priority and attention to their workers by adequately remunerating and compensating them through salaries, bonuses, medical welfare programs and gifts. Management always aims to ensure they consider the welfare of their workers before anything else. The employee will thus be satisfied with the remuneration which will, in turn, be replicated in their performances. Any employee with a burning personal issue or one which is work-related is free to share it with management to help come to a solution.

Importance of Appraisal in Training International Business Managers in Coca-Cola Company

Performance appraisal is used as a metric in assessing employee decision making and liability for promotion, demotion or remuneration changes (Dusterhoff, 2014). Management uses the appraisal in assessing managers who have exceeded performance and are liable for promotion. They also help identify those liable for retrenchment or development. The company is also able to assess abilities and move them to the areas they are most effective.

Human Resource Management in Microsoft Company

Microsoft is one of the best performing software companies in the world. Its success is attributed to the workforce management. Bill Gates, the co-founder of Microsoft Corporation recruits his staff basing on the level of intelligence. He recruits bright graduates from top academic institutions in the country. Immediately after recruitment, the candidates go through the process of selection. The selection process begins with an interview which helps determine the interviewee’s intellect, decision making and analytic capabilities (Cusumano, 1998).

The interview is quite demanding and pushes the candidates to the utmost limit. After the interview, successful applicants receive email messages from the interviewers notifying their hire. The interviewing process encompasses an outsider from the hirers who provides an unbiased opinion on the candidates. The person checks whether the candidate is Microsoft material or not. These aids get the right person on the job rather than just a person for the post. Microsoft also sources employees from other organizations. They allure individuals through dinner invitations and private phone calls. They also place a high priority on retaining their employees through gifts, remuneration, and promotion and worker satisfaction (Thomas, 2000).

Challenges on Recruiting Foreign Managers

The company finds it challenging to hire foreign staff to fill its vacant positions while denying the American graduates a chance for recruitment. Microsoft allows a third of the software is developing and engineering jobs to foreigners. The increasing rate of unemployed American software graduates seems like a violation of their rights rather than a corporate social responsibility.

Performance Appraisal Process in Microsoft

The process begins with an analysis of work on a specific post to help assess the job and all activities associated with the task. It also aids look at the resources and strategies to attain the organizational goals. The process concludes with the specification of knowledge and abilities required to perform the job.

Importance of Appraisal in Training International Business Managers in Microsoft

Appraisal in training acts as a motivational factor that entices the individual to strive to advance their technical abilities (Dusterhoff, 2014). Appraisal in Microsoft enables the human resource department find units compatible with the individual’s skill sets. The company is also able to identify non-performers and take a step to retrench, demote or reduce salary and benefits allotted.

Examining Management Methods of Human Resource Planning and Analysis

Equal Employment Opportunity

The Coca-Cola company is an equal opportunity employer availing opportunities to all members avoiding bias, discrimination, and corruption. The company policy guidelines safeguard the interests of all stakeholders placing a high priority on the employee. The company does not discriminate through race, sex, religion, gender, disability or tribe. On the other hand, Microsoft negates from discrimination by availing equal opportunities regarding recruitment, training, promotion, and transfers. Equity is availed to all without looking at race, sexual orientation, gender, class or nationality.

Health and safety

The Coca-Cola Company pays special attention to the working conditions to curb the occurrence of injuries.  The company has researched the factors that lead to a rise in the occurrence hand of injuries. As a result, there has been a significant reduction in the frequency of occurrence of accidents. The company also offers training to its associates as well as advancing the safety of routes used to transport products to the market. On the other hand, Microsoft also embraces health and safety in that; there is an audit of all the safety risks that can be encountered by employees in their workplace. The workplaces that are offered to employees are assessed to enhance the safety of employees. The company, therefore, embraces employees, and they feel safe when they are working.

Factors Challenging a Multinational Company

Strategic performance and operation for multinational corporations are affected by factors surrounding the organization. They include political, social, economic and technological factors.

Political factors: The political factors refer to the policies, laws and legal frameworks laid out by the local governments on trade. For instance, the local government in a quest to regulate foreign trade may impose quotas, tariffs, taxes and customs duty. All these factors regulate the performance of a multinational company operating in that region (Gupta, 2013). Political stability is another element to consider when operating in a foreign nation. Multinational companies face difficulty in operations during tense election periods for fear of civil wars.

Economic factors: Certain economic elements have a significant impact on the operation of a multinational company in a host nation. The elements include interest rate, inflation, and exchange rate. Taking the case of exchange rates, different countries have distinct currencies and thus different exchange rates which consequently fluctuate. When the fluctuations occur, the returns deviate and so do the costs.

Technological factors: Some of the host nations lack the proper technology to avail production and performance for the multinational companies. Such elements may include internet connectivity or the technical knowledge. Technical knowledge in most of the nations is determined by the level of technological advancement in that country (Gupta, 2013). Regions with lower technological advancement will thus have few technical experts. Companies in these areas will have low performance.

Social factors: Demand and supply in most parts of the world are affected by the cultural practices and religion. For instance, coca cola once branded different individuals names to their products depending on the regions when trading in Africa. The name may have different meaning based on the different tribes and may limit sales to a certain level (Gupta, 2013).

The programs for recruiting managers vary from company to company. However, there are set standards that are set when recruiting managers. They will, therefore, be similar for all companies, for example, the qualification levels. Customized programs include the age specifications which may differ from company to company.



Cusumano, M. A., & Selby, R. W. (1998). Microsoft secrets: how the world’s most powerful software company creates technology, shapes markets, and manages people. Simon and Schuster.

Dusterhoff, C., Cunningham, J. B., & MacGregor, J. N. (2014). The effects of performance rating, leader-member exchange, perceived utility, and organizational justice on performance appraisal satisfaction: Applying a moral judgment perspective. Journal of business ethics, 119(2), 265-273.

Friedman, B. A. (2009). Human resource management role implications for corporate reputation. Corporate Reputation Review, 12(3), 229-244.

Gupta, A. (2013). Environmental and pest analysis: An approach to the external business environment. Merit Research Journal of Art, Social Science, and Humanities, 1(2), 13-17.

Thomas, S. L., & Ray, K. (2000). Recruiting and the web: high-tech hiring. Business Horizons, 43(3), 43-43.

Veale, D. J. (1996). Mentoring and coaching as part of a human resource development strategy: an example of Coca-Cola Foods. Leadership & Organization Development Journal, 17(3), 16-20.

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