Coca Cola Staffing Policy

1. What is Coca-Cola's staffing policy for managerial position: ethnocentric, polycentric, or geocentric? Does this policy make sense?

Ans: Coca-Cola's staffing policy for managerial position is polycentric. They have 25 operating divisions that are organized under six regional groups. They say "think globally and act locally", I totally agree this opinion. Every country has their own characteristics so they do the right choice by hiring the local candidate which can easily understand local customers and employees.

2. What is the strategic role of the HRM function at Coca-Cola? How does HRM help Coca-Cola to become a more successful international business?

Ans: The two main targets of Coca-Cola's HRM are developing common human resources philosophy and establishing an international group. Therefore, the strategic role of Coca-Cola is "think globally and act locally". HRM uses the following way to help Coca-Cola to become a successful international business. 1. They have a common salary policy in every operation, to guarantee the salary can be competitive with the best companies in the local market. 2. The orientation is held twice a year for the human resource staff. 3. Sharing the manage experience and information between different region. 4. Every operation all has both international and local people but the number of international people is limited. 5. Characterizing the high-level managers who have knowledge of their particular field, knowledge of the company, and who can do two things in an international location

3. Do you think it is appropriate to pay expatriates according to U.S. benchmark rates, even when their home operation is not the United States? What potential problems might such a policy cause? What are the benefits of the policy?

Ans: I think that to pay expatriates according to U.S. benchmark rate is appropriate for two reasons. First, the U.S. is a highly developed country which means the standard of living or consumer price in the U.S. is higher than most of countries around the world. Thus, U.S. benchmark rate looks like a good deal for their employees who come from other countries. Second, U.S. dollar is a representative and wide circulation currency. Although their employees come from different countries, U.S. dollar cans easy exchange to the majority currency around the world.