Concept Of Organizational Behavior: Analysis Of Challenges Faced By Coca-Cola

Description of the problem

Discuss about the Concept of Organizational Behavior.

The essay focusing on the concept of organizational behavior in order to analyze the kind of impact it can made on the path of progress of any company. In this essay, the focus will on a particular company, namely Coca-Cola. In this essay, the focus will be on the challenges that are faced by the company regarding its sparkling beverage products, which the company categorized under the carbonated beverage. The essay will focus on this problem as the sparkling beverage has come under severe criticism from the consumers and health agencies. Therefore, it minimizes the revenue level of the company. Hence, it influences the management of the company to take some serious steps regarding organizational business process so that it can able to handle the challenges properly. In this essay, the focus will be on the kind of political impact that the carbonated beverage or sparkling beverage has made over the business process of Coca-Cola. The essay will critically analyze the role of the management and leaders of the organization in order to minimize the adverse political impact of the business.

Description of the problem:

Coca-Cola is among the world largest distributor, marketer and manufacturer of syrups and non-alcoholic beverage (Coca-colacompany.com 2016). The company has able to develop a very popular brand with its unique products and service offering. However, the sparkling beverage of the company has come under severe criticism, as many health agencies have identified that the product has caffeine and higher sugar content. Therefore, it can have major negative impact on the health of the consumers. In addition, it also influences several diseases including diabetes, obesity and osteoporosis. Therefore, it highlighted as a major political issue that the company has to deal with. Many health specialists have mentioned that it is not only a political issue but also a major ethical issue that the company has to deal with. In addition, the negative aspect of the sparkling product has also affected the goodwill of the company. As a result, producing carbonated beverages with the limited use of several materials has created challenges for the employees. Therefore, they have to learn new methods and technologies with minimal guidance as the Coca-Cola have to focuses on to make immediate changes on its production procedure. This creates negative impact on the mot5ivational level of the employees working in the production department of the carbonated beverage segment of the company.

Most affected personnel caused by the problem

The above highlighted problem highlighted that quality managers will have to implement new techniques so that create a huge amount of negative impact on the leadership capability of the company. Since, selling carbonated beverage for the purpose of increasing revenue is not only right ethically but also creates a huge question mark on the business approach of Coca-Cola. As per the study by Workforce.com (2016), almost 30 million people worldwide have to face several diseases because of the extreme consumption of the carbonated beverage from different soft drink companies. Hence, management of Coca-Cola is trying to implement several strategies that will allow them to minimize the adverse political impact on the business so that it cannot able to affect the goodwill of the company. As mentioned earlier, it has been found that carbonated beverages of the company containing high amount of sugar and other ingredients that are affecting the health of the consumers. Therefore, it creates questions regarding the effectiveness of the production line managers. Furthermore, as selling unhealthy products is against the mission and vision of Coca-Cola, it creating questions regarding the management capability of the company. The above issue highlighted that all the employees in the production department of the carbonated beverage department of the company as a major factor, as they are facing challenges to keep themselves motivated towards their work.

Symptom of the problem:

Over the past few decades, people have become more and more health conscious. As a result, revenue generated from the selling of carbonated beverage is going down for Coca-Cola. However, the management of Coca-Cola is trying to minimize the amount of content that is creating negative impact on the health of the consumers in order to maintain its reputation in the market and also assure consumers that all the product of the company are completely safe for consumption. As a result, Coca-Cola has initiated many training programs for the production managers and quality checking managers so that they can able to prepare carbonated beverages with minimal amount of negative ingredients (Coca-colacompany.com 2016). However, the company has not provided enough training opportunity for the ground level employees. Therefore, they are facing lot of challenges to cope up with the production procedure changes of the company. In addition, as the management of Coca-Cola does not focus too much on the importance of providing training to the ground level employees, it increases the dissatisfaction level of the employees.

Symptom of the problem

Main protagonist:

The above case study highlighted the quality managers as a main protagonist. Since, the root of the problem is the presence of unhealthy elements in the product. For instance, many persons have complained that the accrue diabetes because of the overconsumption of Coca-Cola carbonated beverage product. In addition, as the quality managers is facing challenges to keep the ground level employees motivated towards their works so that the company can able to implement changes very quickly.

Basic context:

Leadership approach has a key influence in maintaining proper ethics for the company. According to Armstrong and Taylor (2014), maintaining proper ethics is necessary for sustaining business for a long time. Since, it helps to create an image on the minds of the customers. Therefore, it has the potential to make or break any businesses. Hence, it has come up as the prime internal issue of the organization that is affecting the organizational processes. However, overall organizational structure of Coca-Cola is highly focused on the well-being of the consumers (Coca-colacompany.com 2016). Over the years, the company has taken several steps so that it can able to satisfy all the customers. Still, the above situation highlighted the fact that Coca-Cola will have to focus more on its operational aspect so that it can able to fulfill all the requirements of the market.

Theoretical frames:

The above study highlighted that the management will have to initiate several strategies in order to minimize adverse impact on the image of the company. The above problem has highlighted that the management of Coca-Cola will have to focus on both Political as well as human resource management framework to minimize the adverse impact of the carbonated products. Political frames will have to consider about the goodwill of the company that is affecting by the selling of unhealthy non-alcoholic beverages. The above identified problem emphasizes that Coca-Cola will have to compromise its business aspect to a certain extent in order to handle this problem effectively. Hence, it demanded that Coca-Cola would have to initiate an effective leadership approach so that the company can not only able to maintain its goodwill in the market but also can able to maintain the trust of the company. On the other hand, human resource management frames will have to consider the motivational level of the ground level employees in the carbonated beverage production department, as they are facing many challenges regarding the changes in the production procedure. Thus, the above case study highlighted that leadership and motivation are the two key factors in the organizational behavior context of the sustainable development of the business.

Main protagonist

As asserted by Armstrong and Taylor (2014) several theories of leadership can have major affect the success of the organization. Many studies have also identified that employees can only be motivated if their personal requirements are fulfilled. On the other hand, many researchers have also identified that employees can be motivated through developing strong bond or relationship between employers and employees. There are many theories that have made serious impact on the employee performance. For instance, managerial theories have established its effectiveness regarding organizational performance. These theories include several features that can have major impact in managing organization. Features like employee specialization that every organization has to consider before assigning them any particular job. Since, allowing employees to work within their specialization can have major positive impact on the motivation and satisfaction level of the employees (Northouse 2013). Hence, Coca-Cola’s quality managers also will have to consider this feature to use in the organization in a more effective way so that it can able to regain its employee’s motivation. Giacalone and Rosenfeld (2013) highlighted that leadership style of providing continues feedback regarding the performance of the employees can also have major impact on the motivational level of the employees. However, this requires effective communication system within the organizational structure. As the issue in Coca-Cola highlighted the fact that the company is facing challenges regarding its production process, it will have to develop an effective communication channel among the different level of production procedure so that it can able to utilize all its resources properly. According to Clarke (2013) salary or benefits is another important factor that the managers of the organization will have to look at in order to improve the satisfaction level of the employees. As benefit or salary structure have major role in fulfilling the personal requirements of the employees, it allows them to work more freely and concentrate more on their works, which eventually creates positive impact on the performance level of the employees (French et al. 2012). However, Coca-Cola is among the top organizations of the world regarding the employee benefits. Still, there are few areas left to resolve for the companies. Specifically, as the production employees are going through several changes the company will have to focus on the benefit structure of the employees.

According to the Great Man theories, leadership is an attribute that primarily possess by the male or particularly military leaders. The theory highlighted the fact that the leaders are born with certain specific attributes. The theory also highlighted the fact that leaders have to have charisma, skills, intelligence, confidence etc. As per the article by Rice (2013) leaders with the mention skills, have the higher possibilities to maintain the satisfaction level of the management. It highlighted the fact that Coca-Cola might not select those personnel for the management position that has the ability to influence others.  Trait theory of leadership also highlighted the same thing that people develop leadership qualities by born. Therefore, training an individual to manage the employees might not have same amount of effectiveness. Trait theory highlighted six individual traits such as intelligence, extraversion, adjustment, self-efficacy, openness to new opportunities and conscientiousness that every successful leader has to follow (Biddle 2013). Now, as Coca-Cola is finding difficulties in handling its executive level of employees, it had to focus on whether the managers of the company do possess these skills or not.

Basic context

As per the behavioral theory of leadership, behavioral attributes have major impact on the satisfaction level of the employees (Tourish 2014). Since, behavioral pattern of leaders have the potential to create huge amount of impact on the mind of the employees. The behavioral theory highlighted three types of leadership styles. Autocratic leadership reflects the leadership style where leaders try to dictate things on the employees (Sniehotta, Presseau and Araújo-Soares 2014). Therefore, it does not allow the followers too many chances to share their views or perspectives. Hence, it actually increases the dissatisfaction level of the employees. This is similar to the case of Coca-Cola, as employees are feeling left out by the management. However, autocratic leadership also has certain benefits but for the companies like Coca-Cola that are doing business almost in every country of the world, this type of leadership actually increases the confusion in the work place. As a result, overall effectiveness of the company got hampered. On the other hand, participative leadership theory allows management to form a leadership culture in which every employees can able to share their views (Beenen 2016). This type of behavioral is extremely effective for the employee motivation process as it allows employee to share their views to the management. It also allows management to identify any type of dissatisfaction occurring in the organization.

Skill theory reflects that acquired skills and learned knowledge is significant factors for an effective leadership style. Hence, this theory actually describes the opposite of the trait theory. It also highlighted the fact that learned knowledge and skills are key to the success of the organization. Hence, managers of Coca-Cola will have to acquire leadership skills and knowledge in order to increase the satisfaction level of the employees. According to Clegg and Dunkerley (2013), satisfaction in workplace is positively correlated with motivational level of the employees. Hence, management of Coca-Cola will have to create an organizational culture in which every employee will feel motivated towards his or her work. Contingency theory of leadership highlighted that leadership style highly affected by the environmental variables also. As per the article by Nicolini (2012) this theory established the fact that there is no general type of leadership that can be applicable for all situation rather it heavily depends on particular situation. Hence, assessment of the cause of issue is necessary before implementing any leadership strategy. Otherwise, it might fail to fulfill its objective.

Theoretical frames

As per the article by Kautonen, Van Gelderen and Tornikoski (2013), motivational level of the employees is one of the important factor in context of organizational behavior. The word motivation comes from a Latin word “motives” which means a moving cause. It reflects the process of influencing the psychology of an individual. In organizational behavior context, there are several theories related to employee motivation. According to Maslow theory of motivation, organizations will have to fulfill a series of need of the employees in order to maintain their motivational level. This theory elaborated five needs that organizations will have to provide in order to increase the satisfaction level of the employees. The first step reflects psychological need of the employee. It highlighted that organizations will have to provide enough time for the personal life of the employee. Safety need reflects the need of safety or security of the employees. Hence, to fulfill this need organization will have to provide additional benefits like health security and job security so that employees can able to work freely. Love and belonging need demand excellent bonding among all level of employees so that they can able to think themselves as a part of the organization. To fulfill the esteem need, organization will have to provide deserved increment and promotion to all level of the employees so that they can able to motivate themselves towards the work. According to Francis, O’Connor and Curran (2012) job motivation can be describe as a psychological drive that gives an indication of the behavioral direction of the employees in an organization. The motivation level of the employees within the organizational structure depends on the three factors such as level of persistence, level of efforts and direction of behavior. The degree of performance of the employees measured on the kind of effort they are making to fulfill the requirement of the jobs. The behavioral direction of the employees evaluated by the degree an employee decides to perform on the slated task and the persistence level of the employees depends on the kind of effort they making to overcome the obstacles in the assigned task (Lussier and Achua 2015). Hence, it reflects that motivation is a significant factor that plays a key role in enhancing the performance level of the employees. Especially, in this highly competitive business environment, every organization is looking to utilize its internal resources to its fullest so that it can able to gain competitive advantage in the market. Coca-Cola also will have to develop a leadership style that has the potential to induce all its employees to give their best effort so that organization can able to fulfill its objective.

Key Organization behavior related to identified frames

In organizational behavior context, motivation level of employees is divided into two categories, extrinsic motivation and intrinsic motivation. According to Northouse (2015), intrinsic motivation reflects self-generated motivation. This only happens when employees feel happy in engaging into a job that they feel comfortable and happy. Therefore, it highly depends on the skill and knowledge level of the employees. Since, the more the knowledge or skills an employee has the greater possibilities of feeling comfortable in a particular job. Hence, management of Coca-Cola has to provide enough training facilities so that employees can able to feel comfortable regarding their responsibilities. On the other hand, extrinsic motivation reflects that motivation level of the employees is also highly depended on the several external factors of the organization. These include praise, promotion, salary, security, bonus, incentives and other benefits of the organization. According to Nohria and Khurana (2013) promotion is a factor that highly depended on the level of previous performances made by a particular employee. Hence, management of Coca-Cola also has to measure performances of all the employees so that it could able to select right individual for the promotion. Otherwise, it can have huge amount of negative impact on the motivational level of the employees. Managers of Coca-Cola also have to communicate the particular factors or reasons they are selecting an employee to promote. Otherwise, it might send wrong message to those employees whom are also working hard for the organization (Dinh et al. 2014). The management of Coca-Cola also have to communicate the kind of future that an employee can able to receive by providing their best effort for the organization. This will not only help to improve the motivational level of the employees but also will create positive impact on the performance level of the organization.

The above case study highlighted that Coca-Cola is facing several challenges in its production process of sparkling beverages. It not only affecting the motivational perspectives of employees but also creating huge amount of adverse impact on the image of the organization. Therefore, leaders of the company will have to focus on the both political and human resource management frame in order to maintain a proper culture in the organization.     As per the article by Dvir et al. (2015), organizational structure also has huge amount of impact on the motivational level of the employees. Since, organizational structure has impact on the grouping and coordination among the employees. Management of organizations will have to consider six factors such as formalization, specialization, chain of command, span of control, decentralization and centralization in order to manage its internal resources effectively. In organizational behavior, three basic organizational structures are mentioned that is used in most of the company. Simple structure of organization reflects of wide span of control, low level of formalization and low level of decentralization (Avolio and Yammarino 2013). This structure is primarily used in the small size businesses, as it allows the organization to implement quick decisions. The bureaucracy structure characterized by highly routine task, high level of standardization, centralized authority and limited span of control. The majority of MNC has used this type of organizational structure, as it allows to maintain huge workforce effectively. Hence, leaders of Coca-Cola also have to utilize the organizational structure to improve the motivational level of the employees. In fact, the focus of managers of Coca-Cola will have to identify whether organizational structure has impact on the present issue of the lower level of motivation of the employees.

Another major factor that can have impact on the current issue facing by Coca-Cola is team development. Since, a well-organized team allows every member to communicate much more freely. It also allows organizations to introduce much smoother communication process along the different level of the organization. According to Antonakis and House (2014), leaders or managers have the prime role in developing an organization. As trait theory, highlighted leaders must have to have some inborn traits, which will influence people around it.  For team development, an individual with specific types of traits is extremely important for team development. Since, without any leader no team can able to develop properly. This again signifies the important of leadership development within the organization. Hence, Coca-Cola management also has to focus on the overall development of the team so that it can able to improve its organizational process. The leadership strategy of Coca-Cola also will have to focus on whether or not the employees are working as a team or not. In many instance, employees of an organizational team or department creates their own groups within the department according to their preferences. This not only hampers the overall bonding of all the team members but also has huge amount of impact on the organizational internal process (Alimoâ€ÂMetcalfe 2013). Hence, leadership strategy of Coca-Cola also have to implement in such way that could able to induce all employees to develop a strong bonding among each other so that it can able to work to its fullest efficiency. This will also have positive impact on the present motivational level of the employees.

As the people over the world are becoming more and more health conscious, Coca-Cola will have to develop its entire product in such a way that it cannot able to create negative impact on the health of the customers. For instance, the company will have to focus more on the non-carbonated beverages for the enhancing the image of the company. Productions managers will have to understand the exact factors that are affecting the motivational level of the ground level employees. Management of the company also has to provide proper training not only to the manager level of the employees but also to ground level employees as well. It will help to increase the bonding among the production employees of carbonated beverages. As mentioned earlier, bonding among the team members can have huge amount of impact on the motivational level of employees. In addition, proper training will enhance the knowledge of the employees, which will help them to understand to the necessity of the changes. It will also create a positive impact on the satisfaction level of the employees. Therefore, it will help Coca-Cola to maintain a proper organizational structure.

Conclusion:

The above discussion highlighted the fact that the Coca-Cola Company has an organized structure that induces employee involvement in management decision. As a result, the company has able to manage the motivation and satisfaction level of the employees effectively for long period of time. However, decision-making strategy of the Coca-Cola has faced criticism many times because of its lack of vision that the kind of negative impact it can made on the involvement level of the employees. In addition, the above case has mentioned that the decision-making strategy by the leaders of the organization does create huge amount of negative impact on the employee’s motivation level. Hence, the management of the organization will have to reconsider about their decision-making strategies in order to maintain a proper organizational behavior. Thus to conclude, it can be state that leadership has huge amount impact on the organizational effectiveness. Therefore, every organization will have to formulate their leadership style carefully.

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