Management: Project Recommendations – Coca Cola Company

Coca Cola Company: Organizational Culture and Change

John A. Gnanaranjan

Davenport University

February 16, 2014

Abstract

Organizational culture reflects the main norms of an institution. This culture includes member’s behaviors, expectations, leadership or organizational structure, motivation system and the general activities that enhance cohesion and performance in the workplace. The Coca Cola Company presents a civilized organizational culture influenced by its democratic management structure. Its culture influences its own performance and worker’s job satisfaction. Organizational changes exist. Both internal and external environmental forces influence an organization. A company will be in a better position to handle any of these changes through informational resources available through data collection and data processing. Although the Coca Cola Company handles and manages internal environmental forces that can impact the organization, the management has developed strategies to predict external environmental forces and develop effective guarding mechanisms before these forces show their effects.

Organizational Culture and Change

Current culture of the Coca Cola Company

Organizational culture is diverse. It plays a crucial role in determining and shaping behaviors in all institutions (Tsai, 2011). The current Coca Cola Company’s organizational culture influences the daily behavior of its members through structure, daily processes and incentive systems. Ogbonna and Wilkinson (2003) strongly believe that current organizational culture should represent civilization in the work place with a balanced positive system. A positive culture reinforces good behavior. In an organization, reinforcement may mean a system of organizational rewards. The Coca Cola Company reflects this civilization because of its democratic system of governance. Democracy gives equal opportunities and equal freedom to all members of the organization. With this organizational structure, members have a chance to shape their own behavior and their own working environment. Through freedom of expression, sharing ideas and equal participation in the company’s decision-making process, members behave their best and make their environment worth for both organizational performance and each individual’s job satisfaction (Tsai, 2011).

Environmental forces affecting the Coca Cola Company

Environmental forces are the main factors that trigger organizational changes (D’Aunno et al., 2000). The two main types of environmental forces that have an impact in any organization include internal and external driving forces. Internal driving forces arise from the need of change in the organization itself. For example, internal forces may include the need to change the management system, the need to introduce a new technology, the need to improve employee morale through promotion, and even after acquiring new machines. The external forces that have an impact in an organization include the country’s politics, the industry influences, competition, and the general economy (Ogbonna & Wilkinson, 2003). External forces are far beyond the company’s control. These environmental forces can either influence positive development or burry an organization. The Coca Cola Company controls and manages internal forces through leadership roles such as effective communication and allowing members to participate in the change process. Although internal forces cause nervousness, they happen to improve the company’s performance and are part of improvement strategies. On the other hand, this company, like any other organization, does not have control over external forces. However, effective and strategic handling of external forces can protect the company from detrimental effects.

How the organization accepts or embraces change from environmental forces

Dealing with environmental forces, which have an impact in an organization, requires knowledge of anticipated changes in that organization or in the country where an organization is based (Barrett & Heracleous, 2001). Changes happen and events unfold. Therefore, the company as a whole should understand that changes are occurring. In addition, it is safer to predict what changes are coming in the future and what effects they might have to the business. The Coca Cola Company does forecasting of future expectations. It uses informational resources in the form of data to process and predict environmental forces that might cause instabilities in the company. Informational resources are analyzed according to a force suspected to cause disturbance. After successfully analyzing data for a particular force, the organization then searches for the best strategies to deal with the anticipated changes.

References

Barrett, M. & Heracleous, L. (2001). Organizational Change as Discourse: Communicative Actions and Deep Structures in the Context of Information Technology Implementation. Academy of Management Journal. 56 (6): 755-778.

D’Aunno, T., Succi, M. & Alexander, J.A. (2000). The Role of Institutional and Market Forces in Divergent Organizational Change. Administrative Science Quarterly. 45 (4): 679-703.

Ogbonna, E. & Wilkinson, B. (2003). The False Promise of Organizational Culture Change: A Case Study of Middle Managers in Grocery Retailing. Journal of Management Studies. 40 (5): 1151-1178.

Tsai, Y. (2011). Relationship between Organizational Culture, Leadership Behavior and Job Satisfaction. BMC Health Services Research. 11(98): 1472-6963.