According to Valluri, Nahata & Jangalwa (2010), Coca-Cola Company is a non-alcoholic beverage concentrates and syrups manufacturing, distributing, and marketing organization, which has thrived since 1886. They note that under its invention by pharmacist John Stith, its chemical formula and brand initiator Asa Candler in 1889, the company adapted an organizational structure that would enable it to cope with the new market trend. The company has an effective organizational structure that has enabled it to meet the consumers’ demand for over 125 years. The write up discusses the organizational structure of Coca-Cola Company.
Current Situations of Coca-Cola Organizational Structure
As pointed out by Valluri, Nahata & Jangalwa (2010), Coca-Cola Company tend to decentralize its organizational structure that would allow more of its decision made at the local level. This allows the company to respond quickly to the changing market trend by giving the top management ample time to concentrate on long term planning strategies. The two note that the company is made up of many organizational structures, which are broken down into divisional units around the world. The company has thus decentralized its hierarchical organizational structure by allowing its local divisions to incorporate its corporate functions. For instance, the decision by the company to partner with FIFA in sponsoring World Cup Football until 2022 was primarily done at the corporate level (Kacur, 2012).
According to Valluri, Nahata & Jangalwa (2010), the communicative disintegration from the upper management to the front line employees have not been effective in the company. They note that with employment rate of 94,800, the company’s tall organizational structure has undermined the decision making processes. However, they point out that the Company is in the process of disintegrating the tall hierarchical structure so as to actively engage employees into the organization decision making process. For instance, the Company has embarked on utilization of new digitized technologies such as effective use of intranet in enhancing communication networking. The new technology has enabled various corporate divisions to directly give relevant information to the CEO.
Evident or Missing Theory in Coca-Cola Company’s Organizational Structure
According to Alajloni, Almashaqba & Nemer (2010), the Coca-Cola Company’s organizational structure has incorporated classical organizational theory. They describe the theory as formalization of organization and concepts so as to increase the efficiency in the management system. This is evident in the company’s structural delegation and reduced hierarchical management system in efficiently enhancing organization`s policies.
However, the company’s organizational structure tends to miss the neoclassical theory. As pointed out by O’Connor & Ellen (2006), neoclassical theory recognizes the importance of embracing employees’ and organizational behavior by encouraging social interaction. They point out that the neoclassical theory enables the organization to highlight the social and economic problems facing its individual employees. This in turn enhances good organizational relations within any organization. According to Valluri, Nahata & Jangalwa (2010), the Coca-Cola Company has a guidebook which stipulates both the role of each employee and the disciplinary actions that are taken towards those who act improperly. However, this does not give a clear picture of the social and economic strategies that the company undertakes in addressing the emotional and social problem affecting employee.
The Coca-Cola Company should incorporate social networking in its organizational structure either by organizing trainings for its employees or by ensuring easy accessibility of intranet. It should also ensure that all the divisions have effectively opportunities in the company’s decision making processes. Moreover, the company should incorporate social and economic monitoring units in each of its division to help address the employees’ social welfare programs and operations.
The write up has pointed out the need for such multinational organization as Coca-Cola to enhance its management structure. This can be done by enhancing effective management structure through the breaking down of the tall hierarchical structural systems. Such structures incorporate all stakeholders, including employees in the organization’s decision making processes.