Strategic Human Resource Management AIB MBA (2016)

i
ASSIGNMENT COVER SHEET
AIB student ID number: A001646577
Student name: Dimithri Wellage
Course name: Master of Business Administration
Subject name: Strategic Human Resource Management
Subject facilitator: Mr. Samitha Perera
Teaching Centre: Oxford College of Business
No. of pages: 2585
Word count: 19
Question:
Write a report about a human resource management (HRM) issue affecting your organisation or an
organisation you know well.
I, the above-named student, confirm that by submitting, or causing the attached assignment to be
submitted, to AIB, Ihave not plagiarisedany other person’s work inthis assignment and except where
appropriately acknowledged, this assignment is my own work, has been expressed in my own words,
and has not previously been submitted for assessment.

ii
STRATEGIC HUMAN RESOURCE MANAGEMENT
ASSIGNMENT FOR AIB
MBA
BY
Dimithri Sadeepa Jayamali

iii
Executive Summary
In this report it is discussed the HR processes existing in the Coca Cola beverages Sri Lanka (CCBSL)
and the issue of high rate of health hazards faced by workers in the manufacturing lines in past few
months which the HR division and both operations management have to critically consider about.
Based on the problem analysis it has identified few recommendations to carry out to solve the issue
in a better way.
As the human resource management plays enormous role in the organization, when any issue is
arising, it creates a bad reputation for the organization. In order to minimize the risk, it is better to
identify the human resource management issues in the company and make necessary arrangements
and precautions to solve the problems. Developing a well-organized training process and
development plan to all the employees will enable the organization to sustain, get developed and to
achieve the competitive advantage in the industry.

iv
Table of contents
Executive Summary...............................................................................................................................iii
Table of contents ..................................................................................................................................iv
1 Background of Coca Cola beverages Sri Lanka ltd .........................................................................1
2 Human resource practices used in Coca Cola................................................................................1
Job designing and analyzing...............................................................................................................1
HR planning........................................................................................................................................1
Recruitment .......................................................................................................................................2
Employee testing & selection ............................................................................................................2
Hiring & induction..............................................................................................................................3
Performance evaluation.....................................................................................................................4
Training & development ....................................................................................................................4
Compensation management .............................................................................................................5
EPF (Employee Provident Fund).........................................................................................................5
ETF (Employee Trust Fund) ................................................................................................................6
Incentives ...........................................................................................................................................6
Allowances .........................................................................................................................................6
Leave and Attendance .......................................................................................................................6
3 Problem Analysis............................................................................................................................7
4 Impact of above issues to the company ........................................................................................8
5 Currently used safety precautions.................................................................................................8
6 Recommendations and industry best practices to reduce HR issue in Coca Cola.......................11
Instructions for workers...............................................................................................................11
Personal protective equipment (PPE)..........................................................................................12
Work permits ...............................................................................................................................14
Conclusion............................................................................................................................................14
Reference.............................................................................................................................................14

1
1 Background of Coca Cola beverages Sri Lanka ltd
Coca-Cola brand was born on 8th May 1886 in Atlanta, USA, in the basement of home belonging to
Mr. Pemberton, a pharmacist. In 1886 Mr. Pemberton went into partnership with Mr. Frank Robinson
who was the genius behind Coca-Cola logo and lettering. The CCBSL is owned by the BIG (Bottling
Investment Group) company which is the largest bottling company group in the world and the
bottling arm of Coca-Cola (coca-cola, 2012).
The Coca-Cola Biyagama site has 21 acres and it employs about 506 direct employees. Also the
distribution network consists of 120 distributors in general trade. Approximately 75,000 are retailers
are connected through this network which is from 120,000 of total retailers in Sri Lanka. As a
company, it has managed to handle the human capital well although the management had to go
through few union issues recently (CCBSL, 2015).
2 Human resource practices used in Coca Cola
HR management includes the organization’s methods & procedures for managing people to enhance
skills & motivation. In CCBSL, the HR department works as a supporting unit for all the other sections
such as supply chain division, finance, procurement, sales, marketing...etc. and it carried out several
functions as discussed below.
Job designing and analyzing
Job designing is the function of arranging the tasks, duties & responsibilities into an organizational
unit of work for the purpose of accomplishing primary goals & objectives. According to the
requirement of CCBSLdivisions HRdepartment develops the job structures. For Job analyzing in order
to carry on a systematic investigation of jobs and job holder, two documents such as JD (Job
description) and JS (Job specification) are prepared.
HR planning

2
HRP means the attempt to forecast how many & what kind of employees will be required in the
future and what extent this demand is to be met.
Currently there are 506 permanent workers are there in CCBSL and the HR department prepares a
monthly head count report. It is checked whether there is an excess or surplus of employees and for
an excess, employees are hired and for a surplus, allocating other jobs, providing compensations and
voluntary retirements are carried out.
Recruitment
It is the process of finding & attracting the suitable qualified people to apply for employment. In
CCBSL both internal & external recruitment is carried out by identifying job vacancies, ascertaining
job requirements, preparing job application form, selecting methods, creating recruitment pool and
then evaluating of recruitment effort.
Employee testing & selection
It is the process of making the choice of most appropriate person from the pool of applicants
recruited to fill the vacancy.
Employee selection methods at CCBSL:
 Application evaluation
 Employee test
 Interview
Employee hierarchy of CCBSL:

3
Figure 1: Employee hierarchy of CCBSL
Usually the Country HR Manager and the HR Services manager are participating for the interviews in
employee selection.
Hiring & induction
It is the process of appointing the selected candidates to the position. Usually the hiring process is as
follows.
Figure 2: Process of hiring
•Country Manager
•Country Supply Chain Manager
•Country HR Manager
•Country Finance Manager
Country
Management
Team
Greater
Management Team
Management Team
Staff
Shopfloor(General Staff)
Preparation of
appointment
letter
Notification to
the employee
Follow up
Rejection
Appointment
from the
waiting list
Acceptance
Entering into
the contract of
employment

4
In the Induction Process the employee is introduced to the organization. In CCBSL the induction is
given in 3 ways such as General induction which is about the basic details of the company, next the
departmental induction on acknowledging reporting and peers. Then Human induction is givenwhich
is to introduce to other departments and employees.
Performance evaluation
At CCBSLself-evaluationis done by rating self-performance and the other employees provide a rating
to the employees who work with them.
Training & development
Training is a short term process and development is a long term process. Usually at the beginning of
the year the HR department with other management heads carried out a discussion to plan the
training sessions for the whole year with the details of no of participants, purpose of training...etc.
The trainers can be both internal and external and for the external trainers a different kind of a
process is carried out.
The external trainers are registered as vendors and they are given a vendor registration form. It is
sent to procurement manager, then for financial approval and registration is done. For each and
every training session, there should be a check list and an attendance sheet. The trainings are
evaluated under 3 steps as follows.
 Reaction Level- Whether the trainee is happy about the areas covered. (>80%)
 Learning Level- Monitor the performance
 Application Level- Measure the application of training (>50%)
Also a monthly report on training sessions is sent to India and it includes the man hours spent on
training.
Man Hours =
No of Participants ∗ No of Hours
8

5
Compensation management
Figure 3: Compensation categories
Pays
Payroll Areas in the system:
 L4 – Country Management Team
 L2 – Executives
 L0 – Non-Executives
o Permanent
o 1 year fixed term
 L1 – Casuals
 L3 – Trainees
EPF (Employee Provident Fund)
The employees who were recruited before 2007: 15% from Employee and Employer
The employees who were recruited after 2007: In Coca-beverage according to the EPF Act, an
employee is required to contribute a minimum of 8% and the company is required to contribute a
minimum of 12% of the total salary of the employee monthly.
Rewards/Compensation/R
emuneration
Pays (Wages & Salaries) Incentives (Variable Pays) Benefits (Welfare)

6
ETF (Employee Trust Fund)
According to the ETF Act, company must contribute a minimum of 3% of the total salary.
Incentives
Figure 4: Incentives/variable pay types
Allowances
Allowances given for the workers in shift work:
6-2 No shift Allowance, Meal Allowance only
2-10Shift allowance only
10-6Shift and meal allowance
Boil, Welder Milk Allowance
Leave and attendance
In Coca-Cola every employee is given 14 days as annual leave, 7 days as Casual leaves and 21 days as
Sick leaves. Also for the pregnant mothers 3 months are given as maternity leave.
Attendance allowance is given for not taking any leaves for the month.
For the continuation of 3 Sundays of work 1 Pay leave is provided.
For the continuation of 4 Sundays of work 2 Pay leaves (Duty leave) are provided (Gosteric, 2012).
Incentives
Production
Line-Group
Incentives
Sales
-Morethan target-
10%-20%

7
3 Problem Analysis
As a manufacturing plant below is the identified issue in Coca Cola as at current information.
 Increased number of injuries of workers
Looking at the past few months there’s a considerable increment in injuries faced by the
workers within working hours. It has been identified the main types of injuries are cuts,
punctures, chemical injuries and burns.
Figure 5: Injury rates
The most common causes of hand injuries are:
– Carelessness
– Lack of awareness
– Boredom
– Disregard for safety procedures
– Distractions (Preventing-Hand-Injuries, 2015)
The above reasons mainly come due to lack of training and development. If the workers are given a
proper training and knowledge refreshments time to time, they might be more careful of working
with machines and tools. Also then they get to know how to use them properly. The management
0
2
4
6
8
10
12
14
October November December January February
Cuts
Punctures
Chemical injuries
Burns
Total injuries

8
has to provide and advice workers with regards to safety precautions and check whether they follow
the correct instructions.
4 Impact of above issues to the company
Due to increasing number of injuries, the company can undergo different issues as below,
 Loosing number of workers needed to carry out production
 Higher cost and time consuming to replace a new worker or a recruit a new person
 Difficult to transfer practical knowledge and experience to a different person
 Decreasing productivity
5 Currently used safety precautions
In Coca-Cola beverages, there are so many moving machineries in all production lines. Heavy
machinery like Palletizer, Washer, Filler and all the conveyor lines can be life threatening if someone
does not care about his or her personal safety.
Boilers and generators can bring life threats if someone doesn’t deal with it in the correct way. Also
in the store area, the movements of fork lifts are risky to walk without caring about the safety signs
or paths.
Due to that the company has taken a lot of safety precautions for these areas and highly standard
safety standards are implemented for the safety of everyone.
• In all the heavy moving machineries, there are safety sensors to detect if someone maintains
unsafe distance with the machine and it automatically stops its movement.
• Around all of the heavy machines, there are safety fences for the protection of operators and
workers.
Figure 6: Safety Fences and Glasses

9
 Filler machines are covered around completely with a protective glass to avoid blasted bottles
to spread everywhere.
 Safety signs like Danger, Caution, Warning are used everywhere according to the necessity.
 Fork lift operated areas are prohibited for the unauthorized entrance.
 All the panel boards are protected with enclosures and panel rooms are air conditioned to
avoid any kind of fire.
 Fire assembly points, fire showers are positioned in suitable areas.
 PPE (personal protective equipment) boxes are placed in suitableplaces with allthe necessary
equipment inside.
 Fire extinguishers, fire exits and fire assembly points are available with a trained fire team.
Also, a monthly fire training is given for all the workers to make them aware of the acting in
a sudden situation.
Figure 7: Safety Showers

10
In Coca-Cola beverages, not only the internal workers but also the contractors who are working in
the premises and the visitors who come to the plant have to maintain certain guide lines for their
own safety.
Figure 8: Safety instruction provided at the gate

11
6 Recommendations and industry best practices to reduce HR issue in Coca Cola
Instructions for workers
There are two main principles which cause for the majority of accidents,
 Unsafe acts.
 Unsafe conditions.
Most of the accidents can be avoided by taking following precautions avoiding above principles,
 Always wear tight cloths.
 Do not wear necklaces, watches or rings while working with electrical components
 Never hurry or rush a job.
 Pay close attention to the work.
 Never indulge in horseplay of any kind.
 Understand and respect to the limitations of the machines being used.
 Look for safety hazards and eliminate them.
 Get help to lift heavy, out-sized or unbalanced objects.
 Use compressed air carefully. Never blow chips or dirt carelessly. Use a brush or chip hook.
 Clean up all the oil spills before and after a job.
 Remove the chuck key and wrenches from moving parts before starting a machine.
 Never wear gloves when operating a machine.
 Always wear protecting equipment depending on the job.
 Never perform unsafe act to save time, do every job in the safe way.
 Wear a cap, if having a long hair.

12
Following are some instructions which can be given for the operators and workers,
 Operate only equipment which are thoroughly familiar, and never try to operate any
machines unless it has been thoroughly trained to use them.
 Make sure that all the guards and safety devises are properly installed and working correctly.
 When repairing any machinery always turn of the master switch and look it out to prevent
accidental starting.
 Never remove the chips or any broken parts having sharp edges by hand.
 Never leave and operating machine unattended. If wanted to leave, shut down the machine.
 Never use rags or brushes near moving machinery.
 Make sure that the vices and fixtures are properly mounted and tightened before the
operation.
 Never make any adjustment while running the machine; first stop the machine.
 Keep the hands away from moving parts.
 Always check to make sure that cutters are in good condition and properly sharpened.
Personal protective equipment (PPE)
 Safety helmet
Safety helmets should be worn at any place in the Work Shop. Even a small bolt drop to the head
from a high place may cause to serious injuries. Harness should be adjusted to tighten the helmet to
the head sufficiently.
 Safety goggles and dark glass

13
Normal safety goggles shouldbe worn with chipping and grinding processes to prevent smallparticles
strike on eyes. Dark glass should be worn with gas cutting and welding processes to prevent loss of
sight due to ultra violet radiation.
 Safety belt
Safety belt is usable, when working at higher places. Safety belt should be properly, tightly worn.
Then the rope should engageto asafesupporter. In the caseof falling from high placedropping range
would be limiting to the length of the rope.
 Safety gloves
Rigger gloves should be worn when working with sharp, corroded, damaged, heavy, etc. It prevents
fingers and palm from injuries. Welding gloves should be worn during welding, gas cutting processes
and when handling hot items. Leather material of the gloves absorbs heats, but it is not suitable for
handling hot items for long time ( International Finance Corporation and International Labour
Organization, 2010).
 Safety shoes
Safety shoes prevent damages to the fingers in a case of falling of high weights. Oil resistance, non-
slip sole is good protector while working along slippery oily surface and damaged from bottles can
be dimmed for the workers.

14
Work permits
A work permit is generally a legal authorization required to execute certain functions within a factory
outside normal operational tasks specially performed by departments and contractors. They are split
into several components on the type of work to be performed because different work practices and
safety criteria need to be adhered in each component.
Following are the work permit types which can be used at CCBSL.
 General Work Permit
 Work at height
 Hot work permit
 Confined space work permit
 Excavation permit
 Electrical Certificate
It can rule out that work permits can be only obtained off one of the designated responsible officer
and in CCBSL it can be only given by the service engineer (Dimithri, 2016).
Conclusion
Workers health and safety is an important factor under human resource management and one of
very special subject that the management has to make consider about. Based on the above facts
injuries of workers causecompany operation and employees carrier life.Therefore, the management
and the workers both have to be very careful of what they use and when they use them. With a good
training, most of the issues will be dropped and the people would be more careful when working in
hazardous environments.
Reference
International Finance Corporation and International Labour Organization. (2010). Personal-
Protective-Equipment. Retrieved 03 18, 2017, from /srilanka.smetoolkit.org:

15
http://srilanka.smetoolkit.org/srilanka/en/content/en/53248/Personal-Protective-
Equipment
CCBSL. (2015). TPM report. Biyagama.
coca-cola. (2012, 01). the-chronicle-of-coca-cola-birth-of-a-refreshing-idea. Retrieved 03 17, 2017,
from www.coca-colacompany.com: http://www.coca-colacompany.com/stories/the-
chronicle-of-coca-cola-birth-of-a-refreshing-idea
Dimithri. (2016). Internship report. 06: 01
Gosteric, N. (2012, 08 09). human-resource-management-within-coca-cola. Retrieved 03 18, 2017,
from www.slideshre.net: https://www.slideshare.net/NevrozGsterici/human-resource-
management-within-coca-cola
Preventing-Hand-Injuries. (2015, 04). Retrieved 03 17, 2017, from precast.org:
http://precast.org/wp-content/uploads/2015/04/Preventing-Hand-Injuries.pdf

Strategic Human Resource Management AIB MBA (2016)

More Related Content

What's hot

Similar to Strategic Human Resource Management AIB MBA (2016)

Strategic Human Resource Management AIB MBA (2016)