HUMAN RESOURCE DESIGN

CCBPI believes that each worker brings his or her unique talents and ideas to work every day to help the Coca-Cola system achieve the goals outlined in their 2020 Vision. It strives to create open work environments as diverse as the markets they serve, where people are inspired to create superior results. They also aim to create environments where people are fully engaged and where the Company is viewed both internally and externally as an employer of choice. The Coca-Cola Bottlers Philippines Inc. in Sta. Rosa is a vast company that employs various types of employee positions ranging from the managerial positions to rank and file positions. The company is divided into different departments namely; legal, human resource, production, finance, etc. y In hiring workers, CCBPI uses a job specification for each type position. It uses a list of the minimum acceptable qualifications that a potential employee must possess to perform a given job successfully. y CCBPI makes sure that there is a fit between the employees hired for a specific position and the work/tasks to be performed. It matches the employees abilities, skills and qualifications to a corresponding job/tasks to ensure that tasks are properly done. y It uses a job description for every type of position which outlines the duties, responsibilities, required qualifications and reporting relationships of a particular job and even salary range. y Division of labor y Works are subdivided into separate jobs assigned to different people which potentially increases work efficiency y Employees are divided into teams headed by a team leader to whom the subordinates must report to. y Forms of work coordination y Formal because of the hierarchy of authority and company rules. y Informal communication also exists within teams j How do we provide a reasonable work environment? CCBPI follows a Workplace Rights Policy and Human Rights which states the companys commitment to the promotion of human rights and reasonable workplace for the workers. They also state the Companys principles concerning freedom of association; forced labor; child labor; discrimination; work hours and wages; occupational health and safety; and workplace security. It is a global policy binding upon all Coca-cola bottlers around the world. In the Sta. Rosa plant, y Freedom of Association and Collective Bargaining

CCBI, in obedience to the provisions of the Labor Code of the Philippines with respect to Collective bargaining, respects the employees right to join, form or not to join a labor union without fear of reprisal, intimidation or harassment. According to them, they are also committed to establishing a constructive dialogue with their freely chosen representatives. The Company is committed to bargaining in good faith with such representatives. y Forced Labor

The Company prohibits the use of all forms of forced labor, including prison labor, indentured labor, bonded labor, military labor or slave labor.

Child Labor

The Company adheres to minimum age provisions of applicable laws and regulations. The Company prohibits the hiring of individuals that are under 18 years of age for positions in which hazardous work is required. The Companys prohibition of child labor is consistent with International Labor Organization standards.

Discrimination

The Company values all employees and the contributions they make and has a long-standing commitment to equal opportunity and intolerance of discrimination. They maintain a work environment is free from discrimination or physical or verbal harassment on the basis of race, sex, color, national or social origin, religion, age, disability, sexual orientation, political opinion or any other status protected by applicable law. The basis for recruitment, hiring, placement, training, compensation and advancement at the Company is qualifications, performance, skills and experience.

Work Hours and Wages

The Company compensates employees competitively relative to the industry and local labor market. They operate in full compliance with applicable wage, work hours, overtime and benefits laws. They offer employees opportunities to develop their skills and capabilities and provide advancement opportunities where possible. y Safe and Healthy Workplace

The Company provides a safe and healthy workplace. They are dedicated to maintaining a productive workplace by minimizing the risk of accidents, injury and exposure to health risks. CCBPI has a Safety Management System Standards and supporting requirements for worker safety and loss prevention which are collectively known as "The Coca-Cola Safety Management System" or "TCCSMS." TCCSMS defines their systematic approach to managing occupational safety and health and loss prevention. This system globally operates for all plants under the same standards and requirements. TCCSMS is aligned with an internationally-recognized safety management system, BSI OSHAS 18001. This safety management system requires a commitment to both public safety and to visitors. TCCSMS is part of their integrated management system, The Coca-Cola Quality System which incorporates quality, environment, occupational safety and health, and loss prevention into a single framework. y Workplace Security

The Company is committed to maintaining a workplace that is free from violence, harassment, intimidation and other unsafe or disruptive conditions due to internal and external threats.

Encouraging Open Communication: CCBPI also encourages a work environment of open communication where workers are given the chance to express their ideas and give suggestions in decision-making. Workers are also given enough autonomy to perform their specific tasks. Training CCBPI provides training to successful applicants before they go into the work. It is their priority to develop their people and therefore, they continuously endeavor to provide them with learning opportunities for their growth. Benefits Provides benefits pursuant to the provisions of the Labor Code of the Philippines -maternity leave -overtime pay -13th month pay -service incentive leave -BONUSES

Jobs and Design As mentioned above, Coca-Cola is a globalization beverage company which owns many subsidiary companies outside the nation. There are 71,000 employees in the whole world, with 59,000 of them outside the America. In order to operate efficiently and orderly, the design of work in Coca-Cola seems to be more important. To be scientific management, job enlargement method which means increasing the number of activities in a job including job rotation and cross-training programs is applied. The Coca-Cola company approach to job design is the Job Characteristics Approach that employees when they rewarded for the work they will work hard and when the work gives them satisfaction. So, they suggest that motivation, satisfaction and performance should be integrated in the job design. JOB DESIGN ARRANGEMENT: The Coca-Cola Company uses nontraditional job, for example, skilled trades, technical careers, and service, professional and public service sectors. Challenge: The challenge in job design: greater chance of mental overload and stress, lower personal utilization levels. Rewards and Performances During a business cycle, Coca-Colas managers should do reviewing annual performance; making a future plan and goals for the year. Managers will also grade their employers of his/her department, the employees with the higher grade will get money reward or reputation or other forms of rewards like vacation. This reward system according to their performance feedback is used by the Coca-cola management. Now, it has been a part of culture in the internal of the company. Employees always think that and almost everyone want to get higher scores and feedbacks to gain the rewards. Reward systems in the Coca-Cola Company did contribute to motivate the employees perform trying their best and be much more responsibility. However, just rewards to employees may not be the most efficient, some employees may lack the passion to gain the reward, at this time, and proper degree of passion would be made and established. The goal of punishment establishment is to discourage unexpected behavior like doing private things when working or lazy to do own work. In Coca-Cola, after feedback for the employees, those who get low grades and bad feedback from other colleague will be asked to talk with the boss who is considered a negative consequence. They will discuss why he or she gets the bad comments from others. This is a chance the company gives them to improve themselves. If the employee always gets low grades from the comments, the company will consider he or she may be not proper to their company, and finally, they will be demoted or fired. However, the punishment is not always used because it may be cause unintended results in the aspects of the employees emotion, psychology, and performance.

How much can we expect our employees to produce? Based on demands/historical data, forecasts, based on previous performance of workers. quota

ISSUES: y y y y y y y y management seems to be insensitive and unconcerned. Some supervisors and managers with questionable integrities and capabilities in their positions. Favoritism is blatantly practiced in promotions and work assignments. Promotion is longer performance based but now depends on your relationship with your boss. Promotion Union members suffer discrimination. - And in the contrary if you are not a member of the Union, you will be promoted fast. no performance evaluation used in promoting workers salary cap corruption For the exempt group or employees who are non-unionized they are entitled to an increase in their salary every year. But currently there is this so called salary cap, wherein if you reach the maximum level of increase for the position you are holding you will no longer have any increase on your salary but a lump sum based on your performance. So if the salary cap of your position is just 20,000 and you have reached the peak it will remain as it is and will have no further increases until you retire. The salary cap depends on the job grade level of your position though. When you belong to the exempt group all salary increases are dependent on your performance evaluation, and that means if you are not good with your supervisor or manager you will not get any increase. For unionized employees, their increase along with other benefits such as rice subsidy, shoe allowance, commission (for sales men) is dependent on their Collective Bargaining Agreement which cycles every three years.

LOCATION

The CCBPI Inc. has 21 plants all over the Philippines. The main and largest plant is located in Sta. Rosa, Laguna. At present, there are now two plants in Sta. Rosa namely Sta. Rosa I (main and largest) and Sta. Rosa II. Sta. Rosa I is the one in-charge in making decisions regarding distributions of products which therefore include the issue of location. Where should we put the facility? The main and largest plant was decided to be situated in Sta. Rosa because of it is a progressive city which houses many industrial and manufacturing plants of multi-national companies. Santa Rosa is the premier city and hub of South Luzon. It is the Makati of the South in terms of economic activity. It has a land area of 54.13 square kilometers (5413 hectares) where different commercial, industrial, agricultural, and business establishments are located. It has a large population of 288,032 as of 2008. It is also known for its tourist landmarks and attractions visited by people from the outside of the city. Due to the large number of residents and people going in and out of the city, there is a large demand of goods and services frrm this city. Large population also implies that there is an enough source of labourers to work for the company. In addition, the political and legal policies were also considered by CCBPI in locating the main facility in Sta. Rosa because, the government BOI provides for incentives to companies located at not less than 40 kilometers away from Manila. On what criteria should we base this location decision? CCBPI Plants are located in the major regions in the Philippines, North Luzon, Greater Mnaila Area, South Luzon, Visayas and Mindanao. CCBPI Inc. also has sales warehouses and cross docks. Products are delivered to those sales warehouses by bulk transport vehicles and distributed to retail outlets by smaller distribution trucks. Coca-cola products are unloaded by trucks from the plants to the sales warehouses and stock them there. Retail trucks then get these stocks of products from the warehouse and deliver them to the retail outlets. Direct selling to retail business owners and to consumers are also done in sales warehouses. Cross docks, on the other hand, are just unloading sites where products are unloaded from incoming big trucks and are loaded into smaller trucks with no storage in between to deliver the products to the retail stores. Cross docks are being used by the

company to lessen the costs. It is used as an alternative to sales warehouses because putting up a warehouse is too costly. CCBPI, Inc. considers the following criteria in locations decisions:

REGIONAL FACTORS Source and Location of of Raw Materials The company considers the proximity and adequacy of the materials it uses for its productions like water, sugar, and electricity for a specific location. Location of Markets/Demands Plants, Sales warehouses and Cross Docks are located in places where there is large demand of its products. It is their strategy of increasing profits by increasing market share. Labor Factors The company considers the cost and availability of labor in a specific location as well as the desirability of a community as a place for its workers and managers to live. Climate The company also considers the climatic conditions in a location. The desirability of a climate and temperature is considered vital because it affects the condition of the finished product (taste and color). Site-Related Factors soil conditions, and drainage rates land costs, room for future expansion, current utility and sewer capacities sufficient parking space for employees and customers Industrial parks

Accessibility - The Company also considers the ease of access, i.e. high visibility and easy access for customers, consumers and workers. It is considered as a strategy that emphasizes convenience for the customer.

Risks Political Economic Cultural

Layout design The company also considers the volume of output, the size of the equipment and machines to be used in the operation. Competition - CCBPI puts up their facilities in places where competitors in the same industry do not have a facility and where Coca-cola is the only one offering such kind of products in a specific location.

Environmental considerations The company is also committed to the welfare of the community in general. They make sure that the location is not hazardous to the residents. Location where easy and proper waste disposal can be done.

Legal and Political Considerations Rate of Local taxes

The company puts up facility outside metro manila because the government BOI provides for incentives to companies located at not less than 40 kilometers away from Manila.

Other location strategy: *The company often examines and assesses the performance of each facility together with other factors. This is to decide whether they should expand an existing facility, add new locations while retaining existing ones, or shut down a location and move to another.

LAYOUT DESIGN

The picture above depicts the layout of the production plant of coca-cola.

Coca-cola uses a product layout because it uses standardized processing operations to achieve smooth, rapid, high-volume flow. Layout design refers to the specific arrangement of physical facilities. This type of design is necessary to Coca-Cola bottling company whenever they have new facilities constructed and when new product is introduced. Product layout is an arrangement based on the sequence of operations that is performed during the manufacturing of a good. This kind of layout pattern increased the output rates of Coca-Cola products and also, it utilized labor and equipments. The process are almost automated. The machines and equipment are arranged according to the processes involved in the production. The layout is arranged in such a way that products are being produced continuously and efficiently. They are arranged in such a way that

it prevents accidents, reduces productions delay and manufacturing time, simplifies control of production, avoids necessary capital investment, helps effective utilization of employees, machine and services and lastly increases in productivity.

However, the present layout design has a disadvantage. For instance, a breakdown of one piece of equipment in the plant can cause the entire process or operation to shutdown.

The company considers the following in when making a layout decision : y y y y Product design Process design size of plant the repairs and maintenance (negative circumstances are being considered since it is cannot be avoided, every equipment in the factory should be arranged in an adequate position so that by the time that necessary repairs are needed there should be an allotted space for them to be moved and repaired) Accidents and Safety Hazards Changes in environmental or other legal requirements

y y

The present layout brings the following advantages to coca-cola: High volume Low unit cost Low labor skill needed Low material handling High efficiency and utilization Simple routing and scheduling Simple to track and control