Coca cola company management structure

Running head: LEADERSHIP AND ORGANIZATIONAL STRUCTURE

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LEADERSHIP AND ORGANIZATIONAL STRUCTURE

Coca Cola Company: Leadership and Organizational Structure

John A. Gnanaranjan

Davenport University

February 9, 2014

Abstract

Leadership and organizational structure are the main elements in any organization. This paper highlights the elements of leadership and organizational structure in the Coca Cola Company. The Coca Cola Company has adopted the democratic leadership approach to run its institution. This leadership approach is the most effective form of running any institution because it is open to its member’s participation. Member’s participation in managerial decision-making welcomes new and creative ideas to projects and guarantees that members will offer their efforts towards the projects. Although democratic leadership is widely accepted as the most effective form of decision-making, its downsides are experienced when a company needs quick solutions to a problem. This form of governance is slow in decision-making; hence, not effective for matters requiring quick solutions. Nurturing and leader development with democratic leadership approach is straightforward because excellent leaders are chosen and awarded through a collective and open choice from members. When analyzing organizational structure and its impact on leadership, democratic leadership tends to adopt an open system structure. This structure allows member’s input in managerial decision-making. Consequently, such participation is known to guarantee employee satisfaction and the general health of the organization in terms of performance and productivity.

Coca Cola Company: Leadership and Organizational Structure

Leadership style fostered in the organization

Different organizations adopt different leadership approaches. The choice of any leadership style in any organization depends on the type of business, the specific needs of that organization, immediate situations, requirement and expectation of employees and challenges, if any, in that organization. An organization can still adopt several of the leadership approaches at different times (Murari, 2011). The Coca Cola Company has adopted a democratic leadership style. In this organizational leadership approach, leaders share decision-making abilities with other members of their institution. Carter and Greer (2013) indicate that democratic leaders use Lewin’s leadership style approach when heading their organizations. This form of leadership includes a participatory system where team members assist in decision-making. Democratic organizational leadership style is productive and effective especially when an organization requires long-term based decision-making.

Effectiveness of the democratic leadership approach

Democratic organizational leadership style is one of the most effective approaches used in many organizations. The Coca Cola Company believes that democratic leadership guarantee high employee satisfaction, encourages creativity and realizes high productivity because of equal participation opportunities. Coca Cola is a stable organization. In a certain level, allowing employees to participate equally in the company’s decision-making encourages members to give their best in projects. This is the main reason why this company is successful in its new projects. Before any project is launched, relevant employees contribute their creative ideas, participate in discussions, vote wherever necessary and contribute better solutions for the new project. According to Carter and Greer (2013), the result of full participation in creating a new project gives members morale, and the general progress of the project remains superior.

Ineffectiveness of the democratic leadership approach

Although the democratic leadership approach is effective and productive, it does not work well for all the situations of the company. For example, the recent poor performance in the marketing department required a different strategy in making decision because of the urgent situational demand. Murari (2011) admits that democratic leadership is a chronic form of decision-making, and is not effective when an urgent situation needs a quick solution. However, since the company has not adopted any other form of leadership style, the marketing department issue took longer than necessary to resolve. Taking a long to make decisions, especially when a matter is sensitive and urgent, creates tension that can spread to other departments. This situation brings an aspect of counter productivity in the company as employees waste ample time to wait for an effective decision.

How leaders are nurtured and developed in the organization

Democratic organizational leadership has a straightforward leader with nurturing and developmental characteristics. Through participatory decision-making, leadership skills are shared and distributed among members. Through this management style, quality leaders are appreciated. Their efforts and inputs are recognized and can be rewarded with appointments (Woods & Gronn, 2009). The Coca Cola Company has gone to the extent of rewarding quality leaders with training programs aimed at promoting effective management skills. In essence, best quality leaders are chosen and given responsibilities, and involved members of the organization reward them through a collective agreement.

Organizational structure and its impact on leadership

Leadership and organizational structure are the pillars of any organizations. Different leadership styles have different organizational structures. The leadership or organizational structure, which an institution adopts, determines the norms, culture and general running of that organization (Somech, 2006). For example, democratic organizational leadership approach adopts an organizational structure with an open door policy. This design allows the management to receive feedback or input from members before a final decision is made (Carter & Greer, 2013). This is contrary to what autocratic organizational leadership does. This form of leadership adopts a closed system organizational structure where the organization depends on its manager for final decisions. The interaction between these two elements determines the general organizational development, performance, productivity, ability of an institution to meet the needs of its members and the general progress through which growth and change is achieved.

References

Carter, S.M. & Greer, C. R. (2013). Strategic Leadership Values, Styles, and Organizational Performance. Journal of Leadership & Organizational Studies. 20(4): 375-393.

Murari. K. (2011). Just! Five Distinct Leadership Styles. International Journal of Research in Commerce & Management. 2(12): 30-35.

Somech, A. (2006). The Effects of Leadership Style and Team Process on Performance and Innovation in Functionally Heterogeneous Teams. Journal of Management. 32 (1): 132-157.

Woods, P.A. & Gronn, P. (2009). Nurturing Democracy The Contribution of Distributed Leadership to a Democratic Organizational Landscape. Educational Management Administration & Leadership. 37 (4): 430-451.