EFFECTS OF ORGANIZATIONAL CHANGE ON
EMPLOYEE’S PERFORMANCE AT COCA-COLA
George K Fanning
American Public University
Organizational change is inevitable with market and industrial dynamics. Some
factors that lead to organizational change include technological advancements and new
governmental policies. Economic changes also contribute. Coca-Cola has thrived through 126
years of business and this has been affected by very many changes to adapt to new
strategies. The business has sufficiently globalized and changed its marketing, research, and
brand strategies. It has also embraced new technologies. This project explores the effect of
these changes on Coca-Cola Company’s Employees.
The Coca-Cola company began as a one product company, Coca-Cola Soda back in 1886 in Georgia, US.
The company was producing Soda for the local market but later realized some potential in the international
market during the first and second world wars.
Currently, the company has a portfolio of 500 brands and 3500 beverages after launching Coke in 1986.
Some changes that have occurred at Coca-Cola include the global expansion, the changes of brands, the
inclusion of new brands, changes in management, the inclusion of the merging strategy, and different
models of marketing among other things.
Organizational changes may have positive and negative
consequences on employees’ motivation. The Coca-Cola Company
has gone through many changes over one and a quarter century of
production. This paper looks at the organizational changes at
Coca-Cola and how they affected the employees’ motivation.
❖ The adverse effects of organizational changes at the Coca-Cola
Company outdo the positive effects on the employees, especially
considering their productivity.
❑ Does organizational change have any impact on the staff
productivity of Coca-Cola Company?
❑ What is the reaction of Coca-Cola’s staff toward organizational
❑ What are the measures that Coca-Cola Company has put in place
to reduce the adverse effects of organization change on its staff?
❑ What are the things that Coca-Cola Company should improve in
their change implementation process?
❑ This research is descriptive.
❑ The main research method embraced is a case study of the Coca-Cola Company.
❑ The type of research design embraced is a review. Data and information is collected from scholarly sources that
describe some of the changes at the Coca-Cola company. This information is correlated with scholarly
information collected from other sources that describe the effects of certain organizational changes presented
from the Coca-Cola case studies.
❑ The research is descriptive but does not conduct a data collection and analysis, since a case study research
method and a review research design hardly presents sufficient data for analysis.
According to Lewin’s Force Field Theory, changes are inevitable, since an organization has to keep
adapting to new controls, cultures, and structures (Miller, 2012).
Globalization is the first significant change that hit Coca-Cola. It first expanded to Hawaii, Puerto Rico
and the Philippines, and Cuba during the WWI and WWII war eras. Expatriation was the first direct effect
on employees who were outsourced to work in these new locations (Elmore, 2014).
Due to foreign investment policies in the new destinations, Coca-Cola began to recruit employees from
the new locations. After employing thousands of employees, the product started facing boycotting and
governmental bans especially in Europe after children fallen after drinking coke. This lead to losses of
jobs of the employees in these locations. The remaining employees, especially in other parts of Europe
felt Job insecure (Van Loock, 1999).
❖ Another change that has happened at the Coca-Cola Company is the increased pool of
products in the Coca-Cola Company’s portfolio. From one product, the company
currently have over 500 brands, and 3500 sub-brands (Loneman, 2017).
❖ The Coca-Cola company has also embrace technology in its supply chain. In its initial
production levels the company had many employees, but with technology, these
employees have been replaced by production, packaging, and marketing technologies
Effects of the Changes on Employees and Output
Expatriation lead to job dissatisfaction on employees who were separated from their families, yet it increased motivation to
young and adventurous employees who are willing to explore new global destinations.
The ban of Coca-Cola products in Belgium, Uk, France and other European destinations lead to loss of jobs to some employees
in these locations and threatened other employees’ job security in other European destinations. This job insecurity lead to loss
of motivation to work.
Increased brands have always motivated the research and development employees and promotes career growth among them.
This increases motivation and consequently employee productivity.
Mechanization has led to job satisfaction on machine operators and the R&D department, while other employees are
threatened by the trend. This fear of losing their jobs reduces their motivation and divides their attentions, leading to lower
The Coca-Cola Company has thrived through several generations and has experienced massive
changes. Some changes include its globalization strategies and challenges. Other changes include the brand
expansion and brand expansion strategies. They have also enhanced technology. Some effects include
employee motivation for employees who have been able to travel at will during expatriation and growth and
development for employees who have played essential roles in improving the scope and quality of Coca-Cola
products and reputation. However, there are significant job insecurity concerns that may have acted against
employees’ motivation. Employees with lower motivation are less productive than employees with higher
motivation. The negative effects on employee productivity at Coca-Cola exceed the positive benefits caused
by organizational changes, but the profitability and growth of the company are enhanced by the changes. The
Coca-Cola should not refrain from changes due to employee productivity only since this can inhibit the
Company’s projected future growth.
Anderson, K. (2018). Organizational Change: Consequences of Organizational Changes on employees. doi:10.4324/9781315386102.
Anibaba, Y. (2015). Knowledge Transfer through Expatriation: How Do Subsidiary Employees Count? The Changing Dynamics of
International Business in Africa, 32-51. doi:10.1057/9781137516541_3.
Elmore, B. J. (2014). Citizen coke: an environmental and political history of the Coca-Cola Company. doi:10.18130/v3fk87.
Loneman, B. (2017). Chapter 4. Global Brand Expansion. Hospitality Branding. doi:10.7591/9780801465703-006.
Miller, J. (2012). Force Field Analysis and Model of Planned Change. Encyclopedia of Management Theory, 1(1), 234.
Nam, T. (2018). Technology usage, expected job sustainability, and perceived job insecurity. Technological Forecasting and Social
Van Loock, F. (1999). Contamination of Coca-Cola in Belgium. Weekly releases (1997–2007), 3(27). doi:10.2807/esw.03.27.01375en.
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