CHAPTER - V

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Strategic Human Resources Initiatives of

HCCBPL

Since 2005, HCCBPL’s people processes have been tightly linked to the

short term and long term priorities of the India Business. In its journey

to World Class, the HR Team began by focusing on ‘Basics’ in 2005,

given the sagging morale and low engagement within the Organization.

Step by step, continual improvement in HR processes began to

permeate an ‘Inverted Pyramid’ culture. HCCBPL moved away from a

Grade driven hierarchy to a Role based Customer Service organization

while simultaneously formulating HR milestones and metrics in line

with business needs.

In 2008 and 2011, as HCCBPL business went through a challenging

first half and a turnaround in the second half, positive employee

morale and engagement could be seen as a key contributing factor.

Going forward, as HCCBPL business shifts gears to accelerate growth,

the people processes too will aim to transform HCCBPL into a High

Performance Organization. By 2020, HCCBPL dreams to have a World

Class Bottling System Capable of flawless execution across India.

Doing so, HCCBPL will be building the foundation of an Institution

that will deliver over 2.5 Billion unit cases by 2020. This note aims to

capture the alignment of People/HR Processes with Business Strategy

and the initiatives undertaken from 2005 – 2010 as the India Business

doubled from 0.4 Billion USD to nearly 1 Billion USD.

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HCCBPL’s Business Evolution: 2005 - 2010

In the period 2005 – 2010 (2011 financials yet to be published) the

India business has shown steady growth on key indicators of business

health, whilst doubling revenues from 0.4 Billion USD to 1 Billion

USD:

FIGURE: 5.1 Key Indicators of Business

Key

Metrics 2005 2006 2007 2008 2009 2010

5-Year

CAGR 2010

3-Year

CAGR 2010

Volume UC 192.9 172.8 196.7 230.3 298.7 356.4 16% 22%

Net

Revenue 344.6 378.6 508.8 598.7 728.3 954.3 20% 23%

EBIT -85.2 -76.9 8.1 22.3 40.4 58.5 93%

EBITDA -29.3 -15.1 71.7 81.2 96.5 140 25%

NARTD

Share 37.5 36.5 37.3 37.3

This growth has been in the context of the macroeconomic scenario in

India which has been a mixed bag over the past few years. While the

Indian economy has continued to grow at 8.0%, food inflation had

touched almost 17% in 2011 and aggregate inflation is also

approaching double digits. Growth prospects of the economy continue

to be strong, but cost of operations has been increasing with rising

input costs in terms of manpower, commodities and fuel/energy.

The biggest opportunity in India is emerging in rural markets with the

improvement in infrastructure and communication.

However, the Indian market has been posing challenges on two fronts,

1) Taxation: It is an area where constant pressure and changes exist

to meet government expenditure.

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2) Activism: The second key challenge is the hostile environment

driven by activism. While this is getting mitigated by HCCBPL’s Live

Positively activities, it may take many more years to get neutralized.

The incredibility of India manifests itself in terms of the huge bouquet

of opportunities, albeit with challenges, that the country offers.

Diversity in every sphere of culture, language, religion, climate zones,

ethnicity, pop strata, economy and polity define lifestyles and

consumption patterns in the second most populous country, throwing

up marketing opportunities across multiple segments and need-states.

The opportunity in India is embedded in its multiplicity and complexity

and hence needs to be leveraged in a very granular manner, given the

changing trends in demographics within India’s diversity.

1. Continued population and middle class expansion in India provides

huge opportunity to build a strong beverage business from ≅0.5 Bi

Unit Cases in 2010 to ≅3.1 Bi Unit Cases in 2020. The demographic

dividend in terms of India’s population only enlarges the

opportunity as India heads to be a nation of young high earners in

the lead-up to year 2020 coupled with a high private consumption

trend (≅70% of GDP).

2. In 2010, India is the third largest beverage market in the world with

a beverage consumption of 108.3 Bi UC, out of which 79.4% is Tap

Water. Coca-Cola products are a small part of the balance 20.6%

commercial beverages.

3. In India, the expansion in the middle class and rising employment

levels have led to per capita GDP growth at ≅8.6% and is projected

to grow at ≅7.4% till 2030. This is favorably impacting the quality of

life and consumption pattern in terms of personal choice items. The

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increasing teen population with an active and healthy lifestyle is

also driving consumption in terms of communication tools, food and

beverages.

This process has already started accelerating the conversion of

beverages consumption/business from tap water to NARTD.

Strategic Roadmap for the business:

Given the macro-economic environment, the immense opportunity in

the commercial beverages category and the impending challenges that

the company foresees as headwinds, HCCBPL has laid out its Strategic

roadmap for the business.

The roadmap undergoes a revision every year keeping in mind the long

term plan for the next 3 years, and any other contextual factors.

FIGURE : 5.2 HCCBPL -Strategic Road Map

Win in the Market Drive Returns

�Operational Excellence

leading to Centers of

Excellence

�Pipeline of value &

Procurement Excellence

� Best-in-Class Supply

Chain

� Effective Revenue

Growth Management

�Maximize asset turns

Approach Based On Continuity, Consistency & Constant Improvement

Segmented execution to

ensure…

� Conversion from tap water

at the bottom of the pyramid

�100% Outlet penetration

with Control

� Leadership in every market,

category & channel including

emerging channels

� Successful new product

launch & consolidation

� Teen & middle class

recruitment

Best-in-Class Bottler cost

structure through…

�Standardized systems &

processes to drive

execution

�Compliance & governance

� Employer of Choice

� Strong talent pipeline

� Safe & diverse workplace

� Engaged workforce

Drive Customer-

orientation by…

HCCB – Strategic Road Map

Create a Culture of

excellence

Live Positively:*Water Stewardship *Carbon Footprint *Sustainable Packaging * Community

HR function plays a key role in ensuring alignment of the 3 pillars of

the Strategic Roadmap with the various People processes, whilst also

communicating the elements of the roadmap across the organization.

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Alignment of HCCBPL’s HR Strategy with the Business:

Since 2005, HCCBPL’s people processes have been aligned with the

current and emerging business context. A segmented process of

alignment ensured that each element of the business plan had a HR

plan supporting it as follows:

BP Imperatives HR Implications

1 Sharper segmented

execution ,

Accelerated

Horizontal expansion

Scale up quality and quantity of Hunters

Segment Sales force into Urban , Rural &

Key Accounts

2 Rural growth , Drive

RGB & hence market

share

Replicate the Rural MD module or find a

new model

Re-deploy RGB Sales experience in rural

markets

3 Urban growth &

market share

Train & Convert Salesmen to Pre Sellers

Deploy Tell Sellers for outlet control

4 Emerging Channels

Dedicated structure & training to

leverage potential

Banner wise managers for relationship

management

Leverage external Industry experience

5 Innovation & New

Products

Dedicated structure & training to grow

the category

Leverage expertise from other KO

147

Bottlers

6 Integrated Supply

Chain & OE

Integrate Manufacturing , Distribution ,

Supply Planning and Operations

Excellence seamlessly

7 Dramatically improve

Water Usage

Leverage OE workshops to find solutions

SC Capability function needed to run

training

8 Leverage

infrastructure ,

Flatten Seasonality ,

Drive ROIC

Dedicated Engg function to leverage

infrastructure

Strengthen Supply Planning Team and

S&OP Process

Leverage expertise from outside Industry

9 Ops Excellence , COE Drive OE Training & Certification process

10 Buy Land , focus on

Water , CSR

Dedicated PAC Resource

11 Commodity inflation Dedicated Category leads & Procurement

Analysts

12 Accelerated Capex

investments, New

projects

Dedicated Projects Team to ensure on

time rollout

Leverage expertise from Project

Management Companies

Basis the above HR imperatives, the overall HR Strategy of HCCBPL is

then clubbed under 3 heads, each of which is aligned to an element of

the Strategic Roadmap:

a) Talent – to ensure “Winning in the Market”

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b) Productivity – to ensure “Focus on Driving Returns”

c) Culture – to ensure “HCCB fosters Excellence in Execution ,

especially through Customer Orientation”

Subsequently, long term and short term initiatives were planned under

the 3 heads and further cascaded into execution plans as well as KRAs

for HR Team members.

Thus, every year’s business context and the upcoming year’s plans

impact the focus areas for the HR plan, within the overall context of

the 3 heads as above.

The next section examines the evolution of HR plans and initiatives

across 2005-10 in line with the above.

Design & Implementation of aligned HR Processes: 2005 - 2011

As the HCCBPL business in India evolved from a loss making

organization in 2005 to an organization on path to sustainable

profitable growth by 2010, various HR initiatives were designed and

executed in tight alignment with the business plans each year.

2005-06: As the India business began to steer itself towards

segmented execution and onto the path of becoming a World class

selling organization, the HR focus was on the “Power of Basics”. This

was necessitated given

• The employee Attrition @ 32% and Employee Engagement @ 73%

• The Butterfly Management culture prevalent in the organization

(with average tenures being 8 months to 18 months in an

assignment)

• Short term focus and Low Process orientation among managers

• Commoditization of the brands led to loss of premium in the eyes

of Associates and customers

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During this period, the initiatives undertaken were more tactical,

specific to the business reality at that point and aimed at stabilizing

the newly formed bottling organization.

• Senior leaders had to be convinced about leaving employment

with Coca-Cola India (The Company) and moving to HCCBPL -

the Company owned bottler.

• Middle level and Junior level managers had to be engaged and

convinced about sticking to a particular assignment for a 2 to 3

year period , so as to make a sustainable contribution

• Repeated communication and Leadership meets every quarter

reinforced the new strategy of the bottling organization, focused

on segmented execution, building capability to drive market

execution and re-instill the premium for Coca-Cola’s brands in

the market.

• Workplace Rights Policy adherence and 100% Statutory

Compliance became critical focus areas, given the poor state of

affairs at the front end and shop floor level. Non inclusive people

practices and scant respect for dignity of labour and safety

accentuated the cause. The HR Team focused on driving self-

audits across units, improving compliance with respect to the

laws of each State and national enactments. Extensive capability

building was done around WRP for Factory Managers and HR

managers so as to ensure implementation of the same as per

global defined standards.

2007 : As the business began to show first signs of recovery, the focus

for HR processes was on “Invert The Pyramid” . During this period a

number of significant structural changes were made in the business.

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• The Four Regions (North , East Central and South) were clubbed

into Three Regions basic business size (North , Central , South)

• In line with the direction of the business and given the need to

drive strong functional capability across the organization in a

uniform manner, new Sales, Route To Market and Cold Drink

Equipment Structures were brought up.

• In line with the need to Invert the Pyramid, and support all those

who interface with the Customer, 500 new feet on Street Market

developers were introduced, and were positioned as the most

important role for the business. This role had clear

responsibilities around market execution and account

development.

• In line with the need to have simple, objective, data based

assessments, a simplified Performance Mgt System was

introduced. 60% focus lay on Business Results, 20% on People

development and 20% on Competencies exhibited. A basic

competency framework for the bottling business was also

introduced.

2008 : With the business showing trends of sustainable growth, the

HCCBPL HR organization began to focus on global benchmarks and

metrics . The theme for the Team was “Hit the Bull’s Eye”, and

therein lay the need to have strong HR processes that led to

sustainable outcomes.

• The business had grown on the back of Stable Leadership, at the

Corporate, Region and Unit levels

• It was the right time to strengthen the Talent pipeline in the

organization and parallel start focusing on Career planning. The

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global People Development Forum process (PDF) was customized

for Indian requirements

• Performance based Compensation was driven with a bouquet of

fixed and variable pay options being offered to Associates.

Compensation was recognized as a key tool to drive certain

behaviours in the organization, such as customer orientation &

discipline for routines at the front line level or long term planning

& achievement of sustainable growth at the senior management

level.

• By introducing standard Metrics & Benchmarking productivity

across Regions, the Company was able to bring in uniformity in

systems and a common yardstick to measure progress and share

best practices.

2009 : The focus of the business was now on accelerating growth,

which it did. Despite change of leadership at the top, the long term

strategy of HCCBPL continued on the same path, only with a new

motto “Good To Great”. The focus was now on building a Great

Institution vis a vis remaining a good bottling organization that

HCCBPL was supposed to be, as per design. This had strong

implications on the kind of culture that needed to be fostered.

• HR’s efforts to Diversify the workforce and bring in Women

especially at the front line roles (Market developers), achieved

significant momentum. This was in line with the Business

outlook that while its consumers represent both sexes, the

company’s workforce was overwhelmingly male.

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• Initiatives around Culture Survey and Contract Labour

Management practices ensured that Leaders focused on driving a

culture of openness & inclusiveness

• In order to further strengthen the Talent pipeline in the

organization, Assessment & Development centers were

institutionalized as part of the development and growth path for

Associates at all levels.

• Efforts were made to ensure that the Workforce Safety, Health &

Wellness initiatives reflected the Coca-Cola standards and that

the mindset of Associates and other stakeholders reflected this

significantly.

2010 : By 2010, HCCBPL was on the cusp of crossing the 1 Billion

Dollar Revenue mark. The organization was now on path to Vision

2020, which laid the foundation for a course to grow into a 2.5 Billion

USD organization. This required serious focus on Talent and

development from within. It was time for us to focus on accelerating

growth on the basis of sustainable processes. The key theme for the

HR organization was that the “Time is Now” for it to make those

discontinuous shifts in strategy.

• A major focus was on Hi Leverage Leadership Development,

especially for HCCBPL General Managerial Talent, which would

be leading the organization forward. The 18 month GM College

with IIM Ahmedabad was a significant step in this direction.

• In order to ensure comprehensive focus on all elements of

Organization Talent strategy and ensuring its implementation

across all demographics, the ABC Talent Strategy was made a

core element of all HR plans and KRAs.

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• Making the future organization productive and aligned to

business was ensured by driving manning norms across the front

end and back end.

• The foundation for Inclusive growth was laid by focusing on

reducing the Contract : Permanent labour ratio in HCCBPL

operations

• The path to HR Transformation was also laid by leveraging

Technology and implementing the first wave in the form of

centralized payroll processes on the back of standardized

processes.

All the above initiatives were planned and consistently aligned to the 3

heads of the HR plan – Talent, Productivity and Culture – with a

consistent theme sustained across the years.

Going forward, as understood from HR interviews, HR leadership plans

to examine an exhaustive list of the various strategic and tactical

initiatives that HCCBPL designed and implemented across 2005 –

2010. Most of the processes have been strengthened as have new ones

been introduced, in tune with business growth.

HR Organization Structure was aligned to Business Structure:

It is pertinent to note that the HR organization that designed and

implemented these initiatives underwent a change over the years, in

alignment with the business structure.

The initial HR organization was aligned to the Corporate – 3 Region –

15 Units structure, with Corporate responsible for governance &

policies, Region responsible for translation of strategy & development

of regional tactics, Unit responsible for implementation of the same.

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FIGURE : 5.3 HR Organization Structure aligned with Business

Structure

By end 2010, the HCCBPL Business organization had transformed

from a Region centric to a Vertical centric structure. In alignment with

the same, the HR organization restructured itself as below:

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FIGURE : 5.4 COE & HRBP’s

The COE roles were tasked with driving world class processes, while

HRBPs were equipped to partner with the various business verticals

and support execution of the Business strategy.

In preparation of accelerated growth towards Vision 2020 the HR

Transformation drive was strengthened, wherein processes were re-

wired and standardized nationally. All non- value adding processes

were automated or eliminated in a phased manner, while Shared

Services in Payroll and Recruitment were set up on the basis of

standardized HR processes.

As already stated, HCCBPL HR now plans to dwell deeper on the

strategic and tactical initiatives implemented by this HR Organization

between 2005 – 2010, in sync with the Business plans and aligned to

the Talent – Productivity – Culture focus: Some of the key themes as

stated by HR leadership are as follows:

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Talent – The key themes that were consistent across all processes

Deploying high performing talent for all roles which are strategic /

which create wealth for the organization,

Improving the productivity/performance of the current workforce, and

Building a strong Leadership pipeline and to become a net exporter of

talent within Bottling Investment Group of Coca-Cola Company. HCCB

HR aims to become India’s Employer of Choice to attract and retain

best talent.

ABC Talent Strategy – The bedrock for the HCCBPL Talent Strategy is

ABC. Assessment – (Buy – Borrow – Build – Bind – Bounce) – Culture

& Continue. The ABC Talent Strategy was segmented by Employee

Demographics & anchored in ‘Inverted Pyramid’ culture.

This strategy was incorporated into every Talent management process

in HCCBPL as well as into the KRAs of all HR Team members.

FIGURE : 5.5 HCCBPL -ABC Talent Strategy

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• ‘A’ Players in Strategic Positions – One of the key outcomes of the

ABC strategy was the segmentation of employee demographics

and application of HR interventions so as to add significant value

to the business. By identifying the strategic positions (which are

found within Strategic Capabilities which deliver VPC – i.e.

enhances customer’s perception of Value, enables HCCBPL to

charge desired Price for its products, enables them to produce at

its desired Cost) for HCCBPL, HR was able to ensure strong focus

and traction for the business. Further, the Business Managers

were aligned to strengthen the talent in these roles through the

ABC (Assess-Build-Borrow-Bind-Buy-Bounce-Culture &

Continue) Framework by ensuring high performing Associates in

all these roles.

FIGURE : 5.6 Identifying Strategic Positions through Strategic

Capabilities

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• “Golden Threshold” Defined Entry Level Hiring program – Another

key demographic was Defined Entry level talent where the ‘Buy’

strategy was implemented in a structured manner. HCCBPL

inducts World Class Talent from premier management &

technical institutions for Commercial, Operations, Supply Chain,

and Finance while also raising the bar on Market Developer

hiring standards. Given the equity that HCCBPL has been

building with educational / technical / management institutions

around India, it has built a healthy pipeline of talent for

� Management Trainees (MBA in Sales /

Distribution/OE/Planning / HR)

� Finance Trainees (CAs / ICWA)

� Graduate Engineer Trainees (B Tech in

Mech/Elec/Food Tech)

� Sales Academy Trainees (Graduates)

� Market Developer Trainees (XII / Graduates)

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Further, through the GOLDEN THRESHOLD Cadre Building Program –

HCCBPL has been building its talent pipeline of entry level managers

and supervisors at defined levels. This program offers cross functional,

cross locational orientations that seek to prepare young professionals

with all the knowledge, skills and exposure required to operate

successfully in the Bottling Business. They are spread across 6 months

to 1 year in terms of time duration and usually have a batch of 12 – 20

Trainees.

FIGURE : 5.7 GOLDEN THRESHOLD Cadre Building Program

Performance Management System - From 2005 to 2010, the

Performance Management System has undergone multiple changes in

line with the Business reality and context. While HCCBPL has aligned

its PMS to the overall TCCC ratings (EP/SP/DP/NP), the process is one

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that has evolved over a period of 5 years and has contributed to the

culture of the organization. First, HCCBPL had a simple objective PMS

in 2005-06, based on purely quantifiable KRA #1 (Business KRA),

people development KRA (KRA #2) and KRA #3 competencies.

As the business evolved, the focus shifted from outcomes to processes

that lead to sustainable outcomes. By 2010, the PMS had a 60:40

weightage for Business KRA (Achievement of Business Results against

Standardized Objectives defined by Role / Function + Demonstration of

relevant Competencies / Behaviors to ensure sustainable results) and

People & Culture KRA (People Leadership, Self Development, Culture &

Engagement Scores).

This was further revised to 50:50 focuses on Business: People &

Culture KRA. This was in keeping with the need to focus on

sustainable growth as against the short term / ad hoc management

that used to be practiced earlier. This is in line with the reality of the

Bottling business which is equally results & execution focused as it is

people intensive.

Additionally, a 180 degree feedback mechanism was introduced to

focus on Observable Behaviors , especially on People Leadership –

(Reinforcement of Situational Leadership, Coaching & Feedback using

GROW, Building Capability, Self Development, Emotional Resilience,

Supporting Teams, Leading by Example ) ; Thought Leadership – (

Developing Ideas and Analytical Thinking) ; Result Leadership – (Speed

of Execution, Relentless Responsiveness, Commitment and

Relationship Building)

People Development Forum – HCCBPL has leveraged the global PDF

(People Development Forum) system and made it the core of all people

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processes. All career plans, succession plans and talent plans stem

from the PDF. Across the years, People Managers have been trained

around identification of Potential (Ability, Aspiration, Leadership) and

Performance so as to ensure objective Talent Segmentation. Following

this, a number of action steps can be taken to ensure reward, retention

and development of Hi Pot / Promotable and Expandable Talent.

FIGURE : 5.8 People Development Forum

• Employee Assessments and Development Plans – Within the

ABC Talent Strategy, lays the cornerstone for developing and

segmenting talent at all levels – i.e. Assessment & Development

Centers. Operations, Commercial, Supply Chain & Service

function Associates have undergone assessments and

development plans at all levels. HCCBPL has been using

Assessment Centers with rigour for developing and segmenting

talent at all levels and corroborate the potential that has been

arrived at basis the PDF process. HCCBPL’s internal Assessment

processes as well as trained Assessors (Trained by SHL) enable

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HR to execute assessments and create development plans in a

timely manner. The outcome of the Assessment and Development

centers is that Individual Development Plans are articulated in

line with the 70:20:10 principle (On the job: Coaching: Classroom

Training). These IDPs form the basis then for developmental

discussions and initiatives for the Associates.

• Regional SUMMIT - One of the key hi leverage developmental

programs that was run by HR in HCCBPL is the Regional

SUMMIT. By immersing senior leaders as well as hi potential

managers in this program, a 360 degree behavioral change was

initiated. After the Summit program, each participant was also

given a concise report which holistically captures all the inputs

they got from the various instruments they had been

administered. Further the business simulation and on site

coaching enabled strengthening of business leadership skills.

FIGURE: 5.9 Regional SUMMIT

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• GM College with IIM A – The other hi leverage leadership

program that was designed and implemented at HCCBPL by HR

was the 12-18 months Development program for potential GMs

under a partnership with one of the top business schools in

India, IIM-Ahmedabad. 10% of the Program was based on

Classroom Teaching. 20% was based on Coaching from world

class thought leaders like Ram Charan and Marshall Goldsmith.

70% of the program was embedded in live projects that the

participants designed and executed under the mentorship of

senior HCCBPL leaders.

FIGURE : 5.10 GM College with IIM A

• Mid-Level Managers’ development: Post the GM College, a 12-

18 month development program was rolled out for middle

managers in the Company. Titled Leadership Excellence &

Accelerating Performance (LEAP), the first module covered all

Zonal Heads from various functions and their corporate

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equivalents. The first session involved class room training at ISB

Hyderabad, with facilitators drawn from HCCBPL, Development

Dimensions Incorporation (DDI) and Bottling Investment Group

(BIG).

FIGURE: 5.11 Mid—Level Manager’s’ development

• Productivity/performance – The consistent theme under this

pillar

• HCCBPL HR will ensure to drive returns through its People,

whilst ensuring the organization is customer focused , front

ended and lean

• People to Structure & Structure to Strategy – Given HCCBPL’s

strong fundamentals and the continued focus on investing in its

people, brands and its customers, a strategic shift was made in

2009-10 to build on a few fundamentals. M/s Mercer

165

Consultants were engaged to conduct a detailed study to identify

the structural challenges that HCCBPL needs to overcome

keeping in mind key strategic and business considerations of

accelerating long-term sustainable growth.

• Mercer was given the task of advising HCCBPL about an

organization design that would facilitate long-term business

strategy, enable change management and consider the business

characteristics unique to India.

• Basis this study, an Integrated Supply Chain Organization with

clear interfaces between demand creation (Sales) and demand

fulfillment (Manufacturing, RTM) was recommended. In line with

the same, the new Corporate Supply Chain structure was

implemented by integrating Manufacturing, RTM, Planning and

OE under the Senior VP- Supply Chain from 2010.

• The other significant recommendation by Mercer was the creation

of 7-8 Business Units or Zones to drive business growth through

functional excellence and standardized processes.

Basis this recommendation, HCCBPL HR identified 8 Zones

keeping > 90% supply-demand self-sufficiency and optimal

geographical spread in mind. These are (i) Delhi, UP,

Uttaranchal, J&K (ii) Combined North East, Bihar, Siliguri (iii)

Gujarat, Rajasthan (iv) Odisha, Jharkhand (v) Maharashtra, Goa

(vi) Tamil Nadu (vii) Karnataka (viii) Andhra Pradesh. Madhya

Pradesh & Kerala would be kept independent to reap the

available potential in these markets and accelerate growth.

• The Zonal Vice Presidents were made to report directly to the

CEO, and were supported by a Team of senior personnel, heading

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various functions. The Zonal structure enabled an equal balance

of demand creation and demand fulfillment priorities of the

geography with strong support from various service functions like

HR, Finance, BSG, Legal & PAC.

• The Corporate Team’s role became one of governance, systems

and capability building, whilst also supporting the Zones as they

drove business growth towards Vision 2020.

FIGURE : 5.12 HCCBPL Leadership Structure

• All existing and new jobs in HCCBPL have been evaluated using

The Coca-Cola Company (TCCC) guidelines and Mercer IPE Job

Evaluation Tools. The results have been reviewed & approved by

the HCCBPL Job Evaluation Committee. The evaluation findings

167

have been used to place the Jobs in the new HCCBPL levels as

attached

FIGURE : 5.13 Job levels in HCCBPL

• Contract Labor optimization – Over the years, a strategic focus

has been maintained on accelerating Automation and

rationalizing Casual labor deployment. This has been possible

through elimination of contract labor in core areas( Bottling hall,

quality and utilities), Payment of Fair wages (10 – 15 % higher

than the minimum wages), Increase in productivity of loading /

unloading and Seasonal labor, Support to the contract labor to

acquire technical qualifications and Regularization of the

Contract Labour through Skill assessment Programmes.

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• These measures have also contributed to fostering an inclusive

work culture.

• Sharp Performance Differentiation, Linkage to Rewards and

driving Behaviour Change through Rewards – Over the years,

HCCBPL has ensured sharp Performance – Position – Person –

Pay segmentation and direct linkage to monetary & non-

monetary Rewards through an aligned Compensation framework.

• The HCCBPL Rewards Philosophy is aligned with TCCC / BIG

Culture , Vision and Strategic Goals

FIGURE : 5.14 HCCBPL Reward Philosophy

• HCCBPL’s vision to be a World Class Selling Organization by

focusing on growth and productivity requires the setting of

goals, executing, measuring & rewarding, and finally learning

& applying. In order to ensure that HCCBPL HR has been

providing rewards that are competitive in the market,

meaningful to Associates, and cost-effective for the Company,

Total Rewards Framework

Compensation Benefi ts

People

Development Capabil ity

Work

Environment

�Behaviors and

Expectations for

Managers and Leaders �Expected Business

Performance

�Enable Excellence in Execution

Develop a

Competitive

Advantage Thr ough Our Distinctive

Capabi lities

�Total Shareholder

Return

�

Value�Competitive Cost

Advantage

�Improved System

Health

�Bottler Revenue

�

�Strong Bottler

Relationships

�Enhanced Custom er Value�Consumer

Satisfaction and

Loyalty�Increased Brand

Recognition and

Value

Culture & Values

Total Rewards

Fr amework

C ompen satio n Ben efits

Peo ple

Developm ent Wo rk

Environmen t

Employee

Associate

Behavior s

• Expec tations for

Managers

Business

Business

Performance

Performance

Financial

Perform ance

Culture

&

V alues

• Develop a

Co mpetitive

Advantage through

ou r Distinctive

Capab ilities

• Enable

Distinctive

Execution

• Enha nce Custom er

Value, Im proved

Custom er Satisfaction

and Lo yalty

• Improved

Prod uctivity an d Returns

• Ou t execute and Out

Inn ovate

• Operating In com e

• Su stainab le

Revenu e and

Volum e Growth

Total Rewards Deli ver y

• ROIC

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the HR function uses a Total Rewards Framework, which

reflects the true value of an Associate’s affiliation with the

Company in 4 areas:

a) People development (such as learning new skills and

competencies to grow individual careers),

b) Work environment (HCCBPL’s culture, brands, corporate

image, individual manager and work team),

c) Benefits (medical insurance to vacation to retirement),

d) Compensation (base pay, annual incentives, long-term

incentives, reward and recognition)

• HCCBPL HR believes that ‘Total rewards’ help inspire and

reward Associates to focus on those actions that produce the

greatest results, which in turn drives business performance

and thereby creates financial results. Creating superior

financial results then allows HCCBPL to be able to afford and

fund total rewards programs that are meaningful and effective

in attracting, motivating and retaining the talent it needs to

continue creating those financial results. The result is a

virtuous circle of rewards leading to results which in turn lead

to more rewards and so on.

• HCCBPL recognized that organizations are likely to find

themselves under pressure to explain to stakeholders why

they pay what they do in the way that they do, and

demonstrate that they have clear policies and processes to

ensure that reward is driving sustainable long-term

performance.

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• Key Elements of the Total Rewards Program were aligned with

the emerging Indian business context. The Hay Group’s

extensive research on Compensation & Benefits strategy was

leveraged as it indicated the need for alignment of:

� Needs of the organization – Organization values,

performance requirements and need for talent

� Needs of the employees – Employee values, preferences

and demographics.

FIGURE : 5.15 Compensation & Benefits strategy-Hay’s Group

� The right mix will drive the desired behaviours for

effecting performance in the short term and influencing

change and creating value in the long term.

� By offering a bouquet of fixed, short term and long term

rewards as well benefits, HCCBPL has effectively

managed to align Associate behaviours and drive the

right performance culture required for sustainable

profitable growth.

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• Productivity linked Long term Settlements - These

strategic Employee Relations initiatives were arrived at with

unions in manufacturing locations, especially for 4-5 year

terms with the objective to institutionalizing the principle of

collective bargaining and arriving at a win – win solution,

within the ambit of the Workplace Rights Policy. Also to effect

improvement in workforce productivity through an inclusive

and participatory process

• The Key Principles adopted were –

� Workers participation and Collective Bargaining

� Business Continuity to be ensured through

Harmonious IR climate

� Wage increases aligned to productivity, profitability

and performance of the workers

� LTS cost may be equaling GDP growth + Inflation Per

Annum

� Inflation rate should be mitigated through

Productivity gains

• Productivity Linkages to Settlement were ensured as a

standard process in every LTS, and the following parameters

are incorporated in line with the principles as above :

� 100 % Standard Manning Compliance : Manning and

Operators deployment at various workstations will be

strictly as per National Standard Manning Template of

HCCBPL which is currently applicable now and gets

revised from time to time

� SLE Parameters :

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� System Line Efficiency : > 85 %

� Mechanical Efficiency : > 90 %

� Concentrate Yield : > 99.8 %

� Pre-form Yield : > 99.8 %

� Power usage (weighted) : > 25

� Fuel Usage (weighted) : 150 liters beverage per

liter of fuel

� Average Pack Size Changeover Time across all the

Lines should be as follows

� CIP + Pack change - < 40 Mts

� Only Flushing - < 12 Mts

• OE Certification

• Preventing Absenteeism… to meet Statutory Compliance

� Controls in utilization of annual leave in season

� Minimum 90 % physical attendance – eligibility for

Annual Increment

• Introduction of flexible work practices and Flexibility in

deployment

� Total flexibility and complete interchangeability of

workmen between shifts, lines, departments and

activities even in the midst of a shift, depending upon

requirement. No minimum number of workmen crew

required to be maintained in a

shift/department/activity,

� The minimum crew required attending to an activity,

allocation of workmen or making any changes shall be

decided by the manager concerned. Workmen crew

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available for all the lines shall attend to the maintenance

jobs relating to any line.

� Manning is decided based on technology, work practices,

work methods and systems prevailing at a given point of

time.

� Multi-skilling: Multi-Skilling concept to all the workmen

working in different sections, departments, areas and

lines

� Staggered weekly off’s: Staggered weekly off system in

place throughout the year

• Enhance the Settlement period from 3 years to 4 years or even

5 years

a) Culture – HCCBPL will continue to foster a diverse, inclusive,

safe & healthy environment where workplace rights are

respected. HCCBPL will also strive for the ‘right behaviors’ among

its Associates to ensure that the high engagement levels of its

Associates are converted into customer satisfaction.

• Culture of shared mindset – HCCBPL HR wants to drive a

culture of shared mindset throughout the organization, by

ensuring HCCBPL Associates exhibit the common behaviors

befitting ‘Speed of Execution’, ‘ Relentless Responsiveness’,

‘Commitment’ and ‘Relationship Building’. In line with the

same, the development of a Competency framework in

alignment with the HCCBPL Culture, Values, Mission and

Vision has been the cornerstone of the ABC Talent

Management strategy. The framework bundles the HCCBPL

Competencies into Thought, Results and People Leadership.

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This is then cascaded and linked to all other People Processes

such as talent acquisition, assessment, performance

management, PDF etc.

FIGURE : 5.16 HCCBPL Competency Framework

• Gender Diversity – As a long term strategy, HCCBPL has

been actively encouraging the increased participation of

women in the workforce. This is especially focused at the

hiring stage so as to achieve a 25% diversity ratio by 2020.

This includes a segmented approach to introduce talented

women Associates at Junior and Middle Management levels.

HCCBPL HR also focuses on Career Development of middle

level women associates through the ‘Vijeta program’ and

ensures long term retention.

• HCCBPL HR also has been striving to get more women into

leadership.

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FIGURE : 5.17 Engage and Retain

FIGURE : 5.18

Vijeta Process Steps

• Contract Labor & Inclusiveness – While HCCBPL focused on

Contract Labor streamlining in alignment with the new DO&IP

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process and automation, there has also been a strong focus on

fostering a culture of inclusiveness by developing HCCBPL

worker/contract labor category and creating careers for them

in the organization. This has been done by HR through the

“Employability through Skill Development” Program for

Contract Labour.

� The key objectives of this program are -

� To enhance skill levels of contract labour engaged

by contractors across HCCBPL’s operations and

make them more employable.

� To provide an opportunity to contract labour to

improve their technical qualifications and hence

their employment opportunities within HCCBPL or

outside.

� HCCBPL identifies workers for sponsoring under this

program by following criteria as below:

� Minimum qualification should be at least 10th

standard pass, and

� Age group to be between 20 - 35 years.

� Should have cleared Internal Assessment organized

by HCCBPL for this purpose

� Contract workers who are willing to give

undertaking to relocate to other units based on the

requirement either within the Region or State after

completion of the ITI course

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� While the above mentioned criteria’s are the

minimum requirements, preference is given to

those workers who are younger, more enthusiastic,

display higher commitment and keenness to learn

and hail from the nearby villages of plant locations.

� Program Mechanics :

� HCCBPL sponsors course fee and stipend (pays

Rs.2500 per month or protects the current monthly

earnings, whichever is higher, towards their

sustenance) for at least 5 contract labourers per

Factory for courses offered by Industrial Training

Institutes (ITI), during their course period.

� The Company bears the course fee by either

remitting the same directly to ITI or reimbursing

the same to contract workers, on submission of

proof of payment. The Company also provides

books and uniform.

� Wherever it is possible to do the ITI course through

Evening /morning classes, such option is

considered while they continue to work with plant

& the expenses towards Course Fee, Books, Out of

pocket expenses towards Conveyance etc are borne

by company.

� Upon completion of the course, the contract labour

can continue to work with HCCBPL and may be

absorbed by the Company when a suitable vacancy

arises. However, the Company is not under any

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obligation to provide permanent employment to the

qualified workers. However, the Company strives to

fill all the future vacancies through these qualified

ITI’s only. The contract labourers have the liberty

to find a job outside HCCBPL

Key Outcomes:

As a result of the implementation of all the above strategic and tactical

HR initiatives in line with the Business strategy and reality, the

following outcomes have been accomplished by HCCBPL (there are

other operational related initiatives also but the premise here is that

HR strategies and tactics contributed significantly to these metrices

along with other operational initiatives).

a) The organization has taken a major leap on People Productivity

FIGURE : 5.19 Unit Cases per person

b) Retention of Associates has shown a dramatic turnaround

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FIGURE : 5.20 Retention

c) Employees are clearly much more engaged than before

FIGURE : 5.21 Engagement

d) Participation of Women in the workforce has improved

significantly

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FIGURE : 5.22 Gender Diversity

To conclude with the benefits of all above initiatives, HCCBPL ensures

Business Continuity with intervention of Inclusive Work Culture.