Organisational design is a key process for any company. It helps improve how work gets done and can make it easier to attract and keep good employees.
To design an effective organization, it’s important to understand the main parts that make it work. These include the structure of the company, how decisions are made (governance), HR practices, workplace culture, and the technology used.
Each of these areas affects how well the company runs. When you understand how they connect and influence each other, you can build a design that fits your company’s needs and supports its success.
Organisational Design and Development (OD&D) is the process of creating the alignment of an organization’s structure, systems, people, and culture by using its long-term vision (Musaigwa, 2023). While external factors like globalisation, technology and regulation all play their role as drivers of change, internal or contextual variables such as culture, leadership and the sector that the organisation is in, play a significant role and influence the initiation and management and embedding of change (CIPD, 2024). This report evaluate the Coca–Cola Company key contextual variables, organisational culture, sector and operating model, and leadership style. Their role in affecting OD&D practices and supports the strategic innovation of the company.
The term ‘organisational culture’, as stated by Schein (2010) is a powerful contextual force that impacts employee ’s expectations, top leadership behaviours and their capacity to adapt to change (Hogan and Coote, 2014). Coca Cola’s culture is diverse, inclusive, collaborative and supports continuous improvement, which is in line with Coca Cola’s global mission of “refreshing the world and creating a difference” (The Coca-Cola Company, 2024).
According to Schein’s theory of organisational culture, Coca-Cola’s open plan workspaces, global town halls and employee recognition programmes act as artefacts reflecting deeper cultural values of transparency and empowerment, three-level model of organizational culture, artefacts, espoused values, and basic underlying assumptions can help. Support for organisational learning and agile development is espoused through values of integrity, accountability and innovation.
Coca Cola’s transformation from the traditional hierarchical model to a more agile and team-based organisational design is dependent on culture. In 2020, the company had already put in place a networked organisational structure to enhance the responsiveness of its operations and to decentralise the decision-making across its global operations (Coca-Cola, 2023). Notably, this cultural shift towards empowerment and flexibility is consistent with modern OD&D principals of flatter hierarchies and agile processes (Temitope, 2022).
However, culture can also present some challenges. There may be resistance to change that rises from cultural norms when structural redesigns clash with current ways of working (Rajan and Ganesan, 2019). To balance global agreement with local cultural responsiveness, Coca-Cola continually needs to continually balance between standardisation with local responsiveness in international markets.
The fast moving consumer goods (FMCG) industry is marked by high levels of competition, consumer preferences that are rapidly changing, and subject to forces of the regulatory pressure (Kenton, 2024). This makes the sector a key contextual variable influencing Coca Cola’s design and development, and since these drivers would require operational agility, product innovation and cost efficiency.
Coca Cola’s unique operating model is based on a franchised bottling system. The company under control of the company while independent bottlers control the manufacturing, distribution and local marketing. Thus, there is a need of a decentralised organisational design that allows for autonomy especially at a regional level while maintaining global brand consistency (Springer, 2024). Coca-Cola achieves the aforementioned this by using divisional structure, which is integrated with global business units and local operation. The structure of this design enables the organisation to deliver quickly in the local markets, whilst retaining the consistency of strategic alignment. Galbraith (2002) Star model can be a useful framework because it highlights the need for structure to be aligned with the strategy, the processes, the rewards, and the people (Carolina Melecardi Zani, Juliano Denicol and Broyd, 2024).
Coca Cola’s OD&D practices are also affected due to the need for innovation in the FMCG sector. To keep up with rising consumer demands for healthy beverage options and green packaging, Coca-Cola has established cross-functional teams to build healthy items and the inviting climate (Fatin et al., 2024). Flexible design, and agile development processes are required for these teams that operate across functions, regions. Additionally, sector competition necessitates ongoing workforce development. PricewaterhouseCoopers (2022) suggests that in order to both enhance organisational design and capability development, contextual sectoral factors drive both or else.
3. Leadership Style and Governance
There is a central role of leadership in designing and building an organization’s development agenda. Leadership style is responsible for change communication, the way teams are organised and how organizational values are carried out. Unlike in the past, Coca Coca-Cola’s CEO James Quincey has embraced a transformational leadership approach that includes simplification, innovation, and agility since 2017 (Chandele, 2025).
Coca-Cola has underwent structural reform under Quincey’s leadership (reduction of rungs in the ladder) and the adoption of a ‘Networked Organisation’ model. Coca Cola model allows the regional teams to be empowered to make the faster decisions at the local levels while maintaining strategic oversight at the global level (The strategy institute, 2024). This approach corresponds with Kotter’s model of leading change, in which a well-timed sense of urgency, building of coalitions and empowering employees are stressed (Kotter, 2024).
On the other hand, Coca-Cola has rapidly embedded leadership development programmes in all levels over the years under Quincey’s leadership. These initiatives are designed to identify and nurture high-potential employees, reinforce leadership accountability and inculcate values such as openness, innovation and performance (Coca-Cola, 2023a). OD has been pivotal to support the organisation’s need of cultural change and organisational competency; hence, leadership development is an organisational core dimension of its OD strategy.
In addition, strong corporate governance will support OD&D as it aligns organisational objectives with stakeholder expectations. All development initiatives developed in Coca-Cola are aligned with ethical standards and long-term sustainability goals as Coca Cola’s governance structure such as Board of Directors, internal audit mechanisms, and ESG oversight (Coca-Cola, 2022).
Conclusion
To conclude, organisational culture, industry sector and leadership style strongly determine Coca Cola’s organisation design and development. Structural choices, change receptivity, need for flexibility and innovation, and transformational tone are influenced by culture, determined by the sector, and set in place by leadership. To make OD&D successful, the internal factors with influenced these projects must be aligned with these as well as the external pressures. In the case of Coca-Cola, the interdependence of these contextual variables has resulted in an organization that is more dynamic, focused on people, and performance driven which puts Coca Coke in a good position to continue its global success.
Learning Outcome 2 Understand the range of options for organisational design and how these may be implemented in practice.
Question 2
AC 2.3 If the organisation were to adopt a different organisational design, discuss the key factors that would need to be considered when planning to implement this.
Introduction
The organisational design is the process of creating an organisational structure geared towards the organisation’s strategy, objective and operational environment. To make a new organisational design successful and sustainable, when an organisation like Coca Cola decides to go for change, there is need to make careful planning. Successful implementation is an idea supported by a culture that supports adaptability, continuous improvement, and openness for transformation (Bozkus, 2023). This discussion takes into account the major elements to take into account when planning to introduce a new organisational design in Coca Cola including leadership, communication, culture, stakeholder involvement, capabilities, change management and legal considerations.
1. Leadership and Strategic Direction
Leadership is a key player in driving, directing and maintaining changes. Kotter (1996) responsible for clearly defining the purpose of the new design and together with responsible for its support to the strategic goals of the business (Kotter, 2024). Coca–Coca, which operates in a highly competitive global market, looks for effective leadership, which aligns the new design to global business priorities of agility, efficiency and a focus on customers. As with the changes that Coca-Cola underwent in 2020, senior executives’ roles in deciding on the direction for change and the mission in communicating it to employees around the world served a critical role for the company (Gillo, 2018). Accountability and strong leadership also foster help to employees through the transition.
2. Communication
No organisational change process can be executed without communication. By setting up a structured communication strategy, which includes ensuring that all employees know the reason for change, the benefits it brings and how and when it will be implemented, organisations can align all employees towards the reason of the change being made (Grossman, 2023). Change processes should be clearly and consistently communicated throughout the change process.
Internal communication at Coca-Cola must take into account the global nature and the multicultural company workforce. Appropriate channels should be used to pass across information to all departments and places for instance, town hall meetings, newsletters, etc. Not only is open communication good for employees to bring up concerns, but it also helps the organisation refine its approach and respond.
3. Organisational Culture and Change Readiness
Change is perceived and enacted very differently based on organisational culture. An innovation, learning, and open mindedness to a new working environment culture. Before changing the design of an organisational, it is essential to evaluate the existing culture and determine whether the culture is conducive to change (Zhang et al., 2023).
Cultural values for Coca-Cola need to be aligned with the new design. An example of this is when the organisation becomes more decentralised or team focused, a collaborative and flexible culture would be required. If the current culture is risk-averse or hierarchical, additional work may be required to promote trust and shared responsibility.
4. Stakeholder Engagement
Building support and ownership of the change is achieved via engagement of stakeholders at all levels in the organization. Senior’s leaders, middle managers, employees, trade unions and external partners should be considered as key stakeholders. As each group may have different concerns and priorities which has to be addressed through consultation and active involvement of each group. The scope of stakeholder analysis is to identify those individuals and groups that could be impacted or who may have power over the change (Rabinowitz, 2024). Involving regional and functional leaders at the design stage can help incorporate local needs and knowledge at Coca-Cola. Internal champions, employee representatives and other people can also contribute towards communicating the benefits of the new design and guiding their people during transition.
5. Capabilities and Skills Alignment
Changes in organisational structure requires new skills, roles and responsibilities. The assessment of current capabilities of the workforce and their gaps could lead to inability to implement the new design is key (Malik, 2021). By using a structured workforce planning approach, areas where upskilling, reskilling or redeployment is required can be determined. For example, Coca Cola may have to adapt by learning to develop digital capabilities or leadership skills in order to support the move to a more agile and technology based structure. The success requires the development of capabilities that learning and development programmes, where supported by performance management, can aid in development.
6. Change Management Framework
A structured change management process for implementing a new organisational design is required. This will ensure that the change is planned well, monitored well, and supported at every stage. According to Shurrab (2013), Coca-Cola could adopt common models such as Kotter’s 8-Step Change Model or and ADKAR model encompassing awareness, desire, knowledge, ability, reinforcement.
For a large organisation like Coca-Cola, establishing a dedicated change management team, which focuses on coordination, monitoring progress and dealing with challenges, can also be established (Allam et al., 2024). In addition, it is important to set up clear milestones and success indicators, for example in terms of improved communication, quicker decision-making, or increased customer satisfaction.
7. Legal, Ethical, and Operational Considerations
In cases of changing people, positions and contracts, Coca Cola should consider legal and ethical obligations. The employment laws vary in many countries where Coca-Cola operates, therefore the organisation needs to ensure compliance with local labour regulations (Coca Cola HBC, 2024). Examples can include consulting with employees or unions, communicating changes to them, or providing redundancy packages if necessary.
Ethical considerations such as fairness, transparency and respect for the employees’ needs should be upheld during the change process. Promoting trust during organisational change can prevent the loss of valuable talent and protect the company’s reputation (Hyatt and Gruenglas, 2023). In terms of operation, it is vital to minimize the impact on business activities as the system is changed. This may be to phased implementation, pilot testing or contingency planning to ensure that products and services continue to meet customer expectations.
Conclusion
Implementing a new organisational design has to go beyond repositioning reporting lines or sets of teams. It requires careful planning, leadership, cultural alignment, and stakeholder involvement and change management. These factors are especially important to a global organisation with a diverse complex workforce such as Coca-Cola. By addressing these key considerations, the organisation can increase its likelihood of a successful implementation and long-term operating performance.
Learning Outcome 3 Understand approaches to organisational development as a means of enabling organisations to meet their goals.
Question 3
AC 3.2 Evaluate two organisational development frameworks, recommending which would be appropriate for the organisation. Justify your recommendation.
Introduction
Organisational development (OD) frameworks are crucial means to help organisations in performing the change, optimizing effectiveness, and aligning internal operations to strategic objectives. With dynamic global environments, companies such as Coca-Cola must choose appropriate frameworks, which implements structured, and sustainable development (Hyatt and Gruenglas, 2023). This discussion evaluates two organisational development frameworks including the Burke-Litwin Model of organisational Performance and Change and the McKinsey 7-S Framework. In addition, it determines which of the two will best suit Coca-Cola, and provides a rationale for the selection.
The Burke-Litwin Model of Organisational Performance and Change
The Burke-Litwin Model was developed to provide a comprehensive and causal explanation of organisational performance and change (Mindtools, 2023). Within the organisation, it identifies the twelve elements, which are interconnected and placed in two categories, transformational and transactional factors. Transformational factors include, leadership, external environment, organisational mission and strategy and organisational culture. Influenced significantly by external forces, these elements drive deep change in organisation. Other transactional factors include system, structure, work climate and individual performance and relate more to the day to day functioning of the organisation (Musaigwa, 2023).
One of the advantages of the Burke-Litwin Model is that it uses systems thinking principles: the change in one area has a significant effect on others (The World of Work Project, 2024). As one such example, if Coca Cola’s strategy shifts because of environment sustainability pressure; it would also change Coca Cola’s organizational culture, motivation of employees and practices of leaders. The model also has the advantage of placing external environment as a driver for change, which is relevant for multinational firms such as Coca Cola that depend on regulatory, social and technological change in many markets.
The model, however, can be complex to apply and requires a structured diagnostic before appropriate use (Abbas, 2020). In addition, as it assumes that the relationships between all variables are causal and linear, such assumption may constitute a sketchy interpretation for real life change situations. However, the model provides a strong foundation for both diagnosis and intervention for companies with a transformational change.
The McKinsey 7-S Framework
The 7-S Framework of the McKinsey emphasizes on the alignment between seven key elements of an organization towards the pursuit of organization strategic objectives (Suwanda and Nugroho, 2022). These elements are structure, strategy, systems, skills, style, staff, and shared values. Particularly in the case of reorganisation or a cultural change, this can be much helpful. Coca-Cola could apply the framework to be sure that new sustainability goals are embedded in not only strategy, but also staff competencies, leadership style, and organisational values.
However, the framework does not offer much on external factors or sequence of the change. It is more entirely focused on aligning internally than diagnosing what change is even needed in the first place (CFI, 2022). Besides not offering a clear roadmap for implementation, which can be a disadvantage in complex organisational contexts, it also has no theoretical backing. Additionally, the static nature of it may not be enough for those organisations to navigate continuous and fast changes of the external environments.
Comparative Evaluation
By comparing the two frameworks, it is clear that each is more appropriate for a different stage of the change process. The Burke Litwin Model is more suitable for diagnosing performance problems and provides a tool for transformational change when it faces external pressures (Robinson, 2019). It accounts for strategic and operational aspects and displays the relationship between them in a dynamic and a cause and effect manner. For instance, the McKinsey 7-S Framework is more interested in some internal alignment and tends to be used after change has been put through to assure the alignment various departments and functions.
The market in which Coca-Cola operates is very competitive, and is affected by such external factors as the customers switching their preferences, health, environmental issues, and technology (Guo and Wen, 2021). Some examples of the external drivers that the company’s responses to include the shift in more sustainable packaging and digital marketing transformations. Coca Cola has to have a need for an OD framework to be able to diagnosis the influence of these external factors and accordingly change the structure, the leadership and the culture. For this purpose, Burke-Litwin Model is well suited.
In addition, the Coca Cola’s positioning of leadership and culture are a critical part of the Company’s identity and performance, according to the Burke-Litwin Model (Coca-Cola , 2023). The company is known for its brand reputation as well as its tradition and innovation culture. For the cultural aspects to be aligned to new strategies, for example, any major transformation, such as a shift to a more environmentally responsible business model, would be needed. This can be done based on how well one’s organisation manages its systems; or its motivation, or individual needs. All this is based on the Burke Litwin Model.
However, the McKinsey 7-S Framework does not provide Coca-Cola with tools to understand or react to the external environment; it may be able to use the McKinsey 7-S Framework to support Coca-Cola in aligning internal processes, pre or post change. This severely restricts its suitability as a first OD framework for a firm that must be very reactive to global trends.
Recommendation
From the analysis above, the most suitable framework for Coca-Cola to follow is the Burke-Litwin Model of Organisational Performance and Change (Gohar and Hassan, 2022). In the company’s case, a dynamic, systemic model is crucial because of a need for the continuous innovation, global consistency, and because of responsiveness to external challenges. The Burke-Litwin Model is an elaborate model of how the various aspects of an organisation function together and which dimensions are in need of transformation for the overall effectiveness to be improved.
This model enables Coca-Cola to evaluate the effects of external drivers such sustainability expectations or digital disruption and then plan targeted work in leadership, system and employee engagement leadership (Simões-Coelho, Figueira and Russo, 2023). While the McKinsey 7-S Framework can still be leveraged in subsequent stages to ensure alignment, it is not sufficiently environment sensitive at the early stages of transformational change.
Conclusion
Changing frameworks for organisational development are critical to organizing efforts towards change and improvement programs. Despite this, both the Burke-Litwin Model and the McKinsey 7-S Framework are very useful in providing their insights, but both framework fits to the context and type of change required. The adjustments made to the model in the Burke-Litwin model make it more appropriate for a global organisation like Coca-Cola, which continues to face external pressure and incorporates the human and systemic elements. It helps the organisation to adjust to change while maintaining its core aspects that are strength and competitive advantage.
Learning Outcome 4 Understand how organisational design and development contributes to effective change.
Question 4
AC 4.3 Examine two distinct strategies to encourage the engagement of employees to any future changes made to the organisational design or development.
Introduction
If employees are not involved or are not made aware change, the change is met in most cases with resistance. For this reason, the adoption of organisational design and development initiatives in Coca-Cola, a global industry leader in beverages, depends on the participation of its people. Research indicates that employee engagement in change efforts can increase the adoption rate of changes, reduce turnover and maintain performance (Suraihi et al., 2021). This report examines two key strategies for promoting employee engagement; effective communication shape, and participative change management.
Strategy 1: Effective Communication
Clear, timely and consistent communication is a fundamental to create employee engagement during organisational change (Musheke and Phiri, 2021). However, employees are more likely to feel included and valued if they are informed with what the change involves, what makes it necessary and how it will impact them. Communication in such global operations like Coca-Cola organisation is even more critical as it involves a wide range of workforce location in different geographies of the world.
Pappas (2023) posit that where employees lack information, misinformation can spread, and hence often resist change. This can instil anxiety, uncertainty and a loss of trust in large organisations. As a result, Coca-Cola should engage in multi-channel communication with the leadership making formal announcement, internal newsletter, interactive town hall meetings, as well as with digital platform using which employees can comment (Arun, 2024). Besides, the message content must be tailored to the audience and should be relevant as well. For instance, communication created for plant workers in bottling facilities should sound and be different in tone and complexity compared to what is communicated to managerial staff. Messages can then be communicated to the right people at the right place and time by making use of local human resources teams and line mangers as intermediaries.
In addition, transparent communication will show authenticity, which is crucial to create psychological safety—cited as one of the important factors for increasing employee engagement (Hadziahmetovic and Salihovic, 2022). If Coca-Cola openly acknowledges possible challenges as well as honest about what may change, it will create a more resilient and cooperative workforce and will feel respected during times of transformation.
Strategy 2: Participative Change Management
Actively involving employees in the change process is another way to implement change effectively (Abbas, 2022). The participative change management takes an employee’s role not as only a recipient but also as a contributing factor to the change. Inviting employees to co create aspects of the organisational design or for example to provide feedback on development initiatives increases the sense of ownership of the employees when this is happening, and resistance is therefore reduced (Zhang et al., 2023).
For instance, in order for Coca Cola to implement cross-functional change task forces consisting of the representatives from different departments and different levels of seniority. These groups could then give input to changes that were being proposed, test new systems or structures in pilot programmes, and become change champions within their respective teams. This approach is in line with the same principles of organisational development, which encourages inclusion, feedback, and continuous learning (Jerab and Mabrouk, 2023).
Staff views about proposed organisational models can also be gained through employee surveys and specific focus groups. Leaders use the insights to show that employee voices are important and to increase engagement (Huebner and Zacher, 2021). Furthermore, bringing employees into the process prevents the development of organizational changes that are not suited to the actual lived realities of the organization, and hence minimises the likelihood of poorly designed organizational structures that inadequately reflect the operational needs of the organizations.
Other ways to support the development of a change ready culture are through participative strategies. When employees are aware that their ideas are appreciated and adopted by the organisation in its direction, the chances of them supporting and promoting change efforts are higher (Malik, 2021). Because they do create a network of informal leaders that help sustain the change over time, and these other intrinsic leaders serve as a step down leader, helping the management hear from its own people and to nurture the people.
Conclusion
To successfully implement any changes within the organisational design or development in Coca-Cola it is important to encourage employee engagement. The company can overcome resistance by developing strategies like good communication, participative change management, trust building and fostering a workforce committed to the company’s evolution. Grounded in theories as well as the best practices, these approaches are crucial to the successful implementation of the sustainable transformation in a highly competitive and the global environment.
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