Management Principles

Management principles

Managers play an integral role in the success of a company. Theyassume the role of leadership in the organization, and they determinethe general direction taken by the rest of the team. This paper looksat the management of Coca Cola, one of the leading companies in theworld.



One example of a manager is a production manager. This personoversees the manufacturing process of the company, and ensures thateverything in the production line goes on smoothly. The productionmanagers may work together with other people in the organization suchas supervisors to ensure that the quality of production is high.There are also logistics and distribution managers, who areresponsible for the organization and distribution of the company’sproducts (Griffin 2012). Some of their additional responsibilitiesare allocating and managing staff according to the schedules,liaising with customers regarding the products and motivating otherteam members in the organization. There are also procurementmanagers, whose responsibility is almost the same as that of thelogistics and distribution managers. The procurement managers work atthe point of contact between the company and the suppliers (Griffin2012). Through analytical skills, they identify and potentialcustomers and make agreements regarding supplies and payments.


According to Catlin-Legutko and Klinger (2012), organizationalsuccess is achieved when the organization has inspirational and soundmanagement. At the same time, organizational success is achieved whenthe company’s output is increased and it has sustainable results.This is defined when the organization executes all its strategies andengages the employees in a positive environment, consequentlyimproving their productivity. Organizational success is thereforemeasured by the extent of achievement of organizational goals andmission (Catlin-Legutko and Klinger 2012). One example oforganizational success is when a company increases the rate ofproduction by a certain percentage it set for itself, and theemployees are satisfied with the management, meaning that they are ina position to maintain the results over the coming years. Anotherexample is being able to solve employee dissatisfaction issues, whichmay lead to industrial court cases, without involving the courts, butthrough the management of the organization.

Importanceof managers

Coca Cola is a giant player in the global soft drink industry. Everyday, hundreds of millions of people use its products. As such, thecompany has to ensure that every aspect of its operation isfunctional, and that there are no loopholes in the generaloperations. This ranges from production, packaging, supply logistics,procurement and retailing, amongst many other areas of the supplychain. As such, the company must have highly experienced andcompetent personnel to manage these departments. The managers in eachdepartment overlook the operations and lead the team of employeeswithin that specific area. Pohlman and Gardiner (2000) also say thatorganizational success often goes beyond the internal performance ofa company. For many large companies, corporate social responsibilityis part of the key performance indicators of success. Coca cola hasengaged in several mega activities to give back to the community.Similarly, the success of these activities depends largely on theirmanagement. Given Coca Coal’s successful CSR campaign, it can beconcluded that its managers have been instrumental.



British theorists Tom Burns and George Stalker described organicorganizations (Natemeyer and Hersey 2011). Given their explanation,an organization is said to adapt an organic approach if it isflexible enough to allow organizational changes. At the same time,Burns and Stalker said that an organization is said to adopt anorganic structure if minimal job specialization, delegatedsupervision and management, limited direct contact between themanagement and the employees, characterize it and finally, limitedlayers of management. Similarly, one of the key concepts of having anorganic organizational structure is increasing the independence ofthe workers and minimizing the supervision role of the management,thus, creating a clear line of freedom between the two.


On the other hand, mechanistic structures are vertically oriented.Godwyn and Gittell (2012) describe a model whereby the structure ischaracterized by a rectangular shape of functional organization.Scholars have described the mechanistic organization structure to behierarchical and bureaucratic (Baets 2005). There are three majorcharacteristics of this structure. First, it has a number ofspecialized functions, where the people assigned operate within adefined scope. At the same time, it has a highly centralizedauthority, and that managers carry out intensified supervision ontheir teams. At the same time, given its nature of operation, thestructure has formalized procedures and practices. Given thesecharacteristics, mechanistic organization is easy to adapt andorganize. However, effecting change under this structure ischallenging and may take unnecessarily long to put in placeorganizational changes.

Similaritiesand differences

There are a number of similarities between these two structures. Theyare both defined by their complexity, formalization andcentralization. The structures share the element of uniqueness inmanagement, as they are not similar to any other designs formulatedin the field. At the same time, the success of both structures inorganizations is highly dependent on the completion task by theemployees and management. They are also suitable for adoption forcompanies, which are operating on vast scales, such as coca cola.

At the same time, a number of differences contrasts the twostructures. The differences also outweigh the similarities. Whilemechanistic structures have individualized specialization andemployees focus on one defined task given to them, organic structurehas joint specialization, and a number of employees work together incoordinated tasks. Mechanistic organization also has a simpleintegrated mechanism, where the hierarchy of management is clearlydefined. On the other hand, the integrating mechanisms of organicorganization are complex. The task forces of the organic structuresare combined to perform tasks. When it comes to communication anddecision-making, there is a top-down flow of command in mechanisticorganization. However, in organic structure, authority is delegatedto a number of individuals, and most of the communication anddecision-making is lateral.


According to Cushman and King (2001), a strategy is a road map thathelps an organization to move from the current state of affairs to acertain desired point. According to Coca Cola, part of its corporatestrategy of is to maximize growth and profitability as ways ofcreating value for their customers (Coca Cola 2015). The efforts ofachieving this are based on six major things. The first one is usingvalue-based segmentation to capture the industry’s value potentialthis is through transporting its commercial model to focus oncustomer value creation. The second basis is achievement of all fullpotential of the commercial models, which is through increasedefficiency of operations. The company also looks to maximize growthand potential by implementing a well-planned product, which throughright packaging, pricing and distribution, they can reach to as manycustomers as possible. Fourthly, the company looks to maximize growthby developing new businesses and distribution channels to reach thewidest geographical location possible. The company also promotesmulti-segmentation and lastly, distinct value-based productivity.

Hoffmanand Ford (2010) say that achievement of corporate strategy is highlydependent on the leadership of the management, and the execution ofstrategies. Given an evaluation of Coca Cola’s objectives, it isadvised that they drop any mechanistic structures that would hinderchanges to organizational plans. The first step will be doing awaywith any bureaucracy, which is not needed when it will have to changeits organization. This will be followed by removing any managementlayers to adopt a flattened structure. Having a flat structure willhave several implications for the whole flow of business, forinstance, failures in one department will not affect the other. Doingaway with the mechanistic structure will ensure that littlesupervision will take place, giving every department and opportunityto work in a way it believes will yield maximum productivity. Just asHoffman and Ford (2011) assert, a team organization structure doesaway with unnecessary employee supervision, and the managers are leftto focus on leading the company to success.

Thefinal two steps focus on achieving the actual results of thecorporate strategy. According to Baets (2005), aggressive expansionof the productivity is part of corporate success. As such, thecompany, having put in places the right organizational structure,will focus on analyzing the opportunities and aligning them to thebusiness models in place. Finally, the company’s management shouldfocus on streamlining and simplifying the operating model, to ensurethat there is sustainable growth and employee satisfaction. Pohlmanand Gardiner (2000) say that this achievable buy reducing what heterms as ‘functional layers’. Cutting down hierarchy at thecorporate level helps to decentralize the decision-making task, andas such, the company benefits effectively. A proposal for doing thisis cutting down management positions, and delegating duties to groupsof employees in departments.


Understandingof organizational structure

Organizational structure is the way that an organizational arrangesits line of authority, communication and hierarchy, including othersimilar elements of the organization. An organization’s structuredetermines the way that those in power handle their authority, theresponsibilities and duties assigned to the people within theorganization, control of operations an d how information flows fromone level of the organization to the next. All companies have theirown structures, which are determined by their objectives andstrategies. For instance, there are organizations, which have acentralized organizational structures. Under this, the top-mostmanagement has authority and power over all other departments belowthem. As such, they direct how people in the lower levels operate. Onthe other hand, there are companies that embrace a decentralizedstructure. A decentralized structure is one which power and authorityis distributed to all departments, and each division in theorganization has its own way of operating. As such, the departmentsin a decentralized structure have certain levels of independence.Therefore, it can be argued that an organizational structure is acompany’s formal system of responsibility and hierarchy. It helpsdefine the responsibilities of every department and its workers, anddetermine how units relate in the organization. An organizationstructure goes a long way in determining the level of success of acertain company. For instance, having a good organizational structurehelps achieve its goals by inducing a positive working culture in theemployees, and improving employee relationship. Additionally, a goodorganizational structure helps the company to maintain growth, planfor the future and solve any management issues that it many face.

Innovationis similar to creativity. According to Godwyn and Gittell (2012), anorganization that looks to create a culture of innovation must beprepared to do so, psychologically. This means that it has topositively engage its employees in the process. An important step increating innovation, therefore, would be having an open mind. Inquiryand curiosity are essential in this. As such, the organization has toavoid being inward-facing, and seek the knowledge of the outsideworld, especially by interacting with the clients to know theirfeelings and thoughts. After doing this, the management has to ensurethat it creates space for innovation to take place. This is byavoiding rigidity in the organizational structure, and embracingopen-minded thinking. This automatically implies that the company hasto take risks and be prepared for any outcome. Griffin (2012) assertsthat innovation itself is a risky venture, as no one in the companycan satisfactorily forecast the outcome of decisions taken. Giventhis, it means that the organization has to instill a culture ofembracing what can be termed as ‘constructive failure’. Learningto accept that it has failed in certain areas psychologicallyprepares the employees and management to learn from the mistakes theymade, and avoid making the same. Some of the most innovativesolutions in business have been designed out of previously failedprojects. Finally, the company’s management has to learn how tomaintain control and communicate their vision clearly (Baets 2005).This helps to keep the rest of the team on their toes, and come upwith the most effective and efficient solutions to organizationalchallenges.


The paper has described the role of managers in organizationalsuccess. Additionally, it has been demonstrated that organizationalsuccess is dependent on organizational structure. Using Coca Cola’scorporate strategy as an example, the best strategy for itsimplementation has been discussed. Finally, the role of innovation inorganizational success has been explained.


Baets, W, (2005) Knowledge management and management learningextending the horizons of knowledge-based management, Boston, MA:Springer US.

Catlin-Legutko, C, and Klinger, S, (2012) Organizationalmanagement, Lnaham, MD: AltaMira Press.

Coca Cola, (2015), Investor relations, [Online] Available at:&lt[Accessed 2 July 2015].

Cushman, D,P, and King, S,S (2001) Excellence in communicatingorganizational strategy, Akbany, State University of New YorkPress.

Godwyn, M, and Gittekk, J, H, (2012) Sociology of organization:Structures and relationships, Thousand Oaks: Pine Forge Press.

Griffin, R, W, (2012) Management, Mason, OH: Cengage Learning.

Hoffman, M,F, and Ford, D,J, (2010), Organizational rhetoric:Situations and strategies, Thousand Oaks, CA: SAGE.

Natemeyer, W,E and Gittell, J, H, (2011) Classic of organizationalbehavior, Long Grove, IL: Waveland Press.

Pholman, R, and Gardiner, G (200), Value driven management how tocreate and maximize value over time for organizational success,New York, AMACOM.