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Human Resource Systems and Sustained Competitive Advantage

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Coca-Cola recruitment process emphasizes on internal recruitment process through employee referrals, job postings in company bulletins. PepsiCo emphasizes on the job posting in company websites and external recruitment processes like advertisements in the newspaper, job portals and on-campus recruiting from institutions. (A. A. Lado and M. C. Wilson, Human Resource Systems and Sustained Competitive Advantage: A Competency-Based Perspective, Academy of Management Review, vol. 19, no. , 4, 1994, pp. 699– 727). Coca-cola, for balancing employee hiring needs, maintains talent banks for internal recruitment and they externally hire during a sudden emergency. PepsiCo, on the hand, advertises job descriptions and job specifications through media advertisements, e-recruitment, executive search firms, campus recruitment, and summer internships. Coca-Cola follows the process of forecasting where they have the provision of collecting resumes of the candidates for future recruitment through their company website and calls them for an interview during manpower need of the company.

Whereas PepsiCo estimates the company’ s human resource need and then advertises their job vacancies for prior mentioned positions (A. A. Lado and M. C. Wilson, Human Resource Systems and Sustained Competitive Advantage: A Competency-Based Perspective, Academy of Review, vol.

19, no. , 4, 1994, pp. 699– 727). The selection processes of Coca-Cola are through Group exercises, interviews, Psychometric tests, Presentations, Roleplays/Situational Exercises. PepsiCo mainly depends on interviews, case study exercises, personality test, and group discussion. Coca-cola should give more importance to external recruitment processes as depending only on internal recruitment processes may lead to insufficient supply of candidates, obstruct the applications from a diversity of candidates who can be approached through media and e-recruitment processes around the country. It may lead to biased referrals from existing employees who would only to friends and family.

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