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People Management At Pepsi Co

Paper Type: Free Essay Subject: Commerce
Wordcount: 4584 words Published: 25th Apr 2017

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There is an international company PepsiCo. PepsiCo, Inc. is one of the worlds top consumer product companies with many of the worlds most important and valuable trademarks. Its Pepsi-Cola Company division is the second largest soft drink business in the world, with a 21 percent share of the carbonated soft drink market worldwide and 29 percent in the United States. Three of its brands-Pepsi-Cola, Mountain Dew, and Diet Pepsi–are among the top ten soft drinks in the U.S. market (www.pepsico.co.uk).

This assignment will enable me to get the knowledge about the organisational structure of PepsiCo company whereas I came to know briefly about the organisation culture. This assignment will explain the style required by the leader and the benefits of flexible a working environment. Some people management strategies will also be discussed in the assignment.

About the Organisation

Task 1.1 Explain how organisational structure impacts on people in the organisation

Organisation structure – the organization structure means the manner in the line of authority, role and responsibility are delegated. The organisation structure of the company is represented by the organisation chart which shows the flow of command (Yadav 2009). There can be a horizontal line of command and can be vertical. There is a flat structure of organisation in which the flow of command is horizontal, and one is tall in which the flow of command is vertical. Some companies also use functional in which the company make a different department in the organisation according to functional areas. That is called a functional structure. Some organisations use a mixed organisational structure mixing two types of the above organisational structures. The functional organisational structure is very important and effective because the organisation can focus work according to their departments (www.wordpress.com).


Source – www.pepsico.co.uk

This is a mixed organisation structure and in this structure the seniors order the juniors in separate departments for different functions. This is the organisational structure utilised at PepsiCo. In this organisation there are many different departments according to the function such as marketing, human resource and it is an ideal structure for this organisation (www.wordpress.com).

Impact of the organisational structure

The organizational structure explains the direction of the flow of authority and delegated responsibilities in the organisation. It explains how the people need to perform their duties and who will be responsible for which task. The organization structure is very important.

Task 1.2 Explain how the organisational culture impacts the people in the organization

According to Yadav (2009) organizational culture is a common perception held by the organization’s members; a system of shared meanings. It is a set of key characteristics that organization values. There are seven primary characteristics that capture the essence of an organization culture. Innovation and risk taking, Attention to detail, Outcome orientation, People orientation, Team orientation, Aggressiveness, Stability. Organizational (Corporate) Culture is a pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive, think, and feel in the organization.

There are three levels of organization culture

Artefacts – Symbols of culture in the physical and social work environment.

Values Espoused – What members of an organization say they value. This means what are the norms followed by the people of the organization and enacted is the way in which people of the organization reflected the values and how individuals actually behave (SMU 2011).

Assumptions – Deeply held beliefs that guide behaviour and tell members of an organization how to perceive and think about things (Rao 2005)

There are four types of organisational culture.

Power culture – Power is concentrated among a few with control spreading from the centre. In this type of culture the main person such as manger or director have the right to make the decision and other people have to follow those decisions (fds.oup.com).

Role culture – Authority is clearly designed in a clearly defined structure. The role culture is that type of culture in which the person has the right to take decision according to their position. No confusion occurs and there is no delay in the decision making (fds.oup.com).

Task culture – Teams are formed to solve particular problem with power deriving from expertise. In the task culture authority, authority is only provided for a particular task and only to the expert. When the task is completed the authority also finishes (fds.oup.com).

Person culture – All individuals believe themselves to be superior to the organisation. This suggests a group of like-minded individuals pursuing organisational goals (fds.oup.com).


Source – fds.oup.com

In this organisation there is a role culture because in the role culture the responsibilities are clearly delegated to the authorised person and there is no confusion in the distribution of power. In the role culture the right person gets the right authority.

Impact of organisational culture

The organizational culture helps the people in understanding how they need to behave with each other. It also describes the policies and procedure of the business which its people need to follow.

Task 1.3 Analyse the impact of leadership style on the individual and team.

There are four type of leadership styles.

Autocratic leadership – In this type of leadership the leader makes decisions without reference to anyone else. There is high degree of dependency on the leader and he can de-motivate and alienate staff. In this type of leadership the leaders don’t take the advice from the rest of the employees. This type of leadership is good only when you have shortage of time and where decisions need to be made quickly and decisively. (www.sos.net).

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Democratic leadership – In this type of leadership the leader takes suggestions from the employee to improve their decision making. But the final authority of decision making rests with what emphases is running throughout the organization. It may help in motivation where workers feel they own part of the firm. It may improve the sharing of ideas and experiences within the business. (www.sos.net).

Laissez-faire leadership – In this tape of leadership all responsibilities are shared by all employees. It can be highly motivational, as people have control over their working life. In this type of leadership everyone is free to make decision according to their position. By this type of leadership a company can avoid the delay in decision making and an effective decision can be taken (www.sos.net).

Paternalistic – The leader acts as a ‘father figure’ s/he makes the decision but may consult. He believes in the need to support staff. Sometimes taking a decision on his own and sometimes discusses the problem with others. In this type of leadership employees feel secure like they have the security of their father (www.sos.net).

This is an autocratic leadership style because senior people make the decisions and other lower level people have to follow those decisions (Steiner 1997). The TDM and ADC of the company make decision and the CE and salesmen have to follows those decisions. But that time they only take the feedback from the CE’S and salesmen just to make the decisions more effective but don’t take their suggestion for decision making (www.pepsi.co.uk).

If a leader acts as a democratic leader he can get better solution to his problems and better performance rather than autocratic leader.

Task 1.4 Review the people management strategies used in the organisation

PepsiCo a multinational beverage company has been chosen. However, for the purposes of this assignment only the London operations will be studied. This company has its mixed type of organisational structure. In this organisation there are many different departments according to the function such as marketing, human resources, therefore, it is an ideal structure for this organisation.

In this organisation there is a role culture, the responsibilities are clearly delegated to the authorised personnel and there is no confusion in the distribution of power. To manage the people effectively it uses the autocratic leadership style in which all major decisions are taken from the top management (www.pepsico.co.uk).

Task 1.5 Explain the benefits of a flexible working environment to an individual and organization.

According to Rao (2005) Flexible working environment means the employees have right to move from one place to another and they can flexibility of time. If there will be flexibility in working environment than it will help in breaking the monotony of work and reduce the boringness at the work place. There are many benefits which a organisation can get from flexible working environment.

Increase in productivity – If the employee is able to work in a flexible work place then they will be happier and can give maximum output. Hence the productivity will increase.

Time saving – If the employees will have the flexibility of working from any place then they can work from their home and save the time of travelling from their home to work place (www.businessdictionary.com).

New innovative ideas – If the employees will be allowed to work in a flexible place then get ideas from people who will be around them, they can then get a better solution for any problem.

Reduce stress – If the employees will have the flexibility of time and work place then they need not to rush for work and they will have no pressure of reaching workplace on time.

Task 1.6 Using motivational theories assess how the working environment impacts on the performance of employees.

Motivation theories – Every employee of the organisation need some motivation to work effectively. Company adopt many motivational factors to positively motivate the employees towards the company and work. (tutor2u 2011).

Maslow Hierarchy theory – Maslow has given the theory for the motivation of the employees. He explains how an employer can positively motivate his employees towards work and how an employer can get the maximum out of employees (Parsad 2009). According to Maslow there are six needs of the employees which should be fulfilled in a hierarchical order. If one of those needs are left than there will be no use of fulfilling the other needs (www.tutor2u.com).

Physiological needs – Every person has his own basic needs of food, clothes, and shelter and every employer should have responsibility to fulfil these basic needs. This is not the responsibility of the employer to provide food and shelter but employer should have to give that much salary that they can buy their basic needs things. In case of business application a company should provide lunch to employees (www.tutor2u.com).

Safety Needs – After the completion the physiological needs an employer should provide a safety work environment for its employees to work. If the employees don’t feel safe in the work environment then they would be able to fully concentrate on their work. In the business a company should complete all the requirement of health and safety policy. If the physiological needs of the employees didn’t satisfy then there is wastages of fulfilling other needs (www.tutor2u.com)

Social needs – Third most important every person want to social with other people and after the completion of first two needs every person has desire to meet with other people and make relations with other. Relationships such as friendships, romantic attachments and families help fulfil this need for companionship and acceptance, as does involvement in social, community or religious groups. In the case of business the social need is very important because company needs to socialise with customers and employee need to make friends to cheer up and remove their tensions (www.tutor2u.com).

Self Esteem Needs – After the first three needs have been satisfied, esteem needs becomes increasingly important. The self esteem need related to the self respect of the person and achievement (Parsad 2009). In the self esteem a person wants attention of other people towards him. There are two type of self esteem one is internal and other is external self esteem. (www.tutor2u.com).

Self actualisation needs – After completion of the above four need a person think about the wisdom and truth and a status of a person. In case of business an employer should give full opportunity to fulfil the career of his employees (www.pateo.com).

If the working environment follow these hierarchy of need and satisfy them accordingly then the business can get maximum output out of its employees.


Source – www.pateo.com

The second theory o motivation is Herzberg theory.

In this theory there are two important factors one is for the motivation and another one is hygiene factor.

Hygiene Factors – these are those factors which satisfy the employees but they are not motivated. There are some factors such as salary, working condition, status, supervision are hygienic factors (www.valuebase.com).

Motivation Factor – The motivation factor for the employee is interest in job, achievement and recognition. These factors lead to the high performance of the employees. But the combination of both hygiene and motivation factor are important (www.valuebase.com).


Source – www.novabizz.com

Task 1.7 Assess how an organisational ethical practices impact on the motivation level

While carrying out its business operation every business needs to consider ethical issue. These ethical practices ensure the employees and the customers that the business will not commit any wrongful act (www.mediapost.com). Social and the moral value will be considered carefully. Some of the ethical practices are as follow

The business will not knowingly injure any of its employees or customer (Steiner 1997).

The business will not interfere in the personal life of its employees and customers.

It will respect all kinds of religion, customs and traditions.

All the products made by the business will be safe for its customers

Good working environment will be providing by the business for its employees etc.

All the ethical practice impact on the motivation level of the employees because if the employees will come to know about the good ethical practice used by the business then they will be ensured about the safety of their life and they can fully concentrate on their work. This will result for the good performance of their employees. The PepsiCo Company also use ethical practices and all the products delivered by the business are well packed and hygienic (www.pepsico.co.uk).

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Task 1.8 Evaluate how the organisation use its corporate social responsibilities agenda to motivate employees.

The corporate social responsibility means all the efforts done by the company to build the positive image in the mind of the customers. To make the good image in the mind of customers the business need to manage quality in two aspects such as in respect of process and people. If both are things are doing well the business can be success in the competitive market (www.mallnbaker.com).

In this the business makes the good relation with its customers to build the good image in the market. This makes the customers more loyal towards the company and help in increasing the employees commitment toward satisfaction of customers. Hence towards the achievement of the organisational goal (SMU 2011).

The Workforce

Task 2.1 Explain how the personal difference impact on the individual behavious and work

If the individual will have personal difference then they cannot work comfortably with each other. The individual will face many problems and hence their work will be affected by the personal differences

Lack of coordination – A company cant success without coordination must have among the group member. A company lose their balance without coordination so everyone will do work according their wish. Hence they wouldn’t be able to achieve the common goal (Yadav 2009).

Lack of communication – communication is the most important thing in a company if their lack of communication among the team member this result to the repetition and if some time the people among the group member does not communicate proper it can result adverse effect on the perform acting which they are doing.

No trust and respect for each other – if a company member don’t do believe on each other they can’t do work properly. Trust must have in all employs if the no among the group member a company cannot running success fully.

Lack of self motivation – if any group member motivated then he can motivated the other person of the group who don’t have the abilities of getting self motivated so self motivation is the most important thing in a company if they have lack of self motivation company cannot success (www.reliablesurvey.com).

Lack of Commitment for work and each other – If will be personal difference then there will be lack of commitment- sometimes groups do not work according to the commitment they did, like they do not complete their task on time, do not take interest in the work etc

Task 2.2 Analyse management style needed to deal with differences and individual behaviour.

There are many types of management style such as autocratic styles in which the managers himself take all the decisions and ask his subordinates to follow his decisions whereas in the democratic style the manager ask his subordinates view while taking new decision. On the other hand the lazes’ fair the manger let his subordinate to take all the decision on their own (Steiner 1997).

The autocratic leadership style will be helpful in dealing with the individual difference because in this style all the decisions will be taken by the manager. If the manager adopt the lazes fair style then there are chances of conflict among the employees and decision making can be delayed. The style of leadership has been chosen according to the nature of the business and decision need to be taken (www.sos.net).

Task 2.3 Explain how motivation theories can be applied to develop performance in organisation

According to Parsad (2009) every employees need motivation without motivation every employee can give average performance but to get the good performance motivation is required. There are many types of motivational theories such as Maslow need theory, X and Y theory etc. Every theory explain the different method of motivation to employees but there is one thing common that employees need motivation. There are many motivational techniques which help in the improving the quality of the performance of the employees.

Incentives – If I will get the incentives for the good performance then it act as a motivational factor because incentives are monetary benefits. If I will get the incentives then there are chances of good performance of mine become high. I will perform better to get good incentive (www.streetdirectory.com).

Rewards – Rewards can also act as motivational factor for me because the rewards give the recognition in the society. Rewards mainly include the awards and praise in any of the function of the company.

Fringe benefits – If the company will provide me extra facilities such as pick & drop facility, medical insurance etc. this will also motivate me to give the good performance and it also increase my commitment towards the company.

Promotion – If the company will promote me to higher position for my good performance then in future with the same expectation I will give the good performance (www.streetdirectory.com).

These are some motivational techniques which help me in giving in the quality performance.

Task 2.4 Explain the different use of coaching and monitoring in the organisation

In any business organisation changes are implemented to make the business running successfully because there are many environmental factors which affect the business and sometimes their effect is uncontrollable (Rao 2005). So to cope up with those changes in external environment the business need to implement some changes in it but the implementation of those changes is not effective. The business needs to monitor the progress of the implemented change and the performance of the people because then only the business can come to know about of the change. There are many tools available to monitor the effect of change.

Regular reports

The business can use the regular reports to measure the performance of the change because with the help of regular reports from employees keep the business updated with the change status. These reports help the business to identify potential set-backs before they become a problem. With the help of these reports the business can check the regular status of the change.

A checkpoint system

A checkpoint system is also another tools to monitor the performance of the people because with the help of checklist the because in the checkpoints there are small goals are given to the employees with respect to change. The business checks the performance4 of the employees after the implementation of the change and according to the given goals (www.safariboks.com).

Swot Analysis

It can check it strengths, weakness, opportunities and threats before and after implementing the change. If is most the weakness and threats has been removed and all the strengths and opportunities has been utilised then it can say the change is good and if not then business need to review the change (www.safariboks.com).

MBO (management by objectives)

According to Parsad 2009 this is more like the check point system but both the slightly different. In the checkpoint system the goals are only for specific projects but in the MBO the management set the objectives for its employees but related to every task of the business and the business has to achieve those objectives. Similarly here the management check the performance of the employees with respect to the given objectives before and after implementing the change.

Balance scorecard

In this tools the business check the performance of the business in four areas such as finance, customers satisfaction, internal business process and learning and development of employees. This is also use before and after introducing the change (www.safariboks.com). To know the effectiveness of the business these monitoring coaching techniques are used.

Task 2.5 Analyse the benefits of training and development to individual and organisation.

Training and development help the organisation and individual to get familiar with the new trend and technology. It serves many benefits to the individual (Parsad 2009).

Increase their knowledge – The training and development help the individual to increase their knowledge about new technology and the latest trend in the market (www.mediapost.com).

Build confidence – It help in building the confidence of the employees because if they will have full information about any new trend then they can confidently work on new technology.

Reduce accidents – The training and development help in the reducing the chances of accident because before training about working new machine the employee can get injured.

Better utilization of resources – The proper training and development help the employee to effectively and efficiently utilize its resources.

Save time and cost -If the employees will be give proper training about development of new product then they will make product with lesser wastage (www.mediapost.com).

Task 2.6 Assess the impact of people management strategies used in the organisation

With the help of the mixed organisation structure there is clear division of all the functional department of the organisation and people can work accordingly. There is no extra work load on the employees and clear and proper delegation of authorities and responsibilities (Gupta 2010).

With the help of autocratic management style the company can avoid the conflict among the employee regarding the decision making because all the decision come from the top management and it can also avoid the delay in the decision making. The PepsiCo is a very big company and it need to take quick decision to keep its business running so this style has improve the decision making process of the business (www.pepsico.co.uk).


Task 3.1 Recommend the strategies to prom

Recommendation – In my opinion there should have the democratic leadership in this organisation. Senior post people should take the suggestion from the lower level people while taking the decision regarding the sales because the salesmen and the customer executives know the exact situation about the market and they can better tell the senior people that what would be good for increasing the sales of the products. Company should also give some right to the lower level people to make any decision because some time salesman also has to make decision according to the situation (www.sos.net).


Working on this assignment was a great experience and I acquired some new knowledge through this assignment. There is a mixed organisation structure is used in the above given organisation and role culture the help the business in proper delegation of authority and responsibility. Although the company does have a role culture which empowers staff to a certain level, I believe the autocratic style of the PepsiCo’s leadership style will make the full growth slow. As it is the front line staff who know the most about market conditions it would be good business sense for them to use a democratic style of leadership. With the democratic style being used PepsiCo could make more money through real staff empowerment. However, at the same time I do believe that some of autocratic leadership should remain because if any differences happen with staff the seniors can help in the decision-making process. The company would have many benefits by having flexible working environment.


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