PepsiCo is a very famous company. It has a strong brand identity. Given its popularity in the market and by looking at its strategies as listed in the website, reported by employees and shared in the interview, it is clear that the company seeks for welfare of all its employees. All its strategies are focused enhancing business through development of its employees. It guides them through their growth with company’s progress. The training programs and other workshops organized for its employees helps them in ensuring development of its employees as well as their productivity. Overall the HR strategies of the company are focused on fostering a healthy work culture that nurtures relationship to make step towards common goals.
Human Resources Management (HRM) people to gather and organize the process, allowing them to meet the objectives of each section is. It is part of the “responsible for personnel management in the organization process management. In summary, the management of human resources is a management function, the manager of help in the recruitment, selection, training and development the organization. Attempts to HRM to the sincere cooperation of employees winning short.
HR Objectives:
– HR objective designed to seek the welfare of all employees of the company.
– Guidance and direction to employees of the company.
– Planning and career development for all staff of the company
– Provide comprehensive training for employees in the country.
– A single employee with the orientation of the company shall, at the time of admission.
– In order to offer solutions to their personal problems.
– Data logging for all workers to Pepsi-Cola Company (Information System Human Resources).
– Evaluate and keep employees, shareholders of the company are.
VRIO framework evaluation of PepsiCo:
Like any other company, the biggest effect of HR strategies of PepsiCo will be on its business. Since people are the human assets of the company, it is important to ensure that they have a comfortable working environment where they can deliver in best of their capabilities through which company will benefit. Poor employee conditions will give rise to negative sentiment among employees to work for the company’s growth. The strategies thus are employee centric in interest of company’s objectives and goals.
Looking at the compensation part Pepsi Company is quit valuable because it helps the performance of the company in a positive way, these valuable resources can take the organization to the next level that puts the Company into competitive parity level. But PepsiCo is neither rare nor costly to imitate because it’s well-known that this company provides a soft drink that is similar to Coca-Cola drink, in that case any other company can use the same resources for providing soft drinks.
Training is considered valuable to the Company because it helps educating the staff to a better base and it increases the employee’s skills and knowledge therefore their performance will be improved. But the training is not rare and not costly to imitate because most companies provides training to their employees. This gives the company a Temporary advantage; the company will have the advantage only until other companies start doing the same.
Workforce is valuable according to the PepsiCo because it helps the staff to increase the innovation of their ideas. It is also rare because this company allows different nationalities different races with no differentiation and it’s costly to imitate because the work environment is perceived to the employees as an outstanding atmosphere that they can freely work in. PepsiCo is also exploited by organization, they use every single employee in a valuable way they also make them feel special and needed which helps to employee involvement.
That means according to diversity of workforce PepsiCo has a Sustainable Competitive advantage.
The Ultimate Business Goals
* The HR value chain examines the activities performed by a typical human resources department and how they interact to maximize the potential of an individual for the benefit of the organization.
The HR strategy consists of three major parts:
Intended HR practices: Where the PepsiCo had a plan and a vision to reach to the total customer satisfaction and to fully educate and train their employees.
Actual HR practices: There was actual a positive feedback from customers and the employees got into a training program
Perceived HR practices: Customers saw that PepsiCo has gained their satisfaction and it is a successful plan builder, employees got excited and saw the training program as a chance to gain more knowledge and experience.
The Ultimate Business Goals of PepsiCo.
The company’s Goal is to maintain viability with return of shareholders. This is clearly happening year by year according to the records of the organization. Second goal is to always have a sustainable competitive advantage which means they always want to be the best and the leader in the marketplace among the similar companies. They will maintain their place by good reputation and a positive feedback from customers, and always they should have their employees involved so that they will gain more skills and by that the performance of the company will improve. Not forgetting the quality of their products and services, PepsiCo are doing their best to achieve total Quality.
The Balanced Scorecard concept is a management and measurement system which enables organizations to clarify their vision and strategy and translate them into action.
PepsiCo believes that acting ethically and responsibly is not only the right thing to do, but also the right thing to do for the business. This is because their code of ethics is “the purpose behind our performance”
In addition, ” according to Ethisphere Institute recently named PepsiCo to its 2013 World’s Most Ethical (WME) Companies ranking. The designation recognizes companies that go beyond making statements about doing business ethically and translate those words into action. Since the list’s inception in 2007, PepsiCo is the only company in the food and beverage sector — and one of 15 companies overall — that has made the list all seven years. ” (PepsiCo makes World’s Most Ethical Companies list for seventh straight year)
PepsiCo Global Code of Conduct (our Code) is the roadmap and compass for doing business the right way. Put simply, you do business the right way when you act ethically and consistently with our Values, our Code, our policies and the law.
All PepsiCo employees are expected to embrace the principles of their Code and:
– Show respect in the workplace
– Act with integrity in the marketplace
– Ensure ethics in our business relationships
– Perform work responsibly for our shareholders
– Safety:
PepsiCo believes that environmental stewardship and protecting the health and safety of their people underpin their core values and help them deliever on performance with purpose, their goal to deliver long-term, sustainable financial performance. They believe that environmental incidents and occupational injuries and illnesses are preventable, and they aspire to an incident- free workplace. They implement their EHS policy through the PepsiCo global environmental, health and safety management system.
– Recruitment and selection:
PepsiCo bottling group hires around 9500 employees every year for its operations and manufacturing these, selling and distributed its drinks. The huge number of these hires, close to 4000, is made to gear up for what Pepsi bottling group refers to as the “one hundred days of summer” by far the busiest time of the year of the company
They choose the employees by their skills and experience .They treat there employee fairly and give them a good salary.
‘ The organization conducts its recruitment and selection planning by following two sources, Internal sources of recruitment and External sources of recruitment but they depend in external more. PepsiCo have a lot of ways for external sources such as, advertising by their website and newspaper for their recruitment purpose. They give everyone the chance to apply for post so, if there are any one who is capable to this post they are hired. They don’t prefer any specific colleges or universities. What matters are the potential talent and caliber of the person and his commitment to work. ” (PespsiCo recruitment and selection planning, 2015)
Moreover, Training and developing planning essential for PepsiCo. Pepsi Conduct training for partners from the frontline to senior management, to ensure that associates has the skills and experience required to gain performance goals. Encourage associates to lead healthier lives by offering workplace wellness programs in globally.
– Motivation:
Employees need motivation to stay and work and to be efficient. PepsiCo use many strategies to motivate their employees.
Firstly, Recognition always encourages employees to act and think as if they own the company.
PepsiCo by giving recognition to employees follows three important theories that consist of three needs of employees and there are, Need of achievement, Need of power and Need of affiliation because employees need of achievement, personal responsibility and feedback. Also, employees require power in order to compete and influence others and need cooperative environment that is important for their career growth.
Secondly,” PepsiCo give different type of incentives and rewards in order to motivate its employees that shows to be precious for new employees as well as existing employees. More than salary package PepsiCo also offers benefit packages that include retirement packages and Incentives may be cash or non-cash.” (PespsiCo recruitment and selection planning, 2015)
Recommendations:
PepsiCo must build a strong management framework and development to withstand strong competition from various industries.
Must provide all employees share information on the Internet for all employees about their activities, such as energy, communication skills and quality of work and that on time, etc. By adopting the style and staff in competition with each other without the help of others.
In HR department the manager give employees feedback about their performance. And the employees should work according to their feedback. Who have a bad feedback should work hard and turn it into useful and a good feedback for the next time.
HR manager should be responsible because selection of candidates depends of him so training should be provided to him. In HR planning training needs should be analyzed so that training provided to employees.
Conclusion:
Pepsi is a standard product and brand quality. Pepsi-Cola Company and planning strategies focused more short-term in order to make a very good image in the international communities. It focuses more on the customer and the factors of health and nutrition. You have strong management to keep PepsiCo high level of professionalism and commitment to quality.
The performance appraisal methods vary from one institution to another. A change in the methods of performance appraisal and the side effects immediate organizational processes such as the impact on the economy, work organization, organizational structure and the knowledge, skills, values, attitudes and behaviors of employees required.