week 8 mgt G

Running head: PEPSICO ORGANIZATION

PEPSICO ORGANIZATION 2

PepsiCo Organization

Student Name

Institution Affiliation

Outline

1. Introduction

· Background information of the PepsiCo organization and literature review.

· Thesis statement: This paper examines some of the HR and OB challenges that PepsiCo organization is now dealing with.

11. Major Human Resource and Organization Behavior challenges

· Recruitment Challenges which include low employee retention and high costs of hiring

· Downsizing and Restructuring Challenges. PepsiCo interest to invest about $ 2.5 billion in the corporation restructuring which could cause employee layoffs has been faced with a lot of criticism from the public.

· Managing Workplace Diversity Challenges. Strategies to ensure workplace diversity were met with high resistance from employees who believed that the actions could result in promotions based on diversity and not competence.

· Employee Engagement Challenges. PepsiCo has been struggling with employee engagement since the beginning of the new millennium evidenced by the presence of low employee retention rates.

· Employee Empowerment Challenges. PepsiCo has not been able to offer flexibility to its employees, and most workers complain of tight schedules and overwork which has led to demotivation of the employees

111. Conclusion

PepsiCo Inc.

PepsiCo Inc. is an international franchise store based in the United States that sells beverages, consumables and snacks. The organization’s headquarters are located in New York City, USA. The corporation was formed in 1960 as a result of a merger between the Pepsi-Cola firm and the Frito-Lay Corporation (Jallow, 2021). The brand changed their name to Pepsi Co.Inc after merging with Frito-Lay, Inc. Since its inception, the organization has experienced multiple modifications, all under the PepsiCo to provide a greater choice of beverages and food items like as kurkure and lays. One of the organization’s most significant accomplishments has been the acquisitions of Tropicana goods in 1998 and the QuakerOats organization in 2001. For the past several years, the organization has maintained steady profitability and reduced its expected losses in the market. There are about two hundred nations where the organization’s products are sold. The inner branding agency of the U. S. recognized the corporation as the globe’s second largest supplier of beverage and food stuffs, basing on its performance. Every item of the firm's 400+ brands generates more than $1 billion in retail sales and the company's annual net worth is $43.3 billion. In total, the company employed above 270, 000 individuals around the globe.

Steven Williams, the organization’s CEO and Pavitra Singh, the Chief Human Resources Officer since October 2019 are two of PepsiCo’s key leaders. Singh has worked in various capacities for the company for nearly sixteen years. PepsiCo target markets include people between the ages of thirteen and forty five. In order to reach this target populations, PepsiCo offers its beverages in a variety of settings, including eateries, education institutions, fast food joints and more. PepsiCo has a flexible organizational structure that adapts to the changing needs of the market and the evolution of its goods (Zhang, 2019). The corporate culture of PepsiCo places a high value on leadership that is responsive to the needs of all stakeholders, including workers, investors, consumers and communities. PepsiCo's workers have made the organization achieve greater success. This is despite the organization's challenges in the areas of human resources and organizational behavior. This paper examines some of the HR and OB challenges that PepsiCo organization is now dealing with.

Major Human Resource and Organization Behavior challenges

Recruitment Challenges

Low employee retention and hefty recruitment costs are two of the biggest recruitment challenges in PepsiCo (Jallow, 2021). Its Human resources has little regard for the concerns of its workers. This has made it tough for the corporation to keep its new hires after they have been brought on board. Within the first few months of employment, many employees become dissatisfied with their positions and decide to leave. The primary cause is a lack of communication between the organization’s upper management and its workers. Every year, the company loses about two hundred workers which necessitate a costly recruitment effort. The expense of attracting new employees is another problem in the recruitment process. Per-hire costs are always considered when calculating recruitment costs and organizations try to keep these costs under control in any way they can. Priority is usually given to how candidates are drawn and what type of candidate is most sought after at any given time. The methods used to advertise the position and conduct the recruiting process should be minimal, but they should provide positive results. The Human Resources department of PepsiCo encounters a number of issues when it comes to determining the best strategy of recruiting personnel. In the majority of cases, the organization ends up with a large recruitment cost that does not correspond to the expectations of candidates who are qualified.

Downsizing and Restructuring Challenges

Downsizing refers to permanent decrease of an organization’s employment. It is typically connected with corporate reorganization or the creation of a leaner corporation. When a corporation undergoes substantial improvements to its financial or operational structure, it is said to be restructuring. This usually occurs when an organization is experiencing financial difficulties. For its intentions to invest $2.5 billion to restructure the corporation and explore automation in key processes which will result in a substantial, unidentified amount of dismissals among PepsiCo's 250,000-plus workers, the corporation's human resources department has come under heavy fire from the public (Zhang, 2019). The HR team is faced with a difficult decision on whether to continue with the procedure, which may tarnish its reputation or whether to abandon the process altogether. If PepsiCo's PEP cutbacks were justifiable in some way, for instance, if the firm was operating at a loss and required to minimize its personnel to compensate, the company's actions would be more acceptable.

Managing Workplace Diversity Challenges

There are several factors that go into workforce diversity, such as age, gender, dialect, ethnicity and marital status to name a few. Steve Reinemund was PepsiCo's first senior executive to emphasize on diversity and inclusion from the standpoint of altering the company's whole culture. It was clear to Reinemund that PepsiCo's staff did not accurately reflect the populations to which their goods were being marketed. New measures were devised by Steve Reinemund's vice presidents in 2002 to make sure that diversity targets in terms of hiring were accomplished. As the importance of a diverse workforce began to rise in the company's recruitment and promotion processes, these new measures were met with fierce opposition (Jallow, 2021). Several individuals were enraged by the new measures since they believed they could promote someone simply because of their ethnicity regardless of whether or not they were competent. When PepsiCo failed to reach its targets in 2002, greater resistance was raised. This resistance is a challenge to both the human resource and organization behavior.

Employee Engagement Challenges

This organization, like many others in the beverage industry, places a high focus on employee issues because it believes they have a direct impact on the organization. However this organization has a lot of issues when it comes to employee engagement and influencing people towards higher performance. Jallow (2021), argues that a lack of effective methods for involving employees leads to a host of challenges for businesses including a rise in staff turnover and a drop in productivity. Though PepsiCo places a high priority on the needs of staff and a high priority on improving organizational performance, there have been various signals of reduced employee engagement. Since the beginning of the new millennium, PepsiCo has struggled with poor staff retention. When a company is unable to retain personnel, it indicates that the firm has an issue with employee engagement as employee retention and satisfaction grow with adequate engagement.

Employee Empowerment Challenges

Employee empowerment is a management approach that stresses empowering people to decide and execute on their own choices. Employees who feel empowered to own their work create business success. Organizations offering flexible work achieve higher productivity, lower absenteeism and lower turnover. PepsiCo has not been able to offer flexibility to its employees, resulting in increased waste and energy utilization. Most workers complain of tight schedules and overwork leading to demotivation. The corporation must overcome this organizational behavior issue in order to increase its productivity.

Conclusion

There are several human resource and organizational behavior difficulties such as employee recruitment, downsizing and restructuring, managing workplace diversity, employee engagement and employee empowerment challenges that face the PepsiCo organization. These challenges must be addressed in order to maintain the company's productivity.

References

Jallow, A. (2021). A Strategic Case Study on PepsiCo. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3828353

Zhang, Z. (2019). Risk Analysis of Two Leader Drink Company: PepsiCo and Coca-Cola. Asian Business Research, 4(3), 42. https://doi.org/10.20849/abr.v4i3.686

Organizational behavior: part two

Organizational behavior: part three