Copy (2) of PepsiCoc Project of Ob

7/28/2019 Copy (2) of PepsiCoc Project of Ob

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Project Report of Organizational Behavior

Presented toProf. Muhammad Moavia

Presented by

Ramzan Idrees

Zeeshan Rafiq


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Content

1) A short history of PepsiCo2) Our Vision3) Our Mission4) Organizational behavior at PepsiCo

5) Diversity in Pepsi6) Job Satisfaction

7) Our Leadershipi. Governance and Decision Making

ii. Metrics, Tracking and Reportingiii. Establishing New Practices to Facilitate

Integration

8) Forces for changei. The changing nature of the workforce:

ii. Technology is changing jobs and organizations:Competition is changing:

iii. Social trends during the past generation suggestchanges that organizations have to adjust for:

iv. World politics:

9) Approaches to Manage change:10) Kotters 8 -Step Plan for Implementing Change11) Questioner 12) Conclusion


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A short history of PepsiCo

Pepsi Cola is, just like Coca-Cola, a creation of an American pharmacist. In 1893,5 years after the introduction of Coca-Cola, Caleb Bradham began to serve hiscustomers Brads Drink from his own soda machine. Because of the positivereactions of his samplers he decided to begin advertising in 1898 and he named thedrink Pepsi-Cola. He founded the Pepsi-Cola Company in 1902. Pepsi-Cola is a

big success in the United States and the Pepsi-Cola Company decides to export thedrink to Mexico in 1907, other countries would follow soon.The company investedin sugar and is declared bankrupt in 1923 due to the collapse of sugar prices. After a couple of reorganizations the Pepsi-Cola Company is bought by Loft Inc. in1931. Because of the popularity of Peps i, Loft changes its name to Pepsi -Cola

Company in 1941.Pepsi -Cola is referred to as the kitchen cola in the 1960s because its much cheaper than competing drinks. The company decides to focustheir advertising strategy on the post-war baby boom generation. One of the newslogans is: Now its Pepsi, for those who think young. Diet Pepsi is introduced in1964 for people who would like to live healthy.The PepsiCo Company wasfounded in 1965 by the president of the Pepsi-Cola Company and the chairman of Frito-Lay. It produces and sells not only soft drinks like Pepsi, 7-Up, MountainDew, Miranda and Gatorade but also snacks like Lays, Doritos, Hamkas and

Quaker cereals in 192 countries.Famous people like Michael Jackson, LionelRichie, Tina Turner, Shaqu ille ONeal, the Spice Girls, David Beckham, BritneySpears and Cindy Crawford appeared in Pepsi commercials in the 1980s and1990s to emphasize that Pepsi is the drink for the new generation.

Our Vision"PepsiCo's responsibility is to continually improve all aspects of the world inwhich we operate - environment, social, economic - creating a better tomorrowthan today."

Our vision is put into action through programs and a focus on environmentalstewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.


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Our MissionOur mission is to be the world's premier consumer products company focused onconvenient foods and beverages. We seek to produce financial rewards to investors

as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything wedo, we strive for honesty, fairness and integrity.

Organizational behavior at PepsiCo

THE BIGGEST HURDLE FOR MOST MINORITIES IN CORPORATE Americais not getting hired, it's retention and advancement--particularly for minorities who

are middle managers looking to move into senior level positions. Ron Parker,PepsiCo's senior vice president for human resources, believes that a major disconnect between company management and minority is culture--both associatedwith race and a company's environment. Managing the corporate culture forcesemployees to understand the performance mandates of their position in the contextof the company's political structure. With issues of race, cultural differences candiscourage open communications between associates, which is crucial for companygrowth. For example, some minorities may not ask necessary performance

questions, because they don't want to be perceived as inadequate. Conversely,some managers are reluctant to offer feedback to minority employees for fear of

being seen as racist."Sometimes, information is not being withheld deliberately but culturally." OffersMaurice Cox, Vice President for diversity and development. As a result, PepsiCohas included training in organizational behavior to its repertoire of diversityworkshops.Sample workshops include topics such as how to give and receive feedback, how

to develop and leverage your internal relationships with mentors and other associates, and how to manage your personal profile within the company.


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Diversity in Pepsi

We have a core belief that making the most of diverse strengths and talents helpsmake our company successful. We take great care to weave diversity and inclusion

(D&I) into the very fabric of our culture to improve as a global, multicultural andmultigenerational company capable of serving the world's communities effectively.

Women in the WorkplaceAs an endorser of U.N. Women's Empowerment Principles, increasing support for women in our businesses is crucial, especially in developing countries. In the U.S.,33 percent of our board members are women, along with 31 percent of PepsiCoexecutives.

Job SatisfactionJob satisfaction has been defined as a pleasurable emotional state resulting fromthe appraisal of ones job an affective reaction to ones job and an attitude towardsOnes job. Weiss (2002) has argued that job satisfaction is an attitude but pointsout that researchers should clearly distinguish the objects of cognitive evaluationwhich are affect (emotion), beliefs and behaviors. This definition suggests that weform attitudes towards our jobs by taking into account our feelings, our beliefs, andour behaviors. The working conditions are to be suitable for the 43% of respondents is good condition . The 40% of the respondents opinion about the

physical working condition such as space & cleanliness is to be very good. Therestroom facilities are excellent for the employees by management at 33%. The58% of the respondent are strongly agreed for our policies &procedures for helpingto getting the job. The policy & procedures for making the sense to be agreed by38% of respondent. The 65% of the respondent are strongly agreed the job security

provide on his performance. The 37% of the respondent are satisfied their promotional policies followed by the management.


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Our Leadership

PepsiCo is a company full of strong, talented individuals starting with the companyleadership. Get to know the inspiring people helping lead PepsiCo on its'Performance with Purpose' journey.

In 2010, PepsiCo created the Global Sustainability team, whose role is to develop,implement and enforce standards to ensure consistency and quality in our sustainability reporting and ultimately accelerate our Performance with Purposemission.

The developed standards framework focuses on three key areas:

Governance and Decision MakingAccountabilities are assigned to individuals/teams to set strategy, prioritizeactivities and facilitate decision making needed to advance the sustainabilityagenda.

Metrics, Tracking and ReportingSpecific, measurable, time-based targets defined and standardized for tracking

progress are implemented. Reporting obligations are defined and protocols are in place to ensure compliance.

Establishing New Practices to Facilitate IntegrationFunctional accountabilities and cross-plank (i.e., performance, human,environmental and talent) considerations are defined and built into daily operationsin such a way as to advance our sustainability agenda.

We have identified owners for each of our Performance with Purposecommitments, aligned them around their roles and responsibilities and havedeveloped scorecards, checklists and timelines specifically focused on measuringour progress against these targets.

More specifically, an overall governance structure has been defined andimplemented. This includes the creation of the Sustainability Steering Committee


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(SSC), made up of the most senior members of the organization (the majorityreport directly to our CEO), as well as the establishment of SustainabilityLeadership Teams across all four planks, based on defined roles and selectioncriteria, and guided by PepsiCo's Public Policy Coordinating Group.

The Performance Sustainability Leadership Team (PSLT), Human SustainabilityLeadership Team (HSLT), Environmental Sustainability Leadership Team (ESLT)and Talent Sustainability Leadership Team (TSLT) are responsible for creating our overall strategy, driving implementation and identifying issues/risks, which arethen communicated to the Sustainability Steering Committee.

In the metrics, tracking and reporting area, our focus has been to enhance our overall external reporting processes to include an accountability model that clearlydefines roles and responsibilities of those involved in the reporting process. This issupported by an internal certification of the accuracy of the reported financial andnonfinancial data.

Additionally, we have been working to enhance the underlying data collection processes to include written protocols and the use of established supporting

documentation standards. To facilitate integration with our business operations, wehave embedded several key metrics in the performance evaluation process, and wecontinue to work to include sustainability in such key processes as capitalappropriation requests, innovation stage gates, operating and strategic plans.


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While a great deal is being done to fully implement measurement processes for allof our sustainability efforts, we have already made significant progress to date and

believe we have laid a very substantial foundation for success.

Forces for change

1. Organizations face a strong and changing environment. This requiresvariation six specific forces that are acting as stimulants for change.

2. The changing nature of the workforce: A multicultural environment.

Human resource policies and practices changed to reflect the needs of anaging workforce.

Large expenditure on training to upgrade reading, math, computer, and other skills of employees.

3.Technology is changing jobs and organizations: Refined information technology is also making organizations more

receptive. As organizations have had to become more adaptable, so too havetheir employees.

We live in an age of discontinuity. Beginning in the early 1970s with theovernight multiplying of world oil prices, economic shocks have continuedto impose changes on organizations.

4.Competition is changing: The global economy means global competitors as well as local market . Established organizations need to defend themselves against both traditional

competitors and small, commercial firms with innovative offerings. Successful organizations will be the ones that can change in response to the

competition.

5Social trends during the past generation suggest changesthat organizations have to adjust for: The expansion of the Internet, Baby Boomers retiring, and people moving

from the borders back to cities


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A global context for OB is required. No one could have imagined how world politics would change in recent years.

September 11 th has caused changes organizations have made in terms of practices concerning security, back-up systems, employee stereotyping, etc.

America Afghan war, America Iraq has totally crushed the economies. As well as the natural disasters over the world more importantly in Pakistanthe earth quakes, floods etc. forced the organizations to be more proactive.

6. World politics: Rising health care costs. Negative social attitudes towards business and executives. Opening of market for china.

ChangePlanned change:

Activities that are intentional and goal oriented

Manag ng P anne C ange

1. Some organizations treat all change as an accidental occurrence; however, changeas an intentional, goal-oriented activity is planned change.

2. There are two goals of planned change:

o

1. Improve the ability of the organization

to adapt to changes in its environment.s

2. Change employee behavior.


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3.Examples of planned-change activities are needed to encourage innovation, empower

employees, and introduce work teams.

4. An organizations success or failure is essentially due to the things that employeesdo or fail to do, so planned change is also concerned with changing the behavior of individuals and groups within the organization.

5. Who in organizations are responsible for managing change activities? Change Agents:

Persons who acts as catalysts and assume that responsibility for managingchange activities

Change agents can be managers, employees of the organization, or outsideconsultants.

Typically, we look to senior executives as agents of change.

6. For major change efforts, top managers are increasingly turning to temporaryoutside consultants with specialized knowledge in the theory and methods of change.

Consultant change agents can offer a more unbiased view than insiders can. They are disadvantaged in that they often have an insufficient understanding of

the organizations history, culture, operating procedures, and workers. Outside consultants are also more willing to start second-order changes. Internal change agents are often more thoughtful for fear of wrong friends and

associates.

Resistance to Change

1. One of the well-documented findings is that organizations and their membersrepel change.

It provides a degree of stability and predictability to behavior.


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There is a positive downside to resistance to change. It obstructs adaptation and

progress.

2. Resistance to change does not necessarily surface in standardized ways.

Resistance can be obvious, unspoken, immediate, or delayed.

It is easiest for management to deal with resistance when it is obvious andimmediate.

3. Implicit(obvious) resistance efforts are more subtle(refined) loss of loyalty tothe organization, loss of motivation to work, increased errors or mistakes, increasedabsenteeism due to sickness and hence more difficult to recognize.

4. Similarly, deferred (delayed) actions cloud the link between the source of theresistance and the reaction to it.

A change may produce what appears to be only a minimal reaction at the time itis initiated, but then resistance surfaces weeks, months, or even years later.

a. Reactions to change can build up and then explode seemingly totally out of proportion. b. The resistance was deferred and stockpiled, and what surfaces is a cumulativeresponse.

A Case Study From New York Times:

The Collapse of Barings

A. Major Forces for Resistance to Change:

1. Individual sources

2. Organizational sources

B. Overcoming Resistance to Change: 7 Tactics


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Approaches to Manage change:

2.Buildingsupport andcommitment

3.Participat ion

1.education and

communication

5.Implementi ng changes

fairly

6.Manipulation and

cooptation

6.developpositiverelation

ship4.Building

support andcommitment

7.Coercion :


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A. Lewins Three -Step Model

1. Kurt Lewin argued that successful change in organizations should follow three steps Unfreezing the status quo

Movement to a new state Refreezing the new change to make it permanent

2. The status quo can be considered to be an equilibrium state.

3. To move from this equilibrium to overcome the pressures of both individual resistance anconformity unfreezing is necessary.

The driving forces, which direct behavior away from the status quo, can be increased. The restraining forces, which hinder movement from the existing equilibrium, can be

decreased.

A third alternative is to combine the first two approaches.

4. Once the change has been implemented, the new situation needs to be refrozen so that itcan be sustained over time. Unless this last step is taken, there is a very high chance that the change will be short-

lived and that employees will attempt to revert to the previous equilibrium state. The objective of refreezing is to stabilize the new situation by balancing the driving

and restraining forces.

B. Kotters 8 -Step Plan for Implementing Change

1. Built on Lewins model; a more detailed approach for implementing changes.

List common failures managers make when initiating changea. Inability to create a sense of urgency for change

b. Failure to create a coalition for managing change processc. Lack of a vision for change; not communicating the visiond. Not removing obstacles that could impede attainment of the visione. Failure to provide short term goalsf. Tendency to declare victory too soong. Not fixing the changes into the organizations culture

CONCLUSION


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PepsiCo is the classic business success story, starting with one mans invention and becoming a multimillion dollar enterprise with operations all across the globe. Yetthe company could not avoid becoming involved in major controversies. PepsiCois moving toward a more balanced stakeholder orientation by identifying those

stakeholders that are relevant to the firm and trying to understand and respond totheir concerns and needs. The current leadership at PepsiCo understands theimportance of stakeholders and the need to develop effective dialogues and other communication to help PepsiCo resolve conflicts. Some issues such as thenutritional concerns over soft drinks and snack foods create a serious dilemma in

balancing the concerns of special-interest groups and the desires of consumers for good tasting food. While some of the companys past challenges were likelyinevitable, some were caused by not understanding stakeholder needs or by ethical

lapses on the part of the company. From a lack of cultural sensitivity to healthconcerns to environmental degradation, PepsiCo has faced its share of ethicaldilemmas. However, it has also become a major leader in the sustainability andsocial responsibility movement. Although it has a long way to go before its snackscan be considered healthy or its manufacturing processes truly sustainable,PepsiCo has demonstrated a willingness to invest in innovative solutions for these

problems. If PepsiCo can continue to learn from its mistakes, it can make progressin solidifying a reputation as a socially responsible company. The future of PepsiCo depends upon continuing to develop an ethical corporate culture built onvalues that help employees relate to the needs and desires of all stakeholders.

Copy (2) of PepsiCoc Project of Ob

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