Presented By: Ata ul Hassnain (FA12-MBT-

015) Faraz Asmat (FA12-MBT-

027) Malik Ahsan Ali Farukh (FA12-MBT-

039)

Organizational Study of PEPSI

What is HRM What is Selection How can we Select Effectively? Selection Tools Employee Selection Test Basic Concepts Test Validation Process Types of Validation Types of Selection Test Introduction & History of PEPSI Selection Process Of PEPSI Comparison SWOT Conclusion Remedies & Recommendations

Contents

What is HRM???

HRM is function that assist the organization in achieving goals by obtaining and maintaining the effective employees”

Human Resource Managment

What is Selection???

Selection is the process of picking individuals who have relevant qualifications to fill jobs in an organization. The basic purpose is to choose the individual who can most successfully perform the job from the pool of qualified candidates”

Selection:

We can select effectively and efficiently by keeping an eye on the following two things:

Person organizational fit

Person job fit

How to Select Effectively

There are several tool available for the accurate selection some of them are as following

Selection Test Artificial environment test Job interview Training Background checks E-t-c

Selection Tools:

A procedure intended to establish the quality, performance, or reliability of something, esp. before it is taken into widespread use.

“Any activity which we conduct to measure the required skills, knowledge and the abilities of someone is called employment test.”

What is test:

Employment test:

There are two basic concepts related with the selection tests which are as fallowing:

◦ Test Reliability:The consistency of scores obtained by the same person when retested with the identical tests with alternate forms of the same test.

◦Test validity:The accuracy with which a test measures what it purports to measure or fulfills the function it was designed to fill.

Basic Concepts About Test:

Here are the further divisions of test validity: Criterion validity:

“A type of validity based on showing that scores on the test are related to job performance”

Contents validity:“A test that is content valid is one that contains a fair sample of a task and skills actually needed for the job in question”

Basic Concepts About Test:

Test Validation Process:

Step1

•Analyze the Job

Step2

•Choose the Tests

Step3

•Administer the Test

Step4

•Relate your test scores and criteria

Step5

•Cross validate and revalidate

The types of selection test are being stated briefly in the following:

Test of Cognitive abilities Test of Motor and Physical abilities Measuring personality and Interests Achievement Test

Types of Selection test:

Here are the types of Cognitive abilities test Intelligence Test

A test designed to measure the ability to think and reason rather than acquired knowledge.

Specific Cognitive AbilitiesThe process of knowing, Specific including aspects such as awareness, perception, reasoning, and judgment about some specific skill.

Test of Cognitive abilities:

Employee recruitment tests that measure finger dexterity, manual dexterity, speed of arm movement, reaction time, In general, only tests measuring specific job related skills or abilities are considered legal. Also called motor and physical ability tests.

Test of Motor and Physical abilities:

The Big five model:◦ Extraversion, Emotional Stability, Openness to

Experience, Conscientiousness, Agreeableness

Caveats◦ To check that from which school of thought the

employee belongs

Interest Inventory: ◦ To check the interests of employee that which job

is suite to him

Measuring personality and Interests:

This test mostly conducted by the organization to measure the level of knowledge and learning of existing employee up till now.

Achievement Test:

World renowned brand and Carbonated Soft drink

Pepsi is a symbol of hygiene, quality and service, all over the world.

Producing Cola for more than 100 years

Dominated the world market for a Long time

Introduction of PEPSI:

First introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by Caleb Bradham

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse.

Pepsi is recognized as Pakistanis National drink. In 1971, first plant of Pepsi was constructed in Multan

History:

When we asked the HR manager about the selection process of Pepsi he told us that Pepsi has a proper step based process of selection which is narrated under the following:

Phase 1 – Screening Phase 2 – First Interviews Phase 3 – Assessment Phase 4 – Offer

Selection Tools at PEPSI:

Strengths • PEPSI CO. has hard working and qualified

Human resources.

• Increased emphasis on organizational and Managerial Ethics

• Coordinating an overseeing the work activity • Proper systematic selection process

SWOT analysis:

Weaknesses:• Old hierarchical management system

• Don’t uses the selection test to measure physical abilities

• Focuses on the training after selection

• Use the management assessment centers (raised the cost)

SWOT analysis:

Opportunities:◦ The can conduct behavioral test with the

personality assessment test.

◦ The company can Afford Miniature job training and evaluation Approach for the accurate selection

◦ Company has loyal employee so it can easily get the hard tasks with cross sectional teams

◦

SWOT analysis:

Threats:◦ The competitor’s attractive salaries and

compensation

◦ High cost employees

◦ No medical/drug test for labors

SWOT analysis:

We concluded that the PepsiCo, a multi-national firm has chosen all the relevant and required selection tools though in their selection process employment test are playing an appropriate role, and the firm is selection loyal and good employees to retain its position in the market at the top. The PepsiCo has won the award of U.S most ethical environment recent in year 2013. The success of selection process could b observed by having a glance on firm’s market shares, in more than 200 countries, are more than 30%.

Conclusion:

Firstly, Company has a huge number of loyal employees so it has to focus on the employee’s retention and compensation to have hold on the employees

Secondly, the selection process of the company is good but they can also improve it by asking or references checks

Thirdly, though the firm is enjoying good market shares and great position, but they should emphasis on the team work.

Fourthly, the environment of the company is very ethical so they should conduct the medical, stress management and behavioral tests also.

Recommendations: