Professional Documents
Culture Documents
Pepsi Cola Human Resource Management Project
Pepsi Cola Human Resource Management Project
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HUMAN RESOURCES MANAGEMENT
HUMAN RESOURCES
MANAGEMENT
Acknowledgment
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First of all we thank Allah Almighty the most beneficent and merciful
who gave us strength, patience and inspiration needed to complete this
task, which is essential requirement for the completion of our project.
Executive summary
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DEDICATION
Whose,
&
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Spiritual Inspiration
Give us Encouragement,
Sake of Freedom
Forgotten....
Table of Content
Mission statement
Vision
Pepsi introduction and future planning
Pepsi slogan and logo
Organizational structure
Delivery system
Direct delivery
In direct delivery
Departments
Operating department
Production department
Human resource department
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Transportation
Changes within the organization
Promotion
Transfer
Demotion
Separation
Lay off
Retirement
Resignation
Leave system
Casual leave
Medical leave
Annual leave
Weakness in human resources department
Observations and suggestions
Recommendations
Glossary
MISSION STATEMENT
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VISION STATEMENT
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PEPSI
IN PAKISTAN
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(NBC)
Pvt. Ltd. Gujranwala
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Naubahar Bottling Co. (Pvt.) Ltd. (NBC) is one of the nine (09) franchises of
“Pepsi Cola International” in Pakistan. Naubahar Bottling Co. (Pvt.) Ltd. (NBC) first
was involved in the business of manufacturing and marketing of Coca-Cola. Later
on it started manufacturing and marketing business with Pepsi Cola in May 27,
1981. The Area allotted to it, was Gujranwala Franchise. The franchise area
consists of the following nine districts.
Gujranwala
Gujrat
Hafizabad
Mandibghaud
Jehlum
Sialkot
Narowal
Sheikhupura
Chakwal
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The basic difference between the direct and the indirect delivery system is that in a direct
distribution system, the company spends its own resources while in an indirect distribution; the
dealer spends his own resources on all the factors which increases the sales volume:
Most importantly, this direct delivery system is present only in Gujranwala franchise in
Pakistan. The company also has its depots (remote depots) in different cities. It helps a lot in
increasing its sale and directing the distribution system. They are in
Sialkot
Gujrat
Shahdara
Jehlum
Sheikhupura
Narowal
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THE SUMMER OF 1898, AS USUAL, WAS HOT AND HUMID IN NEW BERN, NORTH
CAROLINA. SO A YOUNG PHARMACIST NAMED CALEB BRADHAM BEGAN
EXPERIMENTING WITH COMBINATIONS OF SPICES, JUICES, AND SYRUPS TRYING
TO CREATE A REFRESHING NEW DRINK TO SERVE HIS CUSTOMERS. HE
SUCCEEDED BEYOND ALL EXPECTATIONSBECAUSE HE INVENTED THE BEVERAGE
KNOWN AROUND THE WORLD AS PEPSI-COLA.
Caleb Bradham knew that to keep people returning to his pharmacy, he would
have to turn it into a gathering place. He did so by concocting his own special
beverage, a soft drink. His creation, a unique mixture of kola nut extract, vanilla
and rare oils, became so popular his customers named it "Brad's Drink." Caleb
decided to rename it "Pepsi-Cola," and advertised his new soft
drink. People responded, and sales of Pepsi-Cola started to
grow, convincing him that he should form a company to
market the new beverage
He mixed the syrup himself and sold it exclusively through soda fountains. But
soon Caleb recognized that a greater opportunity existed to bottle Pepsi so that
people could drink it anywhere.
1903, "Pepsi-Cola" was officially registered with the U.S. Patent Office. That year,
Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating,
Aids Digestion." He also began awarding franchises to bottle Pepsi to independent
investors, whose number grew from just two in 1905, in the cities of Charlotte
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and Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end
of 1910, there were Pepsi-Cola franchises in 24 states.
1898 Caleb Bradham’s, a New Bern, North Carolina, pharmacist, renames "Brad's
Drink," a carbonated soft drink he created to serve his drugstore's fountain
customers. The new name, Pepsi-Cola, is derived from two of the principal
ingredients, pepsin and kola nuts. It is first used on August 28.
1905 A new logo appears, the first change from the original created in 1898
1920 Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."
1941 In support of America's war effort, Pepsi changes the color of its bottle
crowns to red, white and blue. A Pepsi canteen in Times Square, New York,
operates throughout the war, enabling more than a million families to record
messages for armed services personnel overseas.
1950 "More Bounce to the Ounce" becomes Pepsi's new theme as changing soft
drink economics force Pepsi to raise prices to competitive levels. The logo is again
updated.
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1953 Americans become more weight conscious, and a new strategy based on
Pepsi's lower caloric content is implemented with "The Light Refreshment"
campaign.
1958 Pepsi struggles to enhance its brand image. Sometimes referred to as "the
kitchen cola," as a consequence of its long-time positioning as a bargain brand,
Pepsi now identifies itself with young, fashionable consumers with the "Be
Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces Pepsi's earlier
straight-sided bottle.
1963 In one of the most significant demographic events in commercial history, the
post-war baby boom emerges as a social and marketplace phenomenon. Pepsi
recognizes the change, and positions Pepsi as the brand belonging to the new
generation-The Pepsi Generation. "Come alive! You're in the Pepsi Generation"
makes advertising history. It is the first time a product is identified, not so much
by its attributes, as by its consumers' lifestyles and attitudes.
1973 Pepsi Generation advertising continues to evolve. "Join the Pepsi People,
Feelin' Free" captures the mood of a nation involved in massive social and
political change. It pictures us the way we are-one people, but many personalities.
1982 With all the evidence showing that Pepsi's taste is superior, the only
question remaining is how to add that message to Pepsi Generation advertising.
The answer? "Pepsi's got your Taste for Life!" a triumphant celebration of great
times and great taste.
1990 Teen stars Fred Savage and Kirk Cameron join the "New Generation"
campaign, and football legend Joe Montana returns in a spot challenging other
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celebrities to taste test their colas against Pepsi. Music legend Ray Charles stars in
a new Diet Pepsi campaign, "You got the right one baby."
1991 "You got the Right one Baby" is modified to "You got the Right one Baby,
Uh-Huh!" The "Uh-Huh Girls" join Ray Charles as back-up singers and a campaign
soon to become the most popular advertising in America is on its way.
Supermodel Cindy Crawford stars in an award-winning commercial made to
introduce Pepsi's updated logo and package graphics.
1992 Celebrities join consumers, declaring that they "Gotta have it." The interim
campaign supplants "Choice of a New Generation" as work proceeds on new
Pepsi advertising for the '90s. Mountain Dew growth continues, supported by the
antics of an outrageous new Dew Crew whose claim to fame is that, except for
the unique great taste of Dew, they've "Been there, Done that, Tried that."
1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar
Shaquille O'Neal is rated as best in U.S.
1994 New advertising introducing Diet Pepsi's freshness dating initiative features
Pepsi CEO Craig Weather up explaining the relationship between freshness and
superior taste to consumers.
1995 In a new campaign, the company declares "Nothing else is a Pepsi" and
takes top honors in the year's national advertising championship.
In 2000 PepsiCo sales are $20 billion and the company has 125,000 employees at
year
Now Pepsi is available in more than 200 countries of the world.
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Double Size
1934
Refreshing and Healthful
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Organizational structure
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Managing Director
Director
General Manager
Plant Manger
Marketing & Services
Manager
Production QC
Manager
Manager
Pepsi The flagship product and the best tasting beverage there is.
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Diet Pepsi Vanilla Fresh new Vanilla taste with only one calorie
Wild Cherry Pepsi Adds the flavor of cherry to the great Pepsi taste.
DEPARTMENTS
Procurement store
Raw material purchase
General purchases
Purchase process
Domestic and foreign purchase
Quality control
Water treatment
Process of empty bottling filling
Process of washing bottles
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STRUCTURE OF HR DEPARTMENT
H.R Helper
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Almost three employees working under the Human Resource Manager but
on the other hand 2500 employees working in PEPSI (Naubahar Bottling
Company) also manage the H.R department with the coordination of the each
department.
Major Functions
Human Resource Planning and Forecasting
Human Resource Planning Parallels the plans for the business as a whole. HRP
focuses on questions such as these:
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Although HRP means different things to different people, general agreement exist
on its ultimate objective-namely the most effective use of scarce talent in the
interest of the worker and organization. Thus we may define HRP broadly as an
effort to anticipate future business and environmental demands on an
organization, and to provide qualified people to fulfill that business and satisfy
those demands. This general view suggests several specific. Interrelated activities
that together constitute an HRP System.
They include:
A talent inventory:
Action Plans:
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Action plans to enlarge the pool of people qualified to fill the projected
vacancies through such actions as recruitment, selection, training, placement,
Issues Analysis
Business needs
External Factors
Internal supply
Forecasting Requirements
Staffing levels
Staffing mix
(Qualitative)
Action Plans
Staffing authorizations
Recruitment
Organizational changes
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A reasonable starting point for projecting a firm’s future supply of labor is its
current supply of labor. Perhaps the simplest type of internal supply forecast is
the succession plan, a concept that has been discussed in the planning literature
for over 25 years. Succession plans may be developed for management
employees, non management employees, or both. The process for developing
such a plan includes setting planning horizon, identifying replacement candidates
for each key position, assessing current performance and readiness for
promotion, identifying career development needs, and integrating the career
goals of individuals with company goals.
JOB DESCRIPTION
Job description also provide on the basis of the designation. Job
description form also provides in the written form to the each department
according to the designation of the employees then each department provides
job description to their employees.
Here the pay professional should standardize and complete the job description
that were found to be lacking or missing during the initial audit and review.
Job description will serve as and anchor for the pay professional .They will provide
a comprehensive understanding of the organization and will serve as the initial
basis for job evaluation.
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A written statement of what the worker actually does how he or she does it and
what the job’s working conditions are
Job identification
Job summary
Responsibilities and duties
Authority of incumbent
Standards of performance
Working condition
Job specification
JOB IDIENTIFICATION;
Job title
FLSA status section
Preparation date
Prepared by
JOB SUMMARY;
Describe the general nature of the job
Lists the major function or activities
RESPONSIBILITIES AND DUTIES;
A list of the job’s major responsibilities and duties defines limits of jobholder decision
making authority, direct supervision and budgetary limitation.
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Classifies all workers into one of 23 major groups of jobs which are subdivided into further
96 minor groups of job and detailed occupations.
New position
For promotion
Recruitment
Transfers
Performance Management
Career Planning
Staff Planning
Training and Development
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JOB SPECIFICATION
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Job analysis
Specification of people/task
Requirements of jobs
Human Resource
Planning
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Requirements
Recruitment
Initial Screening
A smaller pool of qualified candidates
Selection
New Employees
Orientation
Understanding of Company /
And benefits
Placement
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Training
Competence to perform present or
RECRUITMENT PROCEDURE IN
Newspaper Adds
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Types of Recruitment
Interview by HR Manager
Interview by Factory Manager
Interview by Concerned Department Head
Final Interview by MD/Director
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A. Basic Model
It shows that in defining training needs we have to start by identifying and comparing
two levels of performance: the standard (desired, optimum, future, planned) performance level
(PS) and the current (existing real) performance (pc). The difference between these two levels
is the performance gap.
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production managers’ competence (calling for non-training solutions) may include a shortage of foreign
exchange, the absence of any bonus systems for stimulating better utilization of plant, and so on.
In applying the approaches described above, it is useful to be able to refer to clear and generally
acceptable ways of structuring the training and development needs. This help to avoid confusion in what
is meant by needs, and endless debates on the differences between performance and competence, and
so on. In particular, it is useful to differentiate between the levels of organizational performance,
individual behavior and performance, and competence, this consist with the postulate that training must
be performance and result oriented.
Organizational performance
Competence
APPLICATION PROCESS
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Transfer in
Attendance
Application
&
Form
Leave Register
Application Process
Check by time
Submitted in office
Time Office availability of
leaves
Fill up and
Signature of
Department
Head
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Spotting organizational
problems
Recognizing individual
(group) performance
problem
Job analysis
Performance appraisal
Determining performance
improvement needs
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COMPENSATION MANAGEMENT
Compensation
At a broad level, and organizational reward system includes any thing and employee
values and desires that an employer is able and willing to offer in exchange for employee
contribution.
More specifically, the reward system includes both financial and no financial Rewards.
Financial rewards include direct payments (e.g. salary) plus indirect payments in the form of
employee benefits.
Compensation program also manage in the time office. Salaries are paid to the daily
wages, contract and permanent employees according to their designation. Salaries and plus
benefits also provide to the employees.
REWARD SYSTEM
4. Accommodation
5. Utilities bills
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6. Vehicles
SALARY
Salary of all the workers permanent and temporary (Daily Wages) is prepared in time
office with the help of attendance register. Salary of permanent employee is prepared at the
last of month and the salary of daily wages workers twice a month. The increment is made
when a worker complete one year in service. Following deductions are made for preparation of
salary. The increment is made when a worker complete one year in service. Following
deductions are made for preparation of salary.
Salary Preparation
CLA- 1 Rs. 4
CLA- ii Rs. 2
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PROBATION PERIOD:
In the Naubahar bottling company the probation period of new employee is three to six
months in the probation period employee work routine wise. There is no leave granted during
the probation period.
In the probation period employee efficiency and effectiveness has been check the
permanent recruitment depends on the efficiency and effectiveness of the employee. The
probation period is necessary for the newly hire employee it is the basis for permanent
employee if the probation period of the employee is satisfactory the employee will be hire
permanently if the probation is not satisfactory level then the employee will be dismiss.
During the probation period the salary will be given to the selected candidate the salary will
be start from the first month.
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Rent or resident facility is given by company to those employees who are from out of
station/town/city. And their rent is paid by company.
MEDICAL CARE:
The company provide the facility of Social security card to the employee both permanent
and daily wages. This card is issued by the Employee Social Security Institute (ESSI). With this card
an employee gets a lot of benefits with pay anything. The social security card is allotted to these
candidates whose pay is up to 5ooo/-. Following documents are required to achieve the social
security card.
ID card of Employee
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TRANSPORTATION:
1. Promotion
Promoted employees usually assume greater responsibility and authority in return for
higher pay, benefits, and privileges, psychologically, promotions help satisfy employees needs
for security, belonging, and personal growth. Promotions are important organizational
decisions that should receive the same careful attention as any other employment decision.
Promotion in NBC
An employee Promoted after three years services in NBC but only on permanent basis.
On the other hand if en employee has intermediate qualification and during the job he
complete his graduation he will be promote
2. Transfer
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If an employee transfer from department to any other department NOC is necessary for
transfer. For example an employee transfer from production to shipping NOC is necessary for
transfer.
An employee can transfer from sale department to sale department without NOC. For
example an employee transfer from Gujranwala to Gujarat in sale department NOC is not
necessary
2. Demotion
Employee demotions usually involve a cut in pay, status, privilege, or opportunity, they
occur infrequently since they tend to be accompanied by problems of employee apathy,
depression, and inefficiency that can undermine the morale of a work group. For these reasons,
many managers prefer to discharge or to move employees laterally rather than demote them.
SEPRATION
1) Layoffs
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2) Retirements(PENSION)
3) Resignations
1. Layoffs
How safe is my job? For many people that is the issue of the late 1990s. It is becoming
clear that corporate cutbacks were not oddity of the 1980s and 1990s, but rather are likely to
persist.
Involuntary layoffs are never pleasant, and management policies must consider the impacts on
those who leave, on those who stay, on the local community, and on the company
2. Retirements(PENSION)
For selected employees, early retirement is possible alternative to being laid off. Early
retirement programs take many forms, but typically they involve partial pay stretched over
several years, along with extended benefits. Early retirement programs are intended to provide
incentives to terminate; they are not intended to replace regular retirement benefits. Any
losses in pension resulting from early retirement are usually offset by attractive incentive
payments.
In NBC no early retirement is not possible pension are paid after retirement to those employees
who are more than 60 years of age.
3. Resignations
Resignation, or voluntary worker turnover, has been increasing steadily over the past 15 years,
particularly among white-collar and professional workers. Employees who resign should avoid
burning their bridges behind them, leaving anger and resentment
In their wake; instead, they should leave gracefully and responsibly, stressing the value of their
experience in the company.
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In NBC early resignation is possible who will resign from the company; he must deprive from
the benefits of the company.
Causal Leaves
When a permanent employee completes his probation period of three month (Extendable if
required) he has awarded ten (10) causal leaves which one can avail in any cause of emergency with full
pay. A worker can not avail all the leaves (Expect Special causes) at once he can maximum four (4) leaves
can avail at once.
Medical Leaves
Sixteen (16) Medical leaves are given to the permanent employee for the period of one year. A
Permanent employee can avail these leaves with half pay. If the employee goes on leave for more then 4
leaves then he would have to present the Medical certificate in which his disease and rest mentioned.
ANNUAL LEAVES
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When a permanent employee complete his one year in this company, He is eligible to
avail the fourteen (14) annual leaves for any visit purpose with his family with full pay. Mostly
these holidays are allotted to the workers in off season. If a worker did not avail these leave
Then it transfers it into his account. But only two year vacations are recorded and two year it did not
transfer to the previous balance.
In Naubahar Bottling Company (NBC) at officer & supervision level did not pay against over
time. He can change his overtime to a leave. Every body can not do over time. Only those
persons those who are permitted by the department head.
Types of Leaves
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When a permanent employee wants to a leave he gets an application form from the time office.
First of all the time office staff checked that is there availability of leaves in his account, if yes
then the concern person marked the application that many leaves in his account. After that the
applicant fills up this application for and then signature from hiss concern head of the
department. After fill up this form submitted in the time office and the time office staff transfer
it in the attendance and leaves register according to their department.
INTIMATION FORM
First of all a intimation form is filled by the applicant and then he go to his manager for
sign that he is need to department for over time. After the signature of manager this for
is submitted in the time office.
WEAKNESSES IN HR DEPARTMENT
1. Policies have been developed but not implement.
2. The employees did not promote soon that’s why employees leave the
factory.
3. New employee’s salary is more than old employees.
4. Lose the key employees because of the reference.
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5. One person handles all the recruitment procedure of the N.B.C which may
be burden for him.
6. HRM department in NBC is not working professionally .Only two to three
persons are handling all the work.
H.R.M functions are more but employees working in H.R.M Department are less.
Assessing current human resource standards & generating human resources inventory.
Assessing future human resources needs by organization’s strategies & future programs.
After assessing current capabilities of future needs a program should be developed to
have right person for the right job & at right time.
At the moment, HR department is itself facing staffing problem & it seems to be non
existent.
The selection process through which candidates pass is very slow & time consuming
pass is very slow and time consuming. Candidate have to sit day long waiting for
management approval to start test & then. There is service of interviews which have no
time table. It is generally three four days patience test & trouble some for candidates
from other cities or already doing jobs.
For the medical bills and small loan employees need to get managing director’s
approvals and then pass through a long procedure. It should be simplified. Department
heads should be authorized to approved loans and medical bills up to a certain amount.
Computer & job related aptitude test should also be made part of selection tests to have
better job personality fit.
Formal training is conducted but that is due to ISO department not with the
planning/efforts of HR department.
Performance appraisal has only once but it was a useless exercise because its results
were not used in future planning or changes. Performance appraisal should be
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conducted:
To know development & training needs of employees.
To get performance feed back.
Anticipate direction for future performance
To change/ compensation system.
There is not idea of planned career development in NBC. Career development can be in term of
job rotation, transfer & promotion. It improves the organization's ability to attract of retain
talented people, anticipating change & helping employees to learn new skills and improve
utilization of a personal abilities.
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Motivation is the willingness to exert high level of effort to reach organizational goals.
The general level of motivation in NBC employees is very low and they are dissatisfied with their
jobs and pay scales. Only best employee of the month program is implemented highlight
employees whose work performance is excellent.
No attitude surveyor any internal research has ever conducted by the HR department to get.
Employees in NBC are performing well but they have low level of motivation.
Absenteeism is controlled because total forty annual leaves are allowed but more important
reason it that employees feel self responsibility. However the alarming indicators are turnover
and job satisfaction. The organization is facing high turnover rate and employees are
dissatisfied with their jobs and pay scales. Experienced staff is leaving the organization or
searching for opportunities. With the kind attention and efforts of general manager & deputy
general manager, the situation is improving. Qualified & young people are joining the
organization. The pay scales of metric, intermediate & graduate employees are revised.
However much more is needed to do in this regard.
RECOMANDATIONS
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In PEPSI (NBC) Human Resource Department must expand the strength of its
employees
GOLSSARY
ESSI: Employ Social Security Institute
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TIME OFFICE: Establishment department is under the human resource manager. Time
office of NBC is the part of establishment department. This office is lead by an office in
charge under the guidance of factory manager (Head of Establishment Department). The
main purpose of this department (Time Office) is to keep record of the entire employee