PepsiCo

Introduction: 

PepsiCo is the largest food and beverage company in North America and the
second largest company in the world after Nestlé. PepsiCo is the owner of various well-
known food and beverage brands, including Pepsi, Gatorade, Frito-Lay, Quaker Oats,
Rockstar Energy, and Muscle Milk. The current company was formed in 1965 from the
merger of Pepsi-Cola and Frito-Lay and has grown steadily since then. As of 2021,
PepsiCo's product portfolio includes 23 brands, each generating more than his $1 billion
in estimated annual retail sales. The company's products are consumed more than 1
billion times a day by him in over 200 countries and regions around the world. In 2020,
the company announced it would donate $570 million over five years to black and
Hispanic businesses across the country.
To maintain this position, PepsiCo's operations management (OM) practice must
effectively address business needs in ten strategic decision-making areas. These decision
areas relate to aspects of the business that must be optimized together for optimal
performance. PepsiCo's continued international growth and expansion also requires
continued reform of such business practices. However, PepsiCo's approach to operations
management generally lends itself well to global organizations.
Main body: 
1. The relationships between managerial levels and managerial skills at PepsiCo.
For higher positions at Pepsico, besides Conceptual skills, the person must have
impressive Human skills, which means that top managers are not only someone who
coordinates and oversees the work of other people but also someone who create a happy
and comfortable environment for employees as well as who take care and connect the
workers. For example, Robbert Rietbroek -  chief executive (Australia and New Zealand),
lately has been promoted to senior vice president and general manager of Quaker Foods
North America, based in Chicago, whose role is to analyze and diagnose the situation to
determine causes and efforts. This position required internal and external analytical skills
in problem-solving and critical thinking - what he did best. Moreover, he also contributed
a large part to changing the working atmosphere at PepsiCo. Since joining PepsiCo, CEO
Robbert Rietbroek has been known for always promoting work-life balance for the
company, offering very flexible working hours policies, and trying to promote women
( more than 40% of women holding senior positions for a period of time after Robbert's
promotion ). 
As for middle management, their responsibility is to interpret top management for
operational effectiveness and efficiency. They also help direct the activities of lower-
level employees, are responsible for top management of departmental functions, execute
organizational plans and track goals, define and discuss information and policies from
bottom to top, inspire low-administrators, and provide guidelines to achieve better
performance. This position required highly Human skills more than Conceptual skills or
Technical skills or any of those, as middle managers are like a bridge to connect top
managers and workers. If they failed to communicate with the employees about the plan,
nothing could be done. So the ability to work effectively with one group at PepsiCo is
essential, especially when PepsiCo operates many small branches in many countries. That
could be why the enterprise has Operation Managers ( OM ) in factories or Customer
Service Managers in PepsiCo’s restaurants.
Lower-level management at PepsiCo refers to the managers that supervise,
coordinate, and delegate tasks directly to employees in their department. They are
responsible for following the job duties and instructions from managers and operating
day-to-day goods and services. Supervisors, section leads, and forepersons are examples
of controlling and directing. To hit this position, the person must utilize job knowledge of
tools and techniques in a particular field.
2. Identify the seven dimensions of organizational culture and discuss the impact of
a strong culture on organizations and managers. 
2.1.Performance with Purpose.
 PepsiCo employees always strive to excellence, dedicate the best of their self for
the sake of the company, customers, communities and the planet. This organizational
culture feature demonstrates PepsiCo's commitment to fulfilling corporate social
responsibilities. Essentially, employees are encouraged to address the concerns of
PepsiCo's stakeholders. The most important impact of this organizational culture trait is
that it motivates employees to perform better. For instance, PepsiCo employees are
motivated to excel in what they do and to ensure that their efforts contribute to the growth
of the company and its stakeholders.
2.2. Real world Leadership.
PepsiCo's culture emphasizes leadership based on what employees, investors,
customers, and communities genuinely need. The company uses employee knowledge to
develop its leadership. Specifically, PepsiCo promotes employees to leadership positions.
This internal leadership development demonstrates that PepsiCo's culture makes it easier
for employees to utilize experiential work-related knowledge to drive leadership and
business growth. Therefore, the organizational learning process is supported by PepsiCo's
corporate culture.
2.3. Collaboration.
Teamwork is an integral part of PepsiCo’s organizational culture. The company
believes the business will achieve excellent performances with association. While
PepsiCo recognizes the strengths of individual employees, the corporate
culture advocates the use of these strengths through collective efforts. This is how
Teams are used throughout the organization. Through this characteristic of organizational
culture, PepsiCo supports synergy in its human resources, rather than relying solely on
separate individual efforts.
2.4. Dare to make decision.
PepsiCo offers opportunity and culture to encourage their employees to take
initiative and decision making. Working culture at PepsiCo gives workers a certain
freedom to evolve their creativity and they are motivated to do so. Employees also can
raise their voice whenever they feel necessary, even when it is about personal issues and
the bosses have to listen and consider.
2.5. Professional but Fun.
Which means employees are free to achieve their goals without any burden of
Structure. PepsiCo has introduced a 16-week leave policy for employees, with no limit
and no tracking of the start and end of a workday, allowing employees to leave early on
Fridays during these months, and especially, encourage employees to participate in the
campaign "One simple thing": "Employees can choose for themselves an important thing
in life and build their work schedule based on that". For example, a manager at the
purchasing studio signed up to drive her children to school every morning, so she often
arrived later than others. Another employee in the IT department always works earlier
than everyone else to go home early with his wife to take care of the newborn baby.
2.6. Multiple.
Their management is casual and accept innovative ideas from their each
employees whether they are from the top level or lower level, men or women, from all
different race, culture and religion.

3. Explain how centralization - decentralization and formalization are used in

organizational design. 
Pepsi's structure is mostly centralized but flexible enough to adapt to local
idiosyncrasies to ensure the business is run as efficiently as possible. Within the overall
structure of the company, covering all corners of the world, there is a flexible approach
that allows the company to maximize the talents of employees at all levels. While a
multinational the size of Pepsi, which directly employs around 100,000 people, must
have a centralized structure that oversees all aspects of the business, it must be able to
adapt and allow local conditions to feed the talent of its workforce to maximize. The way
the company operates in regions like China must be clearly different from the way it
operates in the United States.
 Each area of the Pepsi empire has its own structure consisting of a general
manager supported by a board of directors and executives responsible for specific areas
such as sales and marketing, research and development, human resources and operations.
Within each department, there will be a degree of autonomy which will allow local
managers to make decisions and run their division as they see fit. Structuring the
company to follow best practices is a key element of the company's success and allows
for an exchange of information and analysis on how to maximize resources. This also
allows riders to effectively test the water before implementing a brand-wide change.
Monitoring these matters is an ongoing requirement. Providing a two-way flow of
information is critical to the organization, enabling decisions made at the executive level
to be communicated at the corporate level and local initiatives and innovations pushed
back to the higher levels of Pepsi-Cola.

4. Explain how managers might change structure, technology and people.

5. Describe the impact job satisfaction has on employee behavior.

Research on COMPARABLY has shown that employee happiness at PepsiCo is

listed in the industry's top 35% of similar-sized companies. Compensation is an essential
aspect of employee happiness, and at PepsiCo, 67% of employees feel they are paid
fairly, 71% are satisfied with their benefits, and 59% are satisfied with their stock/equity.
In addition, 63% of PepsiCo employees feel their work environment is favorable,
meaning PepsiCo is a happy place to work.
Unlike other companies, staff at PepsiCo are allowed to go home sooner than
managers, and they are encouraged to do so. Whenever managers leave the office, they
always try to make a loud sound to change the other employees' mindset that they do not
have to leave the office late to impress their boss or they do not need to feel bad when
leaving early. Also, the senior staff must consider clearly and minimize the number of
emails sent after office hours and on weekends. CEO Rietbroek always initiates informal
conversations with employees by asking about their goals at work and, more broadly,
their goals in life. "The question: 'What can the company do for you?' always allows
employees to present their smallest difficulties. It could be elderly relatives who need
more help, or The kid who just entered primary school has to learn to swim at noon every
Thursday." PepsiCo's CEO emphasized that these flexible working regulations have
allowed the company to achieve its resounding success. "Pepsi is currently the leader in
retail sales in Australia and simultaneously provides retailers with the best-selling
products in the market." 
In just two years of applying the above policies, Pepsi has reduced its annual
turnover rate from 12% (the average for FMCG companies) to less than 7%. "This
flexibility allows the company's talent to be more engaged in their workplace."
"We're successful because we value employee flexibility." - said Robbert
Rietbroek.