Pepsi came into conception in 1898 by a druggist from North Carolina known as Caleb Bradham and his first formulation was the Pepsi-Cola. The Pepsi brand is part of a portfolio of beverages having brands that include juices, carbonated soft drinks, and juice drinks, enhanced waters and bottled waters. A partnership was formed with Thomas J. Lipton in 1992 to sell ready tea brands in the U.S. Pepsi-Cola, through a partnership with Starbucks, also markets Frappuccino ready-to-drink coffee.
Pepsi is a company whose performance and purpose means delivering sustainable growth through investing in a future healthier for the planet and its inhabitants. It is a food and beverage company committed to quality and some of its products include Pepsi-Cola, Tropicana, Lay’s, Quaker Oats and Gatorade, just to name but a few. The company has managed to find more innovative ways to reduce water, energy and packaging, and in the provision of a great workplace for all its associates. In addition, the company respects, invests and supports the confined communities in which they work with, through such actions as hiring locals to work in their companies, creation of products which reflect the local taste, and partner with local farmers, the community, groups and governments.
Pepsico believes that being a responsible corporate company is not right thing, but the accurate thing for both citizens and itself as a business. Pepsi’s mission is to be the world’s top consumer product. The company has focused on convenient beverages and foods. The company is seeking to provide financial gains to those who have invested in it by providing a variety of opportunities for growth and enrichment to its esteemed employees, communities and business partners involved. In all its operations, this company has strived for integrity, honesty and fairness.
The company’s responsibilities include the improvement of all aspects of the world in its daily operations. This involves the interaction between the economy, environment, socially and economically. The vision of Pepsico is to act through programs and focus on activities that benefit the society, the environment and commitment to build its shareholder value by making Pepsico a sustainable company. Its approach to being the superior financial performer is what drives the shareholder value. By addressing such issues that involve the environment and the society, the company has vowed to deliver on its agenda purpose. This consists of talent, human and environmental sustainability.
The four major divisions of the Pepsico include Pepsico Americas Foods, Pepsico Europe, Pepsico Americas beverages and Pepsico Middle East and Africa. Pepsi Beverage Company also known as the PBC are Pepsico’s manufacturing, distribution and sales operating unit in America. This company has a culture that involves performing all its activities with a purpose. It has never believed in settling for second best. It thus celebrates together in doing something bigger in order to succeed which has become its driving force (Penzkofer 2007).
All round the world; this company has been committed to giving people the nutrition needed and the craving for taste they desire. The company dreams locally and acts globally. This is by being in constant innovation to sustain this planet. New market penetration has meant new ways of addressing the various health concerns, environmental challenges and cultural differences. Pepsico believes in utilization of opportunities for both professional and personal growth.
This term paper is going to evaluate the various problems that are face by the employees of Pepsi, especially the production department.
A company such as PepsiCo is a global player set in a global environment. Large companies such as this one do not only regard their primary markets, but also consider a global perspective in business. Generally, more companies begin to evolve into multinational businesses in various distinct parts of the world which they see fit. Through the aspect of globalization, multinational companies such as PepsiCo strengthen their supply chains, the high cost of human labor can be transformed and markets with exponential potential can be expanded. More so, the competitive nature of multinational companies can be strengthened in a global market.
Pepsi production department is the leading department in terms of the number of employees. the department can also be seen as a vital department towards helping the company make profits. This attributed to the fact that most of the work at the company is done at the production department. The production department accounts for almost 40% of the company’s employees. This department is also, the leading department in terms of casual employees. the department has close to about 200 casual employees. Most employees at the production department face various problems regarding their work.
First, employees are denied a chance to utilize their skills and technical knowhow. Whenever employees are denied the opportunities to utilize all of their skills and capabilities, then employers lack the benefit of experiencing their performance. Most employees at the production department are denied a chance to utilize their skills and technical knowhow. This eventually denies the employees a chance to grow and develop their skills. For example, a qualified electrical engineer at the department works as a store monitor where he monitors how finished products enter and leave the stores. Work performance is a contingent part upon the employee’s abilities in a work place such as PepsiCo Company. If employees lack skills or talents to undertake a certain job, then performance in operations will be less than optimal. A crucial dimension of performance is motivation. This is usually an act of managers in Pepsico and is usually a continuous process. It can either be negative or positive and mostly is goal oriented. Motivation is quite complex in nature and is commonly considered as an art. There are several initiatives that can be utilized to stimulate employees and they can be categorized as either monetary factors or non monetary factors.
Monetary factors include salaries or wages which is one of the factors of utmost importance. This means that a company must pay its employees on time and while doing so, a company must consider things such as the current cost of living and the ability of the company to pay. Another essential aspect to consider under this is a bonus which refers to the extra payment towards the employee over and above the salary and which is usually given as incentives. The employees must be given an adequate rate of bonuses. Incentives should also be provided by the company such as education allowance, medical allowance and house allowance. The company may also provide for special individual incentives, which are given to employees deserving for providing suggestions.
Some of the Non-monetary factors include the status in the company or the job title. By providing a higher status through actions like promotions, the employee becomes motivated. Employees normally like being appreciated for the services they offer. These praises should not only come from their immediate superiors but also from higher superiors. The delegation of authority usually motivates a subordinate to perform the tasks handed with commitment and dedication. When there is delegation of duties or responsibilities, a subordinate has in mind that their superior has placed trust and faith for them to work accordingly. Provision of improved working environment for example, the conditioned rooms, proper sanitation and arrangement of equipment and machines motivates employees.
Second, the employees have no job security. Since most of the employees in the production department are casual, they do not have job security. Most of them live with fears of having their employment terminated. This will eventually make employees to be de-motivated and will not work with determination, since they will like they are being oppressed. Guarantee of job security or the lack of fear of dismissal is also a proper method of motivating employees. Those who are kept temporary for a long time may be frustrated by the company and may seek to leave. Also, job enrichment may involve more challenging tasks and responsibilities. The workforce of a company may also be motivated through employee participation in a committee or another form of employee participation. Other factors that can increase employee’s motivation include proper job placements, promotions and transfers, proper performance feedback, proper welfare facilities, flexible working hours among many others.
Motivation in a company to its employee offers importance in several ways like it improves the corporate image, leads to higher efficiency, good relations, reduced absenteeism, improved morale, reduced accidents, reduced wastages and breakages and facilitates innovation and initiative. Money fails to motivate employees when is no particular relationship between the effort put in and its reward. Also, the economic conditions of people influence the core value of money. For instance, to the poor, the value of a specific amount of money is quite enormous as compared to the rich.
There are numerals of inspirational theories that need to be reflected upon in order to fully understand how a company can improve its productivity by motivating its employees. Maslow’s Hierarchy of Needs was proposed by Abraham Maslow whose theory was based under the assumption that motivated by a series of five universal items. Psychological needs, which are deemed to be the lowest level needs includes basic items such as water and food. As long as physiological needs are not satisfied, there exists a motivating force. Therefore, safety needs which are the basic needs for shelter and security become the motivators of human behavior.
Social needs include the need for love and belonging. Generally, humans have an intrinsic need to belong. In a workplace, this need may be accomplished by an ability to interact with coworkers and perhaps to work in hand with other colleagues.
After social needs have been acquired, the esteem and ego become the motivational needs. Esteem needs include the desire for self esteem and respect. When examined, these needs include dominance, fame, glory, recognition, importance, and appreciation. The biggest need in Maslow's hierarchy is the need for self-actualization (Capparell 2008); the need for self-realization, self-development, and the process of becoming a person who is capable of becoming someone in the society.
Alderfer's Hierarchy of Motivational Needs reworked Maslow's Need Hierarchy to put it in line and more closely with empirical research. Alderfer's theory is known as the ERG theory or the Existence, Relatedness, and Growth.
Existence refers to the concern with basic material existence requirements. This is what Maslow called physiological and safety needs. Alderfer's ERG theory states the Hierarchy as the ERG theory explains that more than one need may be achieved at the same time. Therefore, ERG theory does not assume a pecking order where a subordinate need must be satisfied before one can move on.
According to Maslow, an employee can stay at a certain level of need until that need is satisfied. ERG theory combats his argument by noting that when an order need level is not achieved, the individual’s desire to achieve a lower level need takes place. Therefore, frustration can lead to repetition to an undesirable need.
Herzberg's Two Factor Theory, also known as the Motivation Hygiene Theory, was drawn from a study designed to test the aspect that people have two sets of needs: their needs as animals to avoid pain and their needs as humans to grow psychologically.
Things making employees happy on the job and those making them sad had two distinct characteristics. Factors stand out as strong determiners of job satisfaction: achievement, recognition, work itself, responsibility and advancement.
Herzberg concluded that replies people give when they feel good about their jobs were significantly different from the replies given when they feel bad. Herzberg proposes that the findings he indicates the existence of a dual continuum: the opposite of “satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction.
There is a trend among managers of a company to assume that the moment they approve an initiative for change, it will happen as they envision it in their minds and it will lead to success. At times, managers may do this as a result of egos. At other times, it may be due to the fact that managers are too busy to monitor implementation of planned activities. No matter the reason, the final result will often be quite different from what was intended in the beginning.
Changes in management can be obtained through the senior management commitment. This is by establishing responsible oversight through self-assessment of the current situation of a company. Change can also be identified through improvement of strategy and planning and also through effective communication. Evaluation and improved performance of a company can also bring a major difference in the running of an organization.
Business planning, which is related to human performance at operational level, can be as a result of strategic planning to improve human performance. Objectives of business planning include the anticipation and prevention of errors at the job site and the discovery and elimination of latent organizational weaknesses. The integrated approach to human performance improvement involves the devotion of resources to human performance, consideration of organization nature, departmental human performance improvement plans which are consistent with station operational business plans. Improved human performance can also be attained through action plans and initiatives.
Performance gaps can also be identified through the comparison of actual behavior with the expected behavior or the actual results with the expected results. Performance gaps can be identified through recurring events, common errors, recurring error likely situations, individual and generic performance problems, error prone tasks and error prone systems.
After establishment of performance gaps, management practices should be put in place. They include the setting of high expectations, planning, implementing, assessing and monitoring. It also requires the senior management participation, ownership and sponsorship, review and approval methods, planned and methodical problem solving processes and demand for data usage.
Performance can now be monitored through performance indicators, observation programmes, trend analysis, and corrective action program trending process, organizational measure of human performance and use of culture surveys to assess values, beliefs and attitudes.
An adjustment plan involves training and non training interventions. Corrective action linked with causes, corrective actions consistent with performance modes Worker involvement in development of changes, consideration of inappropriate expectations, consideration of Interventions in addition to “counseling, training, and procedures”, adoption of long-term corrective actions, in (months and years), if necessary Identify process improvements that reduce
presence of error-likely situations communicate results to employees consideration of adverse effects of proposed corrective actions on performance (e.g., equipment modifications or introduction of new technology).
Leadership practices include some of the following; Leader opportunities, facilitates open communication, promotes teamwork, reinforces desired behaviors, eliminates organizational weaknesses, value the prevention of error, In-field monitoring and observation, provision of prompt performance feedback, coaching, reinforces behaviors, rewards results emphasizing
Behaviors, challenging at-risk behaviors, complacency, and hazardous attitudes and values, develop strong relationships, people treated with respect, fairness, and honesty, align shared values with stated values, communication plan to carefully promote core values, prompts response to suggestions, worker engagement, conflict resolution style, quality of communication practices & methods (e.g., communication plan), promotes shared accountability for safety and prevention.
As the name suggests, this group came to be by employees of PepsiCo Company. It had been observed that the food and beverage productivity was not up to standards hence the need to improve the situation. This how the group was formed
The group started by one of the employees by the need to change the situation as it was. He talked to the people concerned about the matter and those who showed interest thereafter set a date for us to meet. They meet on 7th Feb. 2012 and this how some employees become members of the group. The members sat down together and chose an appropriate day. For instance, on Tuesdays from 4-6pm till Saturdays from 2-5pm. The group leaders briefed members on the tasks they were expected to perform.
On the group’s second meeting, the main focus was on organizing the group. Members appointed amongst themselves those who will be helping the group leader in running the group. The post needed were those of the vise chairperson who played the role or the deputy. He was expected to take the responsibility of the chairperson incase he was absent (Capparell 2008). The secretary would be in charge or writing the minutes of the group, the treasurer would be in charge of keeping the money/fund for the groups. After appointing they set up the goals and objectives
1. To serve the entire community and the society in general and mostly the consumers of food and beverage in the area in bettering up productivity.
2. To improve on the quality and quantity of products
3. To support upcoming local people through ideas and funds.
4. To ensure the continuity of the group through appointing new members of the outgoing members.
- Look for a means to raise capital in order to pay for the rent payment and purchasing of furniture
Members to unite so as to create a strong bond amongst them and enhance the smooth running of the group.
To make sure the productivity in the area is improved
To portray good traits to other people and other organizations, as well as improving the interpersonal behaviors of the group members.
To supply food and beverage products to the market all year round.
Rules and regulations
All members to cooperate when called upon to work
No members should miss attending the meeting without permission from the chair person
The aggregate number of members of the group is 100. No member disagreed with the goals, objectives and rules of the group. All expressed a sense of interest in the group
A few conflicts of thoughts arose amongst us. Members were helped by the leader to solve the very conflicts. He consciously confronted some members who showed unwillingness to cooperate and requested them to move out of the group.
No member was willing to move out so the number of the members remained to be 100 and everyone was ready to work.
We embarked on our objectives: they sought help from other company groups to raise the funds. This was done through a fund raising service conducted in support for the organization to purchase furniture and other required commodities.
Members also organized the sale of product handouts, pamphlets and also provided extension consultations. At last, they were able to raise the funds to purchase the material (Stoddard 1997).
At this stage, members had developed a strong bond amongst everything that was aimed at benefiting each other. They also shared their problems with one another apart from groups main objectives. In case of losses, the members took the burden as a group and also shared the profits equally. Members still aimed at the set goals.
Our groups has no guidelines of how to terminate the group but once a members fills like dropping out is at ease to leave and new members recruited . An announcement is made to all members to prepare them for the leasing of one or more out-going members.
We set a day to celebrate our achievements with the out-going leaders. There is award of certificates for good work done will in the group and recognition for our success.
We planned a follow-up for our members who have left and check if there are continuing with the services.
In conclusion, in order for the Pepsi Company to achieve a high output from its employees, then the company needs to address the fundamental issues facing its employees in the production department. The production department in any company or organization is a very vital department, and at any point, the organization should ensure that its employees are well motivated.
Motivation in any company will ensure that employees work with a sense of belongingness because they feel like they are part and parcel of the organization. It will ensure that employees work towards achieving excellence in the organization.
Related Case Studies essays
- The Global Market Environment
- Next-Gen Air Traffic Control
- Decision to Hire New or Temporary Workers
- Production and Operations Management: Toyota
- Ex-Senator, Now Business Lobbyist
- McDonald's: The Coffee Spill Heard from Pole to Pole
- Enterprise Resource Planning Implementation: A Case Study of Almarai Company