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What does this really mean? If this question is being raised in front of employees of a company or their managers then each one would give a different take on this subject. So, before this research paper continues it would be important to establish right now what exactly does HR activities stand for and mean. To sum the concept in a single sentence, the management of Human resource means to bring together the goals of an organization and the people employed in that organization, to built up a successful combination. This research suggests that to accomplish the proper integration of HRM with the planning process of the company, building a strong HR relationship, and carraying out HR activities to achieve the goals set by an organization can only be done with the help of through planning and strong management. (Buckland, Birkinshaw & Hatcher, 2003)
These steps and processes are not just vital for successful goal achievement of an organization but, HRM activities are the ultimate level of HRM accountability, as demonstrated in the Hierarchy of Accountability. While HRM accountability starts by complying with simple legal ordinances but lead to far greater consequences and procedures.
Why a need for this relationship?
Why have more and more organizations are putting emphasis on the integration of HRM activities with their organizations' mission statement?
The answer to this question is very simple, which is that organizations are now understanding the importance of human resources management to their company. In its initial stage, the primary focus of the HR department was to follow the rules, and regulate and enforce them on the other departments in an organization. As time passed, the primary focus has shifted from the initial role to putting more emphasis on results and the other roles are now considered secondary.
An government reviewing agency took on the difficult task of reorganizing the government to make it function better, be more efficient, and get the desired results. The agency suggested many changes, one of them being to shift the focus of HR activities on results rather than regulations. Apart from giving more importance to results other suggestions were giving the downsizing responsibility to the HR department, delegation of HR responsibilities to managers, seeking HR to demonstrate its ethical and moral values, and improving customer interaction and service. If these suggestions are implemented then the response from the HR would be improved but this requires more man power to implement.
(Buckland, Birkinshaw & Hatcher, 2003).
The private sector is becoming more and more competitive, managers and organizations are looking at all aspects to reduce costs n become competitive. Technological advancement or finances alone are not enough to give companies with the competitive edge with they need in the modern day market. So the first step in achieving this is to retain the right people at the right jobs. If the best person for the job is hired then the organization becomes destined to succeed. For this reason, employees have been called any companies biggest assets.
This change is not only being recognized in the private sector but now the Federal Government is heading in the same direction and is putting more emphasis on a performance-based management style. Large amount of a company's budget is spent on the management of human resources. Recent studies have shown that apart from providing a competitive edge, the efficiency and productivity of the HR practices had a positive impact on the overall process of things. These studies were able to draw a correlation between increased quality of HR practices and increased business success. Furthermore, it was deduced that with better HR performances, a stronger relationship with the customers can also be made, as these practices would increase the anticipation of the needs of the customers. The goals of the HRM are constantly assessed and are strived to be maintained. The idea is to transform these regulations in the whole organization and by achieving this agencies can be sure that their steps would contribute in progressing their mission statements. (Buckland, Birkinshaw & Hatcher, 2003).
The research report on Pepsi Co
After stating the importance of the functionality of the Human Resource Management and its relationship with the objectives of a specified company, I am going to establish the purpose and the research done in this report. The purpose is to find out where
Pepsi Co International is currently trying to integrate their HRM with their organizations' goals.
So the purpose of this report is to judge how well HRM is linked to the organizations mission accomplishment for Pepsi Co; Explore the functions performed by the HR staff in the organization's strategic planning; and identifying the most sophisticated practices of HRM to achieve the agency's strategic plan and goals.
Current Operations Of Pespico
PepsiCo is a leading global snacks and beverage company. They manufacture, market and sell a variety of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages and foods. In the last financial year, Pepsi
Co has continued to maintain its three year plan on course, with positive growth by following an aggressive strategy in the United States and around the world, posting healthy profits and increasing their market share. Pepsi co. is organized into four divisions:
Frito-Lay North America
PepsiCo Beverages North America
PepsiCo International, and
Its North American divisions operate in United States and Canada and its international divisions operate in over 200 countries.
Frito-Lay North America
This division makes use of contractual manufacturers and then sells and plans the distribution of snacks. The different variety served are Lay's potato chips, Cheetos cheese flavored snacks, Doritos tortilla chips, Tostitos tortilla chips, branded dips, Fritos corn chips, Ruffles potato chips, Quaker Chewy Granola bars, Rold Gold pretzels, Sun Chips multigrain snacks, Munchies snack mix, ,Lay's Stax potato crisps, Cracker Jack candy, Grandma's cookies, Quaker Fruit and Oatmeal bars, coated pop corn and Go snacks. (Pepsi Co sustainability, 2011)
PepsiCo Beverages North America
"The division of PepsiCo Beverages North America uses the same technique of contractual manufactures and sells beverage concentrates, fountain syrups and finished goods, under various beverage brands including Pepsi, Mountain Dew, Gatorade, Tropicana, Pure premium, Sierra Mist, Tropicana Juice drinks, Mug, Propel, SoBe, Tropicana Twister, Dole and Slice, Lipton tea and Aquafina water". (Pepsico International, 2011)
"PepsiCo International manufactures through consolidated businesses as well as through non-controlled affiliates. Pepsi International manufactures or uses contract manufacturers, and sell many Quaker brand snacks, beverage concentrates, fountain syrups and finished goods under the brand Pepsi, 7UP, Mirinda, Gatorade, Mountain Dew and Tropicana. PI also licenses the Aquafina water brand to certain of its franchise bottlers. PI reports two measures of volume. Snack volume is reported on a system-wide basis, which includes PI own volume and volume sold by non controlled affiliates. Beverage volume reflects company-owned and franchise bottler sales of beverages bearing PI trademarks to independent distributors and retailers" (Pepsico International, 2011).
Quaker Foods North America:
"Quaker Foods North America manufactures or uses contract manufacturers, markets and sells cereals, rice, pasta and other branded products, Quaker Oatmeal, Aunt Jemima mixes and Syrups, Quaker grits, Cap'n Crunch and Life ready to eat cereals, Rice-A-Roni, Pasta Roni and near East Side dishes" (Pepsico International, 2011).
The mission statement of the Pepsi Co brand is "We aspire to make PepsiCo the world's premier consumer Products Company, focused on convenient foods and beverages. We seek to produce healthy 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 we do, we strive to act with honesty, openness, fairness and integrity.
The behaviors that will help us achieve our mission are articulated in our Values Statement." (Pepsico International, 2011)
Pepsi Co Objectives
From the mission statement of the Pepsico brand it can be duduced that their three major objectives are the following.
Sustained Growth means consistent growth for our business as well as our people-growth year after year.
Empowered People is the second piece of that commitment, as the decisions that drive the business come from tens of thousands of PepsiCo associates throughout the world who develop, manufacture and deliver our products. Empowered people act and think in ways that get job done, and innovate to find new ways to achieve growth.
Responsibility and Trust is the third piece of commitment. It articulates that acting responsibly and earning the trust of our shareholders, customers, consumers and other stakeholders is a necessity for growth. (PepsiCO Objectives, 2011)
Care for customers, consumers and the world we live in.
Sell only products we can be proud of.
Speak with truth and candor.
Balance short term and long term
Win with diversity and inclusion.
Respect others and succeed together.
Job Specifications and Requirements of Key Position
Territory Sales Officer
Territory Sales Officer
Reports To (Supervisor's Title):
Supervise (Subordinate's Title):
Distributor's Sales Representative (DSR)
This position functions as the Territory Sales Officer for Pepsi Cola Snacks Division. At Pepsi Co. Snacks Division sales are divided into two parts:
i) Primary Sales
ii) Secondary Sales
Primary Sales means selling the product from the company to the distributor. The Field Managers are responsible for achieving the targets of primary sales.
Secondary Sales means selling the product from the distributor to the retailers. The Territory Sales Officers are responsible for achieving the targets set for secondary sales. To achieve this the TSO and his team of DSRs (maximum:10) will work along side the distributor.
Achievement of Secondary Sales Targets
Secondary Sales targets are assigned to the TSO at the start of every month by the Field Manager. Each distributor is assisted by 2 TSOs who divide the market catered to by the distributor on geographical terms. Each TSO leads a team of up to 10 DSRs.
Route Planning For DSR
The TSO designs the routes for their DSRs on the basis of retailers in specific regions and efficiency of the DSR.
Van Loading Plan For DSR
The TSO is also responsible for designing the van loading plan for the DSRs on the basis of market demand and supply.
New Account Creation
The TSO is responsible for bringing new businesses to the company. They are required to negotiate with existing and new retailers who purchase the product.
The TSO estimates the demand for company products and any assistance needed by the retailers. For example the TSO estimate the number of racks required by the retailers in their region.
Representative of the Company for the market
The TSO often plays the role of spokesperson for the company and its products in front of distributors and retailers.
The TSO handles any kind of grievances the retailers might have regarding organizational policies and operations.
The DSRs are the selling hands of the company and in any organization it is the lowest level of employee that determines the level of quality, therefore keeping the DRSs motivated is an important task any TSO has to perform.
Education and/or Experience
Fresh MBA. Some experience preferred.
Graduate with 3-4 years work experience in sales related field.
Other Skills and Abilities
Strong interpersonal and communication skills
Ability to be convincing with his point of view
Strong orientation to deadline and detail
Demonstrated ability to work effectively and congenially with employees at diverse levels
Capable of motivating personnel
Decisive and exercises good judgment under pressure.
Ability to deal with a variety of abstract and concrete variables.
Ability to manage a diverse and demanding workload.
Human Resource Department
Like every organization, PCI-SD (Pepsi Cola International Snacks Division) has a very solid and zealous HR department, which is meant to perform the HR, related tasks. The importance of HR can be realized by the following sentence:
"HR of any company has no defined limits within which it works. In fact it is involved unconditionally in every task, day to day normal activities. It is a system which provides guidance to the employees from hire to retire.
Apart from this thing, HR also provides a basic ground knowledge and practical horizon to the company and equipping it to manage itself competently in the corporate environment"
HR Coordinator, PCI-SD
Pepsi is a manufacturing concern company. It is one of the leading multinational dealing in food and beverage industry. It hasÂ 157000 employeesÂ working with them and generating total revenues approximately over $32 billion in 2005.To remain a successful, the proper human resource planning is very necessary and Pepsi human resource department is trying it best to do this. Now researchers see Pepsi is at what extent successful in their Human Resource Management (Reddy. 2005).
Human Resource Objectives and Business Strategy In Pepsi
For human resource planning the strategic goals and objectives are the key activities. Same is the case in the Pepsi. With the start of the season the goals and objectives are set. The goals of the organization are
Ø To meet customer demand by providing quality products.
Ø To remain market leader and improve its brand quality.
Ø To provide good services to customers, employees, communities, and the environment.
All these objectives are set to achieve the profit maximization and a greater market share for the firm. And on the basis of these goals each department sets its own goals. Each departmental head is responsible to meet those goals and objectives and further subdivide into his department and then yearly goals are divided into months (Reddy. 2005).
Each departmental manager's target is to meet these goals in each month. After each month they evaluate that whether they have met or not and if they are unable to meet those goals then they take necessary actions to cover them in the future.
For example the goals of the production department are to produce right number of product items with standard quality, minimizing the cost of desired production and to provide the final product to the next department on time.
Human Resource Planning Process in Pepsi
Human Resource planning deals with the forecasting of labor needs for the organization. The HR manager is always attempting to meet the supply and demand for different types of human resources. Another vital job is to predict and identify an area within the organization where there might be labor shortages or surpluses in the future. (Dessler, 2010)
In Pepsi managerial estimates are used to determine the total future need of Human Resources in the organization. Than human resource department take actions to fulfill these needs. The employees hired both on permanent basis and temporary basis.
At Pepsi Co. Snacks Division, the functional heads receive their yearly targets from Pepsi Co. International during the last quarter of every year. The functional heads then proceed to plan extensively for the following year, laying out detailed plans for each month in order to achieve the required targets. These plans include the resources that would be needed by each functional head in order for him/her to successfully meet his designated targets. After this a meeting is held between the Directors (including the HR director), the General Manager & the CEO and the plans are finalized. Thus extensive planning is done every year at Pepsi Co. Snacks Division and this includes the number of new employees which need to be hired by each function in order for it to implement its plans successfully. (Dessler, 2010)
Tools and Techniques of Human Resource Planning
Many tools are available to assist in human resource planning. In Pepsi the most commonly used tools are
1)Â Succession Planning. (managerial employees )
2)Â HRIS (non managerial employees)
How HRP Relates to Organizational Planning
Human resource plan must be derived from the long term operational plans of the organization. The success of HRP depends largely how closely the human resource department ca integrate effective people planning with organization' business planning process. HRP contributes with great significance to the strategic management of an organization (Perrault, 2006).
1)Â Determining Organizational Objectives
ØÂ Organizational Objectives
Statement of expected results that are designed to give the organization and its members direction and purpose.
ØÂ Cascade approach
Objectives setting process designed to involve different phases of management in the planning process of an organization. It is not a form of top to down planning but the idea here is to involve all levels of management.
2)Â Determining the Skills and Expertise Required (Demand)
After establishing organizational, divisional, and departmental objectives, operating manager should determine the skills and expertise required to meet their respective objectives.
Method of forecasting HR need
ØÂ Judgmental Method
ü Managerial estimation
ü Delphi technique
ü Scenario analysis
ØÂ Mathematical method
ü Statistical method
ü Modeling method
ØÂ Bench marking
3) Determining Net HR resource
This process involves a thorough analysis of presently employed personnel and a forecast of expected changes.
Ø Skill Inventory
Ø Management Inventory
Ø Anticipating Changes in Personnel
4) Developing Action Plans
Once the net human resource requirements have been determined, managers must develop action plans for achieving the desired results. The following section discusses action that can be taken (Perrault, 2006).
There is only one Human resource department in PepsiCo that looks after both the beverage and the snacks division. The Human Resource Director who is directly reportable to the General Manager and CEO of the company heads this department. Human resource director looks after the personnel needs of the different departments of the company. She is responsible for hiring competitive and skilled workers for the required job, training the employees, evaluating their performance, motivating them through incentives and bonuses, and retaining these employees to work for long period of time for the company. This corresponds with the objectives of the company. She has got only two managers under her command. One is the Compensation manager who looks after the payroll, incentives and bonuses of each employee of the company. The other person under the HR director is training manager who is responsible for training and developing of advanced skills in the employees. (Pepsico International, 2011)
There is a need to divide the responsibility of the HR, across the spectrum. There are a large variety of activities to be performed from the transactional, to HR advice and then finally to partners. Usually it has been observed that focus is largely limited to just transactional activates and thus no time is left for business partners or giving proper training to the employees to transform them into a even more valuable assets. So the idea would be to shift the transactional and training exercises to another organization with shared interests and then the primary focus should remain on the activities of Bussiness partners or associated.(Perrault, 2006).
Recruitment & Selection
The core function of the HR department of any company is to hire the right people for the right job. HR is responsible to hire the efficient and committed workforce for its company. The starting point in any organization is when it initiates to find potential employees after identifying the function an employee would perform (job description) and what skills are needed to perform them (job specification). (Hellriegel & Slocum, 2007)
Major Sources to find Potential Employees
The major sources of the potential employees in the eye of PCI-SD are:
3rd Party Recruitment Firms (Outsourcing)
HR announcing the position in an ad and pooling the desired CVs
After the pooling of candidates, the interviews are done to screen out the required person. HR screens out the candidates for the interview only when it is asked to bring out the person for any vacant position. But when the hiring is done through third party or referrals, then HR only plays a supportive role. It is interesting to mention that PCI-SD HR department is only involved in the final interviews of the selected candidates. So it is just a formality that HR fulfills. The major interviews which are designed to select a person are arranged by functional heads. For example if finance department needs a person, then CFO and Sales Director would interview candidates. On the basis of the performance in interviews along with the judgment of the functional head, the final decision is made by the functional head and sent to HR for formal orientation, date of joining, and other discussions like compensation plan, career path, account opening, information about organizational culture etc. (Noe & Noe, 2000)
Training & Development
Training refers to the efforts made by any by organization to provide a chance for the employees to learn and perform better at their jobs. These training sessions could include things like information, skills, or behaviors that are critical for a better job performance. The goal of this training program is for employees to master different skills and give them more responsibility. (Hellriegel & Slocum, 2007)
Typical Reasons for Employee Training and Development
Training and development can be initiated for a variety of reasons for an employee or group of employees, e.g:
When a performance appraisal indicates performance improvement is needed
To "benchmark" the status of improvement so far in a performance improvement effort
As part of an overall professional development program
As part of succession planning to help an employee be eligible for a planned change in role in the organization
To "pilot", or test, the operation of a new performance management system
To train about a specific topic
General Benefits from Employee Training and Development
There are a number of sources of on-line information about training and development. Several of these sites suggest reasons for supervisors to conduct training among employees. These reasons include:
Increased job satisfaction and morale among employees
Increased employee motivation
Increased efficiencies in processes, resulting in financial gain
Increased capacity to adopt new technologies and methods
Increased innovation in strategies and products
Reduced employee turnover
Enhanced company image, e.g., conducting ethics training (not a good reason for ethics training!)
Risk management, e.g., training about sexual harassment, diversity training
Revised HR Policies Post-Recession
In the pre-recession time, Pepsi Co. had a workforce of over 115.000 employees. It included permanent, contractual and daily wage employees. Like many other businesses, Pepsi Co was also hit by severe recession and high rate of inflation in the second half of 2008. This led to a fall in the supply of snacks and drink for Pepso, triggered both by a fall in demand and the recession-hit conditions of the company..The downward trend in the economy limited their market to less than 75 per cent of what they were selling before this period.
This naturally meant that the human capital had to be reduced. Pepsi Co aimed at a policy of right sizing and decided to cut back on the excess manpower. There was a need for reduction in the workforce. Pepsi reduced its workforce by about 30 percent. Now it has about 97,000 employees (Pepsi Co sustainability, 2011).
Apart from lower level workers, the terminated workforce included some of the middle management employees too. This enabled the company to save more money than it had done if only low salaried workers were fired
Training and Development at Pepsi Co. Snacks Division
Pepsi Co. Snacks Division provides On Job Training (OJT) to its employees. Certain employees are earmarked by their functional heads for receiving OJT and growing within the organization. The company has a policy of prioritizing internal recruitment over external recruitment.. The role of the HR department at Pepsi is limited to just arranging these sort of trips for employees earmarked for developmental growth; the actual training acquired by these employees is the responsibility of the Pepsi unit and HR department in the foreign country. (Hellriegel & Slocum, 2007)
The HR department at Pepsi also arranges seminars for its employees from time to time. The employees learn about a variety of things at these seminars such as new practices being adopted by Pepsi worldwide, global market trends and innovations in training procedures etc. These seminars are usually headed by international Pepsi delegates and are an invaluable tool for both the management and employees to stay abreast of Pepsi's current global corporate culture.
Through the performance management system the HRD aims to help managers improve performance and develop the talents of their people. (Dessler, 2010)
This helps in not only measuring the employees' performance and comparing it with set standards but also encourages employees and the whole management to take corrective measures. (Dessler, 2010)
This process starts with developing or clarifying a list of accountabilities or key result areas for each individual in the manager's team (Dessler, 2010)
Accountability should then be prioritized according to the strategic business objectives and the individual's improvement plan. (Dessler, 2010)
Objectives are then set within the individual's accountability. (Dessler, 2010)
Objectives are statements of intended results; they define the performance expectations of the individual. (Dessler, 2010)
The above chart explains the career path in the PepsiCo snacks division. Each level and band has specific education and experience criteria. The diagram shows the career path of an employee related to the sales department. Researchers specifically chose the sales department because Pepsi Co. is a selling organization i.e. sales department is the most important department and all the other departments facilitate the sales function in a supporting role.
Employees are promoted on the basis of their performance. The immediate supervisor, in the annual appraisal, reports to HR about the performance of his/her subordinates. Then HR assigns a grade to that employee on the basis of his education and experience. Then the functional head decides which person to promote. The authority, responsibilities, salary structure and benefits increase as the person moves up the ladder.
Whenever there is any empty position in the company, first of all, an e-mail is circulated on the intranet informing employees about the empty position. Qualified employees contact the HR and then the HR selects the appropriate individual for the empty post. In a scenario where no one internally meets the job specifications or the HR department thinks a more qualified applicant can be recruited then external resources are used for external recruiting. (Hellriegel & Slocum, 2007)
From the employer's point of view, pay is a powerful tool for furthering the organization's strategic goals. Firstly, pay has a large impact on employee attitudes and behaviors. It influences the kind of employees who are attracted to (and remain with) the organization and it can be a powerful tool for aligning current employee's interests with those of the broader organization. Second, employee compensation is typically a significant organizational cost and thus requires close scrutiny. (Hellriegel & Slocum, 2007)
From the employee's point of view, policies having to do with wages, salaries, and other earnings affect their overall income and thus their standard of living. Both the level of pay and its seeming fairness compared wit others' pay are important. Pay is also often considered a sign of status and success. Employees attach great importance to pay decisions when they evaluate their relationship with the organization. Therefore, pay decisions must be carefully managed and communicated. (Hellriegel & Slocum, 2007)
Benefits are provided to all permanent employees at Pepsi Co. Snacks Division. These include:
Motorcycles for Territorial Sales Officers (TSOs)
Cars for all employees who are above TSOs
Interest free home loans
Paid international trips (with employees' families)
One basic annual pay bonus
A quota of forty-eight cans of Pepsi per month
A quota of Quaker Oats cereal per month
A quota of snacks per month
Managers today face competition from within their own organization and from other organizations, this trend is likely to continue in the future as well, as companies try to be as successful as possible. Managers are tasked to maintain an environ to achieve these successes - this is done by focusing on the minor point like on importance of learning, good teamwork and reengineering - these principle make good organization into great organization.A good treatment of employee is necessary. Those are fundamental HR issues. To state it plainly: achieving organizational excellence must be the work of HR. The question for senior managers, then, is not 'should we do away with HR?' but 'what should we do with HR? (Betsy, 2007)'
Although the HR department of Pepsi is doing fine with the related responsibilities, the hiring function of the company needs to be tuned up. At Pepsi Co. Snacks Division, the functional heads receive their next year's targets from Pepsi Co. International (Dubai Office) during the last quarter each year. The functional heads then proceed to plan extensively for the following year, laying out detailed plans for each month in order to achieve the required targets. These plans include the resources that would be needed by each functional head in order for him/her to successfully meet his designated targets. After this, a meeting is held between the Directors (including the HR director), the General Manager & the CEO and the plans are finalized. In the end, HR contributes for hiring as much as it can. (Pepsico International, 2011)
One more thing that needs to be mentioned is that in the AOP (Annual Operating Plan) of the functional heads to have a certain number of employees in their departments at a certain time. Considering the constraints of time and also keeping in mind that any functional head, be it Sales Director or Chief Financial Officer, is very busy, most of the hiring takes place on the basis of references. (Pepsico International, 2011)
The problem with this sort of hiring is functional head just seeks a person who has the related functional skill. For example, if a person is being hired for sales, the criterion set by the functional head is just the relative experience in sales. Due to this, the company has a lot of employees who basically do not fulfill the basic specifications of being an employee of a multinational (level of education, necessary communication skills, ability to be the part of Pepsi culture etc) (Betsy, 2007)
Now the question arises why the HR department is not involved vigorously in the hiring function. The reason for this is that when the Snacks division was founded in 2005, there were only fifteen people in the company. At that time, the functional heads were the best people to hire new employees as the company was in its infancy stage. The functional heads knew exactly what kind of people they needed and were fully involved in the process of recruiting and hiring. Because the company was just starting out and was very small at that time, the functional heads could effectively perform these human resource management duties. This trend has persisted to the present day. However, the company has rapidly grown from a setup of just fifteen employees to more than a hundred and thirty employees in less than two years. It is in the growing stage, and this growth is increasing at a very fast rate. It is not possible for the same old system of hiring to persist in this situation as the functional heads cannot efficiently perform the hiring duties in this relatively larger company. So instead of the HR department being fully involved with the hiring process, it is the functional head who continues to be the most prominent figure in this regard. (Pepsico International, 2011)
The problems that arise due to this sort of hiring are:
Hiring employees outside the formal HR designed structure leads to hiring individuals who do not comply with the organizational culture. The HR does therefore not outline these employees as potential future top managers.
Employees even tough achieve their targets but due to lack of education or some other requirement miss out on being promoted. This sends negative signals throughout the organization when high performers are not promoted to higher positions despite their achievements.
The HR now faces a dilemma, what should be done with these kinds of employees
If they are retained in the company, they would not be able to excel in the company because of basic requirements.
If they are fired, the bad word of mouth would hurt the company's reputation in the market, therefore it would be difficult for the company to attract quality people in future.
Keeping in mind the importance of the issue, researchers are proposing two solutions; one is short term and the other is long term
Short Term Solution
The immediate answer to the above mentioned problem is that HR should conduct a meeting with the employees who have some kinds of hindrances in their way of promotion in the future. Some might have the limited education while others might be faced with communication issues. (Dessler, 2010)
HR should inform these employees that if they want to excel further, they must have the basic skills needed to be part of higher management in future. The company can also help them in getting the required skills. For example, they may finance the education of the employees or conduct some workshops in order to remove their deficiencies. (Dessler, 2010)
Long Term Solution
Although the short term solution might solve the problem for the time being, the long term answer to this problem should be there so as to ensure that those sort of employees do not get hired in the future who do not fulfill the basic criteria.
Now the core problem is that although concerned functional head should be involved in the hiring process but it should not be his responsibility to hire the person. Like everywhere else, it should be the responsibility of the HR department to screen and select the best prospective employee. (Dessler, 2010)
As established, the one of the purpose of HR is to reduce costs but improving the overall image of an organization is even more important. As that would directly influence the sales.
Researchers, have put emphasis on generating a new model for HR performance and also to design a map for the implementation of such a model- provides a path to meeting the demand for value creation.
The model enables transactional and nonstrategic activities, which are widely recognized as the predominant focus of most HR professionals today, to move to a shared services organization that provides personalized care for employees leveraging key
technology tools (Betsy, 2007).
Business-based HR leaders are thereby empowered to grow business partnering, change management, workforce development and organizational effectiveness capabilities
and truly support organizational excellence.
If the company wants to ensure that HR performs this hiring function effectively, then it has to expand its HR department. HR department should have an additional person who would be only concerned with this function.
The person who would be responsible for hiring would have the detailed plan of the number of employees needed regarding each function. He would gather the related CV's from the market, would be in continuous contact with third party contractors and also would remain in touch with functional heads to attract competent persons if they could identify.
Proposed Human Resource Structure
Responsibilities of HR Coordinators
HR Coordinator Recruitment
Training and Development
HR Coordinator Compensation
Recruitment and Selection
Coordination with Third Party Recruitment Firms
Training and Development
Promotion and Career Handling
Menial Staff Handling
Review of Mission and Objectives
According to the company's official website, PepsiCo Incorporated's mission is to make this company: "the world's premier consumer products company, focused on
convenient foods and beverages. PepsiCo strives to produce healthy financial rewards to investors as it provides opportunities for growth and enrichment to its employees'' (Pepsi Co International, 2011). From this statement it can be deduced that the goals of PepsiCo are to increase the market value of its shares. To achieve this, sales must be increase, new and high sales target need to be set, cost must be controlled, quality assurance techiniques must be implemented, and more investment would be needed to be made in the resources. Pepsi wants their product to be healthy and environmentally friendly.( PepsiCo International, 2011)
PepsiCo wants to achieve constant growth through investing more and more in the resources and investing into other agencies.
Their plan for growth by has benefited by availing any given opportunities to collaborate with other organizations and reduce their own risks. (Betsy, 2007).
At Pepsi there is always a need to contribute to the society it serves. PepsiCo believes that as a corporate citizen, it is responsible to contribute better the lives of the community it shares with other citizens. They have implemented this policy by supporting NGOs, and other projects. The company also supports employee volunteer activities through contributions of time, talent, and funds. Each PepsiCo division is responsible for its own giving program with corporate giving focused on supporting employee volunteer activities.
Now taking a look at the SWOT analysis of the Pepsi Co
Strengths of Pepsi:
Ø Pepsi has a strong recruitment system.
Ø Pepsi has a database which contains the particulars of all the employees within the organization.
Weaknesses of Pepsi:
Ø Pepsi has no proper Human Resource Planning
Ø Pepsi has no proper selection system.
Ø Pepsi has no proper way for orientation system for new employees.
Ø .Pepsi has no proper performance management system.
Ø Pepsi has not provided good career opportunities for their employees.
Opportunities for Pepsi:
Ø Pepsi is going to establish online performance management system for their employees.
Ø Pepsi is going to establish proper recruitment system for new employees.
Threats for Pepsi:
Ø Pepsi has a very high employee's turnover rate.
Ø Pepsi has no proper career development system that result employees job dissatisfaction.
Ø Pepsi has a small selection ratio for non -managerial employees.
The strategic objectives seem to address most of the strategic problems facing PepsiCo
Inc. For example, the risk that demand for PepsiCo's products may be adversely affected
by changes in consumer preferences is addressed by the strategic objective of caring for customers and their changing needs and wants. The issue of damage to PepsiCo's
reputation that could have an adverse effect on its business is addressed by the company's
objective of respecting employees, vendors, customers, and by its commitment to
diversity, and by its commitment to candor and openness.