Relationship between organisations human resources activities

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If you were to ask different agencies, managers, or employees, you would probably get a wide range of answers. So, it's important to establish from the beginning what we are really talking about. Human resources management alignment means to integrate decisions about people with decisions about the results an organization is trying to obtain. This research indicates that agencies that successfully align human resources management with agency mission accomplishment do so by integrating HRM into the agency planning process, emphasizing HR activities that support mission goals, and building strong HR/management relationships. (Buckland, Birkinshaw & Hatcher, 2003)

In addition to being a vital contributor to agency mission accomplishment, HRM activities are the ultimate level of HRM accountability, as demonstrated in the Hierarchy of Accountability. While HRM accountability must begin with basic legal compliance, it ultimately encompasses all four levels of the pyramid, including demonstrating how HRM supports achievement of the agency strategic goals.

Why a need for this relationship?

Why the sudden emphasis on aligning HRM activities with agency mission accomplishment?

Basically, it comes down to demonstrating the value of human resources management to the agency. In the past, one of HR's primary roles has been to ensure compliance with laws, rules, and regulations. Although this is still, and will always be, a necessary function, many recent developments have led to a strong emphasis on results.

The National Performance Review (NPR) took on the task of reinventing government to make it work better, cost less, and get results. NPR mandated many initiatives that changed the focus of HR from just compliance toward results, including downsizing the HR function, delegating HR authorities to line managers, calling for HR to demonstrate its business value, and enhancing customer service. Through these initiatives, management of human resources would become more responsive to mission-related needs because it would take place at the line level, and the HR staff would be able to expend more of its energy on broader organizational issues

(Buckland, Birkinshaw & Hatcher, 2003).

The private sector has recognized that it is not just financial and technological capital that provide companies with the competitive edge, but people, or human capital. Without attracting and retaining the right people, in the right jobs, with the right skills and training, an organization cannot succeed. Therefore, people have been recognized as companies' most important asset. As

the Federal Government moves toward a performance-based management approach, we, too, need to realize the importance of our human resources. A huge percentage of agencies' budgets is spent on human resources -- salaries, benefits, training, work life programs, etc. Nowhere else do you make that substantial an investment and not measure the return. Not only do human resources provide the competitive edge, but several recent studies have confirmed that the quality and innovation of HR practices impact business results. These studies were able to draw a correlation between increased quality of HR practices and increased business success. Among other benefits, HR alignment with mission accomplishment increases HR's ability to anticipate its customers' needs, increases the agency's ability to implement strategic business goals, and provides decision-makers with critical resource allocation information. Finally, HR alignment is a vital process to advance agency accountability. By defining, maintaining, and assessing HRM goals and measures, communicating them throughout the agency, and using the information to make management decisions, agencies are able to ensure that the management of human resources contributes to mission accomplishment and that managers are held accountable for their HRM decisions in support of mission accomplishment

(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 currently stand in terms of aligning their human resources management with agency mission accomplishment. Therefore, the Office of Personnel Management (OPM) embarked on a special study designed to explore the following objectives:

Assess how well human resources management is linked to agency mission accomplishment; Explore the role played by the HR staff in agency strategic planning; Determine how the HR service providers work with line managers to carry out agency strategic goals; and identify best practices aligning HRM with the agency 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. This past financial year, Pepsi

Co continued it three-year positive growth strategy by maintaining an aggressive

presence in the United States and worldwide, boasting healthy profits and market share Pepsi co. is organized into four divisions:

Frito-Lay North America

PepsiCo Beverages North America

PepsiCo International, and

Quaker Foods North America

Its North American divisions operate in United States and Canada and its international divisions operate in over 200 countries.

Frito-Lay North America

Frito-Lay North America manufactures or uses contract manufacturers, markets, sells and distributes branded snacks. These snacks include Lay's potato chips, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips, Fritos corn chips, branded dips, Ruffles potato chips, Quaker Chewy Granola bars, Rold Gold pretzels, Sun Chips multigrain snacks, Munchies snack mix, Grandma's cookies, Lay's Stax potato crisps, Quaker Fruit and Oatmeal bars, Cracker Jack candy coated pop corn and Go snacks. FLNA branded products are sold to independent distributors and retailers. (Pepsi Co sustainability, 2011)

PepsiCo Beverages North America

PepsiCo Beverages North America manufactures or uses contract manufacturers, markets 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

PepsiCo International manufactures through consolidated businesses as well as through non-controlled affiliates. Pepsi International manufactures or uses contract manufacturers, markets and sells 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.


"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

Job Description

Territory Sales Officer

Job Title:

Territory Sales Officer

Reports To (Supervisor's Title):

Field Manager

Supervise (Subordinate's Title):

Distributor's Sales Representative (DSR)


Position Summary:

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.

Major Responsibilities:

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.

Minor Responsibilities:

Demand Analysis

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.

Grievance Handling

The TSO handles any kind of grievances the retailers might have regarding organizational policies and operations.

Motivating DSR

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.

Job Requirements:

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 has 157000 employees 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 we 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 attempts to ascertain the supply and demand for various types of human resources. The primary goal is to predict area within the organization where there will be future labor shortages or surpluses. (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) Succession Planning. (managerial employees )

2) 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 significantly to the strategic management by providing the means to accomplish the outcomes desired from the planning process (Perrault, 2006).

1) Determining Organizational Objectives

Ø Organizational Objectives

Statement of expected results that are designed to give the organization and its members direction and purpose.

Ø Cascade approach

Objectives setting process designed to involve all levels of management in the organizational planning process. It is not a form of top to down planning but the idea here is to involve all levels of management.

2) 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

Ø Judgmental Method

ü Managerial estimation

ü Delphi technique

ü Scenario analysis

Ø Mathematical method

ü Statistical method

ü Modeling method

Ø 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)

The proper division of responsibility across the spectrum of Transactional to HR Expertise to Business Partner is critical. The range of activities from Transactional, to HR Expertise to Business Partners is vast. In our experiences to date, the majority of field-based HR staff have focused on the Transactional activities, leaving little to no time available for partnering with the business or bringing depth of expertise around strategic human capital issues like employee development. Shifting Transactional and Expertise activities that can take advantage of economies of scale to technology and shared service organizations enables the field-based HR staff to truly focus on those activities at the Business Partner end of the spectrum (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 a planned effort by a company to facilitate employees' learning of job-related competencies. These competencies include knowledge, skills, or behaviors that are critical for successful job performance. The goal of training is for employees to master the knowledge, skill, and behaviors emphasized in training programs and to apply them to their day-to-day activities. (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

Work force

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.

Performance Appraisal


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)

Career Progression

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. We 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

Medical Insurance

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

Problem Identification

The competitive forces that managers face today and will continue to confront in the future demand organizational excellence. The efforts to achieve such excellence - through a focus on learning, quality, teamwork and reengineering - are driven by the way organizations get things done and how they treat their people. 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.

Proposed Solution

Keeping in mind the importance of the issue, we 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)

Though reducing cost is clearly one motivator to transform HR, far more compelling is the interest in generating value for the organization. The demand for HR to create value is also not new; however few companies have reached their full potential in this regard.

Our emphasis of a new model for HR delivery and more importantly, the roadmap to implementing such a model- provides a path to meeting the demand for value


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

HR Coordinator

Training and Development

HR Coordinator Compensation

Recruitment and Selection

Industry Relations

Institutional Relations

Coordination with Third Party Recruitment Firms


Training and Development


Performance Appraisal

Promotion and Career Handling


Grievance 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," So the overall mission of PepsiCo is to increase the value of shareholder's investments. This is achieved through sales growth, cost controls and wise investment of resources. PepsiCo believes that their commercial success depends upon offering quality and value to their consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to their investors while adhering to the highest standards of integrity.( PepsiCo International, 2011)


Concentration of resources on growth of businesses through internal growth and carefully selected acquisitions PepsiCo has adopted a plan for growth by continually

addressing the opportunities and risks associated with the global marketplace. The

corporation's success reflects their continuing commitment to growth and a focus on

those businesses where they can drive their own growth and create opportunities (Betsy, 2007).

Contribute to the quality of life in communities. PepsiCo believes that as a

corporate citizen, it is responsible to contribute to the quality of life in the communities it

serves. This policy is implemented through support of social agencies, projects, and

programs. 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


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.