Discuss about the Strategic Human Resource Management of PepsiCo.
Flexible working conditions are used by the management to ensure that there is a proper production process in the company. An organization is expected to focus on developing a work policy that will enhance the profit margin in the industry. The dynamic external environment requires the HRM to identify plans that will attract and retain some talented team members (Rees & Smith 2017). Teamwork is highly effective when the employee needs are considered in the staffing policy implemented by the company. According to Bratton and Gold (2017), strategic human resources management is used by the management in developing plans that accepted by all employees in the organization. The executions of decisions that are accepted by staffs assist in acquiring the intended competitiveness level in the market. Traditional human resources focused on the profitability of the company while the strategic human resources consider the working environment of the business in maximizing the productivity. The ability to develop a proper working condition assists a business to acquire a steady flow in the market due to the raised morale of employees (Flood et al. 2017). PepsiCo is a company that applies strategic human resources in achieving an increased customer share in the beverage industry. The development of leave strategy has greatly contributed to quality service delivery through the enhanced employee morale in production.
PepsiCo HRM prioritizes the employee needs to achieve a proper corporate culture that will boost the sales volume in the beverage industry. It is essential for the management to consider the needs of the staffs in developing a proper working environment. The shared attitude in the company should be positive in ensuring that people are willing to contribute to increased performance of the business (Terzioglu, Temel & Uslu Sahan 2016). Employee empowerment is needed in making the human resources appear as a major factor in delivering the production objectives of the business. The PepsiCo practices and programs are meant to provide a suitable working condition that will enhance the productivity in the market. HRM is expected to consider the flexible working environment in attaining the intended production level in the industry (Shi & Konrad 2017). The flexibility of working hours assists in coming up with innovative corporate culture. Staffs are required to make sure that there is a stable performance in the market through the development of workplace. Cooke, Saini, and Wang (2014), state that the focus on talent management is necessary for a business to accomplish the production objectives. Talent development and retention determine the ability of a business to achieve sustainable performance in the market.
The leave loudly strategy as developed by the CEO of PepsiCo who joined the company in 2015 (Daily Telegraph, 2017). The strategy was meant to enhance the relationship between leaders and team members which is needed in a smooth flow of production process. The communication between the management and team members assists in planning for functions based on the timetable of the leader. It is crucial for the leader to identify the need for severally communicating with the team members to reduce cases of being stranded with the assigned tasks in the business. The leaders leaving loudly assists the members to follow the culture where people inform other staff while leaving for personal duties. It is vital for the staff to declare the time they leave the company for personal duties to reduce the confusion while assigning the tasks. The communication between leaders and team members while leaving the company to assist in reducing the number of people who are present in the workplace while doing nothing that adds value to the company. An individual is supposed to feel free to leave once the duties assigned are complete and the leader has no further functions to be performed by the staff. According to Berkery et al. (2017), the flexibility of working conditions is necessary for developing a proper working environment which is beneficial for the company.
Work diversity and equality
Work diversity is needed in an organization for a strong foundation in the workplace. It is vital for the work policies implemented by the management to consider the various needs of staffs from the different cultural background. The valuation of social and cultural beliefs of staffs is used by the HRM in developing staffing policies that will positively impact business performance (Woodhams, Lupton & Cowling 2015). An organization that employs people from the different ethnic background is able to have a strong customer share in the industry. Customers tend to purchase from an organization with proper corporate governance that is evident by the stakeholders. The sustainability reports of a company are used to provide a detailed overview of the business production processes. The diversity and equity policy implemented by a business are used to consider the minority groups in the community. It is vital to develop a multi-cultural workplace that will be able to develop differentiated products and services to the targeted market. Roberson, Ryan, and Ragins (2017) explain that an organization is able to achieve the future goals through the focus on diversity and equality in staff selection. It is important to deal with the issues of discrimination in recruitment and selection process as it reduces the reputation of the business. PepsiCo has gained a positive reputation in Australia and New Zealand by empowering women where 40% of the senior management positions are occupied by women (Daily Telegraph, 2017). The flexible working conditions have contributed to the increased number of women willing to work for the company.
The work plans are applied in production in making sure that the business is capable of achieving the intended profit margin in the market. It is crucial for the top management to offer a proper plan that will guide staff on production techniques to use in accomplishing the future goals (Friedman & Scholnick 2014). The management is required to continuously evaluate the effectiveness of the work plans implemented in production. The flexible work environment contributes to increased planning and development of processes by employees (Bal & De Lange2015). The employees are expected to plan for timely completion of the assigned duties by the leaders. Leave loudly strategy by PepsiCo has raised the level of planning and development in the company as staffs work towards the achievement of the set future goals. The defining of production objectives assists in providing the team members with the expected outcome by the leaders. Innovation and creativity are needed in reaching the desired outcome in the market. The tasks performed by the staffs should primarily focus on a steady flow of business performance through raised sales volume. According to Martin and Ciurzynski (2015) team members are required to have an insight of the responsibilities of the company for a constant increase in production level. The development of operations is achieved through the training of staffs towards dealing with complex issues in the market. Company staffs are expected to have the knowledge to develop products that are accepted by the targeted consumers in the industry.
The workplace social responsibility is the ability of HRM to consider the different needs of the staff. It is necessary for a business to focus on a workplace environment that is comfortable with the progress of individuals. PepsiCo flexible staffing policy has focused on workplace social responsibility by offering 16-week parental leave (Daily Telegraph, 2017). The leave permissions are accepted to non-parent employees of the company which enhances the staff contribution to business growth. Rees and Smith (2017) state that strategic HRM requires the management to develop a workplace that considers the social and environmental welfare in the market. A proper evaluation of consumer needs assists in developing a staffing policy that considers social responsibility. PepsiCo diversity has assisted the management to develop plans that are widely accepted by the consumers. Leave loudly strategy is used by the company to ensure that there is respect in the production activities in the company. A successful company considers workplace social responsibility where the employees, community, and environment are considered in the production process (Gupta, Briscoe & Hambrick 2017). It is the responsibility of workers to cooperate in enhancing the performance in the industry. The cooperative behavior is needed by the HRM in accomplishing a proper working environment that will help to achieve the future goals. The engagement with employees is used by the management in ensuring that there is the practicing of workplace social responsibility.
The work policy executed by a business should be based on the work and life commitment of the individual. According to Moen et al. (2017), the work-life balance is needed by an organization to make the working environment suitable for people from various ethnic backgrounds. Staff needs are evaluated by the HRM towards a stable performance in the targeted market through the enhanced motivation. PepsiCo leaves loudly policy has contributed to an increased level of employee retention. The PepsiCo employees are required to take their children to school which is aimed at providing an overview that the company is focused on work-life balance. Employees are able to plan for the work and life commitments in acquiring a stable movement of operations in the market. The flexible working environment in PepsiCo has contributed to the success in Australia and New Zealand market (Daily Telegraph, 2017). Job satisfaction is acquired through the ability of the HRM to balance the work and life commitment of the staffs. The leave days provided to the consumers are supposed to be enough to serve the life commitment in the market. According to Daily Telegraph (2017), PepsiCo offers 16 weeks parental leaves which have enhanced the number of women willing to work for the company. The flexibility of working hours has ensured that people are able to meet their daily life needs. The leave loudly strategy is used in allowing people to leave the company to attend to personal commitments comfortably. The leave loudly policy has reduced the employee turnover to 7% from 12% making the policy effective to retain talented employees (Daily Telegraph, 2017). The work-life balance is used to enhance the ability of an individual to meet the company targets and personal career goals.
Every organization relies on the management team, for the purpose of steering change and effectiveness. Communication is a very important aspect in organization leadership effectiveness, and leads to increased success in the organization. For example, the PepsiCo CEO influences the team members to communicate while leaving the company which is necessary for a steady production process. The CEO communicates to the team members when going to pick his daughters from school (Daily Telegraph, 2017). It is necessary for the managers to focus on effective communication in the organization for the accomplishment of the intended production targets. The PepsiCo company CEO discourages the after work emails to provide a proper condition for staff to deal with personal commitments. The CEO communicates to the people around him when he is going out with the aim of developing a culture of leaving loudly in PepsiCo. Employees feel more appreciated when they are updated and constantly aware of the developments within the organization. With the communication strategy undertaken by the CEO at Pepsico, every personnel remains updated on organization operations, which is also a motivating factor and increases the morale at PEPSICo.
Employee motivation is mandatory where success and profitability are aimed at, especially in profit making organizations. There is a need for the management to therefore, encourage motivation practices and embrace strategies which will improve the work environment and align individual goals to those of the entity. The motivation of employees is needed in accomplishing the intended profit margin in the market. The profitability of a company is enhanced through the staff cooperation in the production process. Motivated employees are able to offer quality products and services to the consumers which enhance the productivity of the company. Customer satisfaction is achieved through the use of staffing policies that are focused on the needs of staffs (Gloor et al. 2017). An organization is expected to develop a plan that is aimed at dealing with the changes in the market for enhanced productivity. Leave loudly policy in PepsiCo has provided the company with the needed employee motivation that boosts productivity in Australia and New Zealand. Employees have accepted change in the most increbile manner, which in turn, leads toi increased growth rate in the entity. The bottom line which needs to be considered is company productivity and transparency, which is guaranteed with the Leave loudly policy.
Conclusion
PepsiCo is a beverage and food company that uses strategic human resources management in attaining the intended production level in the market. The CEO developed the leaders leave loudly which requires managers to inform the team members when leaving the company. The communication enhances the planning and development of production functions towards a smooth performance in the industry. PepsiCo has developed a strategy that is focused on equality and diversity in the workplace to acquire a beneficial reputation in the market. The work-life balance is used by HRM in retaining employees to work for the company due to the ability to deal with corporate and personal commitments.
References
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Berkery, E., Morley, M. J., Tiernan, S., Purtill, H., & Parry, E. (2017). On the uptake of flexible working arrangements and the association with human resource and organizational performance outcomes. European Management Review, 14(2), 165-183.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Cooke, F. L., Saini, D. S., & Wang, J. (2014). Talent management in China and India: A comparison of management perceptions and human resource practices. Journal of World Business, 49(2), 225-235.
Daily Telegraph. (2017). Why PepsiCo CEO asks his team to ‘leave loudly.’ Retrieved from https://amp.dailytelegraph.com.au/business/work/why-pepsico-ceo-asks-his-team-to-leave-loudly/news-story/5467b3ffff387c3a5dd79ac3a245c868
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Gupta, A., Briscoe, F., & Hambrick, D. C. (2017). Red, blue, and purple firms: Organizational political ideology and corporate social responsibility. Strategic Management Journal, 38(5), 1018-1040.
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