63013115 pepsi hr functions

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The outdoor Projects in BBA (Hons) program are very beneficial to have practical exposure of

how things really go in organizations. Being a student who wants to observe how Human

resource actually functions in an organization, the best practical understanding for him is to

have a functional analysis of human resource management. Our group was assigned the project

to determine HR functionalities of any organization.

Human resource management refers to the process of assisting various types of businesses

to assess the current status of internal procedures and strategies, and enhance the overall

operation of the company.

For this analysis our group chose PepsiCo which stand as a unique service provider name in

beverages and food industry. Our group felt proud to analyze human resource functions of

PepsiCo and this experience will surely help us in our future assignments as a management

student. While doing HR analysis we gone through different functions.

Initially we have gone through the introduction in which we try to shortly describe the working

of HR department of PepsiCo. In next step we have explained HR objectives, planning, and

human resource information system (HRIS).

Further we have done analysis regarding five major HR functions going on in PepsiCo which

are:

1) Recruitment and Selection

2) Training and Development

3) Performance management

4) Compensation management

5) Employee Relations

Through this project we are able to have coordination with the staff members and able to

observe the work lively in the organizations and all the knowledge and valuable experience got

by meeting to the higher officials will surely help us in future.

EXECUTIVE SUMMARY

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Table of content

INTRODUCTION

Company’s History---------------------------------------------------------------1

Vision & Mission Statement---------------------------------------------------2

Products-----------------------------------------------------------------------------2

HUMAN RESOURSE MANAGEMENT

HR Introduction ------------------------------------------------------------------3

HR Objectives----------------------------------------------------------------------3

Human Resource Planning Process------------------------------------------4

Human Resource Information System--------------------------------------4

Job Analysis------------------------------------------------------------------------5

HUMAN RESOURCE FUNCTIONS

Recruitment and Selection-----------------------------------------------------7

Training and Development----------------------------------------------------11

Performance Management----------------------------------------------------12

Compensation and Benefits---------------------------------------------------13

Employee Relations--------------------------------------------------------------14

CONCLUSION-----------------------------------------------------------------------16

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Company’s History

Pepsi Cola International is world renowned soft drinks brand. It is a very well organized

multinational company, which operates in almost all over the world. They produce, one of best

carbonated drinks in the world. Pepsi is a symbol of hygiene, quality and service, all over the

world. Pepsi is producing Cola for more than 100 years, and it has dominated the world market

for a long time. Its head office is in New York.

Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold

in stores, restaurants and from vending machines. The drink was first made in the 1890s by

pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June

16, 1903.

There have been many Pepsi variants produced over the years since 1903, including Diet

Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi

Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next (available in

Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, Pepsi Ice Cucumber

and Pepsi White in Japan.

PEPSI IN PAKISTAN

The market in Pakistan is surely dominated by Pepsi. It has proved itself to be the No.1 soft

drink in Pakistan. Now a day’s Pepsi is recognized as Pakistanis National drink. In 1971, first

plant of Pepsi was constructed in Multan, and from there after Pepsi is going higher and higher.

PEPSI OPERATIONS IN PAKISTAN

Pepsi with its aggressive marketing planning and quick diversification in creating and promoting

new ideas and product packaging, is successfully maintaining is No.1 position in Pakistan. In

coming future Pepsi is also planning to enter into the field of fruit drinks. For this it has test

marketed its mango juice in Karachi for the first time.

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MISSION STATEMENT

To be the world's premier consumer Products Company focused on convenience 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 for honesty, fairness and

integrity.

VISION STATEMENT

To be a leading house of FMCG products with local dominance, global prominence, the

strongest financial fundamentals and maximum efficiency

Products

Beverages

Snack Foods

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HR Introduction

HR department follows the policies by the HR department of PEPSICO. At PEPSICO, their

belief is that "their people are their greatest asset. They take great pride in acknowledging the

contribution each one of them makes". They focus on People Development and for that they

ensure:

Staff PEPSICO with world class Professionals and ensure that the right systems are in

place to encourage them to develop to their full potential.

Create a collaborative and mutually supportive work environment that encourages

people to grow.

Build a team of professionals who deliver expertise by participating in business

decisions.

Develop Performance Management and reward systems underlying our Business

strategy.

HR Objectives:

Ensure thorough training of nationwide employees.

To provide employees with solutions to their problems.

To look out for the well being of all employees of the company.

Provide leadership and direction to employees of the company.

Maintaining data records

of all employees of PEPSICO (HRIS).

Career Development planning for all employees of the company.

To evaluate and retain those employees who are assets to the company.

To provide individual employees with orientation on the company at the time of joining

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Human Resource Planning Process in Pepsi

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. After the season the temporary

employees are layoffs. Normally the temporary employees are hired in production department.

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)

HUMAN RESOURCE INFORMATION SYSTEM

Development of interactive web-site aligned with all HR sub-functions to facilitate

communication between employee and organization through dialogue boxes and speedy

availability of information.

Enhancing overall perception of HR, as with the help of HRIS the function of HR is

changing direction and heading towards Relationship Building, in this all the links are being

recreated and employees are given much more weight as compared to past.

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JOB ANALYSIS

A job analysis is the process used to collect information about the duties, responsibilities,

necessary skills, outcomes, and work environment of a particular job.

TECHNIQUES OF JOB ANALYSIS

Different techniques are used in PepsiCo to determine job elements, competencies, and the

essential knowledge, skills, and abilities to call for or to be searched in a candidate.

Employee log

Observation

Individual interview

Group interview

JOB SPECIFICATION

The job specification includes education, experience, characteristics, skills, knowledge,

and an overview of the job requirements.

In PepsiCo general requirements to perform job is characterized in terms of:

Education

Experience

Communication

E.g. in PepsiCo the minimum job requirement for a HR Manager is Master degree in HRM with

relevant work experience.

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JOB DESCRIPTION

Company Name: PEPSICO

Job Title: Assistant HR Manager Job Code: 310-4

Salary: Rs.35000

Reporting Relationships:

Assistant HR manager reports to HR Manager, and then he reports to the HR Secretary. Then all

other HR people get information from the HR secretary.

Job Summary

Manage the HR activities of the department. Plans and develops the systems and

procedures for recruiting.

Supervises staff in accordance with company’s policies and procedures. Responsible for

coaching and training.

Job Duties

HR manager’s major duties include assisting the HR activities, for instance if any recruiting

procedure needs to be implemented then the HR manager is responsible for it. HR manager in

PEPSICO has to make some plans for assigning duties to the employees.

Working Conditions

Working conditions are normal for an office environment. Work may require occasional

weekend and/or evening work.

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RECRUITMENT

PEPSICO employs through both formal and informal ways of recruitment. Departments tell their

need to HR department. And then recruitment is done on the requirement by the project. All

candidates send their CV’s by post; they are then short listed and called. So those candidates

then report at the PEPSICO from where they are sent to the Human Resource Department for

further interviews. But recently PEPSICO has devised a new way of recruitment i.e. online

Applications. They give Ads in leading newspaper and use some other mass media

communication channels and then receive applications and CV’s online. In this way huge paper

work is reduced and recruitment process is improved in terms of efficiency.

Sources of Recruitment

PEPSICO uses both Internal and External Recruitment. But the priority is given to the internal

if the employee has the capabilities, required by the management for working on that post. In

Internal recruitment they ask for employee referrals. Any employee can refer any competent and

potential person and if the referred person comes up to their expectations and hired, then the

one who referred is rewarded with a bonus.

1) Internal Methods

PEPSICO usually prefers “Job Posting” in which employees from within the organization are

preferred but if the organization feels that the employee is not competent enough then they go

for external methods. Such announcements are made through bulletin boards, memos and

other internal sources.

2) External Methods

PEPSICO usually prefers advertising through newspapers and their official website for their

recruitment purposes. They give an open invitation to everyone to apply, so people who are

interested come and if they are capable enough they are hired. They don’t prefer any specific

universities or colleges to get the applicants, what matters are the potential talent and caliber of

the person and his commitment to work. Last year a scheme is started in which a team of HR

professionals visit different colleges and universities to recruit fresh and passionate candidates.


Strategies for Recruitment

The recruitment process is likewise the same but minutely varies in the organization depending

upon the ranks. In recruitment PEPSICO keeps certain things in front e.g.

What the person was getting (in terms of salary) prior to PEPSICO’s Job.

Whether the person is polished enough to adjust in their environment.

Whether he or she has required technical skills or the required qualification for specific job.

In PEPSICO they surely see qualifications but they prefer a person with required skills,

aptitudes, experience and capabilities.

SELECTION

In PEPSICO, selection Criteria is based on numerous factors such as education, health,

background and previous experience.

Selection process

1) The Application

The employment application is candidate’s first chance to present his qualifications to the

Organization. As such, it is extremely critical for his/her continued participation in the

examination process. Before beginning, one has to review thoroughly what the Job

Announcement specifies as the requirements to qualify for the position.

Candidate must meet these criteria to be considered for the position; ensure that, otherwise

candidate will be wasting his effort in completing the application. Most entries on the form are

self-explanatory, but a few pointers on filling it out may help.


2) Written Exams:

Written exams are usually obtained from one of several test construction firms available to

them. These tests are designed to determine level of technical and/or analytical abilities

associated with the particular position for which candidate had applied. The test which is

conducted in PEPSICO selection purpose is test of cognitive abilities. This test is mostly

taken from fresh graduates. Whereas, some people are selected on the basis of experience.

3) Performance Exams:

Performance exams test ability to accomplish specific job-related tasks by providing the

opportunity to actually perform them. These tests are scheduled through the Human Resources

Department office, with notification in writing of the date, time, location and duration of the test.

Instructions will be given on the tasks to be completed and then asked to complete them.

Individuals with considerable relevant experience will conduct the evaluations. Safety, quality of

work, adaptability, performance under stress, etc. are evaluated.

4) Specialized Testing

Some positions will require specialized testing, such as technical skills, agility and

communication skills etc. These tests are scheduled just as like other tests.

5) The Panel Interview

The results of this component of the exam process will be used to determine if candidate should

be included on the List of Eligible Candidates forwarded to the hiring authority for consideration

for a departmental Selection Interview.

This portion of the examination is normally weighted 100% (or as indicated on the Job

Announcement). Typically, previous test results are used only to qualify you for participation in

the Panel Interview. The Panel is comprised of qualified individuals, which may or may not be

employees of the City. Normally, the panel will consist of three evaluators. These individuals will

evaluate responses to a variety of job-related questions over the scheduled time period.


6) The Selection Interview

Once the List of Eligible Candidates is established it is sent to the Department(s) that is hiring to

fill a current vacancy. The Department Head is responsible for setting up Selection Interviews.

He/she may interview anyone on the list, since all persons referred to the department are

qualified.

The Department Head will be looking for the candidate with the best qualifications for their

particular position. The candidate selected to fill the vacancy will undergo a medical

examination, drug screen, background investigation, and a probationary period before attaining

permanent employment status.

ORIENTATION IN PEPSI

Orientation is the process of introducing of new employees to the organization, their work units,

and jobs. In Pepsi there are two types of orientation:

1) Official orientation provided by the organization.

2) Unofficial orientation provided by the co-workers.

Official orientation is for the managerial employees and unofficial orientations are for the non

managerial employees.

Length and Time of Orientation

In Pepsi, the length and timing period of the orientation program is very short usually from 1 to 2

hours.

Orientation Kit

There is no concept of orientation kit in Pepsi. They are not providing their employees

orientation Kit.


TRAINING & DEVELOPMENT

PEPSICO has trained and developed many of its senior and fast track managers and

supervisors. For lower and technical staff the organization have a complete training calendar for

the year, if organization thinks and feel that an employee requires training to update his

knowledge about the field, he just have to report the HR department and he will be listed for the

next training program.

On-the-job Training:

On the job training includes different methods and techniques under which an employee learns

new ways of getting job done and learns new values of the organization.

In PepsiCo on job training is done through:

Job rotation

Attachment with some senior

These two methods are highly effective and productive not only for PEPSICO but also for the

employee in terms of his working conditions are changed and he learns new things to do and

meets new seniors and in this way this training process proves to be very fruitful for the

employee and the organization.

Off-the-job Training

These are formal training opportunities that PEPSICO offers to employees either

internally or externally. A trainer, facilitator and/or subject matter expert are brought into the

organization to provide the training session or an employee are be sent to one of these learning

opportunities during work time. These training opportunities are provided in the form of

seminars, classroom training courses and workshops. PepsiCo prefer LUMS to improve its

employee’s managerial skills.

Who Train the Employees?

In case of non managerial employees training the immediate manager train the employees. This

is for 3 days to 1 Month. For managerial employees Pepsi hire professional trainer. This

training is held Hotels. This training is for 3 days to 15 days.


Training Evaluation

Training Evaluation is very necessary because there are a lot of benefits of training Evaluation.

We come to know our strengths and weaknesses through training evaluation. But in Pepsi,

currently there is no existence of proper training evaluation system.

CAREER DEVELOPMENT

Career Development in Pepsi

Career development is necessary in every organization. Because it something that makes

employees satisfied and increase their performances level ultimately this increase organization

productivity. This is also helpful in achieving organization objectives.

Career Planning In Pepsi

Pepsi provide career development opportunity only for managerial employee. Organization

secures the managerial employee future and gives them best opportunity to improve their

knowledge by helping them in studying different courses related to their job. In Pepsi there is no

concept of career development for the non-managerial employees because of this there is a

very high employee turnover rate in Pepsi.

PERFORMANCE MANAGEMENT

Performance management system is the important components of human resource

management. Through this the organization identifies the strong and weak points of their

employees and tries to rectify them.

Performance management system in Pepsi

The jobs are evaluated on yearly basis under 360o method; the competent employees are

rewarded in shape of promotions, bonus, increments and annual holidays and promotion. The

results of an appraisal can be used to identify areas for further development of the employee.

The organization also uses different questionnaires, which consist of numerous questions about

the behavior of the employee, and then on the basis of these answers personality of the

employee is judged. When evaluation is made the unsatisfactory performers are given warning.

The employee after warning is put under observation, for some period of time and if the

employees’ performance is still unsatisfied then are demoted or fired.


Who Evaluate The Employees Performance?

Employee immediate manager evaluate their performance on regularly basis. On the basis of

the evaluation the manager discuss with employee his strong and weak points and guide him

how to overcome their weakness. The performance of the Managerial employee is measured by

the manager of the department.

COMPENSATION & BENEFITS

Compensation and Benefits motivates the employees and these must be offer by the

organization. In Pepsi there is no concept of compensation and benefits for the non-managerial

employees but Pepsi offer benefits and incentives to the managerial employees. These includes

Promotion

Promotion is direct shift only to the next level from the current grade, the employee’s

performance is evaluated and if his performance is above average he is given promotion.

Overtime payment

Overtime payment is pay for only those workers who are working more than their working hours.

Mostly overtime payment is given to low level staff.

Increments

The company decides at the end of the financial year, according to its financial condition,

whether increments should be given or not

House loans

They give the facility of house loan only to deserving individual. The loan approval depends

upon the post of the employee.

Medical facility

PEPSICO provide free medical facility to workers depending upon the position/rank of the

employee.

Free transport

PEPSICO provide free transport to local employee.


EMPLOYEE RELATIONS

Employee Relations involves the body of work concerned with maintaining employer-employee

relationships that contribute to satisfactory productivity, motivation, and morale. Essentially,

Employee Relations is concerned with preventing and resolving problems involving individuals

who arise out of or affect work situations.

In support of this, the PepsiCo employee relations offer a variety of services.

Consulting with individuals and departments to foster a positive and productive work

environment at PEPSI.

Providing coaching and training regarding the company performance management

system.

Advising and training departments on corrective actions and administering the PEPSI

CO.

Advising individuals and departments on matters and policies related to employee

relations and employee rights.

Advice is provided to supervisors on how to correct poor performance and employee

misconduct. In such instances, progressive discipline and regulatory and other requirements

must be considered in effecting disciplinary actions and in resolving employee grievances and

appeals. Information is provided to employees to promote a better understanding of

management's goals and policies.

Information is also provided to employees to assist them in correcting poor performance, on or

off duty misconduct, and/or to address personal issues that affect them in the

workplace. Employees are advised about applicable regulations, legislation, and bargaining

agreements. Employees are also advised about their grievance and appeal rights and

discrimination and whistleblower protections.

http://www.utdallas.edu/hrm/er/discipline/rights.php5


In PEPSI co, Employee Relations involves

The body of work concerned with maintaining employer-employee relationships that

contribute to satisfactory productivity, motivation, and morale.

Essentially, Employee Relations is concerned with preventing and resolving problems

involving individuals who arise out of or affect work situations.

Advice is provided to supervisors on how to correct poor performance and employee

misconduct.

In such instances, progressive discipline and regulatory and other requirements must be

considered in effecting disciplinary actions and in resolving employee grievances and

appeals.

Information is provided to employees to promote a better understanding of

management's goals and policies.

Information is also provided to employees to assist them in correcting poor performance,

on or off duty misconduct, and/or to address personal issues that affect them in the

workplace.

Employees are advised about applicable regulations, legislation and agreements.

Employees are also advised about their grievance and appeal rights and discrimination

and whistleblower protections.

Exit interviews are conducted to determine the reasons why a departing employee has

decided to leave an organization.


Responsibility:-

Be responsible for employee relation management including union relationships

Deal with such authority office such as labor inspector , Labor Relations Committee

Organize and implement employee relation activities to promote employees engagement

as well as be able to retain an efficient employee.

Manage disciplinary actions by providing guidance to all related parties in addition to

handling any issue may occur to achieve the best ER

Handle the HR internal communication to ensure company’ s policies and messages

reach all employees by using proper and effective channels

Support the Collective Bargaining Agreement (CBA) process, employee grievance

issues, union relationships and internal communications in order to attract and maintain

a best-in-class workforce, and meet our organization objectives

Provide and support effectiveness company activities for the employees.

CONCLUSION

PepsiCo is a name of standard and quality product. Management functions have a strong

impact in the PepsiCo. The management of the PepsiCo has very strict procedures to evaluate

performance and does not compromise on the quality and the values to be followed. This way

the company is prospering by accelerating its functions in a well mannered way.