PepsiCo. IndiaAssignment By:

Sabiya MehraRati Parwani Swati Gupta

Preeti Parwani

History…PepsiCo entered India in 1989 and has grown to become the country’s largest selling food and Beverage Company. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.

PepsiCo entered India in 1989 and has grown to become the country’s largest selling food and Beverage Company. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.

14 Principles of Fayol…Division of Work.

Authority.

Discipline.

Unity of Command

Unity of Direction.

Unity of command

Subordination of individual interest

Remuneration.

Centralization (or Decentralization).

Scalar chain (Line of Authority).

Order

Equity

Stability of Tenure of Personnel.

Initiative

Esprit de Corps

Division of work

Definition: There is an efficient result in the operational level when tasks are distributed to qualified and competent workers, or when people do specialize.

Pepsi: Various departments handle different kinds of tasks:

The main division is:

Managing

Marketing

Authority

Definition: With formal authority, managers have the right to command, and give orders to their subordinates. 

Pepsi: Different levels of authority are awarded to managers at various levels.

Discipline

Definition: Members in any organization have to respect the rules and agreements governing it. Respect and obedience to rules is embodied in the conduct of good life and discipline.

Pepsi: Every operation is monitored carefully leaving little or no room for mistakes in discipline, action and raw material.

Unity of command

Definition: Employees must receive instruction only from one person. Reporting to more than one manager results to conflicts in instruction and confusion of authority.

Pepsi: Each factory has only one manager, so it is easier for workers to differentiate authority.

The general manager then has bosses at higher levels.

Leaving no confusion of authority.

Unity of direction

Definition: Operations within any organization having the same objective must be directed by only one manager using one plan. In a department for example, there should not be two or more supervisors, each having different policy to follow.

Pepsi: People involved with production are not involved in the marketing of the product and like wise.

So that employees have one goal at one time.

Subordination of individual interest

Definition: The interest of the organization as a whole should take precedence over the interest of individual employees.

Pepsi: The organization and its goals always come first.

Before any personal goals such as employee rewards.

Remuneration

Definition: Compensation for work done should be fair to both employees and employers.

Pepsi: Apart from awarding employees with fair salaries, pepsi also rewards its employees with other boosters such as passes for IPL, concerts etc.

This is done so to keep the employee motivated to work.

Centralization

Definition: We have this approach by decreasing the role of subordinates in decision making. Managers should retain their final responsibility, while at the same time give their subordinates enough authority to do their jobs properly.

Pepsi: There is only one main boss that makes the decisions which are followed by middle managers.

This is done so to keep authority and discipline intact.

Scalar chain

Definition: The line of authority in any organization turns in the order of rank from top management to the lowest level of the enterprise.

Pepsi: The authority is very well distributed, transparent in their operations.

The lower employees are only informed about goals that are short term and not the long term goals.

Order

Definition: Either material or human resources should be in the right place at the right time. People should be in the jobs or positions they are suited to.

Pepsi: Order is the key ingredient to successfully run a food and beverage industry and pepsi handles it very well by maintaining both material and social order.

Equity

Definition: Managers should be both friendly and fair to their subordinates.

Pepsi: Equality is maintained in all aspects, such as treatment of workers, not being gender biased, etc.

Stability of tenure of personnel

Definition: A high employee turnover rate undermines the efficient functioning of an organization.

Pepsi: Pepsi provides contract based employment assuring its employees career progress and job surety.

Initiative

Definition: Subordinates should be given freedom to share their ideas and carry out their plans.

Pepsi: The employees are given the freedom to present their views on the company to make better progress.

This is also taken in consideration before taking decisions.

Esprit de corps

Definition: Promotion team spirit will give the organization a sense of unity. According to Fayol, even small factors should help to develop the spirit. He suggested the use of verbal communication instead of formal and written communication. 

Pepsi: Pepsi kindles its employees in a way that there is no room for jealousy and every one is awarded for the job done.

They do not create bias on rewards.

Conclusion

Keeping these principles in mind and following the Co. has become such a huge name and success. The world leader in beverage industry, also its extension in other food items has proved to be successful so far.

Thank You!