Industrial Report on Strategic Human Resources in PepsiCo Essay

The Strategic Human Resource Model ( SHRM )

Organizations are systematically faced with challenges from the legal, economic, technological, demographic and cultural facets today and human resources patterns have really strong influence and effects on each of these challenges.The Strategic HR Model ( Figure 1 ) provides an overview usher to organisation ‘s Human Resource ( HR ) squad to assist in the planning, developing and implementing of the HR schemes, guaranting the ultimate end is to play a portion in accomplishing the overall organisation ‘s ends.

SHRM focuses on the organisation public presentation and besides emphasizes the function of HR direction systems as solutions to concern jobs ( Becker and Huselid, 2006 ) . The whole theoretical account can be classified into three parts: appraisal, execution and followup.AppraisalThis country focuses chiefly on specifying and understanding the organisation as a whole. It is necessary to cognize what are the external environmental factors and internal strength, failings, ends, organisations schemes and waies so as to guarantee alliance of human resource schemes to help the organisation to success.

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ExecutionExecution focused on the planning, developing and implementing the HR schemes with analysis of the Assessment subdivision in head. The pick and execution of HR schemes should concentrate on the HR maps while binding in the proper systems and processes to guarantee smooth and successful execution of the HR schemes.Follow-upHR section will hold to look at the effectivity on the schemes implemented thru rating.

The pick and determination of rating procedure, processs and method adopted should non be based on popularity but suitableness to the demands of the organisation. HR section must hold in head what is the country of focal point and guarantee that the rating method adopted must be able to fulfill the demands. Evaluation procedure must be a uninterrupted attempt over a period of clip and reappraisal of the procedures and methods may alter depending on the demand.

Figure 1

Follow-upExecutionAppraisalBeginning from: Hermann F. Schwind, Hari Das, and Terry H. Wagar, 2007.

Canadian Human Resource Management: A Strategic Approach, 8th Edition

Pepsi Co International Pte Ltd

PepsiCo ‘s Work Life Quality was launched in 2008 in administration ‘s best involvement to enable gifted employees to be effectual in work and esteeming their personal lives.PepsiCo believes strongly in prosecuting greater flexibleness to be one of the preferable employers in pulling the best and brightest endowment hence making their best occupation possible to advance work/life balance and flexibleness in the concern.

Assessment Part

Environmental AnalysisThe Pest Analysis identifies the political, economic, societal and technological influences on an organisation.


PepsiCo merchandises are subjected to assorted Torahs such as Food, Drug and Cosmetic Act, Occupational Safety and Health Act depending on the state that the merchandise will be launched. The international concerns are subjected to Government stableness in the states where PepsiCo is seeking to acquire into and concerns are expected to be subjected to revenue enhancement policy in single state where they are runing including developing markets.Taking into history that PepsiCo is seeking to present itself in developing markets, they have to be careful with the possible jobs with the authoritiess of this states, and with the jobs could lift from PepsiCo act with the people of this states.


PepsiCo companies are subjected to the crop of natural stuffs that are used in their nutrient and drinks. Due to the trust of trucks to travel and administer many of their merchandises, PepsiCo is subjected to fuel monetary value fluctuation.Operating in International Markets involves exposure to volatile motions in foreign exchange rates. The economic impact of foreign exchange rates motions on them is complex because such alterations are frequently linked to variableness in existent growing, rising prices, involvement rates, governmental actions and other factors. – PepsiCo is besides capable to other economic factors like money supply, energy handiness and cost, concern rhythms, etc.


Pepsi is subjected to lifestyle alterations and hence, Pepsi ‘s advertisement runs is dependent in a concrete sort of people with particular life style and for that, PepsiCo is paying particular attending on lifestyle alterations. In the United States, Pepsi drinkers are really defined and there are people who drinks Coca-cola and it is of great importance that PepsiCo pays attending to consumer demands and non losing a possible market.


PepsiCo used new techniques of fabrication in their concern sectors ; bites, juices and soft drinks.



Making a balance between work and personal lives.

Flexibility in doing ain agreements


– Errant employees may mistreat the flexibleness given to them.- Employees may pretermit work ensuing in inefficiency.


– In making a healthy work life environment.

Employees would be better motivated to work harder and non experience labored.- Company is able to retain and engage valuable employees


– With errant employees mistreating the system, this would take down their productiveness. The company will than endure.


Making a balance between work and personal lives.

PepsiCo believes in making a balance between work and personal lives. As such by making a working environment where the employees have the flexibleness of working from place or office this would make

Flexibility in doing ain agreements

PepsiCo flexible working strategy allows employee to take the figure of hours they work.hypertext transfer protocol: //www.changeboard.

com/profile/pepsico/csr/hypertext transfer protocol: // — work/articleshow/2417503.cmshypertext transfer protocol: //



Organizational Mission and Goals Analysis


Our mission is to be the universe ‘s prime consumer merchandises company focused on convenient nutrients and drinks. We seek to bring forth fiscal wagess to investors as we provide chances for growing and enrichment to our employees, our concern spouses and the communities in which we operate. And in everything we do, we strive for honestness, equity and unity.


“ PepsiCo ‘s duty is to continually better all facets of the universe in which we operate – environment, societal, economic – making a better tomorrow than today. ”Our vision is put into action through plans and a focal point on environmental stewardship, activities to profit society, and a committedness to construct stockholder value by doing PepsiCo a genuinely sustainable company.Analysis of Organizational Strength and Culture


Analysis of Organizational SchemesIn footings of Flexi Work hours construction ( Lead Lag? Lag Lead? Match Current Market Practice? )


Implementation Part

Existing construction in PepsiCo

Adeline to supply sum-up for the below sing PepsiCoTaking the PESTLE factors into considerations?

Choice and Implementation of Human Resource Schemes


Recruitment and Choice

Recruitment and choice can be a challenge in a flexible work environment. Employee will acquire off from the traditional mentality that they got to be at their desk and being watched over the whole clip in the flexible work force. Hiring the right individual is of import as it will impact the company fiscal public presentation, productiveness and staff turnover if candidate fail to present.

Finding the right individual requires careful planning, forming, directing and commanding prior to the interviewing procedure.Company need to guarantee that the people hired are trusted ; hold good proven path records and good communicating accomplishments. Company need to hold an effectual pre-interview showing.

Interviewer can carry on a phone interview for short listing campaigner to see if campaigner has good verbal communicating. Interviewer would inquire for elucidation on the information in the sketch to guarantee that campaigner has the relevant makings and experience before run intoing the campaigner in individual.Company can utilize certain appraisal tools to assist find the campaigner suitableness before set uping for interview as it can accurately foretell how the employee will act months or old ages subsequently. Some of the techniques include ability/aptitude trial, personality questionnaire and function drama exercising. Company can besides add in more testicles ( e.g: Computer cognition, English trial etc ) to prove employee competence.During interview, company must inquire assorted type of questioning inquiries in order to and supply information in order to see if Candidate should sound confident and tone should be hearable at all times.

Campaigners in the flexible work force demand to honor their committednesss and non compromise concern criterions and work public presentation. Those on flexibleness plans are to stay contactable during nucleus hours with some signifiers of established modus operandi for a small check-and-balance within the flexibleness. Company can inquire campaigner to subject payslip and understand their accomplishment to their old employers.It is of import to carry on mention cheque to garner factual grounds from 3rd parties who have observed the campaigner at work.

A diverseness of background information will take to a more accurate appraisal of the campaigners. Asking the right inquiry and seeking facts is a good mention checking. Besides look intoing on the employee behaviour, the recruiter should besides look into on the employee ‘s competence to fulfill on what was told are accurate. Questions like “ does the company pattern flexi hours ” or “ is the employee allowed to work from place ” will be able to verify if employees have experience in a flexible work force.The initiation and orientation plan are every bit of import as it gives the new employee a “ jump start ” . Employee should merely be able to bask the flexi work agreement after 3 months of service

Performance Management

Performance direction is an indispensable tool for concern success. As a must for productiveness sweetening, public presentation direction is a uninterrupted and ongoing map in an organisation.

Besides, public presentation direction helps an organisation to place the right competences and retain the competitory cognition in order to hold sustainable hereafter. With the intent of develop an effectual public presentation direction in Pepsi Co, there are some recommendations in each stages of public presentation direction procedure in flexible work force. The first stage is be aftering. ( A guiding to Performance Management, 2008 ) Pepsi Co must hold strategic program in the flexible work force. HR must clearly advert the occupation description, entire clip to be work per hebdomad or per month, and the personal or the group ‘ s ends are related to the organisation ‘ s end.The 2nd stage is developing.

( A guiding to Performance Management, 2008 ) Pepsi Co should guarantee the employees developing public presentation criterion and run into the organisation ‘s outlook. Even in a flexible work force, as an ethic issue, Pepsi Co must inform to those new hired employees how their occupations to be performed and capableness to run into organisation ‘s outlooks will be evaluate as work public presentation subsequently. The undermentioned stage is supervising. ( A guiding to Performance Management, 2008 ) Pepsi Co should supervise the employees ‘ occupation public presentation and give them a basic feedback. Pepsi Co can utilize observation and noticeable actions, behaviour, and consequences to supply a feedback to the employees in order to better and keep their work public presentation criterion.The most of import stage is evaluation.

( A guiding to Performance Management, 2008 ) In order to reasonably measure employees ‘ occupation public presentation in a flexible work force, Pepsi Co must carry on proper appraisal. Pepsi Co can hold a clear and balance mark card for each flexible employees. ( Smith et.

al, 2002 ) The public presentation can be measure by internal, external, and fiscal measuring or instead named as 360 grade assessment. ( Johnston et. Al, 2002 ) To avoid exist prejudices assessment system, rating non merely done by supervisor, but besides providers, clients, and co-workers. The employees who successfully completed undertakings will be acquire a mark for their public presentation if they able to run into the due day of the month. Furthermore, public presentation assessment which base on result will assist the organisation measure their flexible employees with more accurate. Pepsi carbon monoxide can measure the public presentation depend on the effectivity and efficiency the employees handle and complete their undertakings.The concluding stage is developing be aftering. ( A guiding to Performance Management, 2008 ) Pepsi Co need to set up programs for improve work related accomplishments or cognition for the employees.

In add-on, Pepsi Co can promote employees turn their public presentation criterion and quality of work in order to run into organisation ‘s ends.Wage Structure, inducements and benefits – CherylReporting Structure – Elsie

Training and Career Development

Presently, employees in Pepsi Co do non hold a proper preparation and calling development system in topographic point. There are programs on calling development for employees, nevertheless, most of the clip its chiefly thru verbal communicating and there are no proper certification to assist employee cognize what they will necessitate to accomplish or miss of to shut the spread and travel up the line.It is strongly recommended that


Recruitment & A ; Selection

More than four in 10 occupation searchers falsify their sketch and campaigners are more likely to overstate their accomplishment set and wage as they seek to procure publicity to more senior functions.

Company can acquire candidate to attest that whatever information stated in their sketch and application signifier is true and company militias the right to take disciplinary action or to end the contract. ( Saifulbahri I, 2010 )Assessment centre can be comparatively expensive therefore showing is necessary to place if appliers have relevant making, preparation, experience and accomplishments to the occupation demand.The Company can set up an employee referral strategy where staff can mention friends and household members for suited places.

This will let employees to “ test ” the campaigner suitableness and supply campaigner with cognition on company civilization. This increases the opportunities of a positive “ occupation fit ” between recruit and organisation. ( Tommy N, 2010 )

Performance Management

The deduction for implement public presentation direction in flexible work force is at that place might bing free rider in the group undertakings who take advantage for the public presentation mark in the success completed undertakings. Not all person are contribute the same degree of attempt to the undertakings had been done. ( Performance Management ) Hence, Pepsi Co must carefully analyse each employee ‘s part.

In add-on, it may be inaccurate if merely concentrate on specific undertakings that have been done, whereby Pepsi Co should reexamine the public presentation full of period where the assessment screen.The director might be measuring an employee base on its ain feeling, length of service, irrelevant standards to rate the employees ‘ public presentation. ( Performance Management ) Furthermore, the director may hotfoot through the assessment procedure which might non be able to enter the accurate information that truly reflects the employee ‘s public presentation. ( Performance Management ) Lack of proper or accurate assessment system will misdirect Pepsi Co planning and it is dearly-won for the organisation. ( Madar, 2007 ) This will besides do faltering rock for the organisation to beef up its concern fight.

Follow-up Part

No affair how successful the current HR schemes might be, its relevancy and effectivity can ne’er be the same at the rate that alteration is taking topographic point. HR Strategies has to be reviewed and measure sporadically to be able to guarantee that the schemes are still relevancy with the invariably changing external factors that has impact on internal factors. Pepsi Co needs to work towards a reappraisal and rating system plans that allows proactive HRM schemes so as to be able to expect any possible issues originating. This will be of great importance to assist the organisation to accomplish its ends.

Review and Evaluation Methods

Advantages receivedProblem faced



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