ASSIGNMENT

COVER SHEET

UNIVERSITY OF

SUNDERLAND

BA (HONS) BUSINESS MANAGEMENT

Student ID: 21601500/1

Student Name: Thar Nge

Module Code: HRM 325

Module Name / Title: Human Resources Management

Centre / College: British University College

Due Date: 11th April 2022 Hand in Date:

Assignment Title: Human Resources Mangement

Students Signature: Thar Nge

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Table of contents
Executive Summary.....................................................................................................................................2
Introduction..............................................................................................................................................3
Company Background..............................................................................................................................3
PEPSI IN PAKISTAN...................................................................................................................................3
PEPSI OPERATIONS IN PAKISTAN.............................................................................................................3
MISSION STATEMENT..............................................................................................................................4
VISION STATEMENT.................................................................................................................................4
HR Introduction...........................................................................................................................................4
Human Resource Planning Process in Pepsi................................................................................................4
Recruitment & Selection..........................................................................................................................6
Performance Management.....................................................................................................................7
Training and Career Development........................................................................................................8-9
Need to improve of HRM...........................................................................................................................10
Change management system/process of Pepsi.........................................................................................11
Proposed Changes in HR Program / Policy / Management....................................................................12
Three Major Reasons for Change at PepsiCo.........................................................................................12
Change Strategy Using Kotter’s 8-Stage Model.....................................................................................13
Communicating Change to Employees..................................................................................................13
Recommendations for Change Sustainability........................................................................................14
References.................................................................................................................................................15

Executive Summary
Pepsi is a well-known brand that is marketed throughout the world. Caleb Bradham initially
debuted it in 1898 as Brad's Drink in New Born, North Carolina. In 1903, Brad the Pepsi cola
bottling process from his pharmacy to a leased warehouse. In 1971, Pepsi was established as
Pakistan's national beverage, with the first facility being built in Multan. It has established itself
as the top soft drink in Pakistan. For the fiscal year that ended on June 30, 2013, PepsiCo and its
bottler produced revenues of Rs. 91 billion in Pakistan. Due to Coca-sponsorship Cola's of Coke
Studio, Pepsi, which once had a market share of nearly 75% in Pakistan, has lost market share.
Pepsi has a considerable market share of 65%. Due to a change in management, Pepsi now
associates with music and promotes music events. Pepsi also launched a new soft drink called

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Pepsi Perfect, which is vitamin-enriched, 505 less sweet than ordinary Pepsi, colorless, and has a
stronger flavor than regular Pepsi. Pepsi's ideal customer is often anyone between the ages of 15
and 50, particularly those who are health aware and wish to buy novelty items. Pepsi actively
advertises in universities, schools, TV channel sign boards, and restaurants. In terms of
packaging and distribution, this product is distributed through 8 bottlers in Pakistan, all of them
are Pepsi strong, and the packaging is different from previous ones in which staw is created in
the bottle. Peps has granted these bottlers a franchise, and they produce, distribute, and aid in
brand promotion.

Introduction

Company Background
The soft drink company Pepsi Cola International is well-known worldwide. It is a multinational
firm with operations almost everywhere in the world. They make one of the best carbonated
drinks in the entire globe. Pepsi is a symbol of cleanliness, quality, and customer service all over
the world. Pepsi has been producing Coca-Cola for more than a century, and for a long time, it
dominated the international market. Its main office is in New York.

PepsiCo is the company that creates and produces the carbonated beverage Pepsi-Cola. It is
offered for sale at shops, eateries, and vending machines. At New Bern, North Carolina,
pharmacist Caleb Bradham created the beverage for the first time in the 1890s. On June 16,
1903, a trademark for the name was filed.

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.

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 PEPSI IN PAKISTAN

Pepsi unquestionably dominates the market Pakistan. It has established itself as Pakistan's top
soft drink. Pepsi is now acknowledged as the national beverage of Pakistan. The first Pepsi
facility was built in Multan in 1971, and since then, the company has continued to grow.

PEPSI OPERATIONS IN PAKISTAN

Pepsi is effectively holding onto the top spot in Pakistan because to aggressive marketing
strategies, speedy diversification, and the creation and promotion of new concepts and product
packaging. Pepsi has plans to join the market for fruit drinks in the near future. For this reason, it
has begun testing marketing its mango juice in Karachi.

MISSION STATEMENT

To lead the globe in convenience foods and beverages as the preeminent consumer products
company. Because we offer chances for development and enrichment to our employees, our
business partners, and the communities in which we operate, we strive to offer investors sound
financial rewards. We also work hard to be accurate, fair, and ethical in all we do.

VISION STATEMENT

To be a major FMCG product company with local and global significance, the best financial
fundamentals, and the highest level of efficiency.

HR Introduction
The HR department adheres to the PEPSICO HR department's policies. PEPSICO is of the
opinion that "their people are their greatest asset. They take great pride in acknowledging the
contribution each one of them makes". They have a strong emphasis on people development and
make sure that:

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Employ top-tier professionals at PEPSICO, and make sure the proper frameworks are in place to
enable them to reach their maximum potential.

Establish a cooperative, friendly workplace culture that fosters personal development.

Create a team of professionals who can give expertise with taking part in corporate decisions.

Create methods for managing performance and compensation that support our company
objectives.

Objectives in HR

• Make sure all staff nationwide receive thorough training.

• To provide employees assistance in finding answers to their issues.

• To take care of each and every one of the company's employees.

• Provide the company's personnel leadership and guidance.

• Maintaining records of data

of all PEPSICO personnel (HRIS).

• Planning for career development for all corporate personnel.

• To assess employee value and keep those that are a benefit to the business..

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• To introduce new hires to the organization and offer them with an orientation

Process of Human Resource Planning at Pepsi

The overall future need for human resources in the company is estimated by managers at Pepsi.
In order to meet these demands, the human resources department next takes action. The hiring of
both permanent and contract staff. The temporary workers are let go after the season. Typically,
production departments are where temporary workers are employed.

Approaches and Tools for Human Resource Planning

There are several tools available to help with human resource planning. The most frequently
utilized tools at Pepsi include

Preparing for succession (Managerial employees)

HRIS (Non managerial workers)

Recruitment & Selection

More than 40% of job seekers fabricate their resumes, and those aiming to advance to more
senior positions are more likely to overstate their qualifications in terms of experience and
income. Although the company reserves the right to take disciplinary action or to terminate the
contract, it may ask the applicant to attest that the information on their résumé and application
form is accurate.2010) Saifulbahri I)

As assessment centers may be rather pricey, screening is required to determine whether

candidates have the requisite education, training, experience, and abilities for the position.

The company may set up a system where workers can suggest friends and relatives for suitable
positions. Candidates will be able to be "screened" by employees for suitability, and as a
consequence, will receive information about the corporate culture. This increases the likelihood
that the candidate and the business will be a good "job match."(2010) Tommy N)

The recruiting corporation must confirm that the new hires are reliable, have a proven track
record, and possess the necessary communication abilities. The company is required to do a

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careful pre-interview screening. The interviewer may conduct a phone interview to assess a
candidate's verbal communication skills. The interviewer would check the veracity of the
material on the CV before seeing the candidate in person to make sure they had the relevant
training and experience.

Before setting up an interview, a company may utilize some evaluation tools to assist establish a
candidate's appropriateness since they can precisely forecast how the employee would act
months or years from now. Tests of aptitude and personality are also available. And role-playing
exercises are some of the strategies. In order to assess employee capability, the company can
additionally incorporate additional tests (such as a test of English proficiency or computer
literacy).

The firm need to ask several questions throughout the interview to elicit information and
determine whether the candidate should appear confident and maintain an audible tone at all
times. Applicants for positions in the flexible workforce must uphold their obligations and not
jeopardize the performance of their jobs or corporate requirements. Those participating in
flexibility programs must be reachable during business hours and follow some sort of set pattern
to allow for some check-and-balance within the flexibility. Companies may require applicants to
produce pay stubs so that their past employers may review their accomplishments.

It is crucial to verify references required for compilation accurate data from the observers of the
applicant at a job. A variety of background information will lead to a more complete assessment
of the chances. A successful reference check involves asking the proper questions and gathering
information. The recruiter should verify the employee's skill in addition to the employee's
conduct to ensure that the information provided is true. It will be possible to determine if
employees have experience with a flexible workforce by asking questions like "does the firm
implement flexi hours" or "is the employee permitted to work from home."

The orientation and induction process are equally crucial since they provide a "jump start" for
new employees. The flexible work schedule should only be available to employees after three
months of employment.

Performance Management
Performance management is a key component of a successful business strategy. The continuous
and ongoing function of performance management in a company is essential for increasing
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productivity. Moreover, performance management helps a corporation find the right talents and
preserve competitive knowledge for a long-term future. In order to create an efficient
performance management system for Pepsi Co., there are specific recommendations at each stage
of the process for flexible workforce. The first phase is planning. According to A Guide to
Performance Management, Pepsi Co. needs a strategy plan because of its flexible workforce
(2008). HR must be explicit about the job description, the total number of hours expected to be
performed each week or month, and whether or not individual or group goals are connected to
the organization's purpose.

The second phase is beginning to emerge. A Performance Management Handbook for 2008
Employees should adhere to the organization's performance standards and expectations,
according to Pepsi Co. Pepsi Inc., while having a flexible workforce, must explain to newly hired
employees how their capacity to fulfill their jobs and meet organizational standards will be
evaluated as work performance in the future. The monitoring stage comes next. 2008's A Guide
to Performance Management Pepsi Co. should keep track of the workers' job performance and
provide them with some basic feedback. Pepsi Co. may utilize observation and discernible
activities, behavior, and outcomes to offer feedback to the staff how they can keep up with and
improve their performance at work..

The most important stage is the rating one. A Handbook to Performance Management from 2008
In order to evaluate employees' job performance in a flexible workforce objectively, Pepsi Co.
must do proper evaluation. Each flexible worker for Pepsi Co. is entitled to a scorecard that is
both transparent and balanced. (2002) Smith and co. A 360-degree evaluation of performance,
which combines financial, external, and internal measures, is possible. (2002) (Johnston et al)
Evaluations are conducted by suppliers, customers, and coworkers as well as supervisors in order
to prevent existing biases in the assessment system.

If they are able to make the deadline, employees who successfully finish tasks will receive a
performance rating. Also, outcome-based performance evaluations will assist the company in
more accurate evaluations of its flexible staff. Pepsi Co. can assess employee performance based
on how well and efficiently they handle and execute assignments..

If they are able to make the deadline, employees who successfully finish tasks will receive a
performance rating. Also, outcome-based performance evaluations will assist the company in

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more accurate evaluations of its flexible staff. Pepsi Co. can assess employee performance based
on how well and efficiently they handle and execute assignments.

Benefits, incentives, and pay structures - Cheryl

Elsie's reporting structure

Career Development and Training

At the moment, Pepsi Co. employees lack a suitable structure for training and career growth.
Professional development objectives are set for staff members, but they are typically
communicated informally and with little documentation, making it challenging for staff members
to comprehend what they must complete or fail to complete in order to close the gap and
advance.

It is highly advised that:

Implications

Recruitment & Selection

More than 40% of people looking for work fake their resumes, and those hoping to progress to
more senior jobs are more likely to exaggerate their experience and earnings. The candidate may
be asked to confirm that the information on their resume and application form is true, but the
business retains the right to take disciplinary action or to cancel the contract. (Saifulbahri I,
2010)

Screening is important to determine whether candidates have the requisite education, training,
experience, and abilities for the position because assessment centers can be quite expensive.

The company may set up a system where workers can suggest friends and relatives for suitable
positions. Candidates will be able to be "screened" by employees for suitability, and as a
consequence, will receive information about the corporate culture. This increases the likelihood
that the candidate and the business will be a good "job match." (Tommy N, 2010)

Performance Management

The success of completed projects may be exploited by free riders in group projects, which has
ramifications for the implementation of performance management in flexible workforces.
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Everyone does not put in the same level of effort to the jobs that are finished. The contribution
produced by each employee must thus be carefully taken into account by Pepsi Inc. while
managing performance. Pepsi Co. should also assess performance across the whole time period
that the review covered, rather than only concentrating on a few finished initiatives.

An employee's performance may be evaluated by management based on personal preferences,

length of service, or other unrelated considerations. for performance management Also, it's
conceivable that the results won't fully reflect the individual's performance if management
hurries the evaluation process. for performance management Lack of a proper or accurate
evaluation system may cause Pepsi Co. planning to be inaccurate, which is costly for the firm.
(Madar, 2007) Also, this will make it more challenging for the business to improve its capacity
for market competition.

Need to improve of HRM

Strong brand, channel, and innovation programs, according to PepsiCo CEO Ramon Laguarta,
are the "primary reason" The massive FMCG company was able to generate continuous growth
in spite of unprecedented inflation rates.

Laguarta stated in a teleconference with investors today that the company is experiencing poor
demand elasticity as it raises prices to counter rising costs (12 July).

According to a Pew Research Center analysis, inflation rates have doubled over the past two
years in 37 of 44 large countries. Meanwhile, the Office for National Statistics reports that
consumer price inflation in the UK rose to 9.1% in May, the highest level in forty years.

Nonetheless, PepsiCo was able to increase its organic sales growth to 13% over the second
quarter of this year from 12.8% over the same time in 2021. Despite pressures from inflation on
operational expenditures, core operating profit rose by 8%, and the company anticipates organic
sales to climb from 8% to 10% for the entire year.

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Being a major participant in the snacks and drinks market, PepsiCo's "number one job" is to
guarantee that the category expands "under any conditions," since doing so secures the long-term
viability of the firm, according to Laguarta.

“Everything we’re doing in our commercial plans, both in the US and outside the US, is to make
sure we have strong brand programmes, channel programmes, execution programmes and
innovation programmes that continue to make our category preferred over other categories. And
we’re seeing that,” he explained.

“That’s the main reason [behind] the growth we’re delivering and lower elasticity we’re seeing
around the world.”

Also, PepsiCo announced market share increases globally for the second quarter and the whole
year, including in the US, China, the UK, India, Saudi Arabia, and Turkey. Beverage sales saw
increases in Mexico, Brazil, China, Egypt, and Vietnam.

According to Laguarta, PepsiCo's efforts in its brands over "many years" have led to these
improvements.

“We’ve strengthened our go-to market capabilities, our digital capabilities, our brands are
looking more modern and engaging, and our innovation is great,” he said.

The impact that inflation and the increased cost of living may have on clients with lesser
incomes, according to Laguarta, is a concern for the company.

“That’s where we’re all looking more carefully and making decisions on entry points in the
categories, and [figuring out] how we continue to have that particular consumer engaged in our
categories.”

The long and the short in balance

In the meanwhile, the company aims to increase return on investment (ROI) for all business
expenses, including marketing and trade promotion. Work has been done to optimize investment
through greater information, data, and more accurate judgments as the company's two "major
demand creation budgets."

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 “This is a journey I would see as continuous, to optimise all the budgets we have [and]
maximise return,” Laguarta said that money may be diverted from trade promotion to areas
where PepsiCo can promote demand generation more "effectively."

Hugh Johnston, CFO, stated that cost efficiency advancements have allowed PepsiCo to take a
“more consumer-centric approach” to dealing with inflation, businesses can adjust their prices as
they are not "obliged" to pass all expenses along to their customers.

The company says its investments are now at the "appropriate level," and Laguarta said PepsiCo
intends to keep funding its brands even as inflation keeps rising.

In order to produce sustainable outcomes over a long period of time, Johnston continues, "the
way we're collectively attempting to operate the firm is to balance delivering the short term while
making sure you're creating capabilities for next year and the year after.

“I think we have the right balance on that right now, and we’ll see as the results come in whether
we need to make adjustments.”

Change management system/process of Pepsi

Suggested Modifications to the HR Program, Policy, and Management

The researcher would want to suggest introducing diverse strategic planners who are familiar
with Pepsi's history, market competitiveness, workers, shifting consumer preferences, and
shareholders' concerns into the company's senior management. To revive its competitive edge
and stop the market share trend downward, the firm must make changes. However, despite
PepsiCo's tremendous financial strength, From 2012 to 2013, management was unable to
promote an entrepreneurial culture or make use of organizational resources and core
competencies to guarantee the company's viability. The MNC does, in fact, require management
reform to resuscitate its fundamental local, regional, and worldwide brands and history in a
global marketplace. In other words, PepsiCo has to create a unified culture that respects diversity
as well as local, national, and international cultural differences.

PepsiCo is changing for three main reasons

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The first reason is that between 2011 and 2013, Pepsi had lost its competitive advantage over
Coca-Cola and other local businesses, not just in North America but also in the Middle East and
Asia. The second rationale for the reform program is that the share market drop has deeper roots,
including a lack of managerial commitment, an inability to precisely identify the issue's root
cause, and a lack of vision. The third reason, a lack of corporate focus, should be avoided by
creating a long-term strategic planning process to implement sustainable business growth goals.
In other words, the company has lost its position, market growth, and commercial dominance
since it doesn't satisfy customers (Strom, 2014). As a matter of fact, the lack of concentration
also affects marketing plans given that successful product campaigns significantly boost
organizational effectiveness and financial expansion in the market where Pepsi plays. Last but
not least, modern management at PepsiCo have virtually rejected the same value system and
principles as leadership in the past.

Kotter's 8-Stage Change Management Model

The strategy planners at PepsiCo must recognise the pressing need to execute substantial
leadership changes that will effect all business divisions and global operations. A group of global
managers and executives from subsidiary firms should then form the induction of diverse leaders
with stellar reputations at the parent business to begin the transformation. The new leadership's
duties include redefining PepsiCo's goal and creating a long-term strategy for competitive,
comparative, and absolute advantage. The new approach must be centered on achieving long-
term company success through product diversification, product expansion, constant learning, and
brand rebirth through reinvigorating their historical importance and background. The next step is
for the leadership to share this global vision through HR formal seminars, summits, conferences,
change sessions, leadership workshops, and interpersonal meetings to encourage cooperation
among global units for the analysis of market challenges and implementation of workable
policies. For instance, empowering subsidiary enterprises to adopt local and regional leadership
patterns and make market-related decisions in their local markets would be an effective way to
bring about change.

Yet, it's crucial to assess the change process' effectiveness by looking at quick wins like those
involving staff responses, viewpoints, and actions for diversity, participation, and shared values.
In order to achieve greater change, additional subsidiaries may consolidate their change
initiatives as a result of the parent company's successful short-term outcomes. Integrating fresh

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concepts into the company's culture, such as the importance of diversity and the inclusion of
people from various cultures and nations, was PepsiCo's most recent successful transformation
approach. Top executives, subsidiary Presidents, CEOs, and the new Board of Directors must to
be people with substantial experience in the FMCG sector and a thorough understanding of
shifting customer demands.

Communicating Change to Employees

.Utilizing HR internal departments and professionals to create change literature, printouts,
electronic documents, memoranda, and emails to explain why change is important for PepsiCo,
what are long-term objectives, and how change is coming to the organization, is the first strategy
to communicate change. The second tactic involves holding leadership summits, change
seminars, and summits that will provide PepsiCo workers a free opportunity to meet with
corporate leaders for communication and involvement in change initiatives. The leaders will
inspire workers to embrace change initiatives and its hoped-for advantages and gains in both
personal and organizational performance. The third tactic is to work with a reputable outside
consultant company that specializes in carrying out change initiatives and dealing with
opposition. The outside consultants will create their own unique presentations, tutorials, and
training manuals for implementing and communicating change (Mento, Jones & Dirndorfer,
2002).

Handling Change Resistance

A worker resists change when he or she does not want to adapt to change because of unfavorable
attitudes about new job duties and authority, according to Thomas, Sargent, and Hardy (2010).
To put it another way, the changes jar employees out of their routines, which bothers them and
prompts them to retaliate. The sense of job insecurity and concern over career progression under
new management are other variables (Agboola & Salawu, 2011). In order to manage change
programs and any seeming opposition, the researcher urges PepsiCo to effectively convey the
need for change and its benefits to workers in the context of organizational development and
performance brought on by changes. Employee concerns must be taken into consideration in
order to incorporate cultural perspectives and variances in the transformation plan.

Recommendations for Change Sustainability

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The investigator suggests that the PepsiCo parent firm start a reform program by witnessing
significant leadership changes to reestablish dedication to the organization's vision, purpose, and
ideals, followed by success in business and sustainable expansion success in international
markets. After broad agreement among the parent company's strategic leadership and employees,
the transformation program should be put into action. Because staff members will be
psychologically ready for new innovations, rules, and structures, reducing opposition in the
home nation will be advantageous for bringing about change throughout all subsidiaries. By
encouraging employee diversity, inclusiveness, and involvement in organizational development
and sustainability, new strategic leadership will effectively embrace a unified a world civilization
that shares values, and this will be the main transformation.

References
Agboola, A. A. and Salawu, R. S. (2011). Managing Deviant Behavior and Resistance to
Change. International Journal of Business and Management, Vol. 6(1), pp. 235-242.

Kotter, J. P. (1995). Leading Change: Why Transformation Efforts Fail. Harvard Business
Review, March-April, pp. 59-67

Mento, A. J., Jones, R. M. and Dirndorfer, W. (2002). A change management process: Grounded
in both theory and practice. Journal of Change Management, 3(1), pp. 45-59.

Strom, S. (2012). PepsiCo Shuffles Management to Soothe Investors. New York Times.
Available at [Link]
[Link]?pagewanted=all&_r=0 [Accessed – December 13, 2014]

Thomas, R., Sargent, L. D. and Hardy, C. (2010). Managing Organizational Change: Negotiating
Meaning and Power-Resistance Relations. Organization Science, pp. 22-41

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