Leadership Style and Organizational Structure of Indra Nooyi

This study explores the leadership style and organizational structure of Indra Nooyi, the former CEO of Pepsico. It examines how she structured teams, developed an organizational vision, and fostered a positive organizational culture. The study also discusses the best practices she used and the impact of her leadership on the company's success.

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FINAL PROJECT PART II

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Table of Contents
Introduction................................................................................................................................3
I. Teams......................................................................................................................................3
II. Organizational vision.............................................................................................................6
III. Organizational Culture.........................................................................................................8
IV. Problem-solving.................................................................................................................11
V. Conflict management..........................................................................................................13
VI. Conclusion.........................................................................................................................15
Reference list............................................................................................................................16

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Introduction
Leaders are essential part of business as they use their skills, knowledge, and ability to
motivate their subordinates in order to help firms to achieve their business goals. Selection of
appropriate leadership style helps in organizing teams. This study is focusing on the skills,
ability, and knowledge used by Indra Nooyi in her professional career. She worked harder to
become perfect and it is considered as the most essential reason behind success of this
renowned leader. This study is providing clear overview of leadership style, skills, ability,
and knowledge of this famous leader and the CEO of Pepsico.
I. Teams
A. Evaluation of the process of structuring organization
Indra Nooyi has a specific plan regarding staffing and organizing teams in a firm. In order to
increase engagement of a team, she used to send thank you letters to family of employees.
Those letters are sent to express gratitude of the organization regarding performance of
employees. This helps to increase motivation of employees. As opined by Boon & Biron
(2016), staffing needs to be done in a planned way, which eliminates all risk of
discrimination. Indra Nooyi has favored recruitment of both women and men equally. In
addition, she has supported the recruitment of millennial that can help to increase
productivity of the company. Indra Nooyi was a successful leader of Pepsico and under her
leadership, organizational structure of this organization has changed. She has planned and
implemented a decentralized structure where each business units are able to make
independent decisions. As mentioned by Lorinkova & Perry (2017), decentralized
organizational structure helps to relieve burden and daily business operations can be done in a
proper way. This organizational structure has helped Pepsico to concentrate on each market

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divisions and changing market conditions can be coped up by this structure formed by Indra
Nooyi. In addition, she has conducted regular communication with her team members in
order to maintain close relationship. This has enabled her to mitigate grievances and motivate
them to work better. This has helped to achieve both team and organizational objectives.
B. Leadership style for organizing team
Indra Nooyi is a successful leader that has helped Pepsico to attain new achievements and
increased production and employee performance. She has adopted democratic leadership that
has been applied through regular communication and increasing engagement of employees.
She regularly listens to views of employees and takes them into consideration. As said by
Little, Gooty & Williams (2016), democratic leadership help to eliminate different factors
like miscommunication that can deteriorate engagement of employees. However, final
decision in any essential matter has been taken by this leader herself. Moreover, she always
tried to meet different needs of employees that have motivated employees. She uses
socialized leadership style in order to show her concern to employees. She uses her
communication skill to improve performance of employees and describing purpose of good
performance. This inspires employees and motivates them to work better (Business.org.uk,
2019).
C. Organizing executive team
Indra Nooyi composed her executive team through constant coaching and mentoring. As
stated by Saleem (2015), regular mentoring helps employee to produce high level of
performance. She mentored both members of executive team and members by using
communication and problem-solving skills that has helped them to improve performance.
Hence, a new identity has been created and purpose of creating executive team has been
fulfilled. Along with performance management, she has also implemented the strategy of
talent sustainability. This has helped her to attract and retain the best talent.

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Her leadership style is relationship oriented and she has used relationship with previous and
current employees in order to build executive team. As mentioned by Zhao et al. (2016),
constant rapport and relationship can help a leader to structure teams in a proper way. Indra
Nooyi recruited some top employees from management based on relationship in order to
build executive team. After promoting Nooyi as CEO of Pepsico she recruited her competitor
Mr. Mark White as a senior in executive team. Mr. White is an expert in management and has
vast experience. She used her relation and persuaded him to stay in executive team. She
appointed some previous employees whom she trusted and has good relationship. As said by
Jutras & Mathieu (2016), good relationship and trust in executive team can help to increase
efficiency of a team. Different essential decisions regarding formulation and implementation
of strategies can be taken efficiently.
She has used her leadership skill and communication skill in order to form a strong executive
team. Relationship building leadership style can help to increase rapport with employees and
retaining talent can be done. This has helped this leader to increase efficiency and strength of
executive team.
D. Evaluation of best practices for developing executive team and structuring
organization
Indra Nooyi has used different best practices like appreciation in order to increase
effectiveness and develop a strong executive team. As said by Martin et al. (2016), strong
executive team can help and organization to frame effective strategies of growth.
Appreciation is considered as one of her best practices to form a strong executive team.
Proper appreciation is essential in order to increase motivation of employees and increase
productivity of a firm. Indra Nooyi appreciates her subordinates for good performance that
has enabled her to firm strong executive team.

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As opined by Shin et al. (2015), a leader needs to have the ability of persuasion that can help
to attract and retain skills. Persuasion is another essential best practice of Indra Nooyi that
has enabled her to engage many previous employees who have vast amount of experience.
For example, Mr. White competitor of Indra Nooyi has been persuaded by her in order to
manage different duties. This has enabled the organization to form an effective structure that
can help to obtain greater revenue. Moreover, Wang et al.(2016), argued that communication
is another best practice that can help to eliminate any sorts of discrimination. Communication
on a regular basis is another essential best practice that has helped Indra Nooyi to firm an
efficient executive team. Regular communication has helped her to describe aims and
objectives and her thought to executive team. She takes any decision by discussing with
executive team through the help of string communication.
II. Organizational vision
A. Development of strategic plan
Indra Nooyi uses her determination and clear-sightedness in order to frame proper strategies
for the organization. She framed proper strategies that have helped to increase beverage sales
and helped Pepsico to gain competitive advantage. These strategies are done collaboratively
by the team and guided by the leader that is Indra Nooyi. She used to gain team's
commitment in order to frame proper decisions. She builds strategic planning for Pepsico on
the basis of proper strategic analysis. As opined by Elsetouhi et al. (2018), strategic analysis
helps to gain clear insight into a problem that can need to be mitigated. Whole executive team
has helped her in this process. It is due to her strategic planning that the company has grown
its annual rate of revenue by 5.5% (Cnbc.com, 2019). Indra Nooyi developed herself the
strategy of adopting healthier option for the company. In 1998, Pepsico acquisition Tropicana

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and later quaker, an oats brand. These acquisitions have helped Pepsico to capture new
markets.
Nooyi has developed the strategy of performance with a purpose that has helped this firm to
develop a good brand image. As mentioned by Benoliel & Somech (2015), developing
performance for a proper cause can help to obtain specific results in future. Indra Nooyi built
strategic planning to increase number of nutritious products and make Pepsico a good
corporate citizen.
B. Organizational vision of the leader
Indra Nooyi has a proper organizational vision of performance with a purpose. As opined by
Grille, Schulte & Kauffeld (2015), this vision can be described as a sustainable vision that
can be achieved by changing culture of an organization. Indra Nooyi was able to spread this
vision throughout the firm with the help of transformational leadership. This organizational
vision can help Pepsico to achieve sustainable long term growth and a distinguished position
in this competitive market. Main focus of this organizational vision of Indra Nooyi is given
on products of the company, environment, and community. Different refined products like
food and beverage with less sugar, broader portfolio of products with different healthier
varieties can be able to satisfy customers in a better way. Moreover, implementation of
strategies according to this vision can be able to reduce impacts on nature
(Franchisetimes.com, 2019). In addition, diversity and engagement of community can also be
achieved by the help of this vision.
Indra Nooyi has given proper value to employees and customers in order to engage them with
this organizational vision. She used the strategy of effective communication that can help to
motivate employees to meet this vision. In addition, she positioned Pepsico in order to attract
new potential talents and retain current talents by meeting their needs. This is motivating
employees to work with better performance and productivity of this firm has increased. As

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stated by Carsten, Uhl-Bien & Huang (2018), proper motivation and meeting employee needs
help to increase job satisfaction of employees. Indra Nooyi became a role model in front of
her follower and influenced them to perform better. Moreover, she tried to inspire followers
for making them commit in this shared organizational vision. In addition, Nooyi tried to
empower her followers so that different flow of creative ideas increases. As mentioned by
Newman et al.(2017), empowering followers of a leader is an essential part that helps them to
become more creative and independent.
C. Recommendation for effective method of strategic planning
Different other strategic planning methods like benchmarking can be taken by Indra Nooyi.
This method can help them to compare different metrics of the company with another
competitor in the market. As stated by Little, Gooty & Williams (2016), benchmarking
process can help an organization to achieve clear vision for future. Forecasting can be another
effective method of strategic planning that can be adopted by Nooyi. Future predictions can
be done in order to gain an idea regarding demand for current products. Moreover, future
result of acquisitions of healthier brands can be known in a better way by this method of
strategic planning. Moreover, Saleem (2015) argued that the method of risk identification is
another nest method of strategic planning. Identifying potential risks that can impact on a
business can help to take proper strategies to mitigate them. Impact of risk can be known by
this process and can be avoided in future.
III. Organizational Culture
A. Evaluation of evidence of political, positional and personal power, and
background to Indra Nooyi
Indra Nooyi follows democratic leadership style and she utilizes her positional, political and
personal power for achieving organizational goals. She has not joined politics as family

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comes first to her. She has mentioned that she would prefer to spend time with her family
member after completing her successful career. Her ability, skills, knowledge and working
experiences are her personal powers that are helping this person to perform consistently.
According to Buch, Martinsen & Kuvaas (2015), consideration of effective leadership style
helps to utilize power of leaders to structure organization. Being the CEO of Pepsico, she has
used her position for gaining success on behalf of the company. This person has earned
respect from her subordinates by providing values to them in each and every step of business.
Combination of her powers has helped this respected lady to structure organization for
achieving maximum competitive advantages. She has the power to motivate employees and
show them the appropriate path. She has realized her liabilities and serving as per
requirement of business.
Indra Nooyi was born on 28th October 1955 in Chennai, India. She is known as a leader in
Pepsico to the world. In this soft-drink m manufacturing company, Nooyi has served as
chairman of Board from 2007 to 2019 and she was the CEO of this company from 2006 to
2018 (Britannica.com, 2019). She has completed her master degree in chemistry from the
Madras Christian college and later she has completed MBA Indian Institute of Management,
Kolkata, India. After that, she has mover to united state, where she has got an additional
master's degree in private and public management. In 1980, this additional master's degree
has been given to her by the Yale School of management. She has joined Pepsico in 1994 and
she has got the designation of chief financial officer and president in 2001. She has gained
success with the help of her own ability and professional skills.
B. Structuring organization using power by the leader
The leader has structured the organization by using her political, personal and positional
power. She has always tried her best to engage employees in the process of decision making.
As opined by Sommer, Howell & Hadley (2016), democratic leadership style is the key to

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ensure employee engagement in developing as well as maintaining organizational culture.
Following democratic leadership style have helped her to provide values to opinion of
employees. She is concern about retaining top talent and focuses on management of
employees with positive attitude for gaining their loyalty towards firm.
Real vision and culture of Indra Nooyi have influenced her employees to believe in it. As
stated by Shin et al. (2017), it is important to make employees understand vision of the
company to ensure their engagement in culture development within business. Indra is focused
to develop talent within organization and she believes in maintaining authenticity. Capability
of her to relate employees from all levels of Pepsico has helped her to change the face of
Pepsico over years. She has relied on the capability of employees and in return, she has
gained involvement of employees in developing and nurturing the culture of the organization.
C. Use of power as tool effect change in the firm
Use of power by leaders helps in implementation and management of change within
organization. Leroy et al. (2015) have narrated that leaders are liable to motivate employees
to cope up with change. Indra Nooyi uses her power and communicates with employees from
all level. This aspect of this famous leader has helped her to become the head of more than
185,000 employees from near about 200 countries. Indra Nooyi has admitted thane change
was never easy for her. She has mentioned that it is one of the important tasks to impress
employees for gaining their involvement. This renowned leader has used her power as tool to
manage employees. As mentioned by Chuang, Jackson & Jiang (2016), recognizing effort of
employees helps to gain their involvement in the process of business. On another hand, Nooyi
has provided values to other stakeholders as well. She thinks from the viewpoint of each kind
of stakeholders in order to understand their perspectives. Effective management quality of
this leader is considered as the key to her successes on structuring organizations.

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IV. Problem-solving
A. Skills, knowledge, and ability to make the decision and solving problems based
on self-assessment
Decision-making and problem-solving skills of leaders are important aspects that lead them
to achieve success. Based on the self-assessment, it has been found that I have some skills,
knowledge, and ability that can help me to solve various kinds of problems. Researching skill
of mine helps to evaluate reason behind potential problem and I use to provide my best effort
to figure out solution. As mentioned by Wang, Kim & Lee (2016), team working skill helps
to work with others. My team working skill can help me to provide collaborative effort with
my teammates for solving potential problems. I can identify potential risk as I am aware of all
surrounding aspects. This ability helps me to make right decision to solve issues. On another
hand, Hoch & Dulebohn (2017) have mentioned that gathering experience helps to solve
problem more easily. I always keep record of problem-solving and use it in appropriate
areas. In case of decision making, I identify the solution and gather information related to
selected decision. It is important to think about potential alternatives and weighing all
available evidence. Maruping et al. (2015) have mentioned that evaluation of accountability,
feasibility and acceptability must be checked before making a decision. I consider this aspect
and make decision after evaluating all related aspects.
B. Abilities and skills of decision making and problem-solving
Nooyi has mentioned that she wants people to think about herself while mitigating problem.
As per this famous leader, it is important to become a student in case of all kind of problems.
As stated by Friedrich, Griffith & Mumford (2016), people learn from their real-life
experiences and this kind of lesson helps them in near future. She has suggested that focusing
on small details about problem helps a person to figure out potential solutions to mitigate that
particular problem. In the long career of this person, she has faced many problems and solved

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all of the problems on behalf of Pepsico. Her efficiency in solving problem has become her
identity. Focusing on small details can be considered as an effective problem-solving strategy
of this famous leader. She has influenced her subordinates to look into the details to find
clues to the solution.
This renowned leader is liable to make decision of her own from the beginning of her career
and decision-making skill of Nooyi has helped her throughout her journey to success.
Inductive thinking approach of Nooyi has helped this person to make appropriate decision in
every situation in her career. This approach has helped her to manage huge amount of human
resources along with other stakeholders of business. She has been able to understand the
needs of all stakeholders and has made decision based on her experience, knowledge, and
skill to fulfill needs accordingly. Indra Nooyi has transformed design thinking into a strategy
(Hbr.org, 2019). Her confidence level has become the most appropriate tool to make
appropriate decision. Decisions made by her have helped Pepsico to experience hike in
revenue generation. She has taken initiative and made decision of implementing innovation
by Pepsico. This decision has helped this company to meet expectation of their potential as
well as current customers.
C. Method, tools, and strategies related to problem-solving and decision making
used by leaders that are to be emulated or avoided
Strategic decision-making approach followed by Nooyi can be emulated as it has helped this
leader to manage all aspects of business and ensuring success at every single point of her
career. Emulation of this strategy may help to make major decision in all difficult situations
in professional life. It has been observed that Nooyi remains confident about her choice of
decision and this confidence level have helped this respected lady to mitigate barriers. On
another hand, I have found that this leader focuses on small details when encountering
problems. She has mentioned that focusing on details helps to understand reason behind

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emergence of problem and helps in identification of areas of improvement. According to De
Hoogh, Greer & Den Hartog (2015), this thought process of Nooyi must be considered as one
of the best solutions to all problems and this strategy of problem-solving must be emulated.
There is no such method or strategy used by Indra Nooyi that must be avoided. After
studying all her actions and decisions, it can understand that this leader has chosen
appropriate process to achieve organizational goals. Her level of dedication must be emulated
by future leaders as this approach may lead them to become as successful as Indra Nooyi.
V. Conflict management
A. Skills, knowledge, and ability of conflict management and negotiation based on
self-assessment
Based on the self-assessment, it can be stated that I am patient and listen to others carefully.
These skills help me in management of workplace conflicts. I always provide values to others
and believe in collaborative working approach. As per my opinion, team working and
understand within team members helps to manage conflicts with efficiency. According to
Maruping et al. (2015), showing positive attitude to teammates reduce chances of emergence
of conflicts. I show positive attitude to my surrounding people in order to have the same
attitude from their side. This kind of attitude helps to avoid emergence of conflict. On another
hand, interpersonal skills such as communication skill, listening skill, decision-making skill,
problem-solving skills and other skills of mine are helpful in case of negotiation. I always try
to follow win-win negotiation approach in order to satisfy needs of both sides. I understand
that deal must ensure benefit for both parties and healthy negotiation can influence this fact.
According to Dunne et al. (2016), attitude, interpersonal skills and knowledge impact on
negotiation between people. Positive attitude of mine helps in developing good business
relation with others and it helps in ensuring effective negotiation.

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B. Techniques and skills of conflict management and negotiation
Indra Nooyi has used different skills and techniques for managing conflicts and solving
various problems. She used inductive thinking for solving problems within an organization.
As mentioned by Junni et al. (2015), inductive thinking helps to zoom into a problem and
detailed information regarding a problem can be collected. Hence, this technique of conflict
management helps to achieve a better perspective. She has also adopted the approach of
collaboration in order to manage conflicts within an organization. She apologizes if she
commits something wrong, which is an effective technique to avoid conflicts.
Indra Nooyi is a strong negotiator and is very successful in this sector. As opined by Boon &
Biron (2016), quality of negotiation is very essential for a leader. She is a strong, charismatic
and confident leader and uses her confidence and communication skills during negotiation. It
can be seen that during the deal of Tropicana and Quaker she negotiated the process and
helped PepsiCo to achieve profit from the deals.
C. Technique of conflict management and negotiation used by leaders that are to be
emulated
Technique of managing conflict and negotiation by Indra Nooyi has influenced me a lot and I
want to emulate those techniques in future in order to manage conflicts. Collaborative
thinking approach of this respected lady has helped her to manage all kinds of workplace
conflict. She has provided values to others and provided opportunities to employees from all
level to take part in decision making. I would like to emulate this technique of conflict
management by Indra Nooyi in order to gain success just like her. In future, I would like to
emulate her level of dedication as well as confidence. Lorinkova & Perry (2017) have
mentioned that these two approaches of Nooyi must be followed by new leaders for
managing conflicts at workplace.

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She is a brilliant negotiator and her experience regarding negotiation has developed
throughout her career. I would like to follow footstep of this successful leader in case of
negotiation. She has always considered benefit of Pepsico while negotiating with other
stakeholders. I would like to take lesson from this approach of Nooyi and I will always
consider benefit of my company as first priority of mine while negotiating.
VI. Conclusion
From the above discussion, it can be concluded that proper vision and planning is essential
for becoming a good leader. Indra Nooyi has taken various innovative strategies that helped
her organizations to achieve growth and success. Proper planning of tactics and
implementation helps to avoid future risks. A leader needs to make planning and engage
followers to implement them successfully. It can be seen that Indra Nooyi has devised
different strategies to develop a proper and strong executive team. She has used different
skills like persuasion and effective communication to make a strong executive team.
Different skills like problem solving and communication have helped her to motivate
employees. Hence, talent management is done efficiently by this leader to achieve
organizational goals. In addition, strategic planning is another essential part of leadership that
is done to increase success of PepsiCo. Strategic analysis method was adopted by this leader
to increase range of products. However, different other methods like risk identification and
forecasting can be adopted by this leader. These methods of strategic planning can help to get
a clear idea regarding demand of products in future and probable risks. Indra Nooyi is a
successful leader and executes different strategies to engage people and maintained
relationship by following democratic leadership style.

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