Importance of Flexibility in HR Practices: A Case Study of PepsiCo

This report discusses the importance of flexibility in HR practices through a case study of PepsiCo. It examines the 'leave loudly' policy initiated by the CEO and its impact on HR strategies. It also discusses the strategic priorities of PepsiCo and the significance of the policy in business.

RUNNING HEAD: Human Resource Management
Human Resource Management

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Contents
Introduction.................................................................................................................................................1
Strategic priorities pursued by PepsiCo.......................................................................................................1
Reason of implementing ‘leave loudly’ strategy..........................................................................................2
‘Leave loudly’ policy and HR practices.........................................................................................................2
Impression of CEO’s life on ‘leave loudly’ strategy......................................................................................3
Significance of leave loudly strategy in business.........................................................................................4
Conclusion...................................................................................................................................................4
References...................................................................................................................................................6

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Introduction
The purpose of this report is to provide brief information about the importance of flexibility of
the employees in an organization. Companies have now days started recognizing the importance
of flexible workplace environment that is helping them in sustaining the employee turnover rate
in the environment. The report explains the importance of flexibility in environment and in HR
practices as well by the way of case study of PepsiCo Company. The CEO of the company
Robbert Rietbroek aims to use ‘leave loudly’ strategy before leaving the office every time.
Further, the below mentioned report examines the strategic priorities of PepsiCo company
pursued in the target market. It also explains the rationale of the organization for using the ‘leave
loudly’ at their workplace and its impact on the HR strategies of the company as well. The latter
part of the report explains the way in which the personal life of Robbert Rietbroek shaped the
implementation of this type of policy in business and the ways in which this strategy can
improve the productivity and morale at workplace. More details about the report are discussed
below:
Strategic priorities pursued by PepsiCo
Apart from doing business and earning profits, the company has understood their responsibility
for the people of the company and the community on a whole. The company believes that
corporate citizenship is not only important for the society but it is important for their business as
well. So, it should be noted that along with monetary incentives, the company prioritize
goodness in their activities so as to gain appreciation in the target market (Gilley, et. al., 2015).
Further, below mentioned are some of the strategic priorities for the human resource of the
company:
 Values: The values of the company are to deliver sustainable power to the employees of
the company by building trust and acting responsibly with them. The values of the
company are inherited in the corporate culture that gives rises to positivity in the
environment. The company always cares for the people with whom they work in the
society (PepsiCo, 2018).

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 Diversity: It is one of the most important human resource activities that is initiated by the
management of the company. As the organization is involved providing is products and
services worldwide, thus it initiates to employ people from the different parts of the
world to promote globalization and unity worldwide. The company also respects the
culture of different communities and help expatriates adjusting in diverse environment
(Direnzo, Greenhaus, & Weer, 2015).
 Flexibility: The Company PepsiCo is renowned worldwide for providing flexible
services to the employees in the environment. This is one of the reason due to which the
employees turnover of the company has subsequently reduced to 7%. The top level
management uses and encourage all the employees to use the ‘leave loudly’ strategy in
the company.
 Work life balance: The management always tries and encourages the employees to
maintain a work life balance. The company understands the importance of personal life as
well due to which they give time to the employees to fulfill their personal responsibility
along with professional ones (Bal, & De Lange, 2015).
Reason of implementing ‘leave loudly’ strategy
Before evaluating the rational of CEO Robbert Rietbroek to use leave loudly policy in their
business, it is important to understand the meaning of leave loudly. Leave loudly refers to the
policy under which the employees of the company are given a chance to manage their personal
as well as professional lives. Under this policy, the employees take out time to do their personal
things as well. The CEO of the company PepsiCo encourages this act as well (Cahill,
McNamara, Pitt-Catsouphes, & Valcour, 2015). Further, it should be noted that the leave loudly
policy is one of the important policy that people need in the current environment. This strategy
helps the employees to take out time from their busy schedule to fulfill their personal
responsibilities as well. Robbert Rietbroek believes that if he will leave the office early just to
pick his daughter from school, and if he is doing it loudly by communicating it to all the other
employees, then the middle and new hires can leave early too if they have some personal work to
perform (Kossek, Thompson, & Lautsch, 2015).

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The reason for initiating this strategy in the organization is to encourage family-friendly and
flexible policies at work place. This policy helps the employees to give time to their families and
themselves as well. In the current environment, every person is busy working and earning money
due to which they started forgetting the importance of families and somehow there is no work
life balance. Thus, this policy will help employee to do things that they are unable to perform
due to their job. Further, one significant reason to initiate this policy is to satisfy the employees
of the company in long run. These short breaks will help the employees to do things that they
love which will keep them motivated towards their job as well. Thus, initiation of this strategy
keeps PepsiCo in win-win situation. With this strategy, the company aims to reduce the act of
presenteeism from the company. Through this act, the company aims to eliminate presenteeism
and help the employees to go early and perform activities for which they do not get time with the
initiation of job (Mas-Machuca, Berbegal-Mirabent, & Alegre, 2016).
‘Leave loudly’ policy and HR practices
With the use of ‘leave loudly’ policy it has become easier for the organization to manage the
employees. The employees always stay satisfied with the activities of the company. Further,
below mentioned are ways in which HR manager aligns other human resource practices with the
leave loudly strategy in organization:
 Equity and diversity: It is the objective of the human resource management team of the
company to maintain equality and diversity in the organization. The company being
placed in the international market due to which they get the opportunity to employ people
from different parts of the world. Further, the organization also aims to manage equality
at workplace by employing female employees and promoting them as well. Further, the
company believes that women at workplace get leverage to perform their personal
activities but men on the other hand are always expected to focus on their work and job.
Thus, the leave loudly policy encourages all employees irrespective of their caste, sex,
age, gender to leave the office early in order to perform their personal work (Mellner,
Aronsson, & Kecklund, 2014).
 Workforce planning and development: workplace planning and development refers to
a continual process initiated by the HR manager of the company with respect to align the

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needs and priorities of the employees with that of the organization. Under this process,
the management aims to ensure that all the clerical work along with legislations of the
company and the employees of the company are also satisfied. The policy of leave loudly
helps the company to prioritize the personal priorities of the company. The company
initiates one simple thing policy under which they encourage the employees to fulfill one
thing that they love by leveraging the time they work (Williams, Berdahl, & Vandello,
2016).
 Social responsibility: As discussed above, the organization believes that the corporate
social responsibility is not made for the customers but for the company as well. With the
help of this process, the organization can identify the activities that are good or bad for
the employees and other stakeholders of the company. Further, the company PepsiCo
adequately fulfills their social responsibility by providing the employees flexible working
hours and freedom to perform acts as well. This aspect helps the company to keep the
employees satisfied as well. The company also aims to promote flexibility at workplace
in the whole industry as well (Kim, 2014).
 Work-life balance: The leave loudly properly support the company in helping the
employees to maintain work life balance. As the organization gives time to the employees
to leave early or come late, thus it helps them to complete their personal work as well.
The company helps the employee to do the work that they are fond of or their personal
responsibility that they are unable to fulfill after the job. Just like the CEO of the
company, the HR management encourages the employees to before time to do their
personal work; this aspect helps the employees to prioritizing their personal life apart
from professional objectives as well (Earl, & Taylor, 2015).
Impression of CEO’s life on ‘leave loudly’ strategy
The CEO of PepsiCo Robbert Rietbroek is the father of two children who is been working in the
industry past 16 years, states that from his experience he has learned that it is very difficult for
the employees to maintain a balance in work and family commitments. This ineffective balance
in life makes people bored of the job and work due to which they switch to other organizations.
Also, the CEO of the company believes that if he is occasionally going to pick up his daughter
before the shift time ends, then he make sure that he tell this to all the employees loud and clear

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so that people believe that if boss can go they can too (Zheng, Molineux, Mirshekary, &
Scarparo, 2015). Robbert Rietbroek believe that just like it is important for people to fulfill their
responsibility for their job and the company, in the same way it is important for them to fulfill
their personal obligations. Robbert also suggests to he wants to promote the family friendly
workplace policies for the employees including flexible working hours, 16-week parental leave
and summer Fridays. Also, also stated that he wants to eliminate presenteeism from the society.
The personal experience of the CEO of the company states that flexibility in the environment
will help the employees to focus on their priorities and work on them as well. This aspect will
also help the company hold the employees and keep them satisfied in long run (Litano, & Major,
2016).
Significance of leave loudly strategy in business
The significance of leave loudly strategy in improving mortality and productivity of the company
PepsiCo is discussed below:
 The leave loudly policy encourages the employees to prioritize their personal life apart
from their job that increases the act of flexibility in the company. With the increase in
flexibility, the satisfaction level of the employees is subsequently increased because now
they can fulfill their personal requirements as well. Apart from the employees, this act
will keep the family members of the employee satisfied resulting to which, the moral
obligation of the company will complete automatically (Koch, & Binnewies, 2015).
 With the increase in satisfaction level of the employees, the company will easily help the
employees to increase the productivity of the organization. Human resource is the biggest
asset of the company, the human resource optimally use all the other resource to increase
the productivity for the company. So, with the initiation of leave loudly policy the
employees will attain satisfaction from the company that will motivate them to work for
the organization and help them to achieve the goal as well (Russo, Shteigman, &
Carmeli, 2016).
 Further, this strategy also increases the morale of employees. This aspect motivates the
employees to work progressively so as to deliver their optimum efforts in the activities of
the company. Also, this aspect increases unity at workplace as one employee wants to

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leave early the other manages the work and vice versa. This act introduces integrity and
unity at workplace (Ferguson, Carlson, & Kacmar, 2015).
Conclusion
Thus, in the limelight of above mentioned events, it should be noted that the policy implemented
by the CEO of PepsiCo helps the organization in smoothening the business process and
increasing the productivity of the company as well. The leave loudly policy helps the
organization in creating work life balance and taking out time to perform their personal work as
well. This aspect initiates flexibility in the organization and supports the employees as well. If
the CEO leaves occasionally then he makes sure that everybody knows it so that they can feel
that if he can leave early then can also leave before time occasionally. This policy helps in
adequately fulfilling the human resource management activities as well. Further, the report also
explains that this initiation is led by the CEO of the company to encourage family friendly
workplace environment and eliminate presenteeism as well.

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References
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