Training and Development at PepsiCo

PepsiCo, a multinational organization, recognizes the importance of training and development to enhance employee skills and productivity. To achieve this goal, the organization conducts cultural training for its employees, appraisal development to identify training needs, coaching and mentoring, high visibility assignments, job rotation, behavioral training, leadership training, and E-learning resources. The organization also recommends investing in training and development programs, focusing on communication and employee recognition. The management should take initiatives to identify training needs and include a brief introduction to the subject of training in training circular forms. Therefore, training and development play an important role in enhancing skills and productivity, and organizations should focus on these activities to remain competitive.

Strategic Human Resource Management
Title: Training and Development: A Case of PepsiCo
Write a report about a major human resource management (HRM) issue
affecting your organisation or an organisation you know well.
Word count: Words 2381
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Executive Summary
Training and Development are considered as organizational activity aimed at
enhancing and improving the performance of groups and individuals in an
organizational setting. The main aim of training and development is to ensure
that employees with higher skills and greater value can efficiently perform
their jobs, seek self-growth and can gain competitive advantage. It is also
considered as a process of transferring knowledge and information to
employers and employees. This report considers the significance of training
and development in an organizational in relation to human resources. This
report first gives a brief introduction about PepsiCo, a significant food,
beverage, and snack company. It sets to discuss what training and
development is, how it impacts the organization’s performance. Various types
of training and development, its direct consequences also have been
discussed. Different format such as on the job and off the job training have
also been considered. It then analyses the different style of training and
development practices followed in PepsiCo and Coca-Cola Company.
Recommendations for PepsiCo in relation to training and development and its
consequences have also been discussed.
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Tables of contents
1. Introduction……………………………………………………………….4
2. Training and development………………………………………………4
2.1 Employee training………………………………………………….. 6
2.2 Management development………………………………………….6
3. Improvement needs……………………………………………………..6
3.1 Improve and enhance moral of employees………………………7
3.2 Less supervision…………………………………………………….7
3.3 Fewer accidents……………………………………………………..7
3.4 Chances of promotion………………………………………………8
3.5 Enhanced productivity………………………………………………8
4. Case for change………………………………………………………….8
4.1 On the job training……………………………………………………8
4.2 Off the job training……………………………………………………9
5. Analysis of training and development practices……………………….9
Of Coca-Cola and PepsiCo
6. Recommendations………………………………………………………11
7. Conclusion……………………………………………………………….11
Reference list…………………………………………………………….....13
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1. Introduction
PepsiCo is an American snack, food and beverage organization situated in
Purchase, New York. It has interests in the distribution, manufacturing, and
marketing of grain-based snack food or beverages and other products. It was
established in 1965 with the merger of Pepsi-Cola organization and Frito-Lay.
Today, it has a great reputation in the existing market. PepsiCo has
developed a wide range of products under its name (Arneson, Rothwell &
Naughton 2013). These products are utilized in almost every country.
In 2012, PepsiCo generated more than $1 billion profit by distributing its
products across 200 countries. The annual revenue of PepsiCo during 2012
was $43.3 billion, which makes it more popular and famous organization of
food and beverage industry. It is considered as the second largest food and
beverage organization in the whole world. If net revenue of the company is
taken into consideration, within the North America, it is the largest food and
beverage organization. All of this is possible due to the great efforts of Indra
Krishnamurthy Nooyi who has been the chief executive of the organization
since 2006 (PepsiCo 2016).
PepsiCo deals with different range of products which are Pepsi, Mountain
Dew, Lay’s potato chips, Gatorade, Diet Pepsi, Tropicana beverages, 7 Up,
Doritos tortilla chips, Lipton teas, Quaker foods and snacks, Cheetos, Mirinda,
Ruffles potato chips, Aquafina bottled water, Pepsi max, Tostitos tortilla chips,
Mist Twist, Fritos Corn Chips, and Walkers potato crisps among others. This
wide portfolio of its products enables the organization to get higher success in
the market and effectively gain competitive advantages. The product mix of
PepsiCo 2015 includes 53 percent foods and 47 percent beverages (PepsiCo
2016).
2. Training & Development
Training and Development are considered an important management issue
face by an organization. In the absence of training, an organization is not able
to gain a competitive advantage in the market over other competitors. One
example of lack of competitiveness is failing to introduce its new products with
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higher quality. This will significantly influence the profitability of the
organization.
"Give a man a fish, and you have given him a meal. Teach a man to catch a
Fish, and you have given him a livelihood" (Salas et al. 2012). It is an old
Chinese proverb that explains the underlying rationale of the training and
development program. It can be said that no organization can become
successful in the absence of training and development program.
When the selected candidates are placed on the required job, they require
efficient training and development program to perform their obligations and
duties efficiently. It is the responsibility of the management of an organization
to train its workers efficiently. In relation to PepsiCo, training could be
imparted to them related to machines, reduce scrap and avoid various
unknown incidents.
It is not only the workers who require training, but the managers, supervisors,
and other top executive who require training from the organization. Training
enables them to acquire and grow knowledge or maturity of actions and
thoughts. As training has been such an important aspect of an organization,
even the most important selection does not avoid the requirement of training.
In the absence of training, employees are not molded as per the job
specifications and rarely fulfill the job requirements efficiently (Ford 2014).
In simple words, it can be understood that training and Development refer to
the teaching of special abilities, knowledge and skills to an employee. It is a
step to improve the current and future performance of employees by
enhancing an employee's attitude or enhancing her or his knowledge and
skills (Ji et al. 2012). The requirement of training is identified by employee's
performance deficiency. Training and Development needs can be identified by
the following formula:
Training and Development requirement= Standard performance of Employee
– Actual performance of Employee (Gray et al. 2013).
Training and Development are considered one of the important tools of
Human Resource Development. PepsiCo could progress and develop
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simultaneously for its attainment of mutual goals and long-term survival. So,
the management of the organization should establish proper methods to
tackle the training and development issues. Training and Development
comprise two terms, which are following:
2.1 Employee Training
It is considered one of the important and specialized operative functions for
human resource management. As a candidate is selected by the organization,
he or she should impart proper training processes. Training is considered as
an act of enhancing the skill and knowledge of an employee for performing a
specific job (Jones 2013).
2.2 Management Development
It is considered as a systematic process of growth and development. With the
help of management development process, managers can effectively
enhance their abilities and skills to manage. It is related to improving the
performance of manager by providing them different opportunities for
development and growth.
Thus, it can be implied that training and development play an important role in
the success of the organization (Ford 2014). The management of the
organization needs to formulate effective steps so that it can avoid training
and development problems.
3. Improvement Needs
Training and development are considered an important task for success and
also have competitive advantage over its competitors. It is beneficial for both
the employees and employers of the organization. An employee becomes
more effective and productive if he or she is trained in an appropriate manner
(Iqbal 2014).
Training and development will lead to favorable outcome when the
deficiencies of employees are caused by lack of ability rather than lack of
motivation to perform activities. Also, when the participated individuals have
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the motivation and positive attitude towards learning then a job is fulfilled in
efficient manner, thereby, leading to favorable outcome (Ji et al. 2012).
Another requisite for positive outcome is supportive supervisor who are
compassionate towards his fellow workers. When the supervisor has patience
and empathy for his workers, he or she is able to understand the strengths
and limitations of his fellow workers. He is then able to guide them towards
favorable outcome which could be through training and more educations.
Effective employees contribute to the goal of the organization in an efficient
manner. Training and development program should be established by the
organization so that it can enhance its productivity and gain a competitive
advantage in the market (Ji et al. 2012).
The training and development programs are required for following reasons:
3.1 Improve and enhance the morale of employees:
Training plays an important role in the success of employees. With the help of
training, employees are able to get job satisfaction and job security. If the
satisfaction level of the organization is greater than their performance level
will also be greater (Salas et al. 2012). With high job satisfaction, they
contribute to the success of the organization in an efficient manner. One
example of positive outcome for the organization is fewer employees’
absenteeism and greater turnover of workers.
3.2 Less Supervision
Well-trained employees require less supervision from the management, and
sometimes not at all. They can perform their task efficiently without the
guidance of their superiors (Noe et al. 2014). If the PepsiCo provide efficient
training to its employees, it can save its time and efforts which can be utilized
in another task for performing in a greater manner.
3.3 Fewer Accidents
If the employees are untrained, it is more likely that accident and untoward
events will occur while performing different tasks (Noe et al. 2014). If PepsiCo
invests in training more employees than there are fewer chances of
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committing accidents on the job and an employee can become more
proficient.
3.4 Chances of promotion
Promotion is an important motivation factors for employees. It is one way of
rewarding the good employees for their hard work. In the absence of
adequate motivation, they don’t have that incentive or inspiration to strive
further, therefore, lacking that much needed drive to perform. PepsiCo can
incorporate this rewarding system to motivate employees. With the help of
training employee of PepsiCo can acquire efficiency and skills in an effective
manner. Thus, with the help of training, they become more eligible for
promotion, and they become the asset of the organization.
3.5 Enhanced productivity
Training plays an important role in improving the productivity and efficiency of
employees. Highly trained employees of the organization can show both
quality and quantity performance. If the organization provides efficient training
to its employees, then there is less wastage of money, time and resources
(Jones 2013).
So, it can be assumed that delivering training to employees proves very
fruitful for the organization as well as for employees. If PepsiCo delivers
training, it can sustain its monopoly over other close competitors and can
become the largest food and beverage organization in the whole world.
4. Case for Change
PepsiCo can resolve its training and development issue by taking various
initiatives. It can effectively tackle the issue by making following changes:
4.1 On the job Training
It is a way of training employees while they are on the job. With the help of it,
the organization can resolve its training and development issue in a significant
way. On the job training system should be implemented by the organization.
In it, the training is imparted to the employees while they are on duty. It is a
cost-effective and simple training system (Salas et al. 2012).
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As per this system, the organization can train its employees in the actual
working scenario enabling the employees to become more proficient and
suitable as per the job requirement. The main motive of this system is to
incorporate "learning by doing" approach. On the job training system includes
various systems such as coaching, job rotation, and temporary promotions
among others (Salas et al. 2012).
4.2 Off the job Training
It also proves the efficient tool for the training. The organization can also
change its environment and culture as per the off the training schedule. It also
plays a vital role in fulfilling training needs of the employees. According to this
system, the training is incorporated away from the actual working condition.
The organization can choose this in imparted training to its new employees. It
mainly includes seminars, workshops, and conferences. Organizations can
use this system if it needs to give training to a large number of people in a
short time period.
5. Analysis of Training and Development Practices of Coca-Cola and
PepsiCo
Coco-Cola is considered the toughest competitor of the PepsiCo. But they
both have different policies and practices regarding training and development
of employees who are following:
PepsiCo Coca-Cola
1. It mainly utilizes the internal
programs to develop working
skills of employees.
2. Utilization of formal
qualification to formulate and
develop knowledge and skills
of employees.
3. In-company training is utilized
1. Coca-Cola mainly delivers
apprenticeship-training
program.
2. It provides cross-cultural
training to its employees to
enhance their knowledge about
cultures of different countries.
3. Development appraisal is
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by the organization to develop
its managers in an efficient
manner.
4. Experience is considered as
an efficient means to develop
executives and managers.
5. Formal Qualification related to
the job is considered an
effective means to develop
skills of managers.
6. It mainly focuses on the long-
term development of
managers.
7. For technical and lower staff,
the organization has a training
calendar for the year. If it feels
that an employee require
training to enhance its
knowledge about the field then
it immediately arranges
training program for the
employee (Iqbal et al. 2014).
8. It provides on-the-job training
to its employees.
9. The organization also provides
training by using external
sources such as trainer, expert
or facilitator.
conducted by the organization
to measure the training needs
of employees so that their
performance can be improved.
4. Coaching and Mentoring
utilized by the organization in a
large context (Jones 2013).
5. High visibility assignment is
provided to employees for
development of multi-task skills
in its employees.
6. Job Rotation is considered as
an efficient means of training to
its employees.
7. Behavioral training is provided
by the organization to improve
the behavior skills of
employees.
8. It also provides leadership
training to its employees for
developing effective leadership
traits.
9. The organization focuses on E-
learning resources to develop
its reading and searching skill.
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6. Recommendations
After analyzing the situation and mechanism on how PepsiCo operates,
following recommendations to the organization have been discussed with
which it can effectively improve its operations in regards to training and
development.
PepsiCo could invest more in training and development programs that will be
profitable for both employee and the employer. It can do so by creating
separate funds, budget and hire specialist and trainers to carrying out these
trainings. Another vital aspect is to focus more on increasing good
communication attitude among employees and the worker. Again, this
attitude can be developed through continuous education and unceasing
reinforcement. The management of the organization should hire an
experienced trainer to impart these values, and knowledge to its employees.
Management of the organization can visit another company through which it
can learn from their work methods (Wilson 2014). PepsiCo could introduce
efficient training sessions with selected topics related to production and
quality. The management department of the organization should take efficient
initiatives to identify the training needs of the employees. This training
assessment may enhance the training effectiveness by the establishment of a
good inter-personal relationship.
The management of the organization must do the recognition of employees
for Training and Development programs strictly. The management of the
organization should include a brief introduction to the subject of training in
training circular form. This will give advance knowledge to employees about
the topics of the training sessions. Due to this they can easily understand the
training program and can enhance their skills.
7. Conclusion
Therefore, training and development play an important role in enhancing the
skills of employees as well as enhance the productivity of the employees.
There are various organizations that are unable to meet the training needs of
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employees. This will create a significant gap in required skills and attained
skills (McGrath 2012). Therefore, training and development cannot be
separated from the business activities of the organizations. Organization
should focus more on training and development of employees. This will
enable the organization to penetrate the market in an efficient manner as well
as place themselves ahead of its competitors.
References
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Arneson, J, Rothwell, W & Naughton, J 2013, ‘Training and development
competencies redefined to create competitive advantage’, Training &
Development, vol. 67, no. 1, pp. 42-47.
Ford, JK 2014, Improving training effectiveness in work organizations,
Psychology Press, New York.
Gray, CM, Hunt, K, Mutrie, N, Anderson, AS, Leishman, J, Dalgarno, L &
Wyke, S 2013, ‘Football Fans in Training: the development and optimization
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and Development on the Employee Performance: A Case Study From
Different Banking Sectors of North Punjab’, Nigerian Chapter of Arabian
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McGrath, S 2012, ‘Vocational education and training for development: A
policy in need of a theory’, International Journal of Educational
Development, vol.32, no.5, pp. 623-631.
Noe, RA, Wilk, SL, Mullen, EJ & Wanek, JE 2014, ‘Employee Development:
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Training Effectiveness in Work Organizations, ed.
PepsiCo 2016, who we are, viewed on 28th October,
http://www.pepsico.com/Company/Global-Brands/
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Salas, E, Tannenbaum, SI, Kraiger, K & Smith-Jentsch, KA 2012, ‘The
science of training and development in organizations: What matters in
practice,’ Psychological science in the public interest, vol.13, no.2, pp.74-101.
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