Human Resource Management Report: PepsiCo HR Practices and Strategies

This report examines Human Resource Management (HRM) practices within PepsiCo, an American multinational food and beverage corporation. The introduction defines HRM and its significance in organizational success, emphasizing the management and development of employees. Task 1 explores the purpose of HR functions, including recruitment, training, performance management, and compliance with labor laws, and their roles in acquiring talent to meet organizational objectives. It assesses various approaches, such as proactive development and training, performance management techniques, recruitment strategies (online job boards, recruitment agencies), and selection methods (multi-variate hiring). Case studies illustrate the application of HR practices to improve workplace environments, employee motivation, and product quality. The report further discusses employee relations, engagement, and the importance of employment legislation. Task 2 delves into applying HR practices in a work-related context and improving recruitment and selection processes. The conclusion summarizes the key findings and the impact of effective HRM on Pepsico's overall performance and profitability. The report highlights how strategic HRM contributes to achieving business objectives and ensuring employee well-being and productivity. It stresses the importance of adapting HR strategies to improve workplace environments and employee satisfaction.

Human Resource
Management
Table of Contents

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Purpose of HR Function and Roles and Responsibilities of HR Function in Acquiring
Talent to meet Organisational Objectives..............................................................................3
1.2 Assessment of Various Approaches.................................................................................4
1.3 Case Study Examples to Examine Different Methods of HR Practices...........................7
1.4 Approaches and Effectiveness of Employee Relation and Engagement .........................7
1.5 Key Aspects of Employment Legislation.........................................................................9
1.6 Role of Employee Relations and Employment Legislations in Decision Making and
Achieving and Meeting Organisational Objectives................................................................9
TASK2...........................................................................................................................................10
1.7 Applications of HR practices in a work related context.................................................10
1.8 Use of various sources for improving recruitment and selection process......................13
CONCLUSION .............................................................................................................................13
REFERNCES.................................................................................................................................15

INTRODUCTION
Human Resource is used to describe both the people who work for an organisation and
the department which is responsible for managing resources related to employees. Likewise,
Human Resource Management can be defined as the management and development of
employees in an organisation (Armstrong and Taylor, 2014). The following report is based upon
Pepsico Company and will provide an understanding about the various HR Functions within the
company which are carried over in order to increase the profitability level and efficiency of the
company in productivity areas. Pepsico is an American MNC dealing mainly in food beverages,
which is headquartered in Harrison, New York. The report will provide what actions will be
taken by Pepsico to make this improvement. It is also focus upon applying different HR Practises
in the successful working of an organisation.
TASK 1
1.1 Purpose of HR Function and Roles and Responsibilities of HR Function in Acquiring Talent
to meet Organisational Objectives
HRM: It is known as a specific term that can be used to describe formal system which
would devised for overall management of employees within PepsiCo. The overall roles and
responsibilities of a HR manager to select appropriate candidates for the right jobs roles.
HR Functions can be defined as the necessary activities which the HR Manager of
Pepsico has to do such as hiring and training, record keeping, payroll, compensation, labour law
compliance, etc. The purpose of HR Functions is discussed as under:
Recruitment and Training:
It is an important function of HR Manager to recruit and train the employees of Pepsico.
It involves advertising of vacant positions, hiring, interviewing, and setting the hours of their
training. The purpose of this HR Function is to obtain efficient and the best employees so that
their work can help Pepsico in meeting their organisational objectives.
Employee Performance Improvement Plans:
The HR is also responsible for making a timely evaluation of the performance of their
employees. It is done by preparing many PIP Plans (Bratton, and Gold, 2017). The purpose of
this HR Function is to increase and enhance the performance level of the employees of Pepsico
and this will contribute towards increasing the productivity and profitability of the company.

Ensuring Compliance with Labour Laws:
This function makes sure to the HR Manager that Pepsico is working in accordance with
the compliance of labour laws. It includes issues such as time of breaks provided, number of
working hours, etc. The purpose of this HR Function is keep employees happy and motivated
and other purpose is to avoid intervention of government in case the company is not following
the rules and regulations of labour laws which will also affect the working, productivity and
profitability of Pepsico.
Roles and Responsibilities of HR Function:
 To make the best decisions in recruiting employees for vacant posts in Pepsico.
 Providing them training so that they may efficiently and effectively complete the task
they are provided with.
 Making proper assessment of every employee's performance.
 Creating plans and doing the needful in order to improve their performance level.
 Conducting proper and scheduled HR Compliance audits. Staying updated with any change made in the labour laws and their best application in
Pepsico.
Significance of HR Manager in Acquiring Talent to meet Pepsico's Objectives:
The objective of the business is to provide the customers improved quality of goods
which are not only good in taste but also considers about the health of customers and meet their
needs. Another objective of the business is to expand the business HR Manager is very important
in acquiring talent for the business because HR is the only person who is personally engaged
with both the requirement and the talent. Requirement here refers to skills, knowledge and
qualities which are required in a person to suit the post vacant in the organisation (Bailey and et.
al., 2018). Likewise, Talent refers to pool of choices which the HR has and to select the best
candidate. Both the proper knowledge of company's requirements and the capability of a
candidate is in the knowledge of HR and he is the only person to provide the best skills to
Pepsico. This is why HR is important in acquiring talent to meet the business objectives.
Managerial and operative functions: The HR manager is crucial part of PepsiCo overall
management. Thus he must be able to perform all managerial functions such as planning,
organising and directing in relation to their concern department. It would be effectively helpful
for attaining overall profitability of an organisation during period of time. Whereas, there are

certain operative function which are related with the task or duties which are specifically
entrusted to HR department. These are related with employment, development and integration as
well as maintenance of personnel of Pepsico. Like, recruitment and selection tends to cover the
sources of supply of labour and devices which are design to choose the right types of people for
various roles and jobs.
1.2 Assessment of Various Approaches
Development and Training:
Development refers to growth of an employee and the future performance. Training
refers to a program that helps in learning specific knowledge or skills in order to make
improvement in their current performance.
Approach to Development and Training:
Proactive Approach: In this Approach, the main focus of organisation is not only to
improve the current methods of training but also to extend training to wider segments (Briscoe,
Tarique and Schuler, 2012). This approach will help Pepsico to gain competitive advantage and
also in enhancing the skills of their employees.
Performance Management:
With the help of this approach, the managers of Pepsico will be able to able to increase
the performance of their employees by providing them regular feedback on their work.
Approaches to Performance Management:
Results Approach: This approach focuses on the final result or outcome of the effort
made by the employees to a task (Chelladurai and Kerwin, 2017). In Pepsico, employees can be
awarded on the basis of the outcome of the task they completing in both positive and negative
ways.
Recruitment and Selection:
It refers to the process of attracting and choosing the right candidates for the post vacant
in an organisation.
Approaches to Recruitment:
Online Job Boards and Websites: In this approach, candidates are directly attracted by
putting advertising related to job on the website of company. This approach is useful for Pepsico
because the candidates can easily access to this site and can have all the information that they

want related to the job (Jiang and et. al., 2012). The strength and weakness of this approach is
explained below:
STRENGTH WEAKNESS
 It provides a wider choice to Pepsico to
recruit candidates from different
geographical areas.
 When more number of people applies
to a certain post, it becomes complex
for the HR to conduct interview of all
candidates.
Recruitment Agencies: In this approach, Pepsico can recruit candidates by making use of
recruitment agencies to fill in the vacant post of organisation. The use of this approach will be
useful for Pepsico to avoid conducting interview of large number of people, from here it can
refer to only those people which fits for the requirements of the post vacant.
STRENGTH WEAKNESS
 Using this approach will remove the
burden of HR of conducting more
interviews and he may make decisions
more effectively.
 It will become costly for Pepsico as
they will also have to pay some charges
to recruitment agency.
Approaches to Selection:
Multi-Variate Hiring Approaches: In this approach, the candidates are selected on the
basis of their various skills and abilities (Buller and McEvoy, 2012). The use of this approach
will inform about the multiple skills and qualities of an individual.
STRENGTH WEAKNESS
 It provides a better choices of selection
of candidates to Pepsico.
 Hiring on the basis of different skills
does not decrease the competency level
of an individual for the particular post
he is applying.

Workforce Planning: It can be defined as strategy used by employers in order to anticipate the
needs of labour and distributing them as per the needs of company.
Approaches to Workforce Planning:
Model Current Workforce: The Model can be used for assessing the current workforce in
term of their capabilities, efficiency level, and distribution which allows HR Manager to develop
effective gap-closing strategies for the company. The use of this approach will make the proper
and efficient distribution of employees in the company.
Rewards Systems: It can be defined as the programs which are set up by the company in order to
rewards the employees on the basis of their performance.
Approaches to Reward System:
Traditional Compensation Approach: This Approach is focused upon rewarding employees on
the basis of their tasks and duties performed by them. The use of this approach will increase the
morale of employees in the company and their performance can be enhanced.
1.3 Case Study Examples to Examine Different Methods of HR Practices
In time, when the employees of Pepsico were not feeling safe to work at the workplace
due to the bad working environment, they started to take uninformed leaves, resignation which
reduced the performance of the company and also the quality of their products in the market. To
deal with this situation, Pepsico used different methods of HR Practices to deal with this
situation:
 Firstly, it started improving the workplace environment by making the place clean, safe,
and hygiene to work for the employees. Proper place for working of employees keeps
them healthy and motivated to work as employees are the most important source for a
company (Renwick, Redman and Maguire, 2013). This improvement is beneficial for
both employer and employee as employer will the work done in a good way and the
employee can successfully accomplish their work. It can be accomplished by conducting
seminars and making aware about the importance of proper working environment.
 After that, it started motivating their employees through monetary and non-monetary
rewards which also increase the motivation level of employees. It also helped in reducing
absenteeism of employees. It is beneficial for employee as their personal aims and
objectives can be completed with these benefits and for Pepsico, the stability of

employees which is beneficial for it. The motivation level of employees can be increased
by providing them incentives based on their performances.
 Reduction in demand of Pepsico is covered with the help of providing training to
employees and making improvement in the quality of products. Training helped a lot in
covering the lost demand of product and also to make stable the employees of Pepsico
(Alfes and et. al., 2013). It is beneficial for employees as their skills and knowledge will
be enhanced and for the employer it is beneficial as the quality of work is enhanced,
hence the company will earn more profit. It can be accomplished with the help of
providing on job training to the employees.
Benefits of various HRM practices:
 Training and development: This would be states that the companies that they should
do investment on the maximum basis in training time. Thus the employees can
improve their skills and ability in more effective manner.
 Flexibility: In an organisation, by providing appropriate role and quality to their
employees can help them to motivate to transform their role into their own capability.
 Reward management: This is the one which motivates the employees to perform
their work more effectively. It is basically given on the basis of their overall
performance shown during the period of time.
 Motivation: It would be more effective in case the company used to provide valuable
allowance and retention benefits to their employees. This will assist them perform
their job more effectively.
Benefits to employees Benefits to employers
1. Training and development helps increase
skill level and area of knowledge of employees
in PepsiCo.
2. HRM practices are vital for employees as
they tend to provide a well perception free
situation to employees.
1. In case of employers, training and
development is co-operative in employee
retention thus collective productivity of their
organisation.
2. choosing right kind of applicants assist
managers and proprietors in attaining
organisational areas within quantified time

frame.
1.4 Approaches and Effectiveness of Employee Relation and Engagement
EMPLOYEE RELATIONS:
Employee Relations can be defined as ensuring that an individual employee and the
collective relationship between the organisation and employees are maintained properly.
Employer of Choice can be defined as to become an employer with which every worker wants to
work. The approaches and effectiveness to employee relation are explained as under:
Human Relations Approach: According to this approach, the relation between employee
and employer is not maintained because of not providing freedom to express their thoughts and
views and control over their living style. Employees want security, safety and respect at the
workplace so to avoid the dispute at workplace, employers must create a friendly environment
and should also respect their employees.
Effectiveness of Employee Relations: Employee Relations are an essential part for the
smooth working of an organisation. Pepsico should also respect their employees and maintain
relationship in between them which will help in attaining the objectives of business easily. It can
also be done by providing employees flexible working hours, days, policies etc. The company
can also provide equal opportunities to all employees and take advantage of company's
incentives which will remove personal bias towards any employee (Jiang and et. al., 2012). In
flexible organisations better employee relation will help in easily adapting the changes. In
addition to this, the company can also provide flexible working hours, leaves as per the needs of
employees so as to make better the relation between company and employees. These things will
help the company to become “employer of choice” that means an employer with which every
employee wants to work.
Sharing information: It is one of the crucial aspects of an organisation growth. This
practices of HRM assist employees to determine all kind of pattern which has been followed
within an organisation. It would assist in gaining skills regarding work and ability which has
been carried out by the people. It will assist employees to use their skills and knowledge from
one another in order to attain their targets and aims in more reliable manner.

Performance management system: It is one of the crucial process which is used by a
PepsiCo to review employee’s performance during the upcoming period of time. The leader used
to create overall development plan that can supports employees aims as far their goals.
Reward system is one of the valuable practices which would be more effectively helpful
for Pepsico in order to increase overall productivity of an organisation. This will also increase
overall growth potential and productivity among employees.
EMPLOYEE ENGAGAMENT:
It refers to the level of commitment that the employees do have to their employers such
as the willingness to stay with the firm. Every firm want that they must have employee with them
for a long time and their contribution towards company's success. The approaches and
effectiveness of employee engagement is discussed as under:
Rewards Scheme: In this approach, by making use of various rewards schemes such as
financial or non-financial, promotion, free transport can be provided to employees by Pepsico.
With this, the employees will feel motivated and devoted towards the work they are provided
with.
Effectiveness of Employee Engagement: It will be clear from the work of employees that
they are engaged in the work or not. The effectiveness of employee engagement can be seen
from the work performed by them as the results of work performed by them will be up to the
level of expectations. Employee engagement will be increased as they are provided with flexible
working practises. This will increase the level of satisfaction of the employees and they will do
their work more effectively and efficiently. It will help Pepsico in becoming “employer of
choice”.
Importance of Employee relation: It is one of the crucial aspects which either improve
or spoils the relations of an employees. It will help to increase the productivity by building
relations through creating a pleasant environment at the workplace. It will increase the
employee’s motivation and can also increase by make modification in employee moral with
Pepsico business operation. It is valuable because human resources and organisation growth is
heavily relying on the overall productivity of a company’s entire workforce.
The needs of every employee are different from one another and it is also not possible
for the company to motivate every employee in the same way. As such some employees prefer to
have good working environment, some are focused on the incentives whereas some are focused

on promotion. The effectiveness and ineffectiveness of different HR Practises are different for
different people. But looking overall, so in the increment of organisational profit and
productivity could be only achieved in case the company is providing good working environment
and good salary with incentives to that their motivation level could be maintained and increased
which will help the company in increasing their productivity and profit. So the most effective
way considered for the company in order to increase their productivity and profit is by providing
them goo environment and proper salary with incentives.
1.5 Key Aspects of Employment Legislation
In an organisation, there are many key aspects of employment legislations which are
covered. Employees are not discriminated on only one ground so the government had covered
almost all the discriminations that may occur. For these separate laws are created such as
Equality Law, Employment Rights Act, Equal Pay Act, Sex Discrimination Act, Disability
Discrimination Act, The National Minimum Wage Act, etc. must be followed by any business in
times of decision-making of HRM as the plan or decision made by this department will be
affected if there occurs any change in the legislations (Purce, 2014). Pepsico should also work
according to all these legislations so as to keep the employees happy and motivated and reduce
the government intervention. The explanation of these legislations are explained under:
 Equal Pay Act, 1970: In accordance with this Act, both the men and women will get
equal pay for their work. This Act prevents the discrimination on grounds of their gender.
Pepsico should also pay equal wages to their both men and women workers.
 Sex Discrimination Act, 1975: According to this Act, it becomes unlawful to discriminate
both men and women on the grounds of their gender and marital status. For avoiding the
interference, Pepsico should not discriminate their employees on the basis of their sex.
 National Minimum Act,1998: According to this Act, every employee has the right to get
minimum wages set under this Act for their work. So Pepsico must provide wages to their
employees in accordance with the Act.
1.6 Role of Employee Relations and Employment Legislations in Decision Making and
Achieving and Meeting Organisational Objectives
Employee Relations: For achieving the objectives of Pepsico, it is compulsory to
maintain proper relation with the employees. It refers to the relationship that the employer and
employee have with each other. If this relationship is maintained properly that it will easy for

Pepsico to achieve the organisational objectives in a smooth manner as employees will also
contribute their part in the success of Pepsico. Further, when employee's ideas will also be taken
into consideration and respected than it will also affect the decision making process of Pepsico as
some decisions can be provided by employees which the management cannot think off.
Employment Legislation: Laws and rules which governs the relationship between
employer an employee can be said as Employment Legislation. The objectives of Pepsico can
only be met by following the employment legislation made by the government. As it will reduce
their intervention in the working of Pepsico and the working can be smoothly carried out. These
laws influence the decision making of Pepsico. The very first influence is on decisions regarding
the workplace designs and safety measurements of the workers where the HR Personnel should
comply with the minimum requirements otherwise will be legally penalised. These Legislations
also controls the payroll policies of Pepsico (Jackson, Schuler and Jiang, 2014). In addition to
this, if Pepsico works according to the rules and regulations that it can avoid the government
intervention in their operations and achieve the business objectives.
Rules and regulation is one of the key component which governs different laws and norms
for employees and employer at the same point of the time. These laws must enable Pepsico to
carry out their business more transparently for longer period of time. The manager of Pepsico
need to adopt the all above employment legal laws in order to carry business more efficiently,
thus it can increase the growth of their organisation and attain overall business growth in coming
time.
Good relation of employees with the company can easily influence the decision making
process of the company. As the company is having good relation with their employees so they
are provided with sufficient authority to take participate in the decision making process of the
company. This will also provide the company with new suggestions and could even provide with
better ideas which the management had not even thought of. In this way good employees relation
could help in the growth and development of the company in a better way and will contribute
towards its success, growth and development. Only in the case, Pepsico have good relation with
their employees it will be possible for the company to act the employees properly on the
guidelines provided by them. For example, Pepsico always invites suggestions from their
employees regarding any decision so this will create a feeling of being important for the
company in the employees and this feeling will help in motivating them and will bring positive