Organizational Culture's Impact on Effectiveness: A PepsiCo Case Study

This research report investigates the impact of organizational culture on organizational effectiveness, focusing on PepsiCo. It discusses motivation theories like Maslow’s hierarchy of needs and Vroom’s expectancy theory, alongside Handy’s four types of organizational culture. The study incorporates primary research via a survey of 20 PepsiCo employees across various departments, analyzed using thematic analysis. Findings suggest that motivation, culture, behavior, and communication within PepsiCo are generally positive, though some employees expressed concerns about opportunities for advancement and the positivity of the value system. The report concludes with recommendations for enhancing organizational culture to further improve employee satisfaction and company performance. Desklib provides access to similar reports and solved assignments for students.

Organizational behaviour

EXECUTIVE SUMMARY
The current research report has been commissioned to analyse the manners in which
organizational culture impacts the effectiveness of the success of the organization. The
current research report has discussed different theories and models related to motivation and
organizational culture which helps in effective communicating and encouraging employees.
Other than this, the report has also thrown light on the impact of culture on the success of the
organization by conducting both primary as well as secondary research. The primary research
is being emphasized on PepsiCo and s being performed by carrying out survey of 20
participants who are employees of the company placed in varied departments. The findings
suggest that motivation, culture, behaviour as well as communication within the firm are
quite outstanding.

CONTENTS
INTRODUCTION......................................................................................................................1
MOTIVATION..........................................................................................................................1
Maslow’s hierarchy of needs theory.......................................................................................1
Vroom’s Expectancy theory...................................................................................................2
ORGANIZATIONAL CULTURE.............................................................................................2
Handy’s four types of organizational culture.........................................................................3
PRIMARY RESEARCH, FINDINGS & DISCUSSION..........................................................3
Primary research through survey............................................................................................3
Presentation of findings of the survey results.........................................................................3
Discussion of the findings......................................................................................................5
CONCLUSION..........................................................................................................................6
RECOMMENDATIONS...........................................................................................................6
REFERENCES...........................................................................................................................7
APPENDIX................................................................................................................................8
Questionnaire..........................................................................................................................8

INTRODUCTION
For meeting the goals as well as objectives, each and every individual organization
consider their own culture. In the same manner, PepsiCo has developed a culture for the
requirements of the firm and its employees which impacts the work of each and every one.
Ensuring effective communication with each and every member is an integral part of the
culture of the organization (Hersey, Blanchard and Johnson, 2017). In the context of the
organization, employees and their behaviour are majorly relied on the motivational theories
along with the policies and culture of the company. Pertaining to this, the current research
report will discuss different theories and models related to motivation and organizational
culture which helps in effective communicating and encouraging employees. Other than this,
the report will also going to throw light on the impact of culture on the success of the
organization by conducting both primary as well as secondary research.
MOTIVATION
Motivation is being referred as an intellectual decision making which involves
purpose of making the behaviour which is expected to achieve a specified objective by
observing as well as commencement. Talking in terms of workplaces, reviews are being
carried out through utilizing appraisals which have some prearranged standards. The results
of these might provoke emotional response in the workers and this response will help in
identifying their level of satisfaction (Martin and Frost, 2016). If the ratings are good in the
reviews, workers will be highly contended however if it is quite lower then they will not be
satisfied. Motivation can come from both intrinsically and extrinsically. Some of the
important theories related to motivation are being elaborated below:
Maslow’s hierarchy of needs theory
This theory of motivation explains that people desire to attain several things in life
and their requirements are being arranged as per their significance. The content theories of
job satisfaction is also based on Maslow’s need hierarchy theory. It also rotates around the
requirements of the workers and the factors that offers them adequate amount of contentment.
There are five stages being developed by Maslow on the basis of physiological, security,
social and psychological needs. This theory of motivation helps in categorization of the needs
of individual and arrange their attainment (Hartnell, Ou and Kinicki, 2017). At the bottom of
the pyramid, Maslow has explained the first basic needs of individual that is food, shelter and
clothing. Once this is satisfied further needs related to safety and security arise. Then comes
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the social needs which involves making connections with people and further there is a self-
esteem needs which demands recognition and praise from others. The top most need in the
pyramid is self-actualization needs which includes desire for achievement or in other words
leaving a legacy. This theory is being considered as the foundation for the theories which
makes an effort to explain job satisfaction.
Vroom’s Expectancy theory
According to this theory, the behaviour of the individual is majorly dependent on the
activities being chosen by them. Each and every person select a specified type of behaviour
over another behaviour in order to gain expected outcomes. Varied components of motivation
are being involves in this process theory such as instrumentality, expectancy and valence.
Due to this it is being called as VIII theory. It states that motivation force is linked to valance
and expectancy. Focusing in relation with expectancy, it is being referred as the belief that if
the employees will increase their efforts it will result into increased level of performance.
Through working hard, employees will have higher output and motivation (Mullins, 2018).
This is impacted by three things that availability of right resources, skills and right amount of
support from other to get the work performed. Instrumentality, on the other hand is the belief
that if the workers performed in an effective manner, they will get the desired result.
Moreover, if they work even better, the results will be much better. This is also influenced by
three things that is comprehension amid result and performance, building trust and
transparency in the process. Finally, valence is crucial for the people who emphasize majorly
on expected result. For position outcome, employees must attain the result. It involves two
elements such as effort-performance expectancy and performance-outcome expectancy,
ORGANIZATIONAL CULTURE
Culture is being referred as a set of ethics, moral values and social behaviour in the
society. Organizational culture is very complex in nature due to the fact that each and every
employee come from varied backgrounds and thus, holds dissimilar opinions and belief
system. Seeking help from the culture of the organisation, a common belief is shared by each
and every member. It is the culture through which people communicate with each other.
Furthermore, organizational culture helps in creating a custom for the workers which has to
be adhered by them for effecting functioning (Anteby and Anderson, 2014). Thus, it can be
said that organizational culture is very important as it can make the difference and leads the
firm to the path of success and growth.
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Handy’s four types of organizational culture
Charles Handy has developed a model which includes four types of culture such as
role, task, power and person culture. In the power culture, power remains in the hands of
selected individual and there are only few people who possess an authority to make crucial
decisions. In relation with the role culture, each and every worker in the organization have
their own roles and accountabilities as per their specialization or qualifications. In such type
of culture, it is employees who makes decisions about the best they can do. On the other
hand, in case of a task culture teams are being formed for completing certain specified project
or assignment. Employees with common interest come together and performs activities in
group. Finally, the last one of person culture and in this type of culture, employees give more
importance to oneself and not the organization (Gabriel, 2015). They never takes decision in
favour of the organization and seldom remain loyal towards the management.
PRIMARY RESEARCH, FINDINGS & DISCUSSION
Primary research through survey
The primary research is being emphasized on PepsiCo. It is being performed by
carrying out survey of the participants who are employees of the company placed in varied
departments. A survey is performed through seeking help from the questionnaire. A total of
20 employees were being chosen as a sample for the study and they have been selected
through seeking help from random sampling method. A total of five questions were asked to
them for gaining understanding as well as knowledge in relation with the culture of the
organization, incentives techniques adopted for motivating them, communication methods
adopted and conduct of the organization. Furthermore, the collected information from the
primary research study is being analysed through adopting thematic analysis technique. In
this common themes and patterns of the responses is being created and presented
significantly for better understanding and evaluation of the results.
Presentation of findings of the survey results
Theme – 1: Positive value system which the company understands and believe it
When this was asked from the participants being involved in the primary research
whether your organization have a positive value system that it understands and also believe it
than around 12 out of 20 participants stated that yes the company follows a positive value
system in their culture and they are highly satisfied with that. the other 5 of them were of the
view that they are somewhat satisfied with the value systems being adopted by their company
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and further stated that it is not that much positive. However, the remaining 3 were of the view
that they are not satisfied with the value system engrossed in the culture of their company.
The environment in which they work is not friendly and due to this their performance level is
impacted.
Theme – 2: Opportunities to the employees to involve in decision making process
When it was investigated to the participants in relation with the opportunities being
provided to the workers for involving themselves into the crucial decision making process of
the company than around 10 of them responded that the firm offers opportunities to take part
in the decision making process and they are contended with what the company is being
offering to them. On the other hand, there were 5 participants who stated that they are quite
neutral with their answers and further stated that they are satisfied and somewhat dissatisfied
with the culture of the firm. The remaining 5 participants were of the view that no
opportunity is being provided by the firm company to involve in the decision making process.
Theme – 3: Satisfaction with the strategies adopted by PepsiCo for motivating their
employees
When asked in relation with the satisfaction level of the strategies being adopted by
the organization for motivating and encouraging the employees than around 13 respondents
stated that they are highly satisfied with the strategies being used by their company to
motivate them. They further stated that they are given both intrinsic and extrinsic motivation
for performing higher and better. However, the remaining 7 respondents holds an opposite
opinion. They were of the view that the approaches being used by the company for
motivating them towards higher work performance is not up to the mark which resist
employees to work better and effectively.
Theme – 4: PepsiCo a nice place to work
At times when the primary research study involved question in relation with whether
the company is nice place to work, to this around 16 participants responded that yes they
think that the company is quite nice place to work as it offers different opportunities to get
involve in the decision making process while some stated the reason that it understands the
feelings and sentiments of employees and makes every effort to make them motivated and
satisfied. Nevertheless, there were 4 participants who stated that PepsiCo is not the nice place
to work as it does not have a positive value system and does not care about the workers.
Theme – 5: Company is offering prospects for career advancement
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When it was asked from the participants being involved in the primary research study
that whether the firm provides them prospects of advancing their career than around 11 of
them responded that there are different prospects being offered by the company through
which they can advance their career. In addition to this they also uttered that the managers
and leaders of the company takes personal interest in the career gaols of their workers.
However, there were 6 participants who were of the view that company offers very little
prospects for career advancement. While the remaining 4 were of the opinion that not a single
opportunity is being provided by the organization for advancing the career of the employees.
They firm is engaged towards achieving their professional goals and personal goals of the
employees are not valued.
Discussion of the findings
From the above findings it has been emerged that the culture of
PepsiCo is quite healthy, friendly and positive. The company majorly
follows task and role culture where each and every employees have some
roles and responsibilities. In addition to this, it has been also originated
from the analysis that the firm has not only offered their personnel an
opportunities to involve in the crucial decision making process of the firm
rather they have also modified and altered their strategies and technique
in response to the current trends in the industry. Other than this, one of
the theme that relates to the satisfaction level of the employees with the
strategies being adopted by PepsiCo for motivating their workers also
presents the facts that majority of the employees are contended with the
approaches being utilized by the managers and leaders of the company
for motivating them.
Further, it was also originated that the organizational culture is far
more superior and respectable. Such type of culture is beneficial both for
the growth of the company and success of the employees. The findings
from the secondary researches also coincides with the outcomes of the
primary research study that workers are motivated as per their needs at
PepsiCo. It was found out that the firm makes use of job security, annual
performance appraisal, pay allowance, free meals and drinks, bonuses,
cash rewards, recognition, promotion and free dispensary for encouraging
and supporting their workers both intrinsically and extrinsically. It has also
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been found out that the organization is a nice place to work as most of
them are highly satisfied with the organizational culture and strategies
adopted by the firm for upholding their workers. The findings suggested
that the organizational culture along with the motivation at PepsiCo is
outstanding, but it has some space for further advancement.
CONCLUSION
Thus, from the above analysis it can be concluded that each and every aspect of the
firm that is the motivation, culture, behaviour as well as communication are quite
outstanding. One of the most vital feature of the company is its culture and behaviour.
Seeking help from the organizational behaviour, the life of people or employees within the
organization can be better comprehended as well as forecasted. The major reason for its
significance is that culture of the organization is being developed through its people who
perform different tasks in the company. As far as PepsiCo is concerned, the company follows
the task and role culture which involves choosing a team for fulfilling a specified project or
task. This is being regarded as the most efficient techniques for performing a task in the
current modern world. Further, it has been explored that seeking help from this culture, the
employees are independent to make their own decisions in a team or group and at the same
time they also feel valued. As they are being selected within the team they have overall
accountability of taking the work to an effective conclusion.
Further, with such type of culture all the workers or members of the team feel
motivated as they are authorised to make decisions. PepsiCo is a well-known multinational
organization and the firm has reached novel heights due to its efficient workers and their
higher level of performance. Additionally, performance of each and every individual is
graded in different phases and each phase is accurately supervised. Thus, it can be said that
the culture within the company is one of the gaols setting as well as effective communication.
The management of the firm identifies the key accountabilities of each employees on the
basis of the efficient of the skills.
RECOMMENDATIONS
For making improvement in the existing culture of the organization it is highly
suggested to the company to demonstrate to the workers that they are very crucial for the firm
and are being valued by them. This can be reflected by inviting them to share their thoughts
at the time of culture discussion and operations. In addition to this, it is also significant that
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the firm should carry out periodic audits of their culture for example, annually. Other than
this, workers also feel motivated and encouraged when they are being offered flexibility by
the organization (). In addition to this, engaging, empowering, improvement in orientation
and on boarding, coaching, recognizing and establishing open lines of communication are
some of the strategies and approaches which can be adopted by the company for enhancing
their organizational culture and level of motivation of the employees.
REFERENCES
Books and journals
Anteby, M. and Anderson, C., 2014. The shifting landscape of LGBT organizational
research. Research in Organizational Behaviour, 34, pp.3-25.
Gabriel, K., 2015. Organizational Development, Organizational Culture, and
Organizational Change. SSRN Electronic Journal.
Hartnell, C.A., Ou, A.Y. and Kinicki, A., 2017. Organizational culture and organizational
effectiveness: a meta-analytic investigation of the competing values framework’s
theoretical suppositions. Journal of Applied Psychology, 96(4), p.677.
Hersey, P., Blanchard, K. and Johnson, D., 2017. Management of organizational behaviour.
New Delhi: Pearson India Education Services.
Martin, J. and Frost, P., 2016. The organizational culture war games. Sociology of
organizations: Structures and relationships, 315.
Mullins, L., 2018. Management and Organisational Behaviour. 9thed. Harlow
Pearson/Prentice Hall FT.
Online references
PepsiCo Inc. 2015. Diversity & Inclusion. [Online]. Available through:
<https://www.pepsico.com/Purpose/Talent-Sustainability/Diversity-and-Inclusion>.
[Accessed on 26thFebruary 2022].
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APPENDIX
Questionnaire
Q1. Is your company has positive value system that understands and believe it?
___________________________________________________________________________
___________________________________________________________________________
Q2. Did your company offers opportunities to the employees to involve in decision making
process?
___________________________________________________________________________
___________________________________________________________________________
Q.3 Are you satisfied with the strategies adopted by PepsiCo for motivating their employees?
___________________________________________________________________________
___________________________________________________________________________
Q4. Do you think PepsiCo is the nice place to work?
___________________________________________________________________________
___________________________________________________________________________
Q5. In your opinion whether the company is offering any prospects for career advancement?
___________________________________________________________________________
___________________________________________________________________________
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