PepsiCo: Employee Motivation and Organizational Culture in Pakistan

This postgraduate dissertation examines the impact of PepsiCo's organizational culture on employee motivation within the Pakistani context. The research begins by establishing the dynamic nature of the business environment and its influence on internal relationships. The study aims to determine how PepsiCo's company culture affects employee motivation levels, following a structured approach across eight chapters. The initial chapters provide background information, research objectives, and a review of relevant literature on organizational culture and employee motivation, relating these concepts specifically to PepsiCo. The methodology chapter outlines the research processes, including the survey conducted among 100 participants at PepsiCo. The subsequent chapters present an analysis of the survey results, including descriptive and inferential analyses (correlation and regression), followed by a discussion of the findings, limitations, and recommendations for improving employee motivation through organizational culture. The dissertation concludes by answering research questions, linking them to objectives, and suggesting avenues for future research.

Running head: PEPSI CO
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Dissertation Title The effect of Pepsi co culture on employee motivation in
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The effect of Pepsi co culture on employee motivation in Pakistan
Submitted by
Mohsin khan
Student ID 3705459

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Acknowledgements
I would like to express my sincere appreciation to my supervisor knapp colin for his
guidance and help throughout my research dissertation . My research dissertation
would not have been successful without the support and his valuable feedbacks . I
would like to gratitude to all of my professors and my family they always support me
during my studies .

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Abstract
The business environment can be understood to be imperatively dynamic in nature
and this has an overall strong impact on the relationship dynamics which take place
within the scope of the firm. In line of this, it can be mentioned that, the balance
between the different manager and employee aspect has also been changing
considerably and hence, this needs to be captured and put to better use. The focus of
the research report lies on finding the Impact of the company culture at Pepsi in
Pakistan on the overall motivational levels of the employees. The paper follows a
systematic layout where the paper has been divided into five chapters with each of
the chapters focusing on the aim of the research. The first chapter lays down the
background of the research which is then followed by the objectives and rationale of
the research.
The paper also discusses the various theoretical concepts related to the overall
meaning of Organizational culture and employee motivation and relates them to
Pepsi. Additionally, the research techniques lay out the various research processes
which have been adopted for the paper and this has been follows by the chapter on
Analysis which presents the results of the survey carried out amongst 100
participants at Pepsi. The results have been discussed and analyzed in the following
chapters. The last chapter wraps the paper and provides certain recommendations
which can be followed by the managers at Pepsi. Through the research it was found
that the Organization culture tends to have a huge impact on Pepsi`s employee
motivation and that considerable efforts to improve the same have to be undertaken
by the firm.

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Table of Contents
Chapter 1: Introduction.................................................................................................6
1.1 Overview.............................................................................................................6
1.2 Background of the topic......................................................................................8
1.3 Problem statement............................................................................................10
1.4 Research Questions...........................................................................................11
1.5 Research Hypothesis.........................................................................................11
1.6 Research Rationale and Significance of the study............................................12
1.7 Structure of the Paper.......................................................................................12
Chapter 2: Research aim and objectives.....................................................................14
2.1 Research aim.....................................................................................................14
2.2 Research Objectives and Justification..............................................................14
Chapter 3: Literature Review......................................................................................15
3.1 Overview...........................................................................................................15
3.2 Company culture...............................................................................................15
3.2.1 The change in the organizational culture.......................................................17
3.2.2 Factors affecting company culture.................................................................18
3.2.3 Benefits of having a positive workplace culture............................................21
3.3 Employee motivation........................................................................................24
3.3.1 Extrinsic motivation.......................................................................................24
3.3.2 Intrinsic motivation........................................................................................25
3.3.3 Benefits of employee motivation...................................................................25

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3.3.4 Factors affecting Employee motivation.........................................................26
3.4 The Conceptual Framework.............................................................................29
3.5 Summary...........................................................................................................29
Chapter 4: Research methodology..............................................................................30
4.1 Overview...........................................................................................................30
4.2 Research Outline...............................................................................................30
4.3 Research strategy..............................................................................................30
4.3.1 Research Philosophy......................................................................................30
4.3.2 Research Approach........................................................................................31
4.3.3 Research Design............................................................................................31
4.4 Research process...............................................................................................32
4.4.1 Research type.................................................................................................32
4.5 Sampling Technique.........................................................................................33
4.6 Research method...................................................................................................34
4.7 Ethical considerations...........................................................................................35
4.8 Accessibility issues and Foreseen Limitations.....................................................36
4.9 Summary...............................................................................................................36
Chapter 5: Analysis and Findings...............................................................................37
5.0 Overview...........................................................................................................37
5.1 Analysis............................................................................................................37
5.1.1 Descriptive Analysis......................................................................................38
5.1.2 Inferential analysis.........................................................................................41

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5.2.2 Correlation Analysis......................................................................................42
5.2.2 Regression Analysis.......................................................................................45
5.2.4 Hypothesis Testing........................................................................................47
5.3 Findings............................................................................................................47
Chapter 6: Discussion.................................................................................................49
Chapter 7: Conclusion................................................................................................55
7.0 Overview...........................................................................................................55
7.1 Answering Research Questions........................................................................56
7.2 Linking to Objectives.......................................................................................57
7.3 Limitations of the study....................................................................................57
7.4 Scope of future research...................................................................................57
Chapter 8: Recommendations.....................................................................................59
References...................................................................................................................63
Appendix.....................................................................................................................68

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Chapter 1: Introduction
1.1 Overview
Organizational culture can be rightfully understood to be a set of underlying
beliefs, assumptions, ways as well as values of interacting and communicating with
the different members of the firm and generally tends to contribute to a social as well
as psychological environment of the firm in focus (Alvesson and Sveningsson,
2015). The organizational culture not only comprises of the overall beliefs of the
firm but also the overall expectations which are present in the field of organization`s
expectations, experiences as well as the philosophy on which the organization is
based. Additionally the culture can also be understood to be the customs and rules
which have been developed over the time and are considered to be valued for the
overall operations of the organization (Hogan and Coote, 2014). The organizational
culture can be understood to have a key role in the overall operations of the firm and
has the overall capability to determine the manner in which the employees perform.
The culture defines and states the ultimate assumption on which the behavior of the
different employees is generally based on. According to Turner (2014), the
organizational culture also tends to have an impact on the manner in which the
people tend to interact with one another, with the clients and the stakeholders as
present. The words Organizational culture are often used in place of one another and
the other terms which are used in place of Organizational culture can be known as
the corporate culture, the workplace culture and the business culture. The work
culture of Pakistan can be understood to be related to their overall beliefs and overall
perceptions. The trust can be understood to be a big factor when the dealings in such
firms take place. The managers and employees in Pakistan believe that it is
appropriate to get acquainted with one another before any decision regarding the

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business is made. Loyalty and respect are considered to be relevant aspects of the
workplace culture of organizations in Pakistan (Culturalatlas.sbs.com.au 2019).
There exists lack of punctuality in the business dealings and the public sector of the
firm can be understood to be corrupt. In an organization, the hierarchy structure is
generally followed very strictly and all the decisions which have to be undertaken,
are taken based on the advice of the elders in an organization.
The concept of the Employee motivation can be understood to be the level of
commitment, energy as well as the creativity which the different workers of the
company will bring to their jobs. It does not matter whether the company is growing
or whether they are shrinking, the organization must always come up with ways in
which the firm will be able to motivate the employees and consider them to be a
management concern. Various competing theories, often find either involvement of
the employees or the incentives as the main motivating factor with respect to which a
firm is required to act upon (Auernhammer and Hall, 2014). However, employee
motivation often becomes problematic for the organization to manage adequately but
all the different employers as present would be required to undertake considerable
initiatives which would assist them to undertake considerable steps and procedure
and help them in convincing the different customers as present in the right manner. It
is the duty of all the firms to provide an ideal atmosphere for the motivation of the
different employees as present and allow them to function in a smooth as well
motivated workforce.
Additionally, the employees need to be provided with a tangible as well as
emotional reward which will then help them to retent the employees in the firm. In
addition to this, it will allow the employees to feel a sense of accomplishment which
goes a long way in increasing the productivity of the firm. Hence, through this

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overview, it can be understood that the project will be based on Organizational
culture and the Employee Motivation. The organization which has been chosen for
the purpose of the analysis can be understood to be Pepsi Co and the country of the
operation has been chosen as Pakistan. In regard to this, the paper will examine the
overall impact of the Organizational impact on the overall employee satisfaction in
the PepsiCo in Pakistan.
1.2 Background of the topic
The Organizational culture of PepsiCo tends to demonstrate the company`s
overall commitment to maximizing the overall strength of the company’s resources
with respect to the human resource of the firm. Pepsi Co can be understood to have a
solid case of organizational culture whereby the employees are encouraged and
valued accordingly. The employees of Pepsi are asked to provide excellence to the
operations of the firm in a cooperative manner. As the organization is the second
largest beverage firm around the world, it has been thriving consistently to improve
the overall workforce and in regard to this, it becomes extremely important to
maintain the overall positioning in the market (Turner, 2014). Hence, in such a case,
the PepsiCo makes use of the organizational culture as an overall strategic approach
to maximize the overall strengths of the employees as present. The culture of the
different people is primarily focused on the care of the employees and their ability to
achieve high business performance. In addition to this, the firm is also focused on
showing the commitment to meet the overall social responsibilities and ensure that
the employees become a better individual.
Through this high quality of corporate culture, Pepsi Co wants to ensure that
the firm is successfully being able to build the different employee skills as present
and additionally motivate the employees as well. In regard to the motivational

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aspect, Pepsi Co tends to comprise of a considerable set of motivational skills which
will help in ensuring how the firm performs and the manner in which the employees
can be guided accordingly. The various ways which are made use of by Pepsi Co to
motivate the different employees can be understood to be the Job security through
which the employees tend to understand that they would remain a permanent part of
the firm if they remain loyal to the goals of the firm and perform considerably well
(Alvesson and Sveningsson, 2015). The next way in which the different employees
at the firm are motivated is by allowing them with considerable allowances on
various aspects such as the travel, food, and housing as well as related aspects like
the medical and insurance expenses as well.
The Pepsi Co wants to portray itself as a particularly fair organization which
undertakes considerable initiatives to ensure that it is being able to attract the
employees in the right manner and this can be understood to be the reason, why the
firm tends to engage in considerable promotion as well as performance appraisal
solely on the merit bases (Auernhammer and Hall, 2014). This allows the different
employees to trust in the overall culture of the firm and in addition to this, also
allows them to improve their overall productivity which thereby improves the
performance of the firm at large. Lastly, the other means which are offered by the
PepsiCo to the different employees in order to motivate them to perform well can be
understood to be by offering them free discrepancy which then lowers their overall
medication costs and reduces their bills as well. In addition to this, they are allowed
to have Pepsi at a comparatively cheaper costs and different meal types are available
for the firm at a comparatively cheaper cost.
This further encourages the different employees to perform well and to ensure
that they are being rewarded with respect to the same. In addition to this, the

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company provides extra cash rewards to the devoted as well as sincere workers
(Hogan and Coote, 2014). This tends to apply to employees who have been present
in the firm in more than 10 to 15 years. Hence, the Pepsi Co as an organization can
be understood to be considerably fair and provides various incentives to the
employees to motivate them. However, there exists some problem in the Pakistan
branch of the firm and this is the reason that the study will be based on the Pepsi Co
in Pakistan.
In Pakistan, the current employment issues can be understood to be centered
on the alarming developments which take place in the industry and are centered on
increased flow of migrants to the Middle East and the raging unemployment which
exists amongst the educated. The reduced migration would jeopardize the source of
labor absorption and the expected net flow of the workers do not represent more than
5% of the annual increment to the current labor force. The major problem in the
country can be understood to be relating to that of unemployed educated who come
from privileged backgrounds but make a small fraction of the younger labor force.
These have political and social costs.
1.3 Problem statement
As understood from the previous section, it can be rightfully understood that,
Pepsi Co tends to take a large number of initiatives which then assist the employees
as present in the firm to p1erform well and thereby improve the overall productivity
of the firm as present. In relation to this, there have been considerable issues
regarding employee relations and related work team problems in the Pakistan branch
of the firm and it is due to this reason that the overall performance of the firm in
Pakistan needs to be assessed (Bortolotti, Boscari and Danese, 2015). Hence, the
scope of the research lies that the overall organizational culture as a concept will be