Analysis of Employee Relations at PepsiCo: A Report

This report provides an in-depth analysis of employee relations at PepsiCo, examining key concepts such as unitary and pluralistic frames of reference, and the influence of trade unionism. It explores the roles of key players in employee relations, including employers, employees, and the government, and how they contribute to maintaining a healthy work environment. The report delves into the processes for dealing with conflict situations, the features of employee relations in collective disputes, and the role of negotiation in collective bargaining. Furthermore, it assesses the impact of negotiation strategies and the influence of the EU on industrial democracy, comparing methods for employee participation and the effect of human resource management on employee relations. Overall, the report offers insights into fostering effective coordination and achieving organizational objectives within PepsiCo.

EMPLOYEES RELATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Unitary and pluralistic frames of references.........................................................................1
1.2 Changes in trade unionism affects employee relation..........................................................2
1.3 Role of main players in employee relation...........................................................................3
TASK 2............................................................................................................................................4
2.1 Process for dealing with various conflict situations..............................................................4
2.2 Key features of employee relation in collective dispute situation........................................5
2.3 Effectiveness of process used in collective dispute situation................................................6
TASK 3............................................................................................................................................7
3.1 Role of negotiation in collective bargaining.........................................................................7
3.2 Impact of negotiation strategy...............................................................................................8
TASK 4............................................................................................................................................9
4.1 Influence of EU on industrial democracy.............................................................................9
4.2 Comparing methods that are used for gaining employees participation...............................9
4.3 Impact of human resource management on employee relation...........................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Employee relation means the relationship between employer and employees of the
organisation. Management should maintain better relation with their workers so that they can do
work as per specified standards and then company can achieve it's desired result. This assist
organisation in gaining competitive advantages over its rivals. In other terms it can be said that
employee relation means mutual understanding between employees and employer. There are
many laws and regulation that assist in maintaining proper coordination between both parties
(Ayyagari, Grover and Purvis, 2011). This project is based on PepsiCo Inc. that is a
multinational company which provides food, snack and beverages etc. to its million consumers.
This report will explain about unitary and pluralistic frames of references, changes in trade
unionism that affect the relationship, procedure that should be followed by organisation while
dealing with conflicts situation, key features of employees relation and role of collective
bargaining and its impact on negotiation strategy.
TASK 1
1.1 Unitary and pluralistic frames of references
Pepsico has various framework that can be used by it for maintaining healthy relationship
with its employees. There are two types of approaches which focus on the development of
relation between employees and employer. These concepts' main objective is to increase the
efficiency and capability of workers so that they can carry out business activities in accurate
manner.
 Unitary approach- As per this framework, person,who is at managerial level of
business, will have authority and power. He will be responsible for taking important
decision. From an employees' point of view, this model includes the following things.
◦ Man power should have good skills so that they can carry out business activities an
effective and efficient manner (Baccaro and Howell, 2011).
◦ Brainstorming session should be conducted inside the company so that it can find out
the best solutions of any problems.
Thus, under unitary approach, top level managers of Pepsico make decisions regarding
business operations. Similarly, they plays crucial role in creating positive and friendly
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environment of entity and reducing disputes among workers. However, various strategies are
prepared by them for encouraging workers to contribute in teamwork effectively. Therefore, by
applying this approach, proper framework and harmony in employee employer relationship can
achieve effectively.
 Pluralistic perspectives- It includes various people like trade union, management, many
sub groups etc. that is very helpful in reducing conflicts which occurred at workplace
and also removes misunderstandings between managers and workers. These issues can be
removed by cooperative negotiations.
◦ This approach is used when employees selects their group leader and are expected
that he will only take decision for the their welfare (Bach and Bordogna, 2011).
◦ This framework believes that environment of workplace can be improved by using
values, attitudes and behaviours. In this trade union is the most important part
because it takes decision in favour of workforce that helps in motivating and
satisfying their needs and wants.
However, by using this approach, good relationship between management and workers is
created that affects their performances and entity's effectiveness. In addition to this, effective
relations are created in terms of negotiation, compromise and so on. It manages employees and
industrial relations. This approach is applied in business entities who operate on large scale.
Pepsico also follows this approach to establish good relationship between management and
workers of the organisation. It remains beneficial to succeed entity in any form efficiently. Thus,
pluralist approach is essential, for creating effective coordination among employees and creating
coordination to reach out set target. Overall, by using these perspectives, Pepsico can maintain
better and healthy relation with its worker and can achieve specified objective with in specified
period of time.
1.2 Changes in trade unionism affects employee relation
Trade union includes group of person who work for protecting the rights and authority of
man power. In this regard, a systematic policies including rules and regulations are amended in
20th century. Under which, rights for employees to provide salary, wages and setting adequate
hours has been set. In addition to this, several rules are implemented for creating relationship
among workers as well emerging equality feelings in them towards work performance.
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In current scenario, this association is formed in every company and plays various roles for the
welfare of organisation working system as well as for the employees in the following manner-
 It establishes a clear mechanism that assists in improving organisational working system.
 It redresses the grievances of employees that aids them in working properly.
At present, trade union is changing constantly that influences the employees relation and
increase employee turnover. There are certain changes in trade union of Pepsico which are as
follows-
 Technological- Now a days, there are number of latest technology that reduce the use of
labour which indirectly affects the job of people in negative manner. In this situation,
Pepsico should amend their existing legislation related to retrenchment of employees.
Technological advancement aids in improving business operation but at the cost of
employee relation (Batt and Colvin, 2011).
 Political and legal- It is the biggest factor that directly affect the employee relation in
Pepsico company. There are some rules, regulation and legal laws that are made by
government which has to be followed by enterprise that provides support in resolving all
conflicts between employees and employer.
Earlier, trade union only focuses on protecting the rights of workers but at present it also
works for removing child labour from an organisation as well as for other welfare of the society.
It is benefited for creating equality and similar feeling for each employee of Pepsico therefore
positive environment of entity can be created. Including this, it will be suitable to reduce
conflicts and disputes as well discrimination feelings among them. Hence, it is appropriate for
establishing peaceful atmosphere of the organisation at high level.
1.3 Role of main players in employee relation
In an organisation, there are many people who are responsible for maintaining better
relationship with employees. They take corrective action by which relation can be improved
effectively and efficiently (Daymon and Holloway, 2010). To maintain better coordination
between employer and worker, it is very important because it helps in achieving desired result or
outcome with in specified period of time. Following are the major players who play an important
role in improving relation in Pepsico which are given below-
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 Employer- Is that person who hires workers and pays them salary or wages and also
delegates duties and responsibilities to them. He ensures that his subordinates are
following rules and regulation and he also makes important decision that contributes in
the success of company.
 Workers- Have main responsibility to complete assigned task with in specified period of
time and in an effective and efficient manner so that firm can achieve it's target or
objectives. Staff members also has liabilities to follow all defined rules and regulation
while carry out business activities. If they are complying all guidelines then it will aid in
maintaining healthy relation with employer at work place.
 Government- It makes many legal laws and regulations that have to be followed by
Pepsico Inc. as they will be very helpful in maintaining healthy relation in business. It
also monitors the business activities on a regular basis for protecting the rights of
employees as well as of consumers and also balance the economical activities for creating
more jobs in the country (DiStaso, McCorkindale and Wright, 2011).
Above mentioned parties try to maintain healthy environment at work place so that
enterprise can attain its specifies objectives. Hence, coordination and mutual understanding
between employer and employees of Pepsico is helpful to create healthy and peaceful
environment. Including this, government interferences also impacts on organisation's
performance. However, company has to follow on rules and regulations provided in government
policies affect organisation's economic and non-monetary positions. Thus, these are the main
players of entity that influences its effectiveness and relationship among all of them.
TASK 2
2.1 Process for dealing with various conflict situations
Conflicts can be defined as issues or barriers that creates disturbance in the business
operation of Pepsico Inc. It can arise because of many reasons such as discrimination among
workers, paid salary is less as per job, while introducing new changes in the company etc.
For resolving these conflicts, Pepsico company can follow a process which is given
below-
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 Firstly, management should identify the main reason of conflicts that will provide support
in resolving it in effective manner so that it will not repeat again in future. In this
process, activities are to be implemented like; conducting face to face interview with
employees and analysing their requirements towards work performance.
 After identifying the causes, it should integrate individual objectives with organisational
objectives (Edmans, 2011). Similarly, workers' views and ideas regarding coordination
among and creating positive environment of entity.
 It should discuss the way by which issues can be resolved that can be done through
listening, proper communication, by conducting brainstorming session with in a
company.
 After completion of discussion, they should reach a solution that should be decided
mutually by both aggrieved parties.
 After find out best solution, this option will be passed by board of directors in board
meeting.
 At last, selected way of resolution will be written on contract paper or on agreement.
Above procedure is very helpful in resolving various critical situation in an effective and
efficient manner and also increase the capability of the company. It will be suitable for Pepsico
sto create good relationship among employees and creating positive environment of organisation.
Including this, it is considered that workers will be satisfied with their work and encourage to
give their best at workplace.
2.2 Key features of employee relation in collective dispute situation
Employee relation means mutual understanding between management and workers. Here
specific conflict situation is collective dispute that arises just because of improper allocation of
work among different department. From this issue, Pepsico company is negatively affected
because its sales and revenue has decreased. Following are the key characteristics of this
situation which are given below-
 Dissatisfy with the corporation- This condition has arise because company's manpower
are not satisfied with working environment of Pepsico and top level management has not
delegate the task appropriately that directly affect the performance of the company as
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well as to employee relation. For resolving this situation, management should adopt
proper communication channel so that worker can express their views, thoughts and
feelings related to their problems and can find out the best possible solution (Edwards,
2011).
 Hindering relationship between male and female staff member- This collective
disputes may harm the relation of male and female members of an organisation. In this
situation, they will not coordinate with each other that will affect the performance of the
company and then enterprise will not be able to generate desired result or outcome.
 Training- In this situation, training will be provided to the staff members so that they
can do work as per specified standards (Ferner, Edwards and Tempel, 2012). It will be
useful to enhance their working efficiencies and encourages them for doing better than
what they did. Including this, it is beneficial to reduce inaccuracy in work as well
personal and professional development can be achieved.
Hence, by following on above mentioned tools, effective relationship between employer and
employees can be established. It influences environment of Pepsico and motivates worker for
better performance at high level.
2.3 Effectiveness of process used in collective dispute situation
If any conflict arises in an organisation then in this situation, top level management is
responsible for taking corrective action so that this condition can be resolved as soon as possible
and operation can be carried out effectively.
 For sought out these situation, company can take help from dispute handling procedure
which will provide a platform in which both aggrieved parties can discuss their problems
and reach a solution.
 Pepsico company should select best communication channel so that every members of the
company can understand their duties and responsibilities.
 Top management can also provide best possible platform to its members where they can
share thoughts and can give feedback about their problems so that these issues can be
resolved as soon as possible.
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 During discussion period, management should give opportunities to its members for
asking any things related to their work so that their problems can be addressed properly.
 For resolving this critical situation, informal procedure can also be effective because
through this every members of the company can easily interact with each other by which
real cause of problems can be identified easily. This procedure will aid the management
in find out the best possible way by which these conflicts can be resolved easily (Guest,
2011).
These process is very helpful in sought out these big issues in an effective manner and by
adopting above mentioned methods, company can carry out their operations smoothly and
efficiently.
TASK 3
3.1 Role of negotiation in collective bargaining
Collective bargaining is a process by which employer and trade union negotiates with
each other related to working environment, salary and other employment terms and conditions
which has main objective is to handle various disputes which are arising at work place.
Negotiation includes various set of activities in which two or more parties enter into a
situation and try to convince each other and reach to a solution that assist in reducing conflicts at
work place (Kalleberg, 2013). It plays an important role for determining the effectiveness of
collective bargaining in following manner-
 Increase quality of work- Negotiation assists in enhancing quality of work. In Pepsico
company, workers present their problems in front of employer with the help of trade
union that negotiate with management of the company which aid in sought out disputes
from work place.
 Improve effectiveness- With the support of collective bargaining, employer discusses
about the issues that are facing by its subordinates and after it, management can reach out
to a solution with the help of employees. It motivates the worker for doing work in an
effective and efficient manner that aids the company in attaining its desired result or
outcome.
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 Negotiation process works as a support system because in this employer and employees
both discusses with each other related to some important aspect like working practises
etc. that assist in increasing the productivity of employees.
 With the help of collective bargaining process, management can easily communicate with
its subordinates and can easily implement new changes in the entire organisation.
So from the above discussion, it is clear that collective bargaining process plays an
important role because it makes an organisation effective and efficient that aids in achieving
competitive advantages over its rivals (Kalleberg, 2013). Hence, negotiation plays vital role in
effectiveness of entity and creating good relationship among workers at high level. However,
various implementations and positive environment of entity is created. Including this, it is one of
the great tool that encourages employees for better work performance also enhances them
regarding supporting all team members efficiently.
3.2 Impact of negotiation strategy
Negotiation is a method that is used by Pepsico company for dissolving all issues from
the workplace that assists in carry out business operation smoothly and effectively. This
company negotiates with their employees so that it can get its desired result. With the help of
negotiation strategies, management can identify best techniques for attaining the best desired
outcome. There are various tactics which are given below-
 Competing strategies- In current scenario, there are huge competition in the market so
in this situation, Pepsico company should adopt this competing strategies by which it can
achieve competitive advantage over its rivals (Sadikoglu and Zehir, 2010). With the help
of this tactics, firm can identify their competitors which will help in increasing
employees' productivity and efficiency.
 Accommodative strategies- This tactic is used in that case when any issue is affecting
the performance of the company to the large extent. This concept is very helpful at the
time of financial crisis because it avoids many situation of huge turnover and
termination. In this, it gives many offers to the employees so that they will remain in the
company for a longer period of time and can carry out business operation in an effective
and efficient manner.
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 Avoiding strategies- This tactics is adopted by employer and worker for avoiding any
major issues which is facing by Pepsico company. In this regard, various strategies are
prepared to avoid conflicts among employees and creating better understanding among
them. Including this, healthy and peaceful atmosphere of entity is created by
implementing these strategies. It influences effectiveness of organisation and
coordination among workers at maximum level.
Hence, by implementing above mentioned strategies, effective relationship between
employer and employees can be created that influences organisation's growth. However, various
tools are used this achievement like; job rotation, listening towards workers' needs and their
views on operations as well satisfaction level with work. Therefore, proper relationship among
them can be maintained as well peaceful atmosphere will be created increasing deep
understanding and encouraging them for better work performance.
TASK 4
4.1 Influence of EU on industrial democracy
European Union directly influence the industrial democracy where company is running
their business. This structure defines the environment of work place on that basis organisation
designs its framework. Pepsico company complies various policies that are necessary to carry out
various business operation.
Every country has different cultures which directly affects the industrial democracy of
UK. European Union has passed various laws and legislation that influence the working of
Pepsico company such as- employees should be involved in important decision making process
that will motivate the employees for doing effective work. If this rule will be implemented with
in an enterprise then it will improve the work quality of employees. There are various laws such
as corporate laws and regulation which provides many benefits to the worker and also protects
their rights (Turkyilmaz and et. al., 2011).
These policies defines set of standards according to job, terms and conditions related to
working environment and also helpful in creating favourable working environment. In addition
to this, all rules and regulations provided in policy are followed on that affects working
environment of the entity. Moreover, equal and similar rights are provided to each and every
individual employee of the organisation. However, various implementations and freedom of
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expressing employees' ideas is available. It affects relationship among employees and creates
positive environment of entity. Including this, it is considered that by asking employees' views
on organisation's performance and decisions impact on culture and atmosphere of organisation
effectively. Likewise, it encourages workers for better work performance and supporting team at
high level. It influences satisfaction level of employees with working in group and effective
bonding is created between employer and employees of the enterprise. Therefore, it is vital for
establishing good relationship and emerging confident feeling for each and every worker of the
organisation effectively.
4.2 Comparing methods that are used for gaining employees participation
Employee participation is very important because it aids in achieving or generating best
possible outcome with in specified period of time. There are many methods that can be used for
increasing the participation of man power that will provide support in carrying out business
activities in an effective and efficient manner. These techniques are given below-
 Consultation method- Pepsico company adopts this tactics through which it can develop
various strategies that will influence the working environment. It is very helpful in
increasing number of employees participation and also improves overall functioning of
Pepsico company (Underhill and Quinlan, 2011).
 Suggestion scheme- This tactic is adopted for attaining various new ideas from the
workers by which working environment can be improved. With the help of this method,
company try to set new standards by which project can be completed with in specified
period of time and in effective and efficient manner.
These above mentioned methods provide many advantages to Pepsico such as enterprise
can complete its task in an effective and efficient manner by which company can achieve its
competitive advantages over its rivals. However, by using these approaches, employees get
motivated and effective relationship among them created. It impacts on healthy and positive
environment of entity to achieve great coordination among workers and reaching out to set target
of firm at high level. It is also determined that by getting suggestions from workers, emerges
positive and confident feeling in employees. Similarly, they also get motivated for better work
performance and generating different ideas to create harmony and positive environment of entity
10

efficiently. Hence, by following on above strategies, effective atmosphere of Pepsico can be
created that is helpful for their personal and professional development at maximum level.
4.3 Impact of human resource management on employee relation
Human resource management is considered to be as the most important department in
any organisation, so do Pepsico. HRM deals with the management of resources and people
involved in the operations of the company. The employees are a major part of the firm and they
are to given with a happy and comfortable working environment where they can give their
efforts to contribute in the achievement of organisational goals and objectives. Human resources
department deals with employee relations where the management maintains a positive bond with
their employees so that they shall not face any issues and problems while at their workplace.
There are many management strategies and tactic that have been adopted by Pepsico in
order to make sure that their employees are provided with all kinds of facilities and there shall be
zero or minimum issues that they could possibly face at their workplace (Van De Voorde,
Paauwe and Van Veldhoven, 2012). It is recognised that human resource management plays
crucial role in recruiting, selecting and encouraging workers for better work performance.
Including this, it organises training and development programs to enhance working efficiencies
and their personal as well professional development at high level. Moreover, HR department is
effective for reducing conflicts and disputes occur at workplace. Similarly, varieties of activities
are cinducted for increasing understanding among workers such as job satisfaction, job appraisal
and so on. Thereby, healthy and positive relationship created among employees remains helpful
to achieve organisation's effectiveness.
They HRM of Pepsico makes sure that the employees are given with comfortable
working durations in the day time and the working hours doesn't exceed the limits that are set by
the state labour authorities. They also provide various training and development programs to
their employees, so that they could enhance their knowledge and skills that can be utilized in
improving their performance at their workplace. This will also help in improving the overall
performance and its quality, so that the objectives and goals of Pepsico are achieved effectively
and efficiently (Walby, 2013). Employees relation specialists are considered to be ideal
managers in the HRD as they have specialised in establishing and maintaining effective
relationships between the employees and management.
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CONCLUSION
Employee relation is very important for every organisation because if in a company, there
are healthy relation with workers then they will be able to do their assigned work in an effective
manner by which enterprise will be able to achieve its desired outcome. From the above report, it
can be concluded that Government, employer and employees play an important role in
maintaining good relation between management and workers, there are a process by which
company can handle critical situation in very effective manner which starts from identifying the
reason of conflicts and ends on preparing an agreement which will include the terms and
conditions of employment. These procedure is very helpful in increasing productivity and
capability of employees that will assist the company in achieving competitive advantages over its
competitors and desired outcome or result. Thus, significant role of human resource department
of Pepsico is also determined that is effective to create good relationship among workers of the
entity. Including this, methods for employees' participation and its relation with organisation's
effectiveness is gained through this assignment.
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