Principles and Practices of Leadership: PepsiCo Case Study Analysis

This report analyzes the leadership skills and competencies required for a flexible organizational structure at PepsiCo's Consumer Strategic Insights (CSI) department. The report begins with an introduction to leadership and management, highlighting the importance of skills such as motivation, flexibility, and trustworthiness. It then delves into transformational leadership theory, emphasizing its role in fostering effective relationships and employee motivation. The report further examines essential leadership skills, including personal, communication, and thinking skills, as well as competencies such as managing self, people, and projects. Ethical requirements in leadership, competency frameworks, and the skills model of Mumford, Zaccaro, Harding, and Jacobs are also discussed. The analysis emphasizes the importance of change management and how leadership facilitates it. The report concludes by exploring different types of leadership and the critical components of successful leadership, offering a comprehensive overview of leadership principles in the context of the PepsiCo case study.

PRINCIPLES AND PRACTICES OF
LEADERSHIP AND MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION..............................................................................................................3
TRANSFORMATIONAL LEADERSHIP THEORY ...........................................................3
LEADERSHIP SKILLS..................................................................................................... 5
ETHICAL REQUIREMENTS IN LEADERSHIP................................................................6
COMPETENCY FRAMEWORK OF LEADERSHIP..........................................................7
SKILLS MODEL OF MUMFORD, ZACCARO, HARDING AND JACOBS........................7
SKILL MODEL COMPONENTS.......................................................................................8
IMPORTANCE OF CHANGE AND HOW IMPORTANT IT IS TO LEADERSHIP............8
MYERS BRIGGS INDICATOR PERSONALITY TYPES..................................................8
HOW DIFFERENT LEADERSHIP SKILLS AND TYPES ARE NEEDED IN DIFFERENT
SITUATIONS....................................................................................................................9
CONCLUSION................................................................................................................. 9
REFERENCES.................................................................................................................9

Read the adapted PepsiCo case study. Consumer Strategic Insights (CSI) Director
Jorge Rubio is changing his part of the company into a more flexible style of
organization. Using leadership theory to support your arguments, critically evaluate the
most important leadership skills and competencies (maximum of two or three) that you
think will be required for this organization.
INTRODUCTION
Leadership is the main function that helps individual to develop his practical skill
and lead or guide other individuals, teams or whole organization. They are the person
who set direction in order to inspire people and develop a vision so that desired
objectives can be attained. However, management of firm is required to implement
effective leadership theory such as contingency or trait leadership so that it can be
implemented in order to obtain flexible style of working at organization (Tricker, 2015).
Furthermore, it is essential for leaders to undertake different skills and competencies of
leading such as motivation, flexible working and trustworthy etc. All these skills help in
developing a strategic advantage for the organization in order to cope with the
requirements and help them in developing the spirit of competitiveness.
In the present essay, PepsiCo foods Mexico, Director of Consumer Strategic
Insights (CSI), Mr. Jorge Rubio wants to change his part into a more flexible style of
organization and bring swiftness and creativity in the marketing research department
similar to the CSI. Thus, for this they carried out a qualitative research based upon
consumers. In order to undertake this, Jorge dcRubio is adopting different leadership
characteristics such as fast, flexibility, trustworthy, efficient and focused upon customers
etc, in order to provide benefits to consumers and attain desired objectives (Newman
and Jennings, 2012). Apart from this, Jorge Rubio also undertakes different leadership
theories in order to make flexibility working within the department. Thus, CSI
department undertake transformational leadership theory in order to bring flexibility
within the enterprise.
TRANSFORMATIONAL LEADERSHIP THEORY
It can be evaluated that this theory was introduced in 1970's in regard to identify
the process through which an individual is able to develop interaction with one another

so that effective relationship can be build. However, it also helps business to develop a
high percentage of trustworthy relationship among employees so that common goals
can be attained. Hence, with the help of same, it helps in boosting the motivation level
(intrinsic and extrinsic) of both leaders and subordinates so that it helps in bringing
flexibility within the operations of firm (Alsagoff and et.al., 2012). However, it is essential
for modern leaders to take different factors into consideration and also involve their
followers in regard to make effective decision making. It helps in encouraging individual
so that active participation can be involved within enterprise. Leaders are required to
consider the ideas and opinions of workers so that they feel encouraged and thus help
in enhancing the productivity of firm.
Main aim of implementing transformation leadership theory is that leaders are
required to alter their followers by using attractive nature and personalities.
Transformational leadership theory is highly flexible in nature and thus business is
required to adopt it so that best targets can be attained. Through this theory, it can be
assessed that a transformational leader possess diverse quality, attributes and
behaviour that in turn helps individual to stimulate and encourage their subordinates
and followers to work hard towards achieving organizational goals. It also helps firm to
develop a democratic vision so that objectives can be attained effectively.
Transformational leaders also help the member of the team in order to connect them to
other individuals so that set goals can be achieved (Lawrence and Murray, 2013). With
the help of this theory which states that leaders are required to develop, influence and
encourage each and every individual of the team and direct them to achieve
organizational goals, various positive outcomes can be gained. Thus, within
transformational leadership which involves a direct relationship between employees and
leaders, a good bonding can be created.
Transformational leadership theory is also stated as the modern leadership
theory which helps leaders to involve each individual in the decision making process
and ascertain their ideas and thoughts so that effective decision can be taken. Involving
different individuals helps in building trust and encouragement of employees so that set
targets can be attained. It is also essential for leaders to consider the ideas of
subordinates so that they feel valuable and satisfy their needs (Straf and Citro, 2013).

LEADERSHIP SKILLS
It involves different leadership skills which are required by leader in order to
make marketing research department more effective and flexible as of Consumer
Strategic Insights. It is essential for leader to build personal, communication and
thinking skills. Within personal skills, it is essential for leader to possess a quality to
influence and encourage him as well as others so that team goals can be attained.
Leaders should possess the skills in regard to develop the habit of self management
and self mastery so that desired objectives can be attained. Another skill which is
required to build a leader is thinking skill. It is essential for leader to posses the
capability of assessing different situations and then plan different strategies so that
desired goals can be attained (Ovaska, Cinotti and Toninelli, 2012). Also, it is essential
for leader to identify different problems and thus develop innovative thinking in order to
build experience, ideas and innovation. Further, communication is another skill which is
required by leaders to bring flexibility in the marketing department of organization.
Leader is also required to be active in order to enhance presentation and listening skills.
Thus, developing all these skills helps in enhancing an individual and helping to
become a leader. In regard to given case study, Mr. Jorge Rubio is required to adopt
different skills and competencies so that he can bring flexibility within the market
research department. Apart from this, the availability of leadership skills is not enough in
order to bring flexibility within business but they also need to undertake effective
leadership competencies such as managing self, people, projects, programs and
leading organization etc. to gain goals (Gonzales and Lambert, 2014).
 Managing self- Leader is required to become capable so that they can manage
themselves. It is essential for individual to be honest and ethical in order to carry
out the actions. They should also develop interpersonal and communication skills
so that they are able to solve the problems effectively (Terry, 2015).
 Managing people and projects- It is also essential for leaders to develop the
ability in order to manage the people and projects effectively. Leaders should
possess the capability so that proper staffing requirements can be fulfilled to
manage the conflicts within enterprise.

 Managing programs and organization- However, in regard to become effective
leader, it is essential for individual to manage the programs and develop
technical capability so that innovation can be attained within firm. Further,
leaders are also required to effectively develop their skills and thus lead the
organization so that vision can be attained (Larson, Van Rossum and Schmidt,
2014).
However, if leaders are not able to follow proper leadership skills, then it creates
conflicts within the organization and also employees feel de-motivated. Therefore, it is
essential for leaders to solve the issues and make effective decisions so that
productivity can be enhanced. There are different types of leadership being followed
within firm-
 Authentic leadership- It is the style that helps the leaders to highly emphasise
upon developing the honest and trustworthy relationship among leaders and
followers. However, leaders with positive attitude help in achieving the desired
objectives of the firm (Northouse, 2016).
 Servant leadership- Here, it assesses that individuals are provided with different
tasks in order to create the better organizational outcomes. Thus, it is essential
for leaders to satisfy the desires of their followers so that they can be satisfied
and achieve desired objectives.
Apart from this, there are three different types of skills which are required in order
to obtain a successful leadership. It involves technical, human and conceptual skills. As
per technical skills, there requires the ability in individual to carry out proper scientific
and mathematical operations so that specific task can be fulfilled (Whetten and
Cameron, 2011). Furthermore, human skills states that leader should possess effective
communication skill that helps them to be capable enough in order to handle their
followers and thus manage the activities effectively. Also, conceptual skills are required
to indicate the managers that they need to be capable to developing different concepts
and ides and overcome the problems effectively.

ETHICAL REQUIREMENTS IN LEADERSHIP
Leaders of PepsiCo are required to be ethical to every consumer and employee
so that best relationship can be developed. Leaders are required to be ethical so that
they can direct other employees to behave ethically while performing their roles and
responsibilities. Ethical leadership indicates that leaders are following different legal
rules and regulations in order to manage diverse work practices (Roe, 2014).
COMPETENCY FRAMEWORK OF LEADERSHIP
It can be assessed that competency framework helps in focusing upon the three
different levels of management and are-
 Team leaders and supervisors- They play crucial role in managing business
operations so that desired targets can be attained.
 Service managers- Such employees are entitled to bring day-to-day operational
management in regard to focus upon the strategic beliefs and aspects (Sharma
and Jain, 2013).
 Junior and middle level managers- Here, they need to look upon the diverse
activities for strategic work practices so that desired task can be accomplished.
This particular model helps in developing an effective management so that
strategic aims and objectives can be attained. It is also a vital strategy in order to drive
cultural change within business and thus PepsiCo helps in improving their performance
through emphasising on the innovative procedures and ideas (Tricker, 2015). It helps in
focusing upon the employee behavioural aspects in order to bring changes in diverse
leadership and business perspectives.
SKILLS MODEL OF MUMFORD, ZACCARO, HARDING AND JACOBS
It is also known as capability model which helps in demonstrating the relationship
between the leader's proficiency and skills so that performance of individual can be
enhanced. However, it helps in emphasizing upon the capabilities of individual so that
effective leadership skills can be developed (Newman and Jennings, 2012). The
components of model are as follows-
 Individual characteristics

 Leadership results
 Competencies
 Career experience and growth
 Environmental influences
SKILL MODEL COMPONENTS
Following are the components of skill model which are as follows-
 Job affection- Affection for job comes within leaders and managers at the time
when they get emotionally attached with the company and contribute their efforts in
order to achieve diverse objectives and goals (Ovaska, Cinotti and Toninelli, 2012).
 Fear of losing- Here, the leaders are at a confusing state at the time when they are
planning to leave the job. It is because; they are emotionally attached and they
possess a fear of receiving similar benefits which this particular job has given to
them.
 Sense of staying- In such type of commitment, employees feel a sense of
obligation so that they posses better opportunities to influence individual to carry out
their desired targets (Straf and Citro, 2013).
IMPORTANCE OF CHANGE AND HOW IMPORTANT IT IS TO
LEADERSHIP
It is essential for individual to implement change within business so that essential
transformation can be managed in order to attain success. However, leadership plays a
critical role in change management as it helps in directing the employees to adopt new
processes and achieve organizational goals. Change helps in improving the productivity
of the firm and also helps in enhancing the leadership qualities of individual so that best
results can be attained (Terry, 2015). Thus, in order to bring change within firm; it is
essential for business enterprise to augment growth and success in order to implement
effective leadership within organization.
MYERS BRIGGS INDICATOR PERSONALITY TYPES
Within Myers Briggs Type Indicator, it is a self report questionnaire which assists
in designing and indicating psychological preferences regarding the ways through which

people understand the world and also makes effective decisions. It involves several
indicators on the basis of which personality of leaders can be assessed (Alsagoff and
et.al., 2012)-
 Extrovert- It is the individual that expresses things by developing proper
communication.
 Introvert- It is the person who does not prefer to talk much and also keep
themselves reserved.
 Observant- They analyze these things through sensing it and defining the
objectives to attain results (Northouse, 2016).
HOW DIFFERENT LEADERSHIP SKILLS AND TYPES ARE NEEDED IN
DIFFERENT SITUATIONS
It is essential for leaders to undertake effective leadership style so that
organization can work within different situations. Leaders using autocratic leadership
style should switch towards democratic leadership style so that effective results can be
attained. However, in regard to manage employee, encouragement within firm is
essential for leaders to choose democratic leadership style in order to engage more
workers and satisfy their needs. Furthermore, if democratic leadership style is adopted
then it raises problems of maintaining disciplinary aspects among workers and thus; it is
essential for leaders to posses different skills and styles in order to gain desired results
(Gonzales and Lambert, 2014).
CONCLUSION
At the end, it can be articulated that business is required to undertake effective
leadership theory and skills so that desired objectives can be attained. Leaders need to
build communication, interpersonal and technical skills so that flexibility within enterprise
can be attained. For this purpose, use of some models such as Mumford skills
development model and 3 skills Katz model enables to derive lucrative results to the
organization. Mumford skills development model includes components like individual
characteristics, competencies, leadership results as well as career experience and
growth which enhance the leadership qualities and capabilities of a leader. Further, from

the above study, it can be assessed that Katz 3 skills model is an integrated approach
in which leaders escalate their efficiency in three areas that are technical, human and
conceptual skills. These are prerequisites for effective leadership.

REFERENCES
Books and Journals
Alsagoff, L. and et.al., 2012. Principles and practices for teaching English as an
international language. Routledge.
Gonzales, S. and Lambert, L., 2014. Teacher leadership in professional development
schools: Emerging conceptions, identities, and practices. Journal of School
Leadership. 11(1). pp.6-24.
Larson, E., Van Rossum, W. M. and Schmidt, P., 2014. The Dutch Confession:
Compliance, Leadership and National Identity in the Human Rights Order.
Utrecht Law Review. 10(1). pp.96-112.
Lawrence, B. and Murray, L., 2013. Practitioner-Based Enquiry: Principles and
Practices for Postgraduate Research. Routledge.
Newman, P. and Jennings, I., 2012. Cities as sustainable ecosystems: principles and
practices. Island Press.
Northouse, P. G., 2016. Leadership theory and practice. 7th ed. London: Sage.
Ovaska, E., Cinotti, T. S. and Toninelli, A., 2012. The design principles and practices of
interoperable smart spaces. Advanced Design Approaches to Emerging Software
Systems: Principles, Methodology and Tools. pp.18-47.
Roe, K., 2014. Leadership: Practice and Perspectives. Gosport: Oxford University.
Straf, M. L. and Citro, C. F., 2013. Principles and practices for a federal statistical
agency. National Academies Press.
Terry, L. D., 2015. Leadership of public bureaucracies: The administrator as
conservator. Routledge.
Tricker, R. B., 2015. Corporate governance: Principles, policies, and practices. OUP
Oxford.
Whetten, D. A. and Cameron, K. S., 2011. Developing Management Skills. 8th ed. New
Jersey: Pearson Education.
Online
Sharma, M. K. and Jain, S., 2013. Leadership Management: Principles, Models and
Theories. [PDF]. Available through:
<http://www.ripublication.com/gjmbs_spl/gjmbsv3n3spl_14.pdf> [Accessed on
26th March 2016].