Pepsico 1p17g

A report Submitted in partial fulfillment for the Requirement of Dissertation.

FACULTY GUIDE PRESENTED BY:PROF. Dr. VINITA VERMA KUMARI

RICHA

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BBA 6

TH

SEMESTER

CONTENT Content

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Declaration Certificate Acknowledgement Human resource management Human resource management at pepsico Organizational structure of lumbani bevrages Findings and analysis Suggestions and conclosuion

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AMITY GLOBAL BUSINESS SCHOOL

DECLARATION I hereby declare that the project report entitled “ORGANIZATIONAL WORKING AND STRUCTURE“ is written and submitted by me under the guidance of MR. N. K. PRASAD HR Manager LUMBINI BEVERAGES PVT LTD, PATNA is my original work. The findings and interpretations in the report are based on the data collected by me during the survey. This project is not copied from any source or other project submitted for similar purpose.

RICHA KUMARI BBA 6TH SEMESTER AMITY GLOBAL BUSINESS SCHOOL PATNA

30th march 2015

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CERTIFICATE This is to certify that the research report entitled “_HUMAN RESOURCE MANAGEMENT” being submitted by RICHA KUMARI, BBA, 6TH SEMESTER, (Enrollment Number) for the partial fulfillment of award of the degree of ‘Bachelors of Business istration’ is a record of bonafide research carried out by him/her. RICHA KUMAI has worked under my guidance and supervision for submission of this thesis, which in my opinion is of requisite standard. This research work or any part thereof has not been submitted to any other University or Institute for the award of any other degree or diploma.

Signature of the Guide Prof. Dr. VINITA VERMA Amity Global Business School Amity University

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ACKNOWLEDGEMENT This has been my great experience in the corporate world and has been a truly learning experience for me. The project assigned to me had a great learning potential and tremendous scope of application. There have been many people who have ed me throughout the project and I take this opportunity to thank them for their time and effort. I would begin by thanking MR. N. K. PRASAD HR Manager for having the confidence in me and giving me the opportunity to undergo my summer training in this prestigious company I am grateful to Prof. Dr. VINITA VERMA, my faculty guide, without her and guidance; my project would not have been possible. I want to thank her profusely for her and encouragement she gave for this project. I would like to thank my collogue for making every effort to ensure that my project was truly a learning experience for me and without whose the project could not be completed. I world even like to thanks my seniors to coordinate in my project and try to make it the best one and this is not the last at the end I would also like to thanks few of special persons who have given their special advice in making this project a wonderful once.

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“Human Resource” Human resources is a term with which many organizations describe the combination of traditionally istrative personnel functions with performance, Employee Relations and resource planning. The field draws upon concepts developed in Industrial/Organizational Psychology. The objective of Human Resources is to maximize the return on investment from the organization's human capital and minimize financial risk. It is the responsibility of human resource managers to conduct these activities in an effective, legal, fair, and consistent manner. Human resource management serves these key functions: 1. Selection 2. Training and Development 3. Performance Evaluation and Management 4. Promotions 5. Redundancy 6. Industrial and Employee Relations 7. Record keeping of all personal data. 8. Compensation, pensions, bonuses etc in liaison with Payroll 9. Confidential advice to internal 'customers' in relation to problems at work. 10.Career development 11.Organizational structure At the end I want to say without effective human resources attainment of organizational goals are not possible to attain. 6

“Human Resource at PEPSI CO.” PepsiCo, Incorporated is a Fortune 500, American global corporation headquartered in Purchase, New York, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001 - which added the Gatorade brand to its portfolio as well. The company employed approximately 300,000 people worldwide. The company’s beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions. PepsiCo is a SIC 2080 (beverage) company. “Functional expertise involves the development of business teams, istration of HR management systems and the identification of staffing needs. Execution of processes and the handling of daily HR-based transactions provide direct and technical to the business. Business partnership allows HR professionals to actively participate in the business and learn our ongoing challenges. This allows our HR team to match the right solutions, ideas, skills, people and processes to the specific needs of their business units. You will be able to leverage your functional 7

knowledge and skills with the needs of the business in ways that create measurable results. Creating valuable change in line with the business agenda defines our overall contribution to the results of the business unit. At PepsiCo, we reserve a spot for you at the leadership table, but it’s up to you to earn your voice and make an impact.”

HR Introduction: HR department follows the policies by the HR department of PEPSICO. At PEPSICO, their belief is that "their people are their greatest asset. They take great pride in acknowledging the contribution each one of them makes". They focus on People Development and for that they ensure: 

Staff PEPSICO with world class Professionals and ensure that the right systems are in place to encourage them to develop to their full potential.

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Create a collaborative and mutually ive work environment that encourages people to grow.

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Build a team of professionals who deliver expertise by participating in business decisions.

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Develop Performance Management and reward systems underlying our Business strategy.

HR Objectives: • To look out for the well being of all employees of the company. • Provide leadership and direction to employees of the company. 8

• Career Development planning for all employees of the company. • Ensure thorough training of nationwide employees. • To provide individual employees with orientation on the company at the time of ing. • To provide employees with solutions to their problems. • Maintaining data records of all employees of PEPSICO (Human Resources information System). • To evaluate and retain those employees who are assets to the company. HR Policies: • Friendly, conversant, flexible and congruent with business environment. Policies are legally compliant with clearly expressed processes for timely revisions and a framework in place to foster employee adherence. HR PLANNING HR planning’s purpose is to determine what HRM requirements exist for current & future supplies & demands of workers. The organization ensures that they have the right number and kinds of people at the right place; this task is accomplished by regular recruitment and selection, performance evaluation, Promotions, Regular Training and development programs. HR Functions of PEPSICO: STRENGTHS 1- The people in the HR department of PEPSICO are extremely qualified personnel so no flaws in decision making are prominent 2- They have sufficient resources of getting knowledge from outside sources. 3- They prefer new entrants of the market to increase their efficiency. WEEKNESS 1- The ethical issues in the PEPSICO prevail the most 2- The employees in the PEPSICO don’t participate equally so there are chances of misspalnning.

WORKING CONDTIONS: Working conditions are normal for an office environment. Work may require occasional weekend and/or evening work. 9

Performance Standards: PEPSICO expects from its employee’s specific performance expectations for each major duty and also expects certain behaviors like friendliness, helpfulness, courtesy, and punctuality. Job Specifications: In PEPSICO the minimum job requirement for a HR Manager is Master degree in HRM with relevant work experience,

EMPLOYEE EMPOWERMENT The company is giving more stress on employee empowerment by giving them right to participate in decision making specially those decision which directly affect the employee themselves. Also the company gives the subordinates the right to work on the behalf of its supervisor in absence of him. LABOUR RELATIONS The company is paying more attention to strengthen the relationship among employees by giving them equal opportunities to take advantage of the firm’s incentives, because no biasness among employees is practiced in the firm which affects the good relations among employees. RECRUITMENT PEPSICO employs through both formal and informal ways of recruitment. Departments tell their need to HR department. And then recruitment is done on the requirement by the project. All candidates send their CV’s by post; they are then short listed and called. So those candidates then report at the PEPSICO from where they are sent to the Human Resource Department for further interviews. But recently PEPSICO has devised a new way of recruitment i.e. online Applications. They give Ads in leading newspaper and use some other mass media communication channels and then receive applications and CV’s online. In this way huge paper work is reduced and recruitment process is improved in of efficiency and convenience with the use of technology. Sources of Recruitment:PEPSICO uses both Internal and External Recruitment. But the priority is given to the internal if the employee has the capabilities, required by the management for working on that post. In Internal recruitment they ask for employee referrals. Any employee can refer any competent and potential person and if the referred person comes up to their expectations and hired, then the one who referred is rewarded with a bonus. In External environment the company’s corporate Image matters a lot 10

in a way that not only new candidates are attracted but also people who became a part of it in past. Internal Methods PEPSICO usually prefers “Job Posting” in which employees from with in the organization are preferred but if the organization feels that the employee is not competent enough then they go for external methods. Such announcements are made through bulletin boards, memos and other internal sources. External Methods PEPSICO usually prefers advertising through newspapers and their official website for their recruitment purposes. They give an open invitation to everyone to apply, so people who are interested come and if they are capable enough they are hired. They don’t prefer any specific universities or colleges to get the applicants, what matters are the potential talent and caliber of the person and his commitment to work. Last year a scheme is started in which a team of HR professionals visit different colleges and universities to recruit fresh and ionate candidates. Strategies for Recruitment The recruitment process is likewise the same but minutely varies in the organization depending upon the ranks. In recruitment PEPSICO keeps certain things in front e.g. What the person was getting (in of salary) prior to PEPSICO’s Job. Whether the person is polished enough to adjust in their environment. Whether he or she has the required technical skills or the required qualification for that specific job. In PEPSICO they surely see qualifications but they prefer a person with required skills, aptitudes, experience and capabilities. STRENGTHS 1- The factor of succession planning is prevailing 2- They use the right techniques in recruiting. WEEKNESS 1- At the time of the recruitment the most suitable and appropriate employee may not be available. SELECTION In PEPSICO, selection Criteria is based on numerous factors such as education, health, background and previous experience. Selection process 11

1. The Application The employment application is candidate’s first chance to present his qualifications to the Organization. As such, it is extremely critical for his/her continued participation in the examination process. Before beginning, one has to review thoroughly what the Job Announcement specifies as the requirements to qualify for the position. Candidate must meet these criteria to be considered for the position; ensure that, otherwise candidate will be wasting his effort in completing the application. Most entries on the form are self-explanatory, but a few pointers on filling it out may help 2. Written Exams: Written exams are usually obtained from one of several test construction firms available to them. These tests are designed to determine level of technical and/or analytical abilities associated with the particular position for which candidate had applied. The test which is conducted in PEPSICO selection purpose is TEST OF COGNITIVE ABLITIES. This test is mostly taken from fresh graduates. Whereas some people are selected on the basis of experience. 3. Performance Exams: Performance exams test ability to accomplish specific job-related tasks by providing the opportunity to actually perform them. These tests are scheduled through the Human Resources Department office, with notification in writing of the date, time, location and duration of the test. Instructions will be given on the tasks to be completed and then asked to complete them. Individuals with considerable relevant experience will conduct the evaluations. Safety, quality of work, adaptability, performance under stress, etc. are evaluated. 4. Specialized Testing some positions will require specialized testing, such as technical skills, agility and communication skills etc. These tests are scheduled just as like other tests. 5. The Interview The results of this component of the exam process will be used to determine if candidate should be included on the List of Eligible Candidates forwarded to the hiring authority for consideration for a departmental Selection Interview. This portion of the examination is normally weighted 100% (or as indicated on the Job Announcement). ypically, previous test results are used only to qualify you for participation in the Interview. The is comprised of qualified individuals, which may or may not be employees of the City. Normally, the will consist of three evaluators. These individuals will evaluate responses to a variety of job-related questions over the scheduled time period. 6. The Selection Interview Once the List of Eligible Candidates is established it is sent to the Department(s) that is hiring to fill a current vacancy. The Department Head is responsible for setting up Selection Interviews. He/she may interview anyone on the list, since all 12

persons referred to the department are qualified. The Department Head will be looking for the candidate with the best qualifications for their particular position. The candidate selected to fill the vacancy will undergo a medical examination, drug screen, background investigation, and a probationary period before attaining permanent employment status. STRENGTHS 1- They implement a crucial testing system which affects the selection process. 2- They have a separate selection criteria for each job. WEEKNESS 1- They take group interview which causes many confusion.

TRAINING & DEVELOPMENT PEPSICO has trained and developed many of its senior and fast track managers and supervisors. For lower and technical staff the organization have a complete training calendar for the year, if organization thinks and feel that an employee requires training to update his knowledge about the field, he just have to report the HR department and he will be listed for the next training program. On-the-job Training: As compared to other competitive organizations the training program of PEPSICO is quite different. It provides full opportunity to its employee to develop themselves and also train them according to the requirements of their job. In return they will be greatest asset for their organization. The employee is being trained in many ways while they are on job. External sources These are formal training opportunities that PEPSICO offers to employees either internally or externally. A trainer, facilitator and/or subject matter expert are brought into the organization to provide the training session or an employee are be sent to one of these learning opportunities during work time. These training opportunities are provided in the form of seminars, classroom training courses and workshops. STRENGTHS 1- They hire foreign instructor for the training of the employees 2- The employees after getting trained perform well and become able to maximize their potential.

WEEKNESS 1- The factor of favoritism effect the performance of certain employees.

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PERFORMANCE APPRAISAL The jobs are evaluated on yearly basis under 360o method; the competent employees are rewarded in shape of promotions, bonus, increments and annual holidays and promotion. The results of an appraisal can be used to identify areas for further development of the employee. The organization also uses different questionnaires, which consist of numerous questions about the behavior of the employee, and then on the basis of these answers personality of the employee is judged. When evaluation is made the unsatisfactory performers are given warning. The employee after warning is put under observation, for some period of time and if the employees’ performance is still unsatisfied then are demoted or fired. COMPENSATION & BENEFITS

• Promotion Promotion is direct shift only to the next level from the current grade, the employee’s performance is evaluated and if his performance is above average he is given promotion. PEPSICO promotes only those candidates who are experienced and eligible for that particular vacancy.

• Increments The company decides at the end of the financial year, according to its financial condition, whether increments should be given or not. • Free transport PEPSICO provide free transport to local employee.

• Medical facility PEPSICO provide free medical facility to workers depending upon the position/rank of the employee. • House loans: They give the facility of house loan only to deserving individual. The loan approval depends upon the post of the employee. • Overtime payment: Overtime payment is pay for only those workers who are working more than their working hours mostly overtime payment is given to low level staff.

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OVERALL ORGANIZATIONL STRUCTURE OF LUMBINIBEVERAGE PVT.LTD HAJIPUR LUMBANI BEVRAGES PVT LTD PRODUCTION PLANT SUPERVISOR QUALITY STORE DEPARTMENT KEEPER MANEGER CONTROLLER

FINANCE S CONTROLLER OFFICER

TIME KEEPER OFFICE IN PERSONNAL SECURITY CHARGE MANEGER

SALES EXECUTIVE SALES SALES SALES SENIOR DEPORT EXECUTIVE INCHARGE MANAGER

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FINDINGS AND ANALYSIS

Working climate

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5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 liking

not liking

This clearly indicates that maximum individuals working out there like the working climate of the organization. Results produced by different ways of training used by the firm

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90% 80% 70% 60% 50% 40% 30% 20% 10% 0% on the job traing

off the job training

This clearly indicates that off the job training produces more effective employees for the organization as compared to another one.

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SUGGESTIONS AND RECOMMENDATION: 

Lumbani beverages should build a strong management and development framework to stand the vigorous competition from the various industries.

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Paper work must be reduced, computerized work should be more.

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There should be online information of all the employees regarding all the activities performed by them like performance, communication skills, quality of work, over time devoted by each employee, etc.

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By adopting MBO method, Employees compete against each other and don’t help others.

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They should also improve their methods of training in order to improve their productivity.

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They should develop such system in their HR department that no ethical issues can be raised.

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The employees should participate in all the activities of the department.

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They should choose plan in such a way that when there is a need of recruitment the proper candidate must be available.

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The factor of favoritism must be eliminated from the department of HR.

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They should hold meetings of the HR employees more frequently for eliminating any misunderstanding.

Conclusion: HR planning is to determine what HRM requirements that are exist for existing & supplies & demands of workers. In human resource planning organization ensures that they have the right number and kinds of people at the exact place; so this task is held by ongoing recruitment and selection, performance appraisal, employees Promotions, ongoing Training and development programs. PepsiCo is a name of brand and standard and good quality product. PepsiCo is focusing more and more on its planning strategies to make its reputation better in the world surroundings community. Management of the PepsiCo does not compromise on 19

quality of its products and the values. Doing that the company is going higher by accelerating its functions in a good way.

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