Recruitment and selection planning at pepsico

PepsiCo manufactures, markets, and sells various types of snacks, carbonated and non-carbonated beverages, and also foods worldwide. The world’s brand, Pepsi have changed the living standards of the people lives. Even at school, college, university, home, or what ever at picnic, most of the people prefer to drink these drinks. Pepsi achieved its biggest sales in soft drinks and enjoying its large profits in snack foods. Now-a-days PepsiCo is a strong positioned and popular brand all over the world. It covers the market through its systematic and proper management. Involving with many social working, it gain place in consumer mind. Through proper market coverage strategy it has speeded Its PepsiCo Americas Foods unit offers salty and sweet snacks comprising Lay’s potato chips, Doritos tortilla. The company operates through well experienced, loyal and hardworking employees exceeding 700. The most important and basic plan is it to train employees according to the change in technology and computer oriented environment, and satisfying their needs of employees. By upgrading the plant structure and installation of the new technology are other plans of PepsiCo. By doing this company is planning to increase its sales volume and development in its infrastructure in the coming years. The organization focuses that they have the right and actual number of people and kinds of people at the exact place so this task is done by ongoing recruitment and selection processes, performance evaluation methods, giving promotions to them and for most regular Training and development programs.

The Pepsi bottling group hires about 9500 employees every year for its operations and manufacturing these, selling and distributed its drinks. The huge number of these hires, close to 4000, is made to gear up for what Pepsi bottling group refers to as the “one hundred days of summer” by far the busiest time of the year of the company(Ed Rodriguez 2007)


The organization conducts its recruitment and selection planning by following two sources:

Internal sources of recruitment.

External sources of recruitment.

Internal sources of recruitment:

PepsiCo prefers “Job Posting” in which employees from organization are preferred but in a case the organization feels that the employees are not as much competent enough then they go for other external methods. So such announcements are made through different bulletin boards, memos and other then these internal sources.

Organizations that collect data by sources of hire regularly find that employee referral programs produce a high volume of high-performing hires with more longer retention rates, and in most, at relatively low cost (Dr. John Sullivan 2010)

There should be proper planning by judging current human resource stands & generating human resources inventory. Any referral programs should be bespoke to the business that is Pepsi. It’s best to initiate any referral process if only when the vacancy actually arises. Moreover monetary rewards should not be the primary driver for referrals.

In the PepsiCo generally the positions will occur at time of resignation of the employee, retirement, expire of the employee, transfer or promotion of the employee. New approval position is the annual operation plan. Introducing new positions into the organization promotions and transfers is the Internal Job Posting used for only the existing employee in the organization and not for the new approval position.

After assessing current capabilities of future needs promotions and transfers should be developed to have right person for the right job & at right time. Promotions and transfers must be after assessing future human resources needs by organization’s strategies & future programs.

External sources of recruitment:

PepsiCo usually used to advertising by newspapers and its official website for their recruitment purposes. They give a chance to an open invitation to everyone to apply for post, so people who are interested join and if they are capable to that post they are hired. They have not preferred any specific universities or colleges to get the applicants for them, 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 passionate candidates.

External sources are far outnumbering the internal methods. Especially sources external to an organization are professional and trade association, advertisements, and college/universities/institute placement services, walk INS and write INS, displaced persons, acquisition and mergers.

The most common and least expensive approach for candidates is direct applications from external sources, in which applicants submit application letters or resume. Direct application also provides a pool of potential employees to meet future needs.


First of all initial screening of all applications and resumes against the program’s requirements make. After that Candidates screened are asked to complete the online personality questionnaire specifically designed in order to select candidates for the next stage. Candidates complete online tests and a comprehensive personality questionnaire. Candidates asked to complete a similar follow-up test for them. The follow-up test will be in short form and will be completed under the supervision of a PepsiCo HR Manager in order to verify performance between the two test results. The final stage is participation in an assessment centre for assessment, comprising of a case study exercise, group discussion and a important structured interview (accelerate your career, 2011)

After obtaining information through the preceding steps, selection decision the most critical of all the steps must be made. The other stages in the selection process have been used to narrow the number of candidates. The final decision has to be made from the pool of individuals who pass the tests, interviews and reference checks. The views of the line manager will be generally considered in the final selection because it is he who is responsible for the performance of the employee. The HR manager plays a critical role in the final selection.

Training and development planning:

Pepsi believes in training and development and for that PepsiCo plans. Pepsi Conduct training for associates from the frontline to senior management, to ensure that associates has the skills required to gain performance goals. Encourage associates to lead healthier lives by offering workplace wellness programs in globally. (PepsiCo, 2009). As PepsiCo continues its journey of sustainable growth, we continue to hire, retain and develop leadership and a highly skilled workforce. After all, our associates are greatest strength. That’s why we’re committed to providing teams with opportunities and experiences that strengthen their skills and capabilities (PepsiCo, 2011).

Pepsi always believes that we are committed to providing our associates with opportunities and experiences that strengthen their skills and capabilities. Our approach to training drives career development in a world of new workforce requirements (Training and development, 2011). PepsiCo believes that “We definitely do not offer one job for life. New ideas and fresh thinking are critical, but it is a mistake to equate long tenure with stale thinking. Some of the most innovative minds happen to be the most tenured minds. We don’t believe that longevity breeds success. Retain talent, but never lose sight of developing talent.”(Pepsi’s Eric Foss on Leadership Development, 2008)

PepsiCo provide learning and development environment by following ways:

PepsiCo University

Robust program for helping associates manage their careers.

360-degree feedback process

In 2007, introduced a Concept “One Simple Thing, “- strives to help associates better balance work and home.

All employees receive regular performance and career development reviews annually.

According to Seldman, marty(Elevating aspirations at PepsiCo, 2008) besides providing training and development to employees PepsiCo always keep in mink employees competence, enjoyment, interest and meaning towards their existing work:

Competence: what you are good at

Enjoyment: what you like to do

interest: what you are deeply curious about

Meaning: what fits your values and can serve a higher purpose.

Following are plan for professional development and training of the employees of PepsiCo organization (Training and development manager, 2009)

Analyze training needs in order to develop new training programs or modify and improve existing programs.

Plan, development, and provide training and staff development programs, using knowledge of the effectiveness of methods such as a classroom training, demonstrations, on-the-job training, conferences, and workshops through training by the internal or external resources.

Develop and organize training manuals, multimedia visual aids, and especially other educational materials, testing and evaluation procedures.

Maintain succession planning or benchmark strength for a group to ensure that the organization is effectively resourced for the future in line with management development and career planning objectives as well as future demands of the business.

Train the instructors and supervisors in techniques and skills for training and dealing with all employees.

Conduct an orientation sessions and arrange on-the-job training for new hires.

Prepare training budget for all department or organization.

Employee motivation and staff appraisal:

Employees always need motivation in order to do better work for organization so that PepsiCo motivate employees.

Employee’s motivation:

Employees need motivation to stay, to work and to be efficient. Without that much extra motivation, organizations lies in such a position where they are placed so well in the market but may lost their resources to drive them forward or to maintain their market share (employee motivation, 2009).

PepsiCo use following strategies in order to motivate their employees:


Incentives and Rewards


PepsiCo offers its employees a comprehensive pay packages that meet international standards at their individual level. The main motivation strategy is that PepsiCo focusing in giving empowerment to employees and allows them to make their own decisions at their own will and allow them to speak their ideas. By doing this strategy PepsiCo motivating their employees very much to make them able to responsible for their respective actions. At PepsiCo all individuals are provided training tools to make them succeeded. In PepsiCo preference is given to recognize the achievement of each and every employee in order to make them motivated.

PepsiCo always encourage employees to act and think as if they own the company. The HR department responded to Calloway’s challenge by creating ‘Share Power,’ a stock-option program intended to develop the ownership mindset among the conglomerate’s hundreds of thousands of employees. PepsiCo is the first major corporation to offer such a broad-based stock-option program in the US. The program is a success, motivating PepsiCo employees to ‘go the extra mile’ and stimulating their interest in the company’s financial performance (Anfuso, Dawn, 1995).

PepsiCo by giving recognition to employees follows three need theories that consist of three needs of employees that are:

Need for achievement

Need for power

Need for affiliation

Because employees always need of achievement, personal responsibility, feed back and make moderate risk by taking their own decisions. Moreover employees require power in order to compete and influence to others and need cooperative environment that is important for their career growth.

Incentives and rewards:

PepsiCo give different type of incentives and rewards in order to motivate its employees that shows to be precious for new employees as well as existing employees. More then salary package PepsiCo also offers benefit packages that include retirement packages, tuition payment and even legal aid also provided. PepsiCo also offers stock options to its employees and more over incentives that are cash base and non cash base also.

Incentives may be cash or non-cash. Cash incentives are those given to employees, which involve monetary compensation or rewards for the important work done to the company’s cause. Non-cash incentives are other non-monetary forms of recognition of the staffs’ contributions towards organizational effectiveness and make them perform better towards enhancing the bottom-line. Employee Recognition Schemes form a vital part of the non-cash incentive programs. Employee Recognition Schemes go by past performances to decide on eligibility for the incentive. This offer may not specifically shows at the target level of performance or the incentive that would be awarded for performance. This is scheme is more informal and selection may be subjective wise. Moreover, schemes like “Employee of the Month” or “Rising Star of the year” can be announced at the start of the year, but in case of awards, awards may be decided based on actual and true performance of the staff employees (employee motivation, 2009).Non-cash incentives involves awarding of points to employees that are based on performance, travel allowances, retail vouchers and coupons that can be exchanged for other activities like trips and events.

PepsiCo through providing main incentives and rewards to employees follows expectancy theory because an individual will act in a certain way that must be based on the expectation that the act will be followed by a certain outcome and attractiveness of that reward because and individual always conscious about what is reward that is offered to him, what type of work he has to be done in order to achieve that reward and how much attractive is that reward to employee so PepsiCo always consider employees need by following expectancy theory.

I suggest PepsiCo must follow equity theory because in PepsiCo employees are real and actual asset for the company so in order to retain them not only motivation is acceptable but also equity is necessary so must follow equity theory because when the employee find inequity in their jobs then results in lower productivity level, reduce quality in work, increase absenteeism and voluntary resignation by them.

Staff appraisal:

Performance appraisal is generally accepted as very important element of human resource management, a means not only of evaluating performance but also, ideally, of achieving performance improvement (David N Ammons, 1986)

In PepsiCo staff appraisal system consists of following steps that consists first of all made performance standards objectives and targets that must be meet after that that targets communicate to employees and agreed them. After that by periodic review that performances observed and measured and at the end feed back is delivered and appropriate actions are taken for the PepsiCo.

Staff performance appraisal is a very good technique to rate employees because Performance appraisal rates the staff members in accordance to their performance. Performance appraisal is a very good technique that considers the past performance of the employees and emphases on the improvement of the future performance of the employees in order to increase productivity.

The performance appraisal system should fulfill following purposes:

Staff appraisal team must help each employee in order to understand more

and more about his role in organization and become clear about his role and


Appraisal system should be instruments in helping each employee to understand.

Appraisal system should increase on going and two sided mutuality between each employee and his supervising officer.

Management style:

Diagram: Different forms of management styles

In PepsiCo used democratic management style and give employees empowerment. Leader allows subordinates to take active role in decision making and also gives them a considerable degree of empowerment in completing routine work activities. Combining these categories with democratic (subordinates are allowed to participate in decision making) and directive when subordinates are told exactly how to do their jobs (Carter McNamara). It tends to be adopted by PepsiCo managers working in industries. Democratic managers are therefore usually found in ‘clusters’ within similar companies. Democratic management is fulfilling employee consultation and feedback. A democratic manager will not succeeded if major changes were made without taking feedback. Democratic management styles do not say that employees get whatever they want, but they focuses that managers know exactly what their employees needs before making important decisions about them (Robert Tannenbaum and Warren Schmidt)

In democratic management style in PepsiCo workers are always encouraged to make their own decisions at their own will and thinking positively because PepsiCo runs on making decisions and also employees. Authority is delegated to employees that are so much motivated for employees. Democratic style is used because PepsiCo wants work oriented decisions from workers.

Effective leadership is a important goal for many business associates. One challenge that most leaders face is an over-reliance on one or two core leadership techniques that emerge from their personality. However, it is more critical that leaders identify and learn how to broaden their leadership style portfolio so that they have the capacity to deliver added value and ensure strategic success in any complex situation (Corinne Bendersky).

Democratic style is the management style that PepsiCo adopts. This 

type of management style involves empowering to employees. In this management 

style individuals and teams are given responsibilities and decisions 

to make, usually within a given framework. If anything wrong happens 

then the individuals and teams are then held responsible for the 

decisions that are chosen. With this type of management style it 

allows the manager to feel comfortable with other people in the 

organization making some of the decisions. Democratic managers will 

often want feed back from their employees on decisions being made. 

Democratic leaders listen and act on the opinions of the group. This 

type of management is good as it makes the employees happy and 

productivity is high. This is a very good method because employee’s 

thoughts and suggestions are listened to by the business. This makes 

the employees seem as if they are respected and that their thoughts 

are valid (the coca cola company, 2011).

Following are the some suggestions because its disadvantages are the time it takes to make a decision. Moreover, errors can occur if staff is not as competent as they need to be or may be not as much competent as the management believes that they should be. Management will be able to manage employees productively and increase not only turn over but also staff moral moreover as well as decrease staff turnover and must provide to employees. So some suggestions are:

There should be positive work environment without conflicts.

Employees must be free to take practical initiatives.

Employees must be able to make creative thinking.

Management should avoid employee’s turnovers.

As democratic style is useful in a case when creative thinking employees arepresent so management should focus on training and career growth of employees in order to create corrective decisions and actions.

Errors can be made of employees are not well trained so there should be proper training channel and focus on employees corrective decision making.


HR planning is to determine what HRM requirements that are exist for existing & upcoming 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 quality of its products and the values. Doing that the company is going higher by accelerating its functions in a good way.

Suggestions and recommendations:

Human resource planning is important issues so care must be taken especially in referral case because referral system only is taken when actual need occur in case of vacancy.

After accessing the current capabilities make promotion and new hiring so that there exist right person on the right job.

Promotions occur if there is future need of it.

As we know that direct application is a very fair rule so it should be encouraged in order to make fair decisions.

HR manager should be responsible because selection of candidates depends of him so training should be provided to him.

In HR planning training needs should be analyzed so that training provided to employees.

The role of Instructor is very important so evaluate internal and external instructor performance and the efficiency of training programs so that provide recommendations for improvement.

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