Pepsi Co Pakistan Human Resource Management Department Report

Human Resource Management Report Submitted to: Miss Mahrukh Nadeem

Organization:

Report By: IsmatMateen Komail Ali Abbas Manzar Hussain Muhammad Zain Ali Shah

D e d i c a t i o n

“THIS REPORT IS DEDICATED TO ALL BUSINESS

STUDENTS AND SPECIALLY MY RESPECTED TEACHER”

We like to dedicate this report to all business students who want to become great business professionals and want to be on the height of the “BUSINESS WORLD “. We hope that they would be satisfied from our task and that would help them in their future life. We at this point shall not forget the fruitful efforts of our teacher “Miss Mahrukh Nadeem” without whom we would have been unable to accomplish this REPORT.

Acknowledgment:

Firstly, we are thankful to our ALLAH almighty for giving us courage at each and every step of our lives and especially in making this report.

We would like to thanks our teacher Miss Mahrukh Nadeem for clarifying our marketing concepts and guiding us in each and every step for making this report.

We would like to express our deepest appreciation to all those who provide us the possibility to complete this report.

I would like to this the authority of COMMECS Institute of Business and Emerging Sciences (CIBES) for providing us the good environment and facilities to complete this report.

We are also thankful to our parents who help us a lot in finalizing this report within the limited time.

Executive Summary

First of all we conduct interview with Mr. Sultan Mughal (General Manager HR)

and gathered the information from internet and then we started analyzing about

the current situation of PEPSICO. During this process of analyzing the HR

Department we came across that how HR Department works and what are the

processes of recruiting. Our project of PEPSICO covers the following HR Areas

MISSION AND VISION STATEMENT OF THE COMPANY

HR FUNCTIONS

Recruitment

Selection

Appraisal

Benefits & Compensation

TABLE OF CONTENTPg No.

Dedication 02

Acknowledgement 03

Executive summary 04

History of Pepsi Co 06

Pepsi Pakistan Founders of company Various product in Pakistani market

070707

Mission statement 08

Vision statement 08

Hierarchy of Pepsi Co 09

Hierarchy of HR department 09

Human resource introduction 10

Human resource objective 10

Human resource information system (HRIS) 10

Human resource planning 11

Recruitment Internal methods External methods

111111

Strategies for recruitment 11

Selection process 12-13

Training and development On the job Off the job

141414

Performance appraisal 15

Compensation and benefits 15

Case study 16

Recommendation 17

Task sheet 17

History of Pepsi CoIn 1893, Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions. Like many pharmacists at the turn of the century he had a soda fountain in his drugstore, where he served his customers refreshing drinks, that he created himself. His most popular beverage was something he called “Brad’s Drink " made of carbonated water, sugar, vanilla, rare oils, PepsiCo and cola nuts. One of Caleb's formulations, known as “Brad’s Drink "; created in the summer of 1893, was later renamed PepsiCo Cola after the PepsiCo and cola nuts used in the recipe. In 1898, Caleb Bradham wisely bought the trade name "Pep Cola" for $100 from a competitor from New York, New Jersey that had gone broke. The new name was trademarked on June 16th, 1903. Bradham's neighbor, an artist designed the first PepsiCo logo and ninety-seven shares of stock for Bradham's new company were issued.

1898 - One of Caleb's formulations, known as " Brad's Drink " a combination of carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "PepsiCo-Cola" on August 28, 1898. Pepsi Cola receives its first logo.

1902 - The instant popularity of this new drink leads Bradham to devote all of his energy to developing Pepsi Cola into a full-fledged business. He applies for a trademark with the U.S. Patent Office, Washington D.C., and forms the first Pepsi Cola Company.

Pepsi PakistanThe market in Pakistan is surely dominated by Pepsi. It has proven itself to be the No.1 soft drink in Pakistan. Now days Pepsi is recognized as Pakistanis National drink. In 1971, first plant of Pepsi was constructed in Multan, and from their after Pepsi is going higher and higher. Pepsi is the choice soft drink of every one. It is consumed by all age groups because of its distinctive taste. Compared with other Cola in the market, it is a bit sweeter and it contributes greatly to its liking by all. Consumer's survey results explain the same outcome and Pepsi has been declared as the most wanted soft drink of Pakistan.

Pepsi's greatest rival is Coca Cola. Coca Cola has an international recognized brand. Coke's basic strength is its brand name. But Pepsi with its aggressive marketing planning and quick diversification in creating and promoting new ideas and product packaging, is successfully maintaining is No.1 position in Pakistan. In coming future Pepsi is also planning to enter into the field of fruit drinks. For this purpose it has test marketed its mango juice in Karachi for the first time.

When Pepsi was introduced in Pakistan, it faced fierce competition with 7up, lemon and lime drinks, which was established during 1968, in Multan. Pepsi introduced its lemon and lime, "Teem" to compete with 7up. It successfully, after some years, took over 7up, and this enhanced Pepsi's profits and market share. In Pakistan, Pepsi with 7up enjoys 70% of the market share where as the coke just has 20% markets share.

Pepsi is operating in Pakistan, through its 12 bottlers all over Pakistan. These bottlers are Pepsi's strength.Pepsi has given franchise to these bottlers. Bottlers, produce, distribute and help in promoting the brand. Pepsi also launched its fast food chain KFC i.e. "Kentucky Fried Chicken."

Founders of the CompanyThe company was initially owned by late NawabSaddiq Hussain Qureshi& family till 1989. The Pepsi International franchise declared the management incompetent, thus, the company was handed over to a new set of personnel. The factory set up was reorganized & reestablished with expansion in various sectors. The Pepsi International did this by offering it to Mr. JehangirTareen, who formed up his new team. Mr. JehangirTareen is Nephew of General (late) AkhtarAbdurRehman.

Various Products in Pakistani Market Pepsi Cola, Mirinda, 7up Mountain Dew Diet 7up Diet Pepsi Lays Kurkure Aquafina Pepsi Twist Slice Juices.

MISSION STATEMENT"To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity."

VISION STATEMENT"To be the world's best beverage company". Being the best means providing outstanding quality, service, cleanliness and

value, so that their every customer is contented and happy with their products.""To increase the value of their shareholder's investment through sales growth, cost control and wise investment of resources."

Hierarchy Of Pepsico

Hierarchy of Human Resource Department

Managing Director

Head of Departments

General Managers

Executives

Officers

General Manager HR

HR Development

HR Executive

HR Officers

HR Introduction:

HR department follows the policies by the HR department of PEPSICO. At PEPSICO, their belief that "their people are their greatest assets”. 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.

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

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

• Develop Performance Management and reward systems underlying our Businessstrategy.

HR Objectives:

• To look out for the well being of all employees of the company.

• Provide leadership and direction to employees of the company.

• Career Development planning for all employees of thecompany.

• Ensure thorough training of nationwide employees.

• To provide individual employees with orientation on the company at the time of joining.

• 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.

Human Resource Information System (HRIS):

Development of interactive web-site aligned with all HR sub-functions to facilitate communication between employee and organization through dialogue boxes and speedy availability of information.Enhancing overall perception of HR, as with the help of HRIS the function of HR is changing direction and heading towards Relationship Building, in this all the links are being recreated and employees are given much more weight as compared to past.

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.

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 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 within 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, social media, LinkedIn, agencies 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 team of HR professionals visits different colleges and universities to recruit fresh and passionate candidates.

Strategies for Recruitment

In PEPSICO they surely see qualifications but they prefer a person with required skills, aptitudes, experience and capabilities.

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 terms of salary) prior to PepsiCo’s Job. Whether the person is polished enough to adjust in their environment. Whether He/she has the required technical skills, the required qualification for the specific job.

Selection:

In PEPSICO, selection Criteria is based on numerous factors such as education, health, background and

previous experience.

Selection process:

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 Panel 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. The Panel is comprised of qualified individuals, which may or may not be employees of the City. Normally, the panel 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 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.

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.

Off-the-Job Training:

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.

PERFORMANCE APPRAISAL:

The jobs are evaluated on yearly basis by the HOD; 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.

In Pepsi Co Following Compensation & Benefits Apply:

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.

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.

Case Study

We ask him about the case that if there is a situation in your production house that a labor have an accident while working and he lost his hand or any loss of other body part or if he died so what would your company’s action?

Mr. Mughal said that this situation is fully overlook and handled by HR Dept.

The HR will arrange the meeting in which HR. Manager, Production Manager and Union Head will be called. They make the full case study which include all the scenario, reason, and company’s responsibility and submit this case to the Managing Director (MD) and Than MD will give the final decision and approval.

As Mr. Mughal said that as it is government legislation so the company have to tell the government about the accident.

Situation 01 (If labor lost his body part)

The company has to give full aid to labor which includes:

Full hospital cost Paid leaves

Situation 02 (If labor died)

Mr. Mughal tells us that if labor died in that accident so:

Company is having insurance of all employees Someone from his family will get job

RECOMMENDATIONS:

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

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

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

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

Task SheetTasks Completed by

Selecting an organization Manzar Hussain, Zain Ali, Ismat Mateen, Komail AliGetting an appointment Manzar HussainTaking interview Zain Ali, Manzar Hussain, Ismat MateenCollecting information about organization Komail AliGathering all material about report Zain Ali, Manzar HussainMaking report Zain Ali, Manzar Hussain, Ismat MateenTyping report Komail AliFormatting report Zain AliFinalizing report Ismat MateenMaking presentation Manzar HussainFinalizing presentation Zain AliPrinting report Zain Ali