Pepsi Co

PepsiCos Organizational Culture
Characteristics: An Analysis
http://panmore.com/pepsico-organizational-culture-characteristics-analysis
PepsiCos organizational culture indicates the companys commitment to maximizing the

strengths of its human resources. A firms organizational culture defines the traditions,
values, and ways through which workers perform. In PepsiCos case, employees are
encouraged to focus on excellence in a collaborative way. As the second biggest food-
and-beverage company in the world, PepsiCo continually strives to improve its
workforce. It is essential to maintain a high performance culture to sustain this market
position. PepsiCo uses its organizational culture as a strategic approach to optimize its
performance by harnessing the strengths of its people.
PepsiCos organizational culture emphasizes taking care of employees and using their
capabilities to achieve high business performance.
Features of PepsiCos Organizational Culture

PepsiCo adjusts its organizational culture through the years. This aspect of the business
responds to changes in leadership as well as business situations. At present, the following
are the main characteristics of PepsiCos organizational culture:
1. Performance with Purpose

2. Real World Leadership
3. Collaboration
Performance with Purpose

PepsiCo employees perform with the purpose of achieving excellence for the
company, customers, communities, and the planet. This feature of the organizational
culture indicates PepsiCos commitment to fulfill its corporate social responsibilities. In
essence, employees are encouraged to address the concerns of PepsiCos stakeholders.
The most significant impact of this characteristic of the organizational culture is that it
motivates workers to do better. For example, PepsiCo employees are motivated to excel
in what they do, and to ensure that their efforts contribute to the improvement of the
business and its stakeholders.
Real World Leadership
PepsiCos organizational culture emphasizes leadership based on what employees,
investors, customers and communities really need. The company uses employee
knowledge to develop its leadership. More specifically, PepsiCo promotes employees to
leadership positions. This internal leadership development indicates that PepsiCos
organizational culture facilitates the use of employees work-based experiential
knowledge to fuel business leadership and growth. As a result, the process of
organizational learning is maintained through PepsiCos organizational culture.
Collaboration
Teamwork is an integral part of PepsiCos organizational culture. The company
believes that collaboration enables the business to achieve excellent performance. While
PepsiCo recognizes the strengths of individual employees, its corporate culture sustains
the use of these strengths through collaborative efforts. For example, teams are used
throughout the organization. Through this feature of the organizational culture, PepsiCo
supports synergy in its human resources, instead of just relying on separate individual
efforts.
PepsiCos Organizational Culture: Advantages &

Disadvantages
PepsiCos organizational culture has the advantage of motivating employees. The
emphases on purposeful action and internal leadership development give meaning to
employees contributions to the business. In addition, collaboration optimizes employee
morale, which reduces PepsiCos employee turnover rates. However, a disadvantage of
PepsiCos organizational culture is that it has limited support for autonomy and
individual flexibility, which partly determine employee morale, motivation and
performance. While PepsiCo recognizes the importance of task delegation, its
organizational culture does not specifically include autonomy or individual flexibility.
References
Alvesson, M. (2012). Understanding organizational culture. Sage.
Hartnell, C. A., Ou, A. Y., & Kinicki, A. (2011). Organizational culture and
organizational effectiveness: a meta-analytic investigation of the competing values
frameworks theoretical suppositions. Journal of Applied Psychology,96(4), 677.
Lukas, B. A., Whitwell, G. J., & Heide, J. B. (2013). Why do customers get more
than they need? How organizational culture shapes product capability
decisions. Journal of Marketing, 77(1), 1-12.
Martin, J., & Frost, P. (2011). The organizational culture war games. Sociology of
organizations: Structures and relationships, 315.
Naranjo-Valencia, J. C., Jimnez-Jimnez, D., & Sanz-Valle, R. (2011). Innovation
or imitation? The role of organizational culture. Management Decision, 49(1), 55-72.
OReilly, C. A., Caldwell, D. F., Chatman, J. A., & Doerr, B. (2014). The Promise
and Problems of Organizational Culture CEO Personality, Culture, and Firm
Performance. Group & Organization Management, 39(6), 595-625.
PepsiCo Inc. (2015). Diversity & Inclusion.
PepsiCo Inc. (2015). Why Work at PepsiCo.
TAGS:
CASE STUDY & CASE ANALYSIS, FOOD AND BEVERAGE
INDUSTRY, ORGANIZATIONAL CULTURE, PEPSICO
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PepsiCos Organizational Culture

PepsiCos organizational culture indicates the companys commitment to maximizing the

Features of PepsiCos Organizational Culture

1. Performance with Purpose

Performance with Purpose

PepsiCos Organizational Culture: Advantages &

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