Professional Documents
Culture Documents
Resources
40
Human Resources
Overview
PepsiCo has a long history of innovative human resource processes and systems, and we are viewed as
an “academy company” when it comes to developing leaders. We put a tremendous focus on selecting
and hiring the best people, preparing them to be able to succeed and “make a difference,” and
providing them with a highly positive working environment. To those ends, PepsiCo has created an
integrated system of HR processes that are used to help guide and manage employees once they are
hired. Two key Models are central to our HR processes; both models are fully explained in the bro-
chure titled: “Building a Career at PepsiCo” and are summarized below.
At PepsiCo, we view careers as an accumulation of challenging experiences over the course of many
years, with each experience contributing to the growth of the individual and PepsiCo. Our Career
Growth Model (below) shows each major aspect of what we look for when considering people for new
opportunities.
Of course, consistent business and people results are the foundations on which any career is built.
However, a number of other factors are considered as part of any important career decision. We have
learned that Leadership Competencies are essential to success as our employees rise to increasingly
senior levels in the organization. Our Leadership Competency Model provides a clear description of
the behaviors that are important at PepsiCo.
They were developed using multiple inputs, including
business strategy interviews with members of the
senior teams in each division, to establish a clear
line of sight between specific leadership behaviors
and emerging business trends and challenges. In
addition, focus groups and surveys were conducted
with a broad sample of managers to pinpoint the
behaviors that most tightly link to job performance
and success at different levels. And finally, focus
groups and surveys were conducted with a sample of
front-line and hourly employees to get a comprehen-
sive answer to the question, “What kind of manager
brings out the best in you?” Each of these perspec-
tives was used to identify, and weight, the final
components of the model. The PepsiCo Leadership
Competency Model is shown on the right:
41
Human Resources
Overview
PepsiCo’s People Processes are closely integrated with the Career Growth Model and support career
building by providing the foundational tools needed by employees and managers to work together in
an effective partnership. The Performance Management Process (PMP) ensures that employees’
Business and People Objectives for the year are well aligned with the larger business priorities (i.e.,
the Annual Operating Plan or AOP), and are revised, if required, at the Mid-Year Review. Our various
feedback tools (e.g., Organizational Health Survey, 360 Feedback, Individual Development Plans)
support workplace improvement efforts and the continued growth and development of our employ-
ees and managers. Our People Planning and Gameplanning Processes help us match employees with
new opportunities.
September-November November-January
July-August February-March
PepsiCo is committed to being a great place to work. For this reason, we conduct a bi-annual Organi-
zation Health Survey, and do more frequent “pulse” surveys to keep track of our employees’ levels of
Satisfaction and Commitment to working here.
One major corporate priority for making PepsiCo a great place to work is to ensure that we are an
inclusive employer. We seek diversity among our employees, not only in terms of race, gender, and
ethnicity, but also in terms of thought and approach. In short, we strive to create an environment of
inclusion to ensure that everyone has an opportunity to have his or her input heard and to “make a
difference.” That desire is a big part of what every employee at PepsiCo shares in common.
42
Human Resources
Key Questions
• How does the relative importance of specific competencies change as one moves up through the
management ranks?
• The importance of some competencies changes across cultures. Can you identify three dimen-
sions that are universally viewed as critically important, from the Americas to Europe to Asia and
beyond?
• What leadership behaviors does your manager demonstrate that bring out the best in you? Are
those behaviors reflected in our Leadership Competency Model?
• Why is every senior leader across all of PepsiCo, including Steve Reinemund, required to partici-
pate in the 360 Feedback process every other year?
• On a personal basis, think about all of your past work experiences and what you’ve learned from
each. Which experiences have you found to be most valuable? Why?
• How do you think the PepsiCo Career Growth Model can help guide your development?
• How might an integrated set of HR processes and tools benefit an employee? The company?
43