Pepsi Beverage Company - Theories and Concepts of Organization Behavior - Case Study Example

ORGANIZATION BEHAVIOUR Introduction Pepsi Beverage Company is an international company that deals with quality production of soft drinks, and franchises in countries around the world. The firm has relied on organization behavior to help promote social integration within the company, improve the capacity of production and increase its market share. Organization behavior helped offer better leadership, exploit full potential of personnel involved, develop relationships between workers, and allow personnel involved make expectations that are realistic; helps in improving work satisfaction thus promote quality production (Markus, 1977). By implementing the objectives of the organization, human objectives and the objectives of the society initiated by organization behavior, Pepsi is able to develop better and effective relationships between the organization and the people involved Theories and Concepts of Organization Behavior Organization behavior in Pepsi Company is influenced not by one element per say but a diverse range of elements. These are concepts of motivation, elements of what determines problem solving, elements of decision making, behavior based on personality issues, communication, organization structures and behavior influenced by the ability of a person to take control and relieve stress. From all these allay of concepts and factors, theories and models are derived to explain organization behavior and what influences people to relate (Harris, 1994). Motivational Theories of Organization Behavior Among motivational theories is the Marslow’s theory. This theory states that an employee will execute the best of their skills if their needs were met. The theory suggests that there is a hierarchy of needs, and an employee will be as much productive depending in which order of needs they are at. These needs begin with the basic needs which are the physiological needs which are essential for the survival of individuals. These needs are like water, food, shelter, air, sex, and clothing. The second order of needs is the safety needs (Harris, 1994). An employee will be motivated to work harder if they feel that they have security in work, financial security, and have been covered against risks like medical insurance covers. These needs are followed by social needs which are necessitated by the need to belong to a religion, family, and friends and relate well with co-workers. The fourth needs are the self esteem needs when an employee feels they are independent, are confident to undertake responsibilities they are given. Finally there are the self actualization needs where an individual feels confident enough to stand out, feel they have achieved something and do whatever they need to do to reach their peak regardless of what other people say. Pepsi Company has made it its business to know what their employees need, by offering them good remuneration to take care of the physiological needs. They have medical insurance policies covers and saving schemes for their employees to offer them safety and security in terms of security against accidents in the work setup. Through regular team building exercise, the company has encouraged social integration and promotion of self- confidence. This caters for the social and self esteem needs. In order to cater for self actualization needs, Pepsi has encouraged employee growth, innovations and promotions by merit for hardworking employees. The other motivational theory in organization behavior is Vroom’s expectancy theory. The theory is based on three concepts (Bligh & Michelle, 2006). That is, valence; where an employee will behave and act in a certain way to produce results, if they like what the outcome will be. The second concept is Instrumentality; where the employee will opt for choices and actions that will help them easily achieve the second level outcome from the first level. Finally, it is expectancy; an employee believes that their own action will directly influence the outcome of their first level. These concepts are the basis for motivation. Managers therefore, intertwine rewards to performance to increase productivity. Pepsi has applied this theory in its operations, by placing their rewards system to what the employees regards valuable like acquisition of bonus at the end of financial year, paid up holidays and promotion for employees who have excelled in their service delivery. Personality Theories Among personality theories is the Big Five Personality Traits theory. It suggests various personalities of people when relating with others are influenced by five elements. The first element is openness. It is associated with creativity versus curiosity, consistency versus cautiousness. People who are open are willing too try new things, are artistic, emotional and adventurous (Ash, 1992). Pepsi Company has encouraged innovations and inventions in its production and operations. The second element is conscientiousness. It implies that different employees will have different levels of efficiency, organized, disciplined and have different goals. Pepsi therefore, have set up mission and goals in which all employees are working towards achieving. This factor will show people that are careful, careless, spontaneous, and those that are goal –oriented. The other factor is extraversion, where it differentiates employees who are out goers, shy, or even reserved. This factor implies that people in search of stimulation and surgency and seek the company of others. We have extroverts and introverts. Through team building exercises and regular general meetings helps people relate with each other and consequently increase production through open lines of communication. The fourth element in personality is agreeableness, where individuals are empathetic and cooperative more than they are antagonistic (Kogut, Urso & Walker, 2007). They are less suspicious of other people’s intentions since they are optimistic most of the time. Finally, neuroticism can be referred to as being emotionally unstable. Individuals are anxious, depressed, get angered quickly and have more negative tendencies. Pepsi has established a counseling department in its organization to help employees relieve their stress, resentment and other negative emotions. This helps employees to be in full health thus increasing their productivity. Organization culture Organizational culture can be referred to as a social product that is created from having social relations and integrations due to behavior. The culture is influenced by distinct communication symbols like customs and language, methods used in solving problems, technological tools and other tools involved in social interaction in an organization when dealing with the external publics or environment (Bligh & Michelle, 2006). Through organization culture, Pepsi is able to depict the attitudes of her employees, their psychology, and experiences in the work settings, values and beliefs of personnel involved in the organization. These values safeguards and controls the way people behave and conduct themselves inside and outside organization, thus propelling Pepsi as a brand. There are factors that influence organization culture. They include control systems. These entails frameworks set up to evaluate and analyze the happening in the organization. This includes having rule books and reports. Pepsi Company has rule books and files daily reports of the events of the day and conduct of her employees. The other element is the paradigm, which entails the mission and objectives of the organization, its operations and values (Ash, 1992). Pepsi’s mission is to offer the best quality products. Organizational structures form the third factor that influences organization culture. This entails the hierarchy of authority, lines of reporting, and the work flow in the organization. Most importantly, it depicts the procedures to be followed in solving conflicts internally or from external sources. For easy delegation of duties, Pepsi has a large hierarchy of power based on different departments and franchise. A franchise deals with employee problems under their authority and relies on the mother company to make important decisions on marketing and production. From the organizational structures it is the power structures. This element entails on who make integral decisions regarding the operations of the organization, how vast is the degree of power, and what the frameworks that the power is based on are. Then there is the element of symbols. Organization culture includes symbols that are unique to a particular organization. Pepsi has a logo, trade mark and allocates power points like reserved parking and VIP washrooms for senior staff. Ritual and routines are the other factors that determine the culture within an organization. This is developed by office routines like having board assessment reports and employee meetings in different organizations. Finally there is the element of stories and myths (Bligh & Michelle, 2006). An organization can build up stories and myths about events and people that have worked in the organization or key implementers in the industry they are in, to depict and show what values the organization is based on. These factors intertwine depending on the stage of the life cycle the organization is at. Pepsi Company holds regular but important board meetings and share power within departments. Pepsi Company management has increased productivity by utilizing cultural elements like empowering its employees, increasing value by implementing necessary change, inventions and innovations, paying close attention to basics, using appropriate managerial leadership style, allowing employees to grow and learn from mistakes done and laying an emphasis on what goals need to be achieved through responsibility and commitment from all levels of the workforce regardless of their positions of power. Organization Structures Organization structure is composed of processes laid down on organizations in which duties are delegated in the form of hierarchy, in pursuit of a common goal. Different organizations have different styles and formats of structures based on the company’s ambience and the set objectives (Ash, 1992). Pepsi from the organization structures are able learn how many employees are employed permanently, temporary, in contracts or are in any program orders. The structure has helped determine the modes under which the Pepsi performs its duties and operations. The company has different entities like departmental segments, divisions, branches, teams or individuals with different processes and functions, thus the need for organization structures to help maintain a decorum and consistency. Through structures, Pepsi management is able to identify the contractual agreements between the organization and the employees. Types of Organization Structures There are several types organization structures which include pre-bureaucratic structures, which entails that tasks are not standardized. In this structure, the leader makes all the integral decisions, and controls how the organization grows and develops. It is best suited for start up businesses. There are moreover, the bureaucratic structures that are suitable for large scale businesses and organizations with large hierarchies. Tasks in this structure are a bit standardized. The third type is the functional structures which employees are specialized in the departments they are in. this structure is beneficial in increasing efficiency in production and operations, but has a limitation in that it can result in breakdown of communication systems between functional segments, thus slowing down operations and causing the organization not to be flexible (Kogut, Urso & Walker, 2007). Pepsi has applied the functional structures in its operations. This has helped promote specialization, inventions and innovations and allowing the employees to grow since they are given the chance to exploit their skills to their full potential. Power and Politics in Organization Behavior Power and politics has helped Pepsi promotes cohesiveness in the work environment and help increase yields. Their employees are more often than not motivated to put more efforts if the reward is promotion or acquisition of position of power. Pepsi have influenced the productivity of their employees by giving position of powers by merit, by offering powerful job positions to excelled employees. Power has the potential to change the attitude of employees and behavior, having a direct impact on how people relate (Kogut, Urso & Walker, 2007). Pepsi management is more participative and allows other parties to contribute their opinions, respect her employees and put their views into consideration during decision making. By understanding power and politics, Pepsi is clear on who make integral decisions regarding the operations of the organization, share the degree of power, and indicate how far the power is spread and what frameworks, the power is based on are. Conflict and Negotiation in Organization Behavior While employees relate with each other, and face various pressures from work, conflicts are bound to occur between themselves and between the employees and the management (Repenning, 2002). Therefore, Pepsi has set up rules and regulations to govern the work setting. The rules also indicate what punishment and repercussions await employees who violate the rules and laws set. There are channels of communication followed by aggrieved parties. In cases where employees do not agree with the management, Pepsi allows dialogues. Her employees have organized go-slows or strikes to force the management’s hand to agree to their terms. Addressing conflicts immediately as they arise is important in maintaining efficiency in production and service delivery. When dealing with two parties that have agreed to disagree and believe that they are both aggrieved, negotiations are encouraged in order to bring reconciliation, and develop ideas that will best suit both parties. Negotiations are very useful in addressing important issues facing employees like hiking of salaries, and putting into considerations that pay hikes do not jeopardize the survival of the organization and does not leads to annual loses ( Repenning, 2002). Pepsi therefore, has encouraged solving conflicts and negotiations when there is a stand off between management and employees. Conclusion Pepsi Company has sort the services of organization behavior, which is the art of studying how a person, or a group of people integrate and relate in organizations, and how that information can be applied to offer better leadership, exploit full potential of personnel involved, develop relationships between workers, allow personnel involved make expectations that are realistic, helps in improving work satisfaction thus promote quality production. Pepsi has placed value to organization structure, which is composed of processes laid down on organizations in which duties are delegated in the form of hierarchy, in pursuit of a common goal. Through organization culture, Pepsi depicts the attitudes of employees, psychology, experiences in the work settings, values and beliefs of personnel involved in the organization. References Repenning, N. 2002. A Simulation-Based Approach to Understanding the Dynamics of Innovation Implementation. Organization Science, 13(2): 109-127. Kogut, B., P. Urso, and G. Walker. 2007. Emergent Properties of a New Financial Market: American Venture Capital Syndication, 1960–2005. Management Science, 53(7): 1181-1198. Ash, M.G. 1992. "Cultural Contexts and Scientific Change in Psychology: Kurt Lewin in Iowa." American Psychologist, 47(2), pp. 198–207. Bligh, Michelle C. 2006. Surviving Post-merger ‘Culture Clash’: Can Cultural Leadership Lessen the Casualties? Leadership, 2: 395 - 426. Harris, S.G. 1994. Organizational Culture and Individual Sense making: A Schema-Based Perspective." Organization Science, 5(3): pp. 309–321 Markus, H. 1977. Self-schemata and processing information about the self. Journal of Personality and Social Psychology, 35(2): pp. 63–78. Information on Pepsi retrieved from www.pepsi.com [Accessed September 25, 2010] Read More