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Pepsi-Cola International (PCI), with operations in over 150 countries, has devised a common performance appraisal system that focuses on motivating managers to achieve and maintain high standards of performance. Administrative consistency is achieved through the use of a performance appraisal system of five feedback mechanisms - instant feedback, coaching, accountability based performance appraisals, development feedback, and a human resource plan. The common system provides guidelines for performance appraisal, yet allows for modification to suit cultural differences. For example, the first step of instant feedback is based on the principle that any idea about any aspect of the business or about an individual’s performance is raised appropriately and discussed in a sensitive manner. The instant feedback message can be delivered in any culture; the important thing is not how it is done but that it is done. The purpose of instant feedback is always to improve business performance, not to criticise cultural styles. Using this system, PCI tries to balance the cultural and administrative imperatives of successful managing the performance of a diverse workforce. Please provide assistance with preparing written material on PepsiCo; briefly describing its compensation strategy, best practices they are applying, and compensation-related challenges they are facing; analyzing how your company applies compensation practice to determine the positive or negative impact to the company and its stakeholders; examining the ways in which laws, labor unions, and market factors impact the company's compensation practices. Provide specific examples to support your response and evaluating the effectiveness of traditional bases for pay at the company you researched. Provide at least 5 pages of material and at least three quality references. © BrainMass Inc. brainmass.com March 22, 2019, 3:17 am ad1c9bdddf https://brainmass.com/business/business-management/compensation-management-pepsico- Solution Preview The response addresses the query posted in 1236 words with APA references. //The role of the compensation system is constantly increasing in the present scenario as human beings are the key driving forces in contributing to the success of the business organizations. In this context,
this paper highlights the role and application of various employee compensation practices that are provided to the employees of PepsiCo in the present scenario.// Compensation Management Compensation management practices refer to the effective tool or technique that acts as a motivating factor for the employees that help in boosting the overall performance of the workforce in the firms (Truss, Mankin & Kelliher, 2012). An ineffective compensation management system contributes to high employee dissatisfaction, an increase in grievances, the rate of absenteeism and poor job performance by the employees of the business organizations. In the present contemporary business environment, the compensation practices has become a major issue and supports equal wages to be paid to the individuals for the equal work done at the workplace. (See diagram on Page 1 in attached file). Compensation Strategy of PepsiCo The compensation program of PepsiCo is being designed to provide the fixed income to the employees of the organization. The compensation strategy of PepsiCo is defined as follows:
Securing, setting, and moving displays when required. Helping and/or ordering when required. Placing proper point-of-sale materials on main shelf, displays, coolers, and vendors. Follow company merchandising standards. Keep proper corporate sets on main shelf, displays, and in coolers. Any other tasks or responsibilities assigned to you by your supervisor. Employee Requirements: Successful Candidate Will Possess: Ability to lift 60 pounds while administering continuous lifting through the work day. Reliability and responsibility. Ability to work well independently. Excellent customer-relation skills (will spend the entire day in the field). EXCELLENT driving record. Insured personal vehicle for transportation between accounts (mileage reimbursements paid). Requires pre-employment physical ability test. Details: 5 working days - one weekend day off and one week day off. Benefits include 401K, health insurance, paid holidays, vacation, and uniforms are provided.