AIRPORTS AUTHORITY OF INDIA AND PEPSI COMPANY

Section 1: Organisation Structure, Culture, and Behavior

Part 1

1.0 Introduction

Airports Authority of India is a public company that is regulated by the Ministry of Civil Aviation and the government of India. This organization is liable for upholding and managing the civil Aviation operations of India. The company was started in 1995 when two companies, erstwhile airports Authority, and the International Airports Authority, were merged (Airports Authority of India, 2020). This company manages one hundred and twenty-five airports, and its headquarters are in New Delhi. It has a recommendable organizational culture that ensures that its employees are working in line with the organization’s goals and purpose. The organization structure is designed in a way that it allows the company to function at its best, hence bringing a fast growth.

Pepsi company is a multinational organization that manufactures and distributes beverages and food products across the world. It is situated in over two hundred countries across the globe. Its headquarters are in New York. This company’s organic revenue has grown so much for the last ten years. It has been adopting a diversified business model so that it can maintain its competitiveness in the market. They direct deliveries to stores and their distribution channels are not expensive. Pepsi company has been using its culture as a tactical approach to improve its production. It also focuses on the abilities of its employees. They emphasize taking good care of their employees. Pepsi organizational structure comprises market partitions that define the duties and responsibilities of all members of these divisions. Its structure aligns so well with the company culture, and it has helped in positioning the company in a better position in the market.

1.2 Pepsi Organizational culture

Pepsi company has a culture that shows the company’s dedication to exploiting the powers of human resources. Their organizational culture helps them to define their values, norms, and traditions that guide employees to perform their duties effectively. Employees are expected to cooperate and focus on excellence. Pepsi is one of the most solid food and beverage companies in the world. Therefore it strives a lot to have continuous improvement of its workforce and maintain a higher-performing culture (Kissinger, 2017). Employees in the Pepsi company focus on improving the company image to customers, communities, and the whole world. The company is also committed to meeting its social responsibility as part of their corporate culture. Employees are encouraged to work in teams because the company believes that cooperation enables them to perform well. Therefore, Pepsi corporate culture motivates its employees and develops its internal leadership.

1.3 Pepsi Organizational structure

Pepsi company has an administrative structure that has been changing over time to face different and changing market environments. Its structure focuses on global expansion and leadership roles, and it aligns with the company’s objectives. It defines how the business components are designed and how they interact to meet its goals and objectives. The structure has market segmentation and operating corporate groups. The company has one overall division for Frito-Lay and Quaker foods and has other divisions for Europe, America, and other areas in the world (Thompson, 2018). It has many corporate offices with executives who guarantee company control and execution of the set strategies and policies. The good thing with Pepsi organizational structure is that it focuses on local market requirements through their market segmentation. It has human resource departments in each region, Finance, R and D, and communications divisions that enable it to run smoothly.

Figure 1

The below chart shows the organizational structure of the Pepsi company

1.4 Airports Authority of India organizational culture

This company has a culture that upholds the ethics and principles in the workplace to ensure that there is a work culture in its working environments. It believes that every employee should feel safe and protected while working in an environment where there is no discrimination or harassment. Employees are also given equal opportunities to learn and grow. For the company to uphold the values and morals of the company, Employees are supposed to behave themselves and be loyal to the company to ensure the efficiency of the organization (Subrahmanian and Abhilasha, 2014). The management has put down some rules and regulations to enforce discipline. All the company departments work in cooperation, and there are supervisory officers in each department. The human resource departments ensure that employees receive their basic salaries and benefits of time. They also do the best recruitment and placement process to come with the best candidates. There are job-based allowances that motivate the employees to work hard and focus on organization success. This company’s influential culture has made it excel and remain stable for many years.

1.5 Airports Authority of India organizational structure

The organization structure is designed to be able to manage a workforce of more than 18500 personnel who work at different airports in the country. The company has a human resource department that deals with all matters concerning employees like recruitment, promoting, doing transfers, and inductions.  The structure of this company is furthermore divided into several departments that show the line of command that is well structured to fit their goals and objectives (Kumar et al., 2018). It starts with the chairman who the head and the goes down to show other different departments that have different functions. All departments work together to ensure that all operations are in reasonable control. There is also a good flow of communication to the employees (“Organization Structure Corporate | AIRPORTS AUTHORITY OF INDIA,” 2013). They also have a department that does an internal audit. The structure also states who reports to who in the company. This ensures that everyone is aware of their duties and responsibilities to avoid blame work. It also maintains discipline in a way that everyone sticks to their areas of specialization.

Figure 2

The below chart shows the structure of the Airports Authority of India

Section 1: Organisation Structure, Culture, and Behavior

Part 2

2.0 Perceived impact of culture to leaders, managers and employee’s behavior in the above companies

The culture of both organizations plays a vital role in influencing the way their leaders, managers, and employees behave in companies. It gives everyone an identity in their organization. Culture helps in creating boundaries among different rankings in the company hierarchy. It helps in transforming self-interests of organizations members and make them have a bigger picture of the organization’s goals and objectives. Culture regulates the conduct of the management and employees that shapes their behavior by providing the appropriate standards to be followed (Kulczak, 2016). The attitudes of employees towards work are influenced either positively or negatively. It depends on the values and norms of the organization. Cultures have a significant influence that affects employees emotionally when they are awarded some incentives as part of the practices. When a company promotes a good lifestyle, both the management and subordinate employees, it gives them a sense of work, and they end up forming a social behavior.

Organizational culture affects the way people become innovative because it provides a working environment where people can showcase their expertise freely, hence inspiring them. When leaders are making decisions, they end up making many complex challenges. The only way they solve some of these challenges is by having a strong understanding of their organization culture (Kulczak, 2016). It helps them predict the outcomes of taking specific steps in decision making. Most of the human behavior in companies is learned through imitations of their leaders. Therefore, leaders and managers are expected to have a behavior that affects their employees positively. Once a positive culture is established, it becomes the tool to build strong leadership in organizations.

2.1 Perceived impact of organizational structure to leaders, managers and employee’s behavior in the above companies

The effects of organizational structure will stem from the reporting relationships and the way they are structured to define who makes which decisions. It affects the work-flow processes, and that shows which people are responsible for different services and products. It controls the way managers and leaders do promotions to their employees, which is performance-based (Simons & Ingram, 2010). If the organizational structure is designed in a way that it is only the senior managers who can make decisions, then critical decisions are only made at the top and might bring an adverse reaction from the employees. Employees will find that the structure is unfair, and they are not recognized; hence they will start having low morale.

If the organizations have a structure that conveys very rigid policies, employees tend to be lax. They feel that they are not trusted nor appreciated; hence it brings a feeling of mistrust and suspicion. This might make them start to produce poor quality work. When there is unfair treatment of employees, it leads to a decrease in their loyalty. Some employees even start building low self-esteem and start caring less about the organization’s success. An organizational structure that emphasizes the training of supervisors and managers help develop strong leadership skills. These leaders are also expected to reflect these skills to the employees as feedback so that there could be workforce achievements and improvements (Simons & Ingram, 2010). If there is a practice of excellent communication from top to bottom, the management system performance is also improved. Employees should always be made aware of any organizational changes in the structure so that they can also give their opinions regarding the changes. Organizational structure helps the organization leadership to be able to verify if they comply with the state and local government laws. If all the regulations are adhered to, there are always fewer conflicts between employees and the management. This makes the daily operations to be carried smoothly without much complexity.

3.0 Section 2: Drivers of organizational Change

Pepsi has faced a decline in the consumption of its products due to external factors affecting it. This has been caused by several economic woes, social factors, and health trends that are changing the sale of soda and their fast-food brands. Some of the factors like politics and technology have been put under control (Dudovskiy, 2016). Both Social and Cultural elements are essential to this company since the whole world is becoming so much conscious about issues regarding health and soda effects. Therefore, Pepsi is working hard to release some healthy products to boost its revenue.

PESTEL Table 1                    PESTEL analysis for the Pepsi company

3.1 Political factors

Political factors have had a significant effect on the Pepsi business. For it being a multinational company, several markets have had political instability issues and civil unrest and disruption. This has affected its sales and leading to huge losses. It has also interfered with their supply chain (Dudovskiy, 2016). Consumers have not been able to enough products at the required time due to supply chain disruption. For those countries which are big markets for Pepsi and have political stability, it’s an advantage and an opportunity for Pepsi. This company has tried to increase its collaboration with governments of different nations to create better conditions for its foreign markets.

3.2 Economic factors

Economic factors have had direct impacts on the Pepsi company, whether global or local. These economic factors have affected the purchasing power of their customers, and in turn, the sales have decreased. Those countries that are still in the economic recession have also affected Pepsi’s performance (Frue, 2018). Besides, the market volatility of commodities and inflation has affected this company. There has a shift in consumer preferences due to adverse economic conditions. People have been opting to purchase cheaper products that are substitutes for Pepsi products. However, when economic conditions of different markets improve, it becomes an opportunity for Pepsi to increase their supply and make more profits.

4.0 References

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Anon, (2020). Airports Authority of India: Latest News, Videos and Photos of Airports

Authority of India: Times of India. [online] The Times of India. Available at: https://timesofindia.indiatimes.com/topic/Airports-Authority-of-India [Accessed 12 Mar. 2020].

Dudovskiy, J (2016). PepsiCo PESTEL Analysis – Research-Methodology. [online]

Research. Available at: https://research-methodology.net/pepsico-pestel-analysis-2014/ [Accessed 12 Mar. 2020].

Frue, K. and Frue, K.F.K., (2018). PEST Analysis Of PepsiCo. [online] PESTLE Analysis.

Available at: https://pestleanalysis.com/pest-analysis-of-pepsico/ [Accessed 12 Mar. 2020].

Kissinger, D. (2017). PepsiCo’s Organizational Culture Characteristics: An Analysis.

[online] Panmore Institute. Available at: http://panmore.com/pepsico-organizational-culture-characteristics-analysis [Accessed 11 Mar. 2020].

Kulczak, P., 2016. PSY 833: Ethics and Leadership (Wheeler). [online] PSY 833 Ethics and

Leadership Wheeler. Available at:https://sites.psu.edu/psy533wheeler/2016/12/01/the-effect-of-organizational-culture-on-employee-behavior/  [Accessed 11 Mar. 2020].

Simons, T., & Ingram, P. (2010). The Kibbutz for Organizational Behaviour. [online]

Research in Organizational Behaviour, 22, 283-343. https://doi.org/10.1016/s0191-3

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Subrahmanian, M., & Abhilasha, N. (2014). Employee Motivation in the Airports Authority of

India [online]. ANVESHAK-International Journal of Management, 3(1), 140. https://doi.org/10.15410/aijm/2014/v3i1/50562

Thompson, A. (2018). PepsiCo’s Organizational Structure Analysis. [online] Panmore

Institute. Available at: http://panmore.com/pepsico-organizational-structure-analysis

[Accessed 11 Mar. 2020].

Kumar, A., Dash, M., & Sahu, R. (2018). Performance Efficiency Measurement of Airports.

[online] International Journal Of Strategic Decision Sciences, 9(2), 19-37. https://doi.org/10.4018/ijsds.2018040102