Bureaucratic Organization: PepsiCo - Case Study Example

Bureaucratic Organization: PepsiCo Name Institution Name Date Introduction PepsiCo is a multinational beverage, snack and food corporation that has its headquarters in New York. Other activities the company understands includes marketing manufacturing and distribution of grained based beverages, foods and snack and other products. PepsiCo has continuously expanded since its inception including participating in mergers and acquisitions in organisations such as Quaker Oats in 2001, Tropicana in 1998, and Frito-Lay in 1965 resulting in widening of products provision and span of control. The numerous products PepsiCo offers are available across the world meaning that is easier to know about the organisation and partial research enables understanding of the products. PepsiCo provides numerous information through marketing, which makes it easier to be analysed, and understood in the market. The aim of the essay is to analyse PepsiCo, which employs the bureaucratic structure of the organization, through analysing factors such as structure, in terms of complexity, centralization and formalisation, reasons linking the bureaucratic aspects with the organisation, and PepsiCo coordination mechanism. Bureaucratic Organization Purpose PepsiCo does research and development, manufactures, markets and distributes different products across the world (PepsiCo, 2016). PepsiCo produces the common Pepsi drink, which competes with Coca-Cola for the market and ensures the products are distributed across the world (Perrott, 2014). The goals and objectives for PepsiCo include refining the food and beverage choices to reflect the requirements and needs of the consumers, create a healthy and safe working environment, champion and sustain the shareholder, address the requirements of effective financial performance and environmental sustainability (PepsiCo, 2016). Structure PepsiCo has continued to metamorphose as it grows meaning the organisational structure keeps reforming to reflect the global market conditions and associated dynamics (Bennett and Parks, 2015). The current structure incorporate variables of leadership and global expansion, with concern for international growth (Krishnan and Narayanakumar, 2010). The organisational structure enables the company to manage and satisfy the difference market requirements and conditions (Mortara and Minshall, 2011). The main organisational structure of PepsiCo characteristics includes market divisions, global hierarchy and functional corporate offices/groups (PepsiCo, 2016). To accomplish these requirements, the dimensions employed are formalisation, centralization and complexity. These dimensions are integrated into the management of the organisation and it influences the product and developments of the products and services (Fink, 2010). For example, the market division aspect, the structure is divided into PepsiCo Europe, PepsiCo Asia, Middle East & Africa, Latin America Foods, Quaker Foods, Frito-Lay and PepsiCo Americas Beverages (PepsiCo, 2016). In the case of functional corporate offices, Pepsi divides its operations into communications, talent development, training and management, government affairs and legal, finance, human resource, global operations and categories, and global research and development (PepsiCo, 2016). PepsiCo operational structure incorporates the features of management and determination of strategic implementation of processes and actions. The hierarchal structure is aimed at controlling monitoring and governing the corporate and global framework (Bennett and Parks, 2015). The PepsiCo hierarchy structured is influenced by the divergent needs of the organisation including control, monitoring and communications (Mortara and Minshall, 2011). The hierarchal structure, which infers the authority and duty, is aimed at minimising the deviations from its strategies and policies (PepsiCo, 2016). It also brings into focus the aspect of complexity because the hierarchy defines the roles and responsibilities of different action within the organisation. The complexity takes the form of vertical and horizontal differentiation because of the presence of departments such as finance and communication (Mortara and Minshall, 2011). These departments have specific tasks, which can be referred to as centralization of duties and tasks advancing locus of decision making and control (Weinberg and Pehlivan, 2011). It enables coordination and integration because it is possible to determine which organisation is tasked with specific duties and the role of the organisation in the wider implementation of duties and tasks (Bennett and Parks, 2015). These departments and sectors have aspects of formalisation through standardisation of tasks through procedures, policies, and rules (PepsiCo, 2016). For example, the rules require the finance department to adhere to the regional financial, legal requirements while the marketing department has to uphold ethical and legal requirements (Khojastehpour, Ferdous and Polonsky, 2015). Even though some of these directives are not clearly highlighted, it infers the formalisation and centralization of duties should reflect the environment and business dynamics. The aspects of formalisation and centralization are common in the manner in which PepsiCo operates (Mortara and Minshall, 2011). For example, the Frito-Lay North America has additional departments such as the product and packaging research and development, operations, marketing and sales (Bennett and Parks, 2015). The operations sector is further divided into HQ operations, field operations, facility green teams, and energy and environment teams (PepsiCo, 2016). These different sectors have defined rules and responsibilities, and policies, which the individuals’ assigned duties have to follow (Mortara and Minshall, 2011). It may be argued PepsiCo relies on its extensive human resource and organisational structure to be competitive and advance strategic requirements. It is a bureaucracy because each sector and the individual have to operate based on the laid down rules, there is a clear chain of command, and each individual has a clearly defined role and position within the organisation (PepsiCo, 2016). The structure employs the control over techniques through the presence of a hierarchy of supervision, effective documentation, and defined rules specify details of expected performance, the authority, and division of labour (Mortara and Minshall, 2011). In addition, qualified individuals are given the opportunities to fill positions through basing the decisions on expertise, qualifications and competence (Chaddad and Rodriguez-Alcalá, 2010). The formulated rules also apply uniformly, and the implementation is premised on the impersonal approach. The separation of duties and work contributes to the definition of career and highlights other important variables of career including promotion and associated benefits. Coordination Mechanisms PepsiCo employs different coordinating mechanisms to accomplish the operational and management requirements (Mortara and Minshall, 2011). Some of the mechanisms that coordination mechanisms include standardisation, direct supervision and mutual adjustment (PepsiCo, 2016). In mutual adjustment, PepsiCo encourages coordination of the work through advocating for independent work and informal communication among the different employees within the organisation (Kates and Kesler, 2015). The employees are encouraged to participate in social duties to creating the understanding and also to advance individual communication and effective communication to reduce chances of misunderstandings and conflicts (PepsiCo, 2016). PepsiCo advances these directives through team bonding in which the weaknesses and strengths of individuals are known, and these values used in advancing the requirements of the organisation. Direct supervision is also integral at PepsiCo (Salleh and Grunewald, 2013). A manager is assigned duties, or a supervisor is assigned duties because of situations and conditions. For example, a communication manager is tasked with overseeing the communication sector while the sector supervisor is tasked with a specific duty (PepsiCo, 2016). For example, in the production of Pepsi, one of PepsiCo common product, supervisors are assigned duties based on the production process ranging from receiving the raw materials, mixing the ingredients, bottling, packaging, checking for quality and other processes, which influences the production processes (PepsiCo, 2016). These all are direct supervision since the presence of the supervisor is important. Standardisation is also another coordination mechanism that PepsiCo employs in accomplishing strategic requirements (PepsiCo, 2016). The aspect of standardised coordination is preprogrammed into the operations in three ways: worker kills, outputs and work processes (Tiller, 2011). The work processes standardisation is determining the tasks assigned to an individual or machine to repeatedly or periodically produce a specific component. For example, the work process can involve producing a specific container or packaging material depending on the product and customer requirements (Aguirre-Mar, 2013). The outputs standardisation defines the wider impact of the smaller processes in the development of the products and services. For example, microwaves are common; PepsiCo has to create products that use the microwave to warm (Mortara and Minshall, 2011). The containers used should be friendly to the fridge and transportation requirements. The worker skills are also crucial because the PepsiCo relies on expertise and skills in completing the organisation requirements (PepsiCo, 2016). For instance, PepsiCo employs staff for specific sectors such as financial and marketing depending on the expertise of an individual and the tasks required. Conclusion PepsiCo employs a structured approach to the operational, monitoring and controlling the running of the business. PepsiCo produces beverages, snacks and among others to market and sell in the international market. PepsiCo has numerous international offices and within these segmentations, different levels of expertise, skills and technology are required. PepsiCo employs formalisation, centralization and complexity in advancing the strategic requirements. For example, the use of departments is integral in the operations of PepsiCo because of the aims of the company and bringing together different facilities/skills in aligning the operations. It ensures specialisation is capitalised, and efficiency encouraged throughout the production process. Thus, the bureaucratic structure is advanced throughout the operations of the organisation, and may be attributed to the complexity and span of operation and control of the business/tasks. In addition, the continuous development means the structures has to reform to address the changing dynamics. References Aguirre-Mar, M., 2013. 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