How Pepsico Uses Its Talent to Sustain a Competitive Advantage in the Marketplace.

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Talent Development at PepsiCo

Freeman F. Dennis

Dr. J. A. Anderson, Sr.

Talent Management – HRM 532*201004

July 19, 2011

Introduction.
At PepsiCo talent management is taken very seriously. From the CEO on down, all level are involved in the reviews of high potential individuals. With this level of involvement, the talent that is attracted to the company is developed and trained so well that many of them go on to be top level executives at other major corporations.

Discuss how PepsiCo uses its talent to sustain a competitive advantage in the marketplace.
The first thing that PepsiCo did was to ensure it had the “the right people, in the right place, at the right time, doing the right work, the right way.” (Silzer, 2010 p.618). With this philosophy, the organization is achieving talent sustainability. PepsiCo realizes that for talent to be developed properly and in a sustainable way there must be ownership of the talent to direct the development of the talent. The company therefore has decided that the corporation takes ownership of the top “several hundred roles”. The other much greater pool is owned by the division. This enables the corporation to train and utilize these talents across the full spectrum of the enterprise rather than solely within the division or function where they work. This also ensures that there is commonality of language used as well as the development of the talent. The company has four elements it utilizes to this end: • Talent Acquisition which is finding the right talent and ensuring the talent is given the right experiences through the entire process of bring the talent into the company. • Talent Management and Development where the company gives the talent the training and development needed for the talent to be ready to assume critical leadership position when required. • PepsiCo University in which the talent is given the training in an accessible learning environment that will give the talent global capability. • Inclusive Culture. PepsiCo’s culture and the behavior that the organization expects from its leaders for the present workforce as well as the future workforce. Talent at PepsiCo is nurtured and trained also through on the job training. A career goal and development path that is aligned with the company’s strategic goals is set for the individual to ensure that s/he is ready for the next level. Discuss three key elements of PepsiCo’s career growth model.

At PepsiCo, to be considered for the career growth model (CGM), an individual must have demonstrated results in both business and people management and development. The results are measured from the performance management process. Results in people management and development are just as important at PepsiCo as business results. A second element in CGM is leadership capability. PepsiCo looks for the competencies and behavior in the individual it expect from its leaders. There is one set of values the company expects from all it employees as well as different sets for leaders and mangers depending on the leader or manager level in the hierarchy of the company. The competencies and behavior grow in significance as the individual rises in the organizations. A third component is functional excellence which is considered the “basic building blocks of knowledge for any given role.” (Silzer, 2010 p.621). Employees are to gain functional competency through training curriculum in fields such as sales, marketing and finance. It is expected that this knowledge will be gained early in the individual’s tenure with PesiCo through job rotation. As the individual advances in the organization, leadership skills rather than functional skills are emphasized and to ensure that s/he can transition from “divisional capability and talent ownership” (Silzer, 2010 p.621) to senior-level talent management practices. Another component, is for...
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