INDRA NOOYI

PRESENTATION BY

Sneha Vaish 521

Saurabh Verdia 523

Sridhar Swamy 524

Suvidh Shah 525

BIOGRAPHY

Born on October 28,1955 in Chennai, Tamil Nadu, India

Joined PepsiCo in 1994

Chairperson and CEO of PepsiCo since 2006

Master’s degree in pubic and private management from Yale School of Management

Married. 2 daughters

Listed:

Time 's 100 Most Influential People in The World in 2007 and 2008

Fortune #1 most powerful woman in business in 2009 and 2010

Forbes #2 most powerful woman in 2014

LEADERSHIP STYLES

“Leadership is hard to define and good leadership even harder. But if you can get people to follow you to the ends of the earth, you are a great leader”

-Indra Nooyi

Personality trait

Surgency

• Increased Net Income• Excessive R&D spendingHigh Energy

• She followed 5C’s throughout her careerCompetent

• High on Communication skillsExtrovert

Personality traitEmotional Intelligence

Relationship Mgmt.• Blogs to employees for motivating them

frequently• Letters to parents of employees• Interacting with Customers

Social Awareness• 30K employees for livelihood• Pensioners and investors trust

Was high on integrity as well for being honest with people

Personality traitOpenness

Flexible• Adaptable to changes• Family Phone Calls during Business

meetings

Locus of Control• Full accountability for decisions and

performances• Continuously educating herself and

revaluating her decisions

Achievement Motivation Theory

Possessed need for power by being high in energy

Achievement Motivation Theory

Possessed need for affiliation by being social/sensible

Affective Commitment

Strong emotional attachment to the organization having stayed for 21 yrs.

Faces of Leader

Manager - increased R&D spending by 25% since 2011Artist- product innovations in the Quaker Oats brand to come out with a range of consumer perceived healthy snacksPriest

Behavioral Type of Leader

1. Robotic 2. Number Cruncher- Products launched in the past three years now make up 9% of revenue3. Perfectionist – As of 2013’s 50 bestselling new food and beverage products in the U.S., nine

came from PepsiCo

SITUATIONAL LEADERSHIP STYLE

Maintains a good relationships with employees (writes letters to their parents to thank them for their children)

In-tune with customers needs for healthier snacks and drinks options (led to transformation of Pepsi’s product line)

High-task orientation (tough on herself and raises the standard for everybody)

DEMOCRATIC LEADERSHIP

Listens to opinions and takes them into consideration

Still she makes important and final decisions

Tries to satisfy employees’ needs

SOCIALIZED CHARISMATIC LEADERSHIP

A “deeply caring person who can relate to people from the boardroom to the grin-line”

“Performance with purpose”

Constantly invest in communication skills

Takes care of her employees and listens to their needs

Stays updated in the field of her business to inspire and motivate her employees and be inspired

Blake and Mouton Leadership Grid

Indra Nooyi

PROS

Since she became a CEO of the company, the following changes took place:

Define business direction of the company

High employee satisfaction

Improved work conditions

Lower employee turnover

CONS

Too much attention on employee orientation might negatively affect profit management Ideas of motherhood in the business environment might have a negative impactDelayed decision making

USES

Indra Nooyi’s leadership style is very effective in situations where:new and creative ideas are neededsituations are often changed and consultation is required nature of problems is flexible Applicable for StartUp Companies

Contingent TheoryFiedler’s Contingency TheoryTannenbaum and Schmidt’s Leadership Continuum ModelPath Goal Leadership TheoryNormative leadership-Time Driven Model

“To lead in an ever-changing world, leaders must adapt and stay nimble.”Indra Nooyi

Fiedler’s Contingency Theory “If you only want people to help you when you need them and not have an ongoing relationship with them, they don’t know you, they don’t know where you come from, and they are doubtful whether you really are interested in the issue, or are you just trying to skate over a current problem?”

Indira Nooyi

Tannenbaum and Schmidt’s Leadership Continuum

Path Goal Theory“As a leader, I am tough on myself and I raise the standard for everybody; however, I am very caring because I want people to excel at what they are doing so that they can aspire to be me in the future.”

Indra Nooyi

Normative Time Driven Model

Based on the decision to be made, Nooyi consults and facilitates others. As chairman and CEO, she has the final say in major decisions affecting PepsiCo. However, she also delegates some decisions down the chain of command that involve specific products inAmerican and international markets.

Dunham’s Leadership process model

SOCIALIZED CHARISMATIC LEADERSHIP

Takes care of her employees and listens to their needs

Stays updated in the field of her business to inspire and motivate her employees and be inspired

A “deeply caring person who can relate to people from the boardroom to the grin-line”

Constantly invest in communication skills

Follower

Relationship development:

• She decided to write personal letters to each of her direct reports' parents thanking them for "the gift" of their children.

• InsightFocusing on environment friendly biodegradable

packaging.

• InfluenceEmployees influenced by her Leadership qualities.

• InitiativeCreated Motto Performance with PurposeDivide the products into three categories

Fun for youGood for youHealthy for You

Context

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Context

• Integrity

Company has what it calls an “Internal Audit methodology” and maintains a 24-hour

anonymous ethics hotline to which employees can report concerns or ethical violations.

PepsiCo provides annual ethics training programs for employees to address issues such as

bribery and conflicts of interest.

Outcomes

• Improved Sales

• High employee satisfaction

• Improved work conditions

• Lower employee turnover

POWER

•Legitimate power

•Reward power•Expert power

Position power

Culture

Biomorphic CultureIndividual responsible for setting up his own type of culture: Individual

concern

She sings, she walks around barefoot, and makes it a point to attend to her family’s telephone calls even during critical business meetings. Known to have spiritual leanings and wears a sari with as much ease as she dons a business suit. In other words, her general attitude is not stereotypically in tune to the “ideal” manner in which a CEO conducts themselves.

Sociomorphic Culture

Culture is created and taken up by different members: Team formation

‘I value you as a person. I know that you have a life beyond PepsiCo, and I’m going to respect you for your entire life, not just treat you as employee number 4,567,’” she stated.

Antro(po)morphic Culture

Vision of providing healthy food products to society : Societal Impact

Environment friendly bio degradable Packaging

Isomorphic Culture

Equilibrium between group and society, both influencing and impacting each other

Revenue

PepsiCo Society

Food and Beverages , Bio Degradable

packaging

References

http://en.wikipedia.org/wiki/PepsiCo

http://www.pepsico.com/docs/album/annual-reports/pep_annual_report_2013.pdf?sfvrsn=2

https://www.businessvibes.com/blog/facts-and-figures-global-food-and-beverage-industry

http://en.wikipedia.org/wiki/Indra_Nooyi

http://www.centerforworklife.com/leadership-qualities-indra-nooyi/

http://smartblogs.com/leadership/2011/08/08/live-from-blogher-pepsico-ceo-indra-nooyi-on-the-leadership-principles-that-guide-her/

http://2012books.lardbucket.org/books/an-introduction-to-organizational-behavior-v1.0/s16-leading-people-within-organiza.html

THANK YOU