Discuss about the Organization Governance and Leadership for Chair of Pepsi Cola.
Indira Nooyi_ CEO and Chair of Pepsi Cola
Standing out as the 14 most powerful woman in the World, the CEO and Chair of Pepsi Cola, Indira Nooyi has been able to transform Pepsi cola from a carbonated beverage manufacturing company to other healthier products in an effort to provide the strategic future for the company (Forbes, 2016). This was evident when in May 2016 she successfully sidestepped a proxy war with investor and activist Nelson Peltz’s Trian Fund that pressured the company to split through a new board member. By applying the Path-Goal theory, Nooyi is known for making decisions that best fits the employee and the beverage industry to achieve the strategic goals of Pepsi cola (Schriesheim, et al., 2006). She realized that the carbonated industries only provided the company with 25% of revenue which could be more if the company ventures into other healthy drinks (Forbes, 2016). As the CEO, she has been able to empower employees, increased their motivation and provided stakeholders with satisfaction through decisions that will increase the company’s revenue.
Path Goal Theory of Indra Nooyi
It is very hard to define leadership and the definition of good leadership is even harder. However if there are people who will follow till the end of the earth then it is proved that individual is a great leader. The situational leadership Indra Nooyi follows is that she maintains good relationships with the employees by writing letters to the parents of the employees. She always stays in tune with the needs of the customers. Her main concentration is every time toward one single point that is high-task orientation that is to follow up about the standard of the product so that it is acceptable to all level of customers. The democratic view of the leader ship of the Indra Nooyi is that she always listen to the opinions of the others and takes them into consideration but the final decision is totally made by her and always try that the employees get satisfied. She believes that if the employee get satisfied then the work condition is improved and the also the employee turnover is lowered. Thus the path goal theory of Indra Nooyi is divided in three steps situational factors which include subordinate and environment. The subordinate comprises Authoritarianism, locus of control, and ability. On the other hand Environment comprises task structure, formal authority and work group. The step of this path goal theory is the leader ship style which comprises different section like the directive, supportive, participative and achievement-oriented. The final part of the path goal theory is the achievement of the goal that includes the performance and net output gain of the theory and the satisfaction of the individuals who are related to this theory (Dunn et al., 2012).
Forbes, 2016. #14 Indra Nooyi, CEo Pepsi Co.. [Online]
Available at: https://www.forbes.com/profile/indra-nooyi/[Accessed 18 November 2016].
Dunn, T. E., Lafferty, C. L., & Alford, K. L. (2012). Global leadership: A new framework for a changing world. SAM Advanced Management Journal, 77(2), 4.
Schriesheim, C., Castro, S., Zhou, X. & DeChurch, L., 2006. An investigation of path-goal and transformational leadership theory predictions at the individual level of analysis. The Leadership Quarterly, 17(1), pp. 21-38.