A report Submitted in partial fulfillment for the

Requirement of Dissertation.

FACULTY GUIDE
PRESENTED BY:PROF. Dr. VINITA VERMA
KUMARI

RICHA

BBA
6

TH

SEMESTER

CONTENT
Content

Page no.

Declaration
Certificate
Acknowledgement
Human resource management
Human resource management at pepsico
Organizational structure of lumbani
bevrages
Findings and analysis
Suggestions and conclosuion

3
4
5
6
7-14
15
16-17
18

AMITY GLOBAL BUSINESS SCHOOL

DECLARATION
I hereby declare that the project report entitled ORGANIZATIONAL WORKING
AND STRUCTURE is written and submitted by me under the guidance of MR. N.
K. PRASAD HR Manager LUMBINI BEVERAGES PVT LTD, PATNA is my original
work.
The findings and interpretations in the report are based on the data
collected by me during the survey. This project is not copied from any source or
other project submitted for similar purpose.

RICHA KUMARI
BBA 6TH SEMESTER
AMITY GLOBAL BUSINESS SCHOOL
PATNA

30th march 2015

CERTIFICATE
This is to certify that the research report entitled _HUMAN RESOURCE MANAGEMENT
being submitted by RICHA KUMARI, BBA, 6TH SEMESTER, (Enrollment Number) for the partial
fulfillment of award of the degree of Bachelors of Business Administration is a record of
bonafide research carried out by him/her.
RICHA KUMAI has worked under my guidance and supervision for submission of this thesis,
which in my opinion is of requisite standard.
This research work or any part thereof has not been submitted to any other University or Institute
for the award of any other degree or diploma.

Signature of the Guide

Prof. Dr. VINITA VERMA
Amity Global Business School
Amity University

ACKNOWLEDGEMENT
This has been my great experience in the corporate world and has been a truly
learning experience for me. The project assigned to me had a great learning
potential and tremendous scope of application. There have been many people who
have supported me throughout the project and I take this opportunity to thank them
for their time and effort.
I would begin by thanking MR. N. K. PRASAD HR Manager for having the
confidence in me and giving me the opportunity to undergo my summer training in
this prestigious company
I am grateful to Prof. Dr. VINITA VERMA, my faculty guide, without her
support and guidance; my project would not have been possible. I want to thank her
profusely for her support and encouragement she gave for this project.
I would like to thank my collogue for making every effort to ensure that my
project was truly a learning experience for me and without whose support the
project could not be completed.
I world even like to thanks my seniors to coordinate in my project and try to make it
the best one and this is not the last at the end I would also like to thanks few of
special persons who have given their special advice in making this project a
wonderful once.

Human Resource
Human resources is a term with which many organizations describe the
combination of traditionally administrative personnel functions with performance,
Employee Relations and resource planning. The field draws upon concepts
developed in Industrial/Organizational Psychology.
The objective of Human Resources is to maximize the return on investment
from the organization's human capital and minimize financial risk. It is the
responsibility of human resource managers to conduct these activities in an
effective, legal, fair, and consistent manner.
Human resource management serves these key functions:
1. Selection
2. Training and Development
3. Performance Evaluation and Management
4. Promotions
5. Redundancy
6. Industrial and Employee Relations
7. Record keeping of all personal data.
8. Compensation, pensions, bonuses etc in liaison with Payroll
9. Confidential advice to internal 'customers' in relation to problems at work.
10.Career development
11.Organizational structure
At the end I want to say without effective human resources attainment of
organizational goals are not possible to attain.
6

Human Resource at PEPSI

CO.
PepsiCo, Incorporated is a Fortune 500, American global corporation headquartered
in Purchase, New York, with interests in the manufacturing, marketing and
distribution of grain-based snack foods, beverages, and other products. PepsiCo was
formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc.
PepsiCo has since expanded from its namesake product Pepsi to a broader range of
food and beverage brands, the largest of which include an acquisition of Tropicana
in 1998 and a merger with Quaker Oats in 2001 - which added the Gatorade brand
to its portfolio as well.
The company employed approximately 300,000 people worldwide. The companys
beverage distribution and bottling is conducted by PepsiCo as well as by licensed
bottlers in certain regions. PepsiCo is a SIC 2080 (beverage) company.
Functional expertise involves the development of business teams, administration of
HR management systems and the identification of staffing needs. Execution of
processes and the handling of daily HR-based transactions provide direct and
technical support to the business. Business partnership allows HR professionals to
actively participate in the business and learn our ongoing challenges. This allows
our HR team to match the right solutions, ideas, skills, people and processes to the
specific needs of their business units. You will be able to leverage your functional
7

knowledge and skills with the needs of the business in ways that create measurable
results. Creating valuable change in line with the business agenda defines our
overall contribution to the results of the business unit. At PepsiCo, we reserve a spot
for you at the leadership table, but its up to you to earn your voice and make an
impact.

HR Introduction:
HR department follows the policies by the HR department of PEPSICO. At
PEPSICO, their belief is that "their people are their greatest asset. They take
great pride in acknowledging the contribution each one of them makes". They
focus on People Development and for that they ensure:

Staff PEPSICO with world class Professionals and ensure that the right
systems are in place to encourage them to develop to their full
potential.

Create a collaborative and mutually supportive work environment that

encourages people to grow.

Build a team of professionals who deliver expertise by participating in

business decisions.

Develop Performance Management and reward systems underlying

our Business strategy.

HR Objectives:
To look out for the well being of all employees of the company.
Provide leadership and direction to employees of the company.
8

 Career Development planning for all employees of the company.

Ensure thorough training of nationwide employees.
To provide individual employees with orientation on the company at the time of
joining.
To provide employees with solutions to their problems.
Maintaining data records of all employees of PEPSICO (Human Resources
information System).
To evaluate and retain those employees who are assets to the company.
HR Policies:
Friendly, conversant, flexible and congruent with business environment.
Policies are legally compliant with clearly expressed processes for timely revisions
and a framework in place to foster employee adherence.
HR PLANNING
HR plannings purpose is to determine what HRM requirements exist for current &
future supplies & demands of workers. The organization ensures that they have the
right number and kinds of people at the right place; this task is accomplished by
regular recruitment and selection, performance evaluation, Promotions, Regular
Training and development programs.
HR Functions of PEPSICO:
STRENGTHS
1- The people in the HR department of PEPSICO are extremely qualified personnel
so no flaws in decision making are prominent
2- They have sufficient resources of getting knowledge from outside sources.
3- They prefer new entrants of the market to increase their efficiency.
WEEKNESS
1- The ethical issues in the PEPSICO prevail the most
2- The employees in the PEPSICO dont participate equally so there are chances of
misspalnning.

WORKING CONDTIONS:
Working conditions are normal for an office environment. Work may require
occasional weekend and/or evening work.
9

Performance Standards:
PEPSICO expects from its employees specific performance expectations for each
major duty and also expects certain behaviors like friendliness, helpfulness,
courtesy, and punctuality.
Job Specifications:
In PEPSICO the minimum job requirement for a HR Manager is Master degree in HRM
with relevant work experience,

EMPLOYEE EMPOWERMENT
The company is giving more stress on employee empowerment by giving them right
to participate in decision making specially those decision which directly affect the
employee themselves.
Also the company gives the subordinates the right to work on the behalf of its
supervisor in absence of him.
LABOUR RELATIONS
The company is paying more attention to strengthen the relationship among
employees by giving them equal opportunities to take advantage of the firms
incentives, because no biasness among employees is practiced in the firm which
affects the good relations among employees.
RECRUITMENT
PEPSICO employs through both formal and informal ways of recruitment.
Departments tell their need to HR department. And then recruitment is done on the
requirement by the project. All candidates send their CVs by post; they are then
short listed and called. So those candidates then report at the PEPSICO from where
they are sent to the Human Resource Department for further interviews. But
recently PEPSICO has devised a new way of recruitment i.e. online Applications.
They give Ads in leading newspaper and use some other mass media
communication channels and then receive applications and CVs online. In this way
huge paper work is reduced and recruitment process is improved in terms of
efficiency and convenience with the use of technology.
Sources of Recruitment:PEPSICO uses both Internal and External Recruitment. But the priority is given to the
internal if the employee has the capabilities, required by the management for
working on that post. In Internal recruitment they ask for employee referrals. Any
employee can refer any competent and potential person and if the referred person
comes up to their expectations and hired, then the one who referred is rewarded
with a bonus. In External environment the companys corporate Image matters a lot
10

in a way that not only new candidates are attracted but also people who became a
part of it in past.
Internal Methods
PEPSICO usually prefers Job Posting in which employees from with in the
organization are preferred but if the organization feels that the employee is not
competent enough then they go for external methods. Such announcements are
made through bulletin boards, memos and other internal sources.
External Methods
PEPSICO usually prefers advertising through newspapers and their official website
for their recruitment purposes. They give an open invitation to everyone to apply,
so people who are interested come and if they are capable enough they are hired.
They dont prefer any specific universities or colleges to get the applicants, what
matters are the potential talent and caliber of the person and his commitment to
work. Last year a scheme is started in which a team of HR professionals visit
different colleges and universities to recruit fresh and passionate candidates.
Strategies for Recruitment
The recruitment process is likewise the same but minutely varies in the organization
depending upon the ranks. In recruitment PEPSICO keeps certain things in front e.g.
What the person was getting (in terms of salary) prior to PEPSICOs Job.
Whether the person is polished enough to adjust in their environment.
Whether he or she has the required technical skills or the required qualification for
that specific job.
In PEPSICO they surely see qualifications but they prefer a person with required
skills, aptitudes, experience and capabilities.
STRENGTHS
1- The factor of succession planning is prevailing
2- They use the right techniques in recruiting.
WEEKNESS
1- At the time of the recruitment the most suitable and appropriate employee may
not be available.
SELECTION
In PEPSICO, selection Criteria is based on numerous factors such as education,
health, background and previous experience.
Selection process
11

1. The Application
The employment application is candidates first chance to present his qualifications
to the Organization. As such, it is extremely critical for his/her continued
participation in the examination process. Before beginning, one has to review
thoroughly what the Job Announcement specifies as the requirements to qualify for
the position. Candidate must meet these criteria to be considered for the position;
ensure that, otherwise candidate will be wasting his effort in completing the
application. Most entries on the form are self-explanatory, but a few pointers on
filling it out may help
2. Written Exams:
Written exams are usually obtained from one of several test construction firms
available to them. These tests are designed to determine level of technical and/or
analytical abilities associated with the particular position for which candidate had
applied. The test which is conducted in PEPSICO selection purpose is TEST OF
COGNITIVE ABLITIES. This test is mostly taken from fresh graduates. Whereas some
people are selected on the basis of experience.
3. Performance Exams:
Performance exams test ability to accomplish specific job-related tasks by providing
the opportunity to actually perform them. These tests are scheduled through the
Human Resources Department office, with notification in writing of the date, time,
location and duration of the test. Instructions will be given on the tasks to be
completed and then asked to complete them. Individuals with considerable relevant
experience will conduct the evaluations. Safety, quality of work, adaptability,
performance under stress, etc. are evaluated.
4. Specialized Testing
some positions will require specialized testing, such as technical skills, agility and
communication skills etc. These tests are scheduled just as like other tests.
5. The Panel Interview
The results of this component of the exam process will be used to determine if
candidate should be included on the List of Eligible Candidates forwarded to the
hiring authority for consideration for a departmental Selection Interview.
This portion of the examination is normally weighted 100% (or as indicated on the
Job Announcement). ypically, previous test results are used only to qualify you for
participation in the Panel Interview.
The Panel is comprised of qualified individuals, which may or may not be employees
of the City. Normally, the panel will consist of three evaluators. These individuals will
evaluate responses to a variety of job-related questions over the scheduled time
period.
6. The Selection Interview
Once the List of Eligible Candidates is established it is sent to the Department(s)
that is hiring to fill a current vacancy. The Department Head is responsible for
setting up Selection Interviews. He/she may interview anyone on the list, since all
12

persons referred to the department are qualified. The Department Head will be
looking for the candidate with the best qualifications for their particular position.
The candidate selected to fill the vacancy will undergo a medical examination, drug
screen, background investigation, and a probationary period before attaining
permanent employment status.
STRENGTHS
1- They implement a crucial testing system which affects the selection process.
2- They have a separate selection criteria for each job.
WEEKNESS
1- They take group interview which causes many confusion.

TRAINING & DEVELOPMENT

PEPSICO has trained and developed many of its senior and fast track managers and
supervisors. For lower and technical staff the organization have a complete training
calendar for the year, if organization thinks and feel that an employee requires
training to update his knowledge about the field, he just have to report the HR
department and he will be listed for the next training program.
On-the-job Training:
As compared to other competitive organizations the training program of PEPSICO is
quite different. It provides full opportunity to its employee to develop themselves
and also train them according to the requirements of their job. In return they will be
greatest asset for their organization. The employee is being trained in many ways
while they are on job.
External sources
These are formal training opportunities that PEPSICO offers to employees either
internally or externally. A trainer, facilitator and/or subject matter expert are
brought into the organization to provide the training session or an employee are be
sent to one of these learning opportunities during work time. These training
opportunities are provided in the form of seminars, classroom training courses and
workshops.
STRENGTHS
1- They hire foreign instructor for the training of the employees
2- The employees after getting trained perform well and become able to maximize
their potential.

WEEKNESS
1- The factor of favoritism effect the performance of certain employees.

13

PERFORMANCE APPRAISAL
The jobs are evaluated on yearly basis under 360o method; the competent
employees are rewarded in shape of promotions, bonus, increments and annual
holidays and promotion. The results of an appraisal can be used to identify areas for
further development of the employee.
The organization also uses different questionnaires, which consist of numerous
questions about the behavior of the employee, and then on the basis of these
answers personality of the employee is judged.
When evaluation is made the unsatisfactory performers are given warning. The
employee after warning is put under observation, for some period of time and if the
employees performance is still unsatisfied then are demoted or fired.
COMPENSATION & BENEFITS

Promotion
Promotion is direct shift only to the next level from the current grade, the
employees performance is evaluated and if his performance is above average he is
given promotion. PEPSICO promotes only those candidates who are experienced and
eligible for that particular vacancy.

Increments
The company decides at the end of the financial year, according to its financial
condition, whether increments should be given or not.
Free transport
PEPSICO provide free transport to local employee.

Medical facility
PEPSICO provide free medical facility to workers depending upon the position/rank
of the employee.
House loans:
They give the facility of house loan only to deserving individual. The loan approval
depends upon the post of the employee.
Overtime payment:
Overtime payment is pay for only those workers who are working more than their
working hours mostly overtime payment is given to low level staff.

14

OVERALL ORGANIZATIONL STRUCTURE OF LUMBINIBEVERAGE PVT.LTD

HAJIPUR
LUMBANI
BEVRAGES PVT
LTD
PRODUCTION
PLANT
SUPERVISOR
QUALITY
STORE
DEPARTMENT
KEEPER
MANEGER
CONTROLLER

FINANCE
ACCOUNTS
CONTROLLER
OFFICER

TIME KEEPER
OFFICE
IN
PERSONNAL
SECURITY
CHARGE
MANEGER

SALES EXECUTIVE
SALES
SALES SALES
SENIOR
DEPORT
EXECUTIVE
INCHARGE
MANAGER

15

FINDINGS AND ANALYSIS

Working climate

16

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
liking

not liking

This clearly indicates that maximum individuals

working out there like the working climate of the
organization.
Results produced by different ways of training used
by the firm

17

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
on the job traing

off the job training

This clearly indicates that off the job training

produces more effective employees for the
organization as compared to another one.

18

SUGGESTIONS AND RECOMMENDATION:

Lumbani beverages should build a strong management and development

framework to stand the vigorous competition from the various industries.

Paper work must be reduced, computerized work should be more.

There should be online information of all the employees regarding all the
activities performed by them like performance, communication skills, quality
of work, over time devoted by each employee, etc.

By adopting MBO method, Employees compete against each other and dont
help others.

They should also improve their methods of training in order to improve their
productivity.

They should develop such system in their HR department that no ethical

issues can be raised.

The employees should participate in all the activities of the department.

They should choose plan in such a way that when there is a need of
recruitment the proper candidate must be available.

The factor of favoritism must be eliminated from the department of HR.

They should hold meetings of the HR employees more frequently for

eliminating any misunderstanding.

Conclusion:
HR planning is to determine what HRM requirements that are exist for existing &
upcoming supplies & demands of workers. In human resource planning organization
ensures that they have the right number and kinds of people at the exact place; so
this task is held by ongoing recruitment and selection, performance appraisal,
employees Promotions, ongoing Training and development programs. PepsiCo is a
name of brand and standard and good quality product. PepsiCo is focusing more
and more on its planning strategies to make its reputation better in the world
surroundings community. Management of the PepsiCo does not compromise on
19

quality of its products and the values. Doing that the company is going higher by
accelerating its functions in a good way.

20