leadership style indra nooyi
TRANSCRIPT
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INDRA NOOYI
PRESENTATION BY
Sneha Vaish 521
Saurabh Verdia 523
Sridhar Swamy 524
Suvidh Shah 525
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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
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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
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Personality trait
Surgency
• Increased Net Income• Excessive R&D spendingHigh Energy
• She followed 5C’s throughout her careerCompetent
• High on Communication skillsExtrovert
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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
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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
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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.
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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
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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
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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)
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DEMOCRATIC LEADERSHIP
Listens to opinions and takes them into consideration
Still she makes important and final decisions
Tries to satisfy employees’ needs
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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
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Blake and Mouton Leadership Grid
Indra Nooyi
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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
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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
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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
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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
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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
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Tannenbaum and Schmidt’s Leadership Continuum
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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
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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.
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Dunham’s Leadership process model
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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
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Follower
Relationship development:
• She decided to write personal letters to each of her direct reports' parents thanking them for "the gift" of their children.
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• 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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26
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.
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Outcomes
• Improved Sales
• High employee satisfaction
• Improved work conditions
• Lower employee turnover
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POWER
•Legitimate power
•Reward power•Expert power
Position power
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Culture
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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.
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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.
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Antro(po)morphic Culture
Vision of providing healthy food products to society : Societal Impact
Environment friendly bio degradable Packaging
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Isomorphic Culture
Equilibrium between group and society, both influencing and impacting each other
Revenue
PepsiCo Society
Food and Beverages , Bio Degradable
packaging
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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
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THANK YOU