Indra Nooyi is the current CEO of PepsiCo. She has held this position since 2006 and has overseen increases in net income and R&D spending. Nooyi displays high emotional intelligence and focuses on strong communication with employees and customers. She adapts flexibly to changes and takes accountability for decisions. Nooyi's leadership style emphasizes caring relationships with employees while also maintaining high performance standards. She listens to others' opinions but makes the final decisions. Nooyi's leadership has benefited PepsiCo through improved sales, employee satisfaction, and a focus on healthier product options.
2. BIOGRAPHY
Born on October 28,1955 in Chennai, Tamil Nadu, India
Joined PepsiCo in 1994
Chairperson and CEO of PepsiCo since 2006
Masterās degree in pubic and private management from Yale
School of Management
Married. 2 daughters
Listed:
Timeā'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
3. LEADERSHIP STYLES
āLeadership 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 leaderā
-
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d
r
a
N
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y
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4. Personality trait
Surgency
ā¢ Increased Net Income
ā¢ Excessive R&D spendingHigh Energy
ā¢ She followed 5Cās throughout her careerCompetent
ā¢ High on Communication skillsExtrovert
5. Personality trait
Emotional Intelligence
Relationship Mgmt.
ā¢ Blogs to employees for motivating them
frequently
ā¢ Letters to parents of employees
ā¢ Interacting with Customers
Social Awareness
ā¢ 30K employees for livelihood
ā¢ Pensioners and investors trust
Was high on integrity as well for being
honest with people
6. Personality trait
Openness
Flexible
ā¢ Adaptable to changes
ā¢ Family Phone Calls during Business
meetings
Locus of Control
ā¢ Full accountability for decisions and
performances
ā¢ Continuously educating herself and
revaluating her decisions
7. 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.
8. Faces of Leader
ļManager - increased R&D spending by 25% since 2011
ļArtist- product innovations in the Quaker Oats brand to come out with a range of consumer perceived healthy
snacks
ļPriest
9. Behavioral Type of Leader
1. Robotic
2. Number Cruncher- Products launched in the past three years now make up 9% of revenue
3. Perfectionist ā As of 2013ās 50 bestselling new food and beverage products in the U.S., nine came from
PepsiCo
10. 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 Pepsiās
product line)
High-task orientation (tough on
herself and raises the
standard for everybody)
11. DEMOCRATIC LEADERSHIP
Listens to opinions and takes them into consideration
Still she makes important and final decisions
Tries to satisfy employeesā needs
12. SOCIALIZED CHARISMATIC LEADERSHIP
A ādeeply caring person who can
relate to people from the
boardroom to the grin-lineā
āPerformance with purposeā
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
14. 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
15. CONS
Too much attention on employee
orientation might negatively affect
profit management
Ideas of motherhood in the
business environment might have
a negative impact
Delayed decision making
16. USES
Indra Nooyiās leadership style is very
effective in situations where:
new and creative ideas are needed
situations are often changed and
consultation is required
nature of problems is flexible
Applicable for StartUp Companies
17. Contingent Theory
Fiedlerās Contingency Theory
Tannenbaum and Schmidtās Leadership Continuum Model
Path Goal Leadership Theory
Normative leadership-Time Driven Model
āTo lead in an ever-
changing world,
leaders must adapt
and stay nimble.ā
Indra Nooyi
18. Fiedlerās Contingency Theory
āIf you only want
people to help you
when you need
them and not have
an ongoing
relationship with
them, they donāt
know you, they
donāt 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?ā
Indira Nooyi
20. Path Goal Theory
āAs 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.ā
Indra Nooyi
21. 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 in
American and international markets.
23. 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 ādeeply caring person who can relate to people from the
boardroom to the grin-lineā
Constantly invest in communication skills
25. ā¢ Insight
ļ¼Focusing on environment friendly biodegradable
packaging.
ā¢ Influence
ļ¼Employees influenced by her Leadership qualities.
ā¢ Initiative
ļ¼Created Motto Performance with Purpose
ļ¼Divide the products into three categories
ļ¼Fun for you
ļ¼Good for you
ļ¼Healthy for You
Context
26. Context
ā¢ Integrity
ļ¼Company has what it calls an āInternal Audit methodologyā and maintains a 24-hour
anonymous ethics hotline to which employees can report concerns or ethical violations.
ļ¼PepsiCo provides annual ethics training programs for employees to address issues such as
bribery and conflicts of interest.
26
30. Biomorphic Culture
Individual 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 familyās 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 āidealā manner in which a
CEO conducts themselves.
31. Sociomorphic Culture
Culture is created and taken up by different members: Team formation
āI value you as a person. I know that you
have a life beyond PepsiCo, and Iām going to
respect you for your entire life, not just treat
you as employee number 4,567,āā she
stated.
32. Antro(po)morphic Culture
Vision of providing healthy food products to society : Societal Impact
Environment friendly bio degradable Packaging
33. Isomorphic Culture
Equilibrium between group and society, both influencing and impacting each other
Revenue
PepsiCo Society
Food and Beverages ,
Bio Degradable
packaging
Relationship oriented- she maintains a blog at Pepsi where she talks to her employees via posts every other week.
She writes letters to their parents to thank them for their children. In maintaining a company relationship with the public, Indra has been in-tune with consumers needs for healthier snack and drink options, which has led to transformation in Pepsiās product line( Fun for you, good for you,
Indra Nooyi is intense, decisive, an excellent negotiator, very open and
very direct, demanding, and she challenges you. Nooyi is charismatic. She can rouse an
audience and rally them around any project. Although she is task oriented, Nooyi also has
strong relationships with her colleagues. She insists that everybodyās birthday is celebrated
with a cake.
challenged by her high performance standards and expectation of excellence. She is not afraid to give people negative feedback, and with humor too. She pushes people until they come up with a solution to a problem and does not take āI donāt knowā for an answer. For example, she insisted that her team find an alternative to the expensive palm oil and did not stop urging them forward until the alternative arrived: rice bran oil.
Nooyi tends to use the achievement-oriented and participative styles. She sets high standards
and expects everyone around her to measure up.
Nooyi believes in people; you
give them an objective and get them all to buy into it, and they can move mountains. She
uses input from others,
She is an unusually collaborative person in the top suite of a Fortune 500 company, and she seeks help and information when she needs it. She has friendships with three ex-CEOs of PepsiCo who serve as her informal advisors,
Decision Significance. The decision has high significance, because the approach chosen needs to be effective at reducing employee stress for the insurance premiums to be lowered. In other words, there is a quality requirement to the decision. Follow the path through H.
Importance of Commitment. Does the leader need employee cooperation to implement the decision? In our example, the answer is high, because employees may simply ignore the resources if they do not like them. Follow the path through H.
Leader expertise. Does the leader have all the information needed to make a high quality decision? In our example, leader expertise is low. You do not have information regarding what your employees need or what kinds of stress reduction resources they would prefer. Follow the path through L.
Likelihood of commitment. If the leader makes the decision alone, what is the likelihood that the employees would accept it? Letās assume that the answer is low. Based on the leaderās experience with this group, they would likely ignore the decision if the leader makes it alone. Follow the path from L.
Goal alignment. Are the employee goals aligned with organizational goals? In this instance, employee and organizational goals may be aligned because you both want to ensure that employees are healthier. So letās say the alignment is high, and follow H.
Group expertise. Does the group have expertise in this decision-making area? The group in question has little information about which alternatives are costlier, or more user friendly. Weāll say group expertise is low. Follow the path from L.
Team competence. What is the ability of this particular team to solve the problem? Letās imagine that this is a new team that just got together and they have little demonstrated expertise to work together effectively. We will answer this as low or L.
