Pepsi Cola Company Organization Principles

Subject: Company Analysis
Pages: 4
Words: 894
Reading time:
4 min
Study level: College


Psychology is one of the most useful fields in running an organization. Industrial and organizational psychology applies the knowledge of psychology in organizations and other workplace. An organization that applies industrial/ organizational psychology attains great success in its operations. The performance of the organization is improved and the well being of the workers is also improved. The principles of psychology are applied to create a conducive environment for the workers and help them relate well with the organization. Industrial/ organizational psychology can be applied in an organization in many different areas. Some of these fields include: personnel recruitment and selection, motivation, performance appraisal and management, job satisfaction, etc. The Pepsi Cola Company can apply industrial/ organizational psychology especially at a time when there is high competition in the field of beverages so as to ensure that the company is successful in its operations and maximizes profits. This paper will seek to analyze how the Pepsi Cola Company can apply the industrial/ organizational psychology in its organization to achieve greater success in its operations.

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Motivation of Employees

The Pepsi Cola Company is operating in a very competitive environment. This means that the employees in the company must work very hard so as to achieve greater success. One of the areas where the company can apply the industrial/ organizational psychology is in motivating the employees. The motivational theories can be applied to reward the employees according to their performance. In a company, some employees work very hard and do good jobs ensuring the success of the company. Such employees need to be encouraged so that they can work even harder so as to continue being rewarded (Allan, 2009, prg.6). On seeing this, the other employees will be motivated to work harder so that they also receive rewards for their work. This motivation will help many workers to reach their destined goals in the company. Motivating the employees will also help the company retain most of its employees because they can see that the company is taking care of them. Motivation will also increase the production of the company while retaining the same number of employees. This means that the company’s profits will move higher since the production has gone higher while the same number of employees is retained. The higher profits will also allow the company to have more money to spend in the field of research. Eventually, more competitive brands will be invented as a result of research and more success achieved. The brands in production will be of higher quality since all the employees will be dedicated to achieving higher goals. In essence, motivation of employees as a process in industrial/ organizational psychology will ensure the success of the Pepsi Cola Company.

Personnel Recruitment and Selection

The success of a company greatly depends on the qualifications of individuals that work with the company. In connection, the recruitment and selection process is very important as it will determine the qualifications of individuals who work with the company (Gerald, 2009, p.126). The human resource department in the Pepsi Cola Company can work closely with some industrial/ organizational psychologists in the identification of the qualified individuals to work with the company. The psychologists will also be required in the selection of the individuals who will be successful to take the jobs. This way, the company will have the most qualified employees ensuring that the work done is perfect. When the individuals selected are qualified for the jobs available, less time will be spent in the orientation and training and this will help save time and get the individuals to work quite fast. The process of selection of the best individuals in the company that deserve promotion will also involve the I/ O psychologists and this will ensure fairness since standard evidence-based practices in the selection will be used. The involvement of the industrial organizational psychologists will ensure the overall success of the Pepsi Cola Company.

Performance Appraisal/ Management

To appraise the performance of an individual in the job assigned, the outcomes are compared with the expectations. The same process is used to check the performance management of an individual with a management role. The results are used in promotion of the individuals to higher positions and responsibilities in the company. The industrial and organizational psychologist develops a scale that can be used to rate these individuals after an analysis that determines the job performances of the individuals (Richard, 2008, p.4). They will also train the individuals the top management of how to use the appraisal scale to avoid biases in making decisions. The application of such principles in the Pepsi Cola Company will ensure the success of the company since those promoted will be the most qualified and those who can handle the challenges in these positions.


The application of the industrial/ organizational psychology in the Pepsi Cola Company will ensure the success of the company in its operations and also the satisfaction of the workers in the company. Applying the principles in motivating employees will help the employees achieve higher goals in the company and eventually ensure the success of the company. The Psychologists will also help in the recruitment and selection process where the most qualified individuals will take the jobs in the company. The appraisal of performance and management will ensure a fair process of promotion and better management in the company.

Reference List

Allan, H. C. (2009). From Both Sides Now: The Impact of I/O Psychology. Web.

Gerald, P. H. (2009). International Review of Industrial and Organizational Psychology, Volume 24. UK: University of Leeds, 124-132.

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Richard, N. L. (2008). A Quantitative Examination of Trends in I-O Psychology. Twin Cities: University of Minnesota.