Role in the leadership dimension


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She was among the top 100 most influential people according to Time magazine's 2008 list. In 2012, she was ranked number 4 in Forbes's "Most Influential Women in the World" (2012) and number 2 in Fortune's "50 Most Powerful Women." To those familiar with her work and style, this comes as no surprise. Even before she be- came the CEO of PepsiCo Inc. (NYSE: PEP) in 2006, she was one of the most powerful executives at PepsiCo and one of two candidates being groomed for the coveted CEO position. Born in Chennai, India, Nooyi graduated from Yale's School of Management and worked in companies such as the Boston Consulting Group Inc., Motorola Inc., and ABB Inc. She also led an all-girl rock band in high school, but that is a different story.

What makes her one of the top leaders in the business world today? To start with, when she took her role at the helm of PepsiCo, she had a clear vision for the company, which seemed to be a timely vision at that point in time. Her vision was framed under the term "performance with purpose," which was based on two key ideas: tackling the obesity epidemic by improving the nutritional status of PepsiCo products and making PepsiCo an environmentally sustainable company. She is an inspirational speaker and rallies people around her vision for the company. She has the track record to show that she means what she says. She was instrumental in PepsiCo's acquisition of the food conglomerate Quaker Oats Company and the juice maker Tropicana Products Inc., both of which have healthy product lines. She is bent on reducing PepsiCo's reliance on high- sugar, high-calorie beverages, and she made sure that PepsiCo removed trans fats from all its products before its competitors did. To facilitate her vision, she also emphasized the role of research and development by hiring the chief of the diabetes and nutritional trials department at the Mayo Clinic and charging him with building a large R&D program. On the environmental side, she is striving for a net-zero impact on the environment. Among her priorities are plans to reduce the plastic used in beverage bottles and find biodegradable pack- aging solutions for PepsiCo products. While these investments affected short-term profitability and led to criticisms by Wall Street analysts, the overall financial situation of the company has been healthy.

Those who work with her feel 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 "I don't know" for an answer. For example, she insisted that her team find an alternative to expensive palm oil and did not stop urging them forward until the alternative arrived: rice bran oil.

Nooyi is well liked and respected because she listens to those around her, even when they disagree with her. Her background cuts across national boundaries, which gives her a true appreciation for diversity, and she expects those around her to bring their values to work. In fact, when she graduated from college, she wore a sari to a job interview at Boston Consulting, where she got the job. 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 friend- ships with three ex-CEOs of PepsiCo who serve as her informal advisors, and when she was selected to the top position at PepsiCo, she made sure that her rival for the position got a pay raise and was given influence in the company, so she retained him for three years. She says the best advice she received was from her father, whotaught her to assume that people have good intentions. Nooyi notes that expecting people to have good intentions helps her prevent misunderstandings and show empathy for them. It seems that she is a role model to other business leaders around the world, and PepsiCo is well positioned to tackle the challenges the future may bring

1.How might a leader like Nooyi influence PepsiCo's use of P-O-L-C tools beyond her obvious role in the leadership dimension?

2.What leadership theory do you think most closely resembles Nooyi's leadership style? Provide examples for why you have chosen this leadership theory based on this case study or outside research.

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HR Management: Role in the leadership dimension
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