Background
The most critical thing a leader must understand is that diversity is about being different. Indra Nooyi, CEO of PepsiCo, understands what it means to be different. Reinemund and Paige explained that Indra Nooyi understands differences. Indra Nooyi dealt with the differences of being a woman, minority, and ethnic origin and still managed to climb her way to the top of the corporate ladder. Mrs. Nooyi holds a Bachelor of Science from Madras Christian College, an Master of Business Administration from the Indian Institute of Management in Calcutta, and a Master of Public and Private Management from Yale University (PepsiCo, n.d.). Indra spent many years as a Vice President in different capacities before starting at PepsiCo in 1994 as Senior Vice President of Strategy and Strategic Marketing. Mrs. Nooyi worked her way up the corporate ladder at PepsiCo and in 2006; took over leadership as President and CEO. Indra Nooyi lives diversity each day and understand what Richardson (2005) referred to as an organization of people from different backgrounds that consists of race, ethnicity, gender, and beliefs. This paper will focus on how Indra Nooyi influences diversity at PepsiCo based on her ethnicity, gender, and policies. A key element in implementing successful diversity policy is the ability to lead and manage ethnic diversity.
Ethnicity
Diversity has been and continues to be good for the economic growth and prosperity of this country (Herrerra, 2001). According to Moore (2007), Indra Nooyi is a native of India and one of only a handful of women to run a Fortune 500 company. PepsiCo is a proponent of diversity and in the 1940’s had minority-owned franchises and employees of color. Moore stated that Peps...
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...Executive Officer, PepsiCo).
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Diversity in the retail marketplace is something that is significant to the company’s success. Retailers are comprised of people selling things to people. Thus, the people that do the selling must be a good representation of the people that are doing the buying. Companies that are well diversified in their hiring practices, as well as organizational goals, are well recognized by the public. Likewise, companies that are unjust in the functioning of their company will be viewed in a negative light, which could lead to decreased sales and company accountability. Taking this into consideration, observing the diversity profiles for two major retail companies can lead to a firm understanding behind their success and company values.
Barsh, Joanna and Yee, Lareina. Unlocking the Full Potential of Women in the US Economy. McKinsey & Company. Accessed April 4, 2014.
Since the 1970s, the percentage of women making up the United States labor force has increased dramatically, peaking in 1999 at 60%. According to the U.S. Bureau of Lab...
United States. Bureau of Labor. Women in the Labor Force: A Databook. Washington: GPO. 2013. PDF file.
Throughout this semester—as a class—we discussed why and how diversity is important, and how we can manage diversity in successful and productive approach. My aim in this paper is to clarify what—I believe—ought to do as an ethical leader toward promoting diversity. First, I will briefly discuss the importance of ethical leadership and diversity. Then, I will shadow on other dimensions in understanding diversity and how to achieve them. Finally, I will conclude with my personal statement which is: “diversity—besides being a positive tool both ethically and economically— goes beyond to be the guiding tool for a bright future for the mankind. I believe that accepting diversity has a profound positive effect not only for organizations but to all societies worldwide.”
The foundation for developing an effective diversity management program relies on leadership commitment and the CEO should communicate the organization’s position on diversity management and his or her sincere belief in the importance of diversity (Cañas & Sondak, 2010). Indra Nooyi, the current Chairman and CEO of PepsiCo, is a leader who demonstrates a strong passion for managing diversity. In this paper I will be discussing Indra Nooyi’s personal and professional background, the status of diversity within PepsiCo before her role as CEO, the leadership philosophy on managing diversity Indra Nooyi has taken, the strategies she has used to implement diversity management, and her diversity related goals. I will conclude with a discussion on the current status of PepsiCo in terms of diversity, their future diversity goals and how Nooyi’s diversity management efforts have affected the overall success of the company as a whole.
This document will explore what a company can do to foster diversity in the workplace. The business case highlights the development and implementation of organizational initiatives that could:
Jefferson P. Marquis, Nelson Lim, Lynn M. Scott, Margaret C. Harrell, Jennifer Kavanagh "Managing Diversity in Corporate America, An Exploratory Analysis" Rand Corporation. Web. 29 June 2015.
The purpose of this research is to provide a substantial assessment/explanation/analysis of the degree to which the McDonald’s operates based on a universal cultural or whether it is most strongly influenced by the national culture of that country. The researcher will explain how McDonald’s uses diversity and organizational initiatives to contribute to the corporate bottom line. Finally, the researcher will evaluate the company’s bottom-line rationale for diversity initiatives.
The emergence of diversity in organizations can be traced to the 1960s when legislation was enacted to prohibit discrimination against ethnicity, gender, national origin, race, and religion. Even though workplace diversity origins began in the aftermath of World War I, it was not until 1961, when President John F Kennedy established the President’s Committee on Equal Employment Opportunity (EEO), which was to end discrimination in employment by the government and its contractors (Cañas & Sondak, 2011). Workplace diversity continued to be advanced through the years by Presidents Johnson and Nixon administrations.
Today’s management in the workforce is composed of all types of people verses thirty years ago when white males held a majority of upper-management positions in companies. These positions are now held by a mixture of ethnic back grounds and women who hold just as many if not more management positions then men. Just by looking at the changes in management demographics shows how important it is for people to understand cultural competency in the workplace. Dr. Roosevelt Thomas Jr. (1999) stated, “Diversity is the collective mixture of whomever we have in our workforce characterized by their differences and similarities” (p.11). Managers and supervisors must understand the characteristics of a diversity mature individual; they also need to be able to articulate the differences between affirmative action, managing diversity, understanding and valuing diversity to build skills that transforms awareness into productive and supportive workplace behaviors.
For many decades, women have faced inequalities in the workforce. At one point, they were not allowed to work at all. Although women's rights have improved and are now able to work alongside men, they are still treated unfairly. According to the 2012 U.S. Census, women’s earnings were “76.5 percent of men’s” (1). In 2012, men, on average, earned $47,398 and women earned only $35,791. This is when comparing employees where both gender spend the same amount of time working. Not only do women encounter unfairness in work pay, they also face a “glass ceiling” on a promotional basis. This glass ceiling is a “promotion barrier that prevents woman’s upward ability” (2). For example, if a woman is able to enter a job traditionally for men, she will still not receive the same pay or experience the same increase in occupational ability. Gender typing plays a huge role in the workplace. It is the idea that women tend to hold jobs that are low paid with low status. Women are not highly considered in leadership positions because of social construction of gender. Society has given women the role of “caretakers” and sensitive individuals. Therefore, women are not depicted as authoritative figures, which is apparent with the absence of women in leadership roles in companies. Furthermore, sex segregation leads to occupations with either the emphasis of women in a certain job or men in a certain job. In 2009, occupations with the highest proportion of women included “secretary, child care worker, hair dresser, cashier, bookkeeper, etc.” (3). Male workers typically held job positions as construction workers, truck drivers, taxi drivers, etc. (3). Sex segregation represents inequality because the gender composition for these jobs depends on what ...
Consequently, the policies of companies that employ women can have a positive or negative effect on their households, career advancement and earning potential, as well as the lives of those that depend on them. Mary Van der Boon (2003) in her article titled, “Women in international management: An international perspective on women’s ways of leadership”, descri...
Diversity is a highly important issue in today’s business, especially in a globalized company. Workplace diversity helps to get better solutions to business problems (Schawbel, 2012). When you have a group of individ...
Diversity is all around us and how organizations deal with the notion of diversity can be complex and quite diverse. We know that being diverse in the workplace is important to the organization's success, should be recognized, accepted, and embraced. It’s how the organizations live up to what they believe in and must go above and beyond legal compliance and requirements to promoting diversity and inclusion. Otherwise, employees may view the organization's vision and policies as lip service and only be tolerant of diversity because the organization said so.