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
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
3. 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”
-
I
n
d
r
a
N
o
o
y
i
4. Personality trait
Surgency
• Increased Net Income
• Excessive R&D spendingHigh Energy
• She followed 5C’s throughout her careerCompetent
• High on Communication skillsExtrovert
5. Personality trait
Emotional 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
6. Personality trait
Openness
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
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
Manager - increased R&D spending by 25% since 2011
Artist- product innovations in the Quaker Oats brand to come out with a range of consumer perceived healthy
snacks
Priest
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 – As of 2013’s 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 Pepsi’s
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 employees’ needs
12. 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
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 Nooyi’s 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
Fiedler’s Contingency Theory
Tannenbaum and Schmidt’s Leadership Continuum Model
Path Goal Leadership Theory
Normative leadership-Time Driven Model
“To lead in an ever-
changing world,
leaders must adapt
and stay nimble.”
Indra Nooyi
18. 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
20. 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
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 “deeply caring person who can relate to people from the
boardroom to the grin-line”
Constantly invest in communication skills
24. Follower
Relationship development:
• She decided to write personal letters to each of her
direct reports' parents thanking them for "the gift" of
their children.
25. • Insight
Focusing on environment friendly biodegradable
packaging.
• Influence
Employees influenced by her Leadership qualities.
• Initiative
Created Motto Performance with Purpose
Divide the products into three categories
Fun for you
Good for you
Healthy for You
Context
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.
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 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.
31. 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.
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 Pepsi’s 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 everybody’s 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 “I don’t know” 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? Let’s assume that the answer is low. Based on the leader’s 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 let’s 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. We’ll say group expertise is low. Follow the path from L.
Team competence. What is the ability of this particular team to solve the problem? Let’s 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.