Achievement-Oriented Leadership Style
for PepsiCo
By Sean Allred
Achievement-Oriented leadership is defined as Management which sets challenging goals, assists in training, emphasizes improvement, and expects the highest levels of performance (Achievement Oriented Leadership). Achievement-Oriented leaders often set difficult but achievable goals and expect followers to perform at their highest levels. When goals are achieved, followers and employees are rewarded for their work. This type of leadership is appropriate when followers are open to autocratic leadership, have external locus of control, and follower ability is high (Achua 164).
Pepsi Co.’s CEO, Indra Nooyi, tends to use the achievement-oriented leadership style. She sets a high standard 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, her second in command Mike White, her “team Pepsi” members and the three prior Pepsi CEOs (Achua 165).
Indra does indeed get her employees to buy into her objectives at PepsiCo. For instance, Indra wanted a shift in strategy, so she implemented a plan in 2011 to create a global nutrition group. This objective of this ‘GNG’ as it is referred to, is to boost company sales from 13 billion in 2011 to 30 billion by 2020. PepsiCo currently owns known brand Tropicana and 26 other brands that are included in their Global Nutrition Group (Schepp).
Another example of how PepsiCo utilizes the achievement-oriented leadership style is in Michael Hamilton. Michael is a category manager for beverages; he basically makes the most of shelf space by examining sales, volume, and consumer preferences. In the ten months Michael has worked for PepsiCo, he has seen his territory grow to include over 700 stores. As one may guess, with more responsibility comes more reward as well. Michael has already seen an increase in his paychecks....