As a result, the leaders of PepsiCo must possess the ability to mediate when conflicts arise and keep the peace in the organisation. Moreover, there might be different levels of motivated employees due to the cultural dynamics that the LMX theory possesses according to Mullins (2013), some employees may be more motivated than others leading to an imbalanced efficiency outcome in PepsiCo. A leader should be able to mitigate this by being neutral and treating every employee the same regardless of their class and relationship with leadership. However, Mattone (2013) argues that the skill of emotional intelligence is important in the organisation, because, as much as equality is essential, the leader must be able to empathize and understand the situations that employees go through, which will help in how to treat them. This will lead to a more conducive environment due to less tension and animosity among employees, thus increasing the chances of change being welcomed by employees of PepsiCo according to Hayes …show more content…
This will increase the quality of the decision made as there are many creative parties involved in the process according to Northouse (2016). For example, as PepsiCo has benchmarked with Google, employees will come up with ways on having a competitive advantage against Google and other competitors and will excel in it. However, Barbuto & Hayden (2011) argues, that the leaders, may be side-lined and may feel inferior if they are intimidated by their employees coming up with better initiatives to theirs. Thus leading to animosity and unfairness to followers. Furthermore, it may be time consuming as decisions will take time to be finalised. For instance, PepsiCo uses a top down approach and as much as they are trying to change the organisation, the down – top approach will consume time as the communication channels will have to change, and the top leadership will have to make the final decision regarding the particular issue according to Mullins (2013). With a proper decision making process, the process of accepting change will be easier to the internal organisation. Including employees in the process will make things more efficient for example, PepsiCo changed the name, if the employees could be asked what name they would