PepsiCo shares power and stock with workers

Article Abstract:

PepsiCo Inc. was given the 1995 Personnel Journal Optimas Award for service. The beverage, fast-food and snack giant has a strong entrepreneurial culture that stresses individual contribution in a small-firm environment. This mind-set is nourished through an employee stock option plan (ESOP) design to reward service, increase shareholder value and empower all employees. The firm's human resources staff examined many ESOPs in other firms but found that these tended to include top management only, replace other benefit programs and act as an entitlement more than as an incentive plan. PepsiCo approached its ESOP from a different perspective and opened it to all full-time employees over and above their regular compensation and benefits package. The resulting plan, Share-Power, grants stock options every year to workers based on 10% of their total yearly pay. The program serves as a strong incentive for entrepreneurship by resulting in sizable returns.

Beverages, Nonalcoholic Beverages, Soft Drink and Ice Manufacturing, Analysis, Compensation and benefits, Soft drink industry, PepsiCo Inc., Non-alcoholic beverages, Employee stock options

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City of Hampton: a public deployment of corporate tactics

Article Abstract:

The City of Hampton, VA, was given the 1995 Personnel Journal Optimas Award for general excellence. This category designates a group or human resource (HR) department that made a significant contribution to the success or health of an institution through an approach or accomplishment that meets the Optimas standards in at least 6 other major categories. The city of Hampton faced the challenge of a declining industrial environment with stagnant population growth and dwindling federal aid. City manager Robert O'Neill benchmarked the city against successful corporations and found that the council needed to have a clear vision, become more flexible and customer-driven and empower its staff. Toward these goals, the city's authorities were organized into self-directed work teams, angaged in strategic planning, revised its compensation and incentive programs and improved its employee and customer training initiatives.

Public administration

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A city's HR wins with a corporate mindset

Article Abstract:

Corporate strategies are not commonly found in municipal governments but the government of Hampton, VA, disproved this assumption by introducing such concepts as self-directed work teams, empowerment, total-quality principles and customer-focused strategies into its workforce. The human resources department of the city government played a crucial role in this transformation by facilitating the change processes within the organization. To bring about the change across the whole structure, the human resources department needed to transform itself first from a hierarchy into a delayered organization. Although the change had been laced with difficulties, the rewards have so far outweighed the risks. The government of Hampton is no longer a paper-pushing entity but a customer-oriented, productive organization enriching the lives not only of its employees but also of its citizens.

Political aspects, Municipal government

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