Problem Identification
Introduction of the company
Established in 1994, the Coca-Cola representative office in Vietnam serves as a liaison for market surveys, promotional activities, and cooperation projects with Coca-Cola Southeast Asia, Inc This office plays a vital role in executing marketing campaigns and facilitating contracts within the beverage industry, ensuring compliance with Vietnamese law As a global leader, Coca-Cola offers a diverse range of brands, including soft drinks, fruit juices, and sports drinks, catering to the tastes of consumers in Vietnam and over 200 countries worldwide.
In January 2015, the company underwent a significant organizational restructuring aimed at cost reduction and aligning workforce capabilities with new positions This process involved eliminating unnecessary roles to support long-term growth and achieve the company's vision, resulting in the abrupt termination of half the employees Some were reassigned to new roles or locations Following the restructuring, the company now has thirty-five employees, comprising ten temporary and twenty-five permanent staff, distributed across seven departments: Human Resources, Knowledge and Insights, Finance, Commercial and Operations, Technical, PAC, and Marketing.
Background of the business problem
In this section, the author utilized qualitative methods, conducting interviews with the general manager and human resource manager, while also gathering data from human resource reports The analysis focused on the insights gained from these interviews, alongside turnover rate comparisons from 2013 to 2015 and reasons for employee resignations in 2015, as detailed in the supporting information chapter.
During the quarterly meeting, the general manager of Coca-Cola Vietnam presented the company's performance over the past nine months of 2015, as well as an overview of the last three years He also highlighted the challenges the company has faced since January.
In 2015, an interview was conducted with the General Manager and a human resource manager at Coca-Cola Vietnam to discuss the company's challenges, particularly regarding employee turnover The General Manager highlighted that since 2014, the global economic crisis has adversely affected the business, prompting cuts to compensation packages in order to maintain profitability across divisions Over the past two years, awards and promotions have been limited, and following organizational restructuring, many positions were eliminated, leading to increased workloads for remaining employees This has resulted in many staff working overtime under significant pressure to meet project deadlines Requests for additional assistant positions were made to alleviate the burden, but the General Manager had to decline these requests to avoid exceeding the budget for 2015, which contributed to employee dissatisfaction.
The Human Resource Department's turnover rate comparison reveals an 8% increase in turnover from 2014 and a 13.7% rise since 2013 Consequently, recruitment and training costs surged to $53,690 in 2015 The majority of resignations come from managerial staff, leading to extended recruitment times to find suitable replacements, which in turn places additional burdens on current employees who must cover the responsibilities of those who have left.
Table 1: Turnover Rate Comparison from 2013-2015
Years Turnover Rate (%) Manager turnover (%)
Source: Human Resource Report in 2015 (Coca-Cola Southeast Asia)
A pie chart analysis reveals that 45% of former employees interviewed by the Human Resource Manager felt devalued and unrecognized by their managers Many reported a lack of compliments upon completing tasks, which contributed to their feelings of being misunderstood regarding the challenges they faced Additionally, employees expressed frustration over stagnation in their careers, citing insufficient recognition and support from management as key factors for their lack of promotions Conflicts also arose from the manner in which managers provided feedback on challenging assignments.
In 2015, over 30% of Coca-Cola employees left for better job opportunities at competing companies like Nestle, Dutch Lady, and Unilever Additionally, 17% of respondents cited excessive workloads as a primary reason for their resignation The company's headcount freeze has further complicated matters, preventing the transition of long-term temporary employees into permanent positions, which has created significant stress regarding their career futures Many of these employees are uncertain about the renewal of their contracts, leaving them in a state of anxiety about their job security.
Coca-Cola faces significant challenges, including low employee recognition, excessive workloads, competing job offers, and concerns about job security However, constraints related to timing and budget hinder the implementation of effective solutions In discussions with the Human Resources department, over 45% of employees identified lack of recognition as the primary factor driving their decision to leave the company Consequently, the general manager and HR manager have prioritized addressing this key issue to enhance employee morale and foster a positive work environment in the long term.
Reasons for employees' resignation in 2015
Recognition Over workload Job security
Figure 1: Reasons for employees’ resignation in 2015
Source: Human Resource Report in 2015 (Coca-Cola Southeast Asia)
To address the issue of low recognition in the workplace, Klubnik (1994) emphasizes that recognition should be accessible to all employees and not confined to costly or bureaucratic processes Low recognition significantly affects employee turnover rates and damages trust between employees and supervisors, leading to increased conflict and decreased productivity Furthermore, ongoing departmental campaigns require collaboration, and any existing conflicts can hinder project progress and negatively impact the business Many former employees have reported leaving their jobs due to inadequate recognition from their managers.
To enhance job security, it is essential to engage experts who possess a deep understanding of the structures and functions within each department This process can be time-consuming and costly, heavily influenced by the policies set by the headquarters in Atlanta and current economic conditions Furthermore, these changes may affect the Human Resource structure and require coordination with the Legal department.
To retain employees, it is essential to implement a competitive compensation and benefits system that requires approval from the CEO at headquarters However, achieving this plan within a year poses significant challenges.
The General Manager and the Human Resource team identified recognition improvement as a crucial strategy for addressing company issues effectively and cost-efficiently To assess the presence of these problems within the organization, the author conducted interviews with employees The insights gathered from their responses will help determine if the issues are unique to the firm.
Justification of the problem existence
The author explores whether low recognition is a significant issue for Coca-Cola by conducting interviews with current and former employees across various departments, job levels, and experiences This approach aims to gain deeper insights into the company's existing challenges, including feedback from those who have submitted termination letters or have already left the organization.
12 understand measurement scale of recognition, there are researches have been cited belows.
Employee recognition, as defined by Hopkins (1995), is a vital communication tool between management and staff that rewards individuals for achieving specific goals or delivering high-quality results This practice aims to encourage repeated positive behaviors by acknowledging employees for their contributions The essence of recognition lies not in the type of reward given but in the act of recognizing the employee's efforts As a motivational strategy, employee recognition is increasingly gaining traction among managers in organizations.
Employee recognition involves providing personal non-monetary rewards to reinforce positive behaviors in employees (Feys, Anseel & Wille, 2013) It encompasses two key aspects: first, the ability to identify and appreciate opportunities to praise individuals, fostering motivation and appreciation Second, it includes the tangible act of acknowledging and rewarding employees for their contributions, which can manifest in promotion opportunities and additional benefits.
According to Henryhand (2009) and Kopelman, Richard, Gardberg &
In Brandwein's 2011 research, interview questions were meticulously crafted, and the responses are summarized in section 5.2 To ensure unbiased and straightforward answers, all data will be recorded confidentially The study includes eight interviewees from various departments, job grades, and levels of experience, ensuring a diverse and accurate representation of the issue at hand.
Following the restructuring, 50% of employees reported that their salaries are no longer competitive, despite an increase in their workload The findings suggest ongoing dissatisfaction with the company's benefits, as detailed in Table 7 of Section 5.2.
A finance and procurement assistant at Coca-Cola expressed dissatisfaction with the promotion system, noting that despite five years of service, her contributions went unrecognized Among eight employees surveyed, three reported similar experiences of stagnation in their careers, highlighting a widespread discontent with the promotion process They believe that their job grades should reflect their long-standing contributions to the company The assistant criticized the promotion criteria, stating that it unfairly favors candidates with strong academic records over those with extensive experience and proven job performance Data collected indicates a significant lack of promotion opportunities within the company, as detailed in Table 7 (Section 5.2).
A recent survey revealed that 50% of employees feel recognized and motivated by their bosses, yet five out of eight respondents reported a lack of timely compliments or motivation despite performing well For instance, a commercial and operations manager expressed frustration, stating, “My manager did not provide any support or motivation for my new position and rejected all my ideas for improving efficiency, leading me to decide to quit.” Another employee noted that their boss refrained from giving feedback, believing that employees should proactively address job-related challenges This indicates a significant gap in feedback and support from managers, as summarized in Table 7 (Section 5.2).
In a recent survey regarding employee appreciation at Coca-Cola, five out of eight interviewees expressed feelings of being undervalued in their roles One Finance and Procurement assistant highlighted her dissatisfaction, stating, "I feel unhappy and unappreciated for my contributions, and I am uncertain about my future with the company as my contract is set to expire." Despite her long-standing dedication, she has been relegated to a temporary position, which underscores the need for improved recognition of employee efforts within the organization.
The result from data indicated that a majority of interviewees feel that they are not appreciated for what they contributed to the company.
The author highlights that low employee recognition is a significant issue within Coca-Cola Southeast Asia, drawing on insights from interviews with the General Manager and Human Resource Manager Following this, the author emphasizes the critical importance of addressing this problem.
Justification of the problem importance
The impact of employee recognition on turnover rates is significant, as highlighted in the literature Saunderson (2004) emphasizes that recognition remains crucial for employee retention in a dynamic job market Public sector managers and leaders recognize that meaningful employee acknowledgment fosters good morale, loyalty, and commitment Increased recognition leads to greater employee loyalty towards the company Furthermore, Skudiene et al (2013) identify a lack of recognition as a primary reason employees choose to leave their jobs.
Muthuveloo, Basbous, Ping, and Long (2013) emphasize the importance of acknowledging individuals for their exceptional contributions Despite many organizations implementing formal rewards and recognition programs for employee ideas, there remains a strong desire among employees for more frequent informal recognition in their daily work.
Employees who feel heard, supported, and recognized for their contributions are more likely to be engaged in their work Conversely, a lack of appreciation significantly influences their decision to leave an organization Data from the Turnover Rate Comparison table (2013-2015) reveals that the turnover rate rose by over 8% from 2014 to 2015 and by 13% from 2013 to 2015, indicating a rapid increase in turnover over these three years Additionally, the turnover rate among managers has also seen a steep rise during this period.
In 2015, Coca-Cola's turnover rate peaked at 82%, significantly higher than Pepsi's by 12%, highlighting a growing disparity over the years This increase reflects underlying issues affecting employee retention, as workers who feel unrecognized are more likely to seek opportunities elsewhere Short-term consequences include decreased revenue and increased recruitment costs, which reached $53,690 in 2015 due to the high turnover rate Long-term effects can hinder profit margins and employee development Therefore, recognizing and valuing employees is crucial for Coca-Cola to effectively address its turnover challenges and mitigate associated costs.
Table 2: Turnover Rate Comparison from 2013-2015 in Coca and Pepsi
Years Turnover Rate (%) Manager Turnover Rate (%)
Coca-Cola Pepsi Coca-Cola Pepsi
Source: Human Resource Report in 2015 (Coca-Cola, Suntory Pepsico)
Recognition serves as a vital form of feedback that enhances employee performance and contributes to overall company success, as highlighted by Mone, Eisinger, Guggenheim, Price & Stine (2011) When employees receive acknowledgment for their achievements, it fosters positive reinforcement; however, a lack of recognition can lead to emotional distress and burnout Effective performance management relies on a robust recognition system and continuous feedback, which are essential for improving employee outcomes An analysis of performance records from Coca-Cola and Pepsi in 2015 revealed that Coca-Cola's employee performance was notably lower, with a completion rate of 81% in Quarter 1 and 72% in Quarter 2 for Pepsi, indicating significant disparities within the beverage industry This evidence underscores the correlation between recognition, turnover rates, and employee performance at Coca-Cola.
Table 3: Employee performance in Q1 and Q2 at Coca-Cola and Pepsi
Quarter Objective accomplishment rate in Coca-Cola (%)
Objective accomplishment rate in Pepsi (%)
Source: Human Resource Report in 2015 (Coca-Cola Southeast Asia)
The analysis reveals that recognition has a significant impact on employee turnover rates and overall performance To identify effective solutions, the author investigates the underlying causes of recognition through literature review and employee interviews.
Potential causes of the problem
In this phase, the author identifies potential causes affecting recognition, compiling a list supported by relevant literature that emphasizes the critical factors to consider.
Rewards encompass various forms of compensation, including cash payments and working conditions, as defined by ệzutku (2012) Organizations provide both intrinsic and extrinsic rewards to enhance human resource outcomes Intrinsic rewards, such as a sense of achievement and conscious satisfaction, play a crucial role in motivating members.
An extrinsic reward refers to a tangible award received for achieving a specific goal According to Rustand (2001), these rewards, including incentive and performance awards, can be accessed through the human resources department They serve to demonstrate appreciation for employees, highlighting the significant correlation between reward and recognition in the workplace.
Feedback, as defined by Baker, Perreault, Reid & Blanchard (2013), is a dynamic communication process between two individuals that conveys information about the receiver's performance in work-related tasks, fostering a sense of recognition It serves to inform about proximal goals and recent behaviors, while also guiding members towards desirable development and outcomes Research by Lorenzet, Cook & Ozeki (2006) highlights the importance of strategies for delivering feedback and creating action plans that enhance the likelihood of lasting recognition changes, ultimately leading to increased employee recognition.
Intrinsic motivation, as defined by Masvaure, Ruggunan, and Maharaj (2014), originates from within an individual rather than from external rewards This type of motivation compels individuals to adopt or modify behaviors for personal satisfaction and fulfillment It is primarily self-driven, arising from the direct relationship between the individual and their circumstances.
According to Dar, Bashir, Ghazanfar & Abrar (2014) indicated that intrinsic motivation has positive influence on employee recognition.
According to Koning & John (1993), employee benefits are an integral part of the employment package, applicable to all staff and playing a crucial role in employee recognition These benefits encompass health care, vacation, sick leave, child care, scholarship funds, elder care, fitness facilities, and various insurance types A positive correlation exists between the provision of benefits and enhanced employee recognition.
According to Pergamit & Veum (1999), promotions are characterized by an upgrade in the current position without altering job duties or responsibilities They are seen as a reward, with the likelihood of receiving a promotion linked to individual productivity Those who achieve this "prize" benefit from higher salaries, enhanced prestige, additional training opportunities, increased supervisory responsibilities, and greater recognition within the organization.
Recent literature identifies five key factors influencing recognition: rewards, feedback, intrinsic motivation, benefits, and promotions Additionally, based on this research, a cause-effect map is provided to illustrate the real problems and their impacts.
Feedback Baker, Perreault, Reid & Blanchard (2013)
High employee turnover rate Skudiene, V., Everhart, D D., Slepikaite, K., & Reardon, J (2013)
Koning & John (1993) Low employee performance
Mone, Eisinger, Guggenheim, Price & Stine (2011)
Figure 2: A cause-and-effect map of low employee recognition
The alternative solutions
Justification of the potential causes
The author conducted in-depth interviews with twenty current and former employees from various departments and job levels to identify potential factors affecting recognition, following a review of literature that outlined these causes Prior to the interviews, the author provided clear definitions of each potential cause, ensuring employees understood the terms and could provide valuable insights for the analysis The questions were developed based on the research of Kopelman, Richard, Gardberg, and others.
According to Brandwein (2011), a study identified five key factors influencing employee recognition, with fifteen employees highlighting the significance of timely feedback and rewards from their managers.
Support and timely feedback from managers are essential for employee recognition and performance Employees feel appreciated when they receive constructive feedback, which inspires them to work harder Many employees emphasize the importance of balance and fairness in feedback For instance, one employee noted that a lack of support from her former manager led to feelings of underappreciation Another employee expressed disappointment due to delayed feedback, which left her confused about how to navigate challenges at work Overall, 80% of employees agree that feedback from their managers significantly influences their sense of recognition and commitment to their roles.
A significant number of employees at Coca-Cola emphasize the importance of rewards as a recognition of their contributions, with one management trainee stating, “Reward is the gift that I get after my efforts.” Long-term employees express that routine work can lead to disengagement, and rewards serve as an effective motivator to re-energize them An office manager highlighted the lack of recognition for their hard work over the years, stating, “For a long time, we have tried our best, but have not gotten any reward as recognition from the company.” This sentiment is echoed by employees with over five years of service, who feel that the current rewards system fails to acknowledge their loyalty and contributions adequately A former Knowledge & Insights Specialist noted that while salary increases were consistent, “there has been no reward or certificate to recognize employee contributions.” Despite management's belief that they provide sufficient feedback and encourage proactivity, employees feel that recognition through rewards remains a critical factor in fostering motivation and loyalty within the company.
All team members are seasoned professionals, equipped with the experience and capability to navigate challenges independently Relying heavily on managerial support can hinder their growth and exacerbate existing issues Furthermore, the management team is highly satisfied with the promotion system, which consistently provides them with opportunities for career advancement and recognition of their achievements.
After analyzing the question answers, we conclude that a small group of people agreed benefits, intrinsic motivation and promotions keeps the essential roles that influence
In a recent survey at Coca-Cola, over 80% of employees identified two critical issues affecting workplace morale: inadequate rewards and insufficient feedback While some employees believe that promotions and job titles are not essential, the ongoing lack of recognition and support has fostered a negative company culture This persistent problem, if left unaddressed, could worsen over time, leading to increased conflicts between managers and staff, ultimately diminishing employee commitment and performance The current rewards system is deemed ineffective, and many employees feel that their colleagues should independently resolve issues, highlighting a need for improved communication and collaboration within the team.
According to the real problems from the collected data, the author narrows the cause- effect map as bellows:
(Baker, Perreault, Reid & Blanchard, 2013) Low employee performance (Mone, Eisinger, Guggenheim, Price
Figure 3: Final Cause –Effect Map
Proposed alternative solutions
The author identifies key issues affecting the company's recognition level, specifically the lack of managerial feedback and an unsatisfactory reward policy, based on employee interviews and literature review To address these challenges, it is essential to develop effective solutions that align with human resource requirements, ensuring they are applicable, easy for employees to engage with, and compatible with the company culture Additionally, the project should be completed within twelve months, with a budget not exceeding $20,000, while minimizing disruptions to the existing business system The proposed solutions aim to enhance feedback mechanisms and reward systems, drawing on insights from scholarly and management literature that offer valuable concepts and actionable strategies.
A feedback-friendly culture is essential for organizations, as it establishes a shared set of values and creates a dynamic identity for members (Baker, Perreault, Reid & Blanchard, 2013) Three key elements are crucial for developing this culture: the learning series, psychological safety, and dialogue The learning series lays the foundation for continuous improvement, while a trusting work environment fosters psychological safety, enabling open communication Finally, dialogue among all organizational levels is vital for authentic conversations and effective feedback Each of these elements plays a significant role in cultivating a culture that embraces feedback and drives growth.
Many employees report a lack of feedback from their managers, highlighting the need for a feedback-friendly culture within organizations By fostering an environment where feedback is a natural part of the workflow, managers will recognize its importance in maintaining company culture According to Baker, Perreault, Reid & Blanchard (2013), developing a feedback-oriented culture is a recent trend that encourages proactive communication and creates a safe space for sharing feedback Ultimately, a strong feedback culture promotes behaviors that are fluid and instinctive, enhancing overall workplace dynamics.
This solution offers uniformity from the ground up and fosters growth opportunities across diverse organizations, making it applicable to a wide range of industries It will take one month to arrange an inspiring trainer with the expertise to effectively convey the importance of feedback to employees, and an additional two weeks to secure suitable training locations.
Investing in employee training is a worthwhile expense, as it fosters active participation in projects By motivating employees to apply their skills and knowledge, organizations can achieve impressive outcomes guided by expert trainers.
360-degree feedback is a comprehensive assessment method that gathers performance evaluations from various sources, including managers, subordinates, colleagues, and customers (Robertson, 2008) This multi-source feedback serves as a valuable tool in organizations that prioritize coaching for employee development By utilizing 360-degree feedback reports, companies can enhance two-way communication, foster employee involvement, and demonstrate respect for their staff's opinions Additionally, this process trains employees to effectively give and receive feedback, promoting better working relationships and teamwork It also increases awareness of competencies among employees and provides senior management with insights into their development needs.
360-degree feedback is a widely used tool in companies worldwide that significantly enhances employee performance by identifying and improving their strengths and weaknesses At Coca-Cola, many employees feel unaware of their performance metrics due to a lack of feedback from managers, who often do not provide comments on reports or necessary corrections This issue is prevalent across various departments Implementing 360-degree feedback can foster active participation from both employees and managers, promoting mutual understanding and facilitating constructive dialogue about performance improvement.
The implementation of 360 feedback systems can be costly, with initial expenses reaching around $1,200 and ongoing costs exceeding $150 per individual, leading to a total of over $30,000 in the first year This process is time-consuming and often requires excessive surveys from each employee, which may yield minimal tangible results Additionally, the system may not encourage honest feedback, potentially causing stress for individuals when providing input, and there is often a lack of follow-up actions based on the feedback received Furthermore, there is a tendency to overly rely on technology in this process (Clark & Whittall, 2003).
Organizations should implement cash bonuses to reward employees for outstanding performance, particularly when they exceed their established targets The bonus amount is determined by the extent to which employees surpass these goals and may also vary based on their ranks or job groups.
Companies utilize cash bonuses to acknowledge and reward employee performance throughout the appraisal year These bonuses not only serve as recognition for past achievements but also create an implicit expectation that they will inspire and motivate employees to enhance their performance in the upcoming year (Njanja, Maina, Kibet & Njagi, 2013).
Many companies, including Coca-Cola, utilize cash bonuses to recognize employee contributions, with employees expressing a preference for cash over gifts due to its versatility However, Coca-Cola's policy prohibits cash gifts, requiring employers to offer gifts or vouchers instead This approach necessitates approval from the upper human resources department within the business unit, which can lead to delays in the reward process.
Hsieh & Chen (2011) highlight that offering market-rate compensation can be a strategic investment, particularly when replacing employees would incur high costs or cause significant disruption This strategy not only retains talent but also enhances overall organizational stability.
31 that the firm's pay levels are at least competitive with the labor market This solution will make sure the salary company pay to employee is competitive to the market.
To ensure competitive pay levels, Coca-Cola should conduct market research to compare its compensation with other companies in the industry Former employees have indicated that they left for better offers elsewhere, highlighting the need for Coca-Cola to adjust its salary structure This adjustment aims to retain talent and reduce turnover However, implementing this solution may necessitate significant changes to the company's entire compensation and benefits system, especially if its current salary range falls below industry standards.
Firstly, London & Higgot (1997) set up 3 categories:
Category 1 – teamwork recognition for individuals who perform tasks on a day-to-day basis
Category 2 – excellent key tasks recognition for individuals who perform their day-to- day activities with a degree of quality on a continual and consistent basis, thereby supporting the company quality policy and logo (quality, continuously and consistently). Successful nominees within this category are expected to demonstrate a good appreciation within the company that encourages not only a team spirit, but also support of the company goals
Category 3 - High achievement in a special project Individuals are sometimes requested to participate in special process improvement or problem solving teams, or groups which facilitate the company's development or manufacturing activities.
Secondly, each category winner is given an award consisting of:
A monetary component, consisting of either a getaway weekend package at a prestigious hotel or a money order to a leading retail store;
A framed certificate from the company
The Selected Solution
Change Plan
This thesis examines the factors contributing to high employee turnover rates at Coca-Cola, which leads to increased recruitment costs Utilizing data from various sources, including human resource reports from Coca-Cola and its competitors, the author identifies low employee recognition as the primary issue, stemming from inadequate appreciation from management Many employees express dissatisfaction with their roles and the feedback they receive, while the existing reward and promotion systems fail to meet their long-term expectations To address these challenges, the author explores potential solutions through literature review and company policies, proposing the establishment of a culture of open feedback that encourages communication from all levels within the organization Additionally, the author suggests that appreciation should extend beyond feedback to include annual gifts, such as cash bonuses or certificates, to enhance employee morale Implementing these solutions is expected to reduce turnover rates and boost overall company performance.
Conclusion
This thesis examines the factors contributing to high employee turnover rates at Coca-Cola, which lead to increased recruitment costs Data from various sources, including human resource reports from Coca-Cola and its competitors, reveal that the primary issue is a lack of recognition within the organization, resulting in low employee morale and dissatisfaction with managerial feedback Employees feel undervalued, and the existing reward and promotion systems fail to meet their long-term needs To address these challenges, the author explores potential solutions through literature review and company policies, identifying two key strategies: fostering a culture of open feedback that encourages communication between all levels of staff, and implementing annual appreciation initiatives such as cash bonuses or certificates These solutions aim not only to reduce turnover rates but also to enhance employee engagement and improve overall company performance.
Supporting Information
Supporting information of business problem background justification
The author gathered insights from interviews with the general manager and human resource manager, who possess a deep understanding of the company's situation This data, illustrated through a pie chart depicting employee resignations at Coca-Cola, highlights the overall state of the organization and allows the author to identify existing issues within the company.
The General Manager of Coca-Cola Vietnam has acknowledged that the global economic crisis has adversely affected the company's performance, leading to cuts in compensation packages to maintain profits across divisions Over the past two years, opportunities for awards and promotions for high-performing employees have been limited Despite a strong desire to address these issues and retain talent, budget constraints imposed by the Finance department hinder immediate action Additionally, organizational restructuring has resulted in job cuts, increasing workloads for remaining employees, who are now working overtime under significant pressure to meet project deadlines Requests for additional staff to alleviate this burden have been denied due to budget limitations for 2015, ultimately affecting employee trust in the company.
A recent analysis by the Human Resource Manager at Coca-Cola reveals that 45% of resigning employees feel undervalued and unrecognized by their managers, often citing a lack of acknowledgment for their hard work Many employees, after years of service, express frustration over missed promotion opportunities due to insufficient recognition and understanding from management Additionally, conflicts often arise from the manner in which feedback is provided on challenging tasks The average salary at Coca-Cola is less competitive compared to other companies in Ho Chi Minh City, leading over 30% of employees to leave for better offers from competitors like Nestlé, Dutch Lady, and Unilever Temporary employees also report feeling stressed about their career advancement prospects.
The author examines the reasons provided by the general manager and human resource department, supported by turnover rate data from 2013 to 2015 and a 2015 employee resignation pie chart This analysis offers a comprehensive view of the company's business landscape in 2015, highlighting trends in turnover rates and associated costs Through a literature review, the author identifies employee resignation factors, with a consensus among the general manager, human resource manager, and the author pinpointing recognition as a critical issue Additionally, the author incorporates insights from in-depth interviews guided by a questionnaire based on research by Achim, Dragolea, and Balan from 2013.
The interviewees consist of employees from various departments, each with diverse work experiences, statuses, and positions, highlighting the core issues at hand The questionnaires are designed to assess employee recognition and are crafted to be clear and unbiased, ensuring the integrity and authenticity of the information collected.
Supporting information of problem existence justification
Recognition, as defined by Hopkins (1995), refers to the communication between management and employees that rewards individuals for achieving specific goals or delivering high-quality results in the workplace It encompasses various elements, including benefits, promotion opportunities, appreciation, and effective communication.
To assess the presence of issues within the company, the author employs Henryhand's (2009) questionnaires The responses are analyzed to investigate the existence of the problem, utilizing a scale of 19 questions that cover various aspects of established recognition programs, including benefits, communication, promotion, and appreciation.
Table 6: Questionnaire items and references for problem existence justification
Benefits Do you feel you are being paid a fair amount for the work
How satisfied are you with your health benefits?
Do you think that the benefit package you have is equitable?
Do the benefits you receive are as good as most other organizations offer?
Do you feel you are being paid a fair amount for the work you do?
Appreciation Do you feel that the work you do is appreciated?
Do you feel unappreciated by the organization when you think about what they pay you?
Promotions For those who do well on the job stand a fair chance of being promoted
Is your supervisor is unfair to you?
Do people get ahead as fast here as they do in other places?
Are you satisfied your chances of promotion?
Is there really too little chance for promotion on my job?
Communication Are the goals of this organization clear to you? Henryhand (2009)
Do you often feel that you do not know what is going on with the organization?
Are work assignments fully explained?
Is communication seemed well within the organization?
The author selected eight employees with the purpose that the author can get the valuable information from their answers:
The office manager, who is working Coca-Cola for 12 years, is permanent employees
Having worked for Coca-Cola for an extended period, she offers valuable insights into the company's current condition and has observed significant negative changes this year.
Knowledge and insight specialist left already after 2 working years The author can find out the reason why she chose to leave.
Public Affair Communication Manager, whose all staffs have been cut, has to work alone.
Finance and procurement assistant who has to handle two tasks: Finance assistant and procurement assistant, is temporary employee She has worked for 5 years.
Former brand manager, the author can find out the reason why she chose to leave.
Commercial and Operations Manager in North and Cambodia who already left, worked in six years The author can find out the reason why she quits the job.
Temporary Commercial and Operations assistant already submitted the termination letter.
After the interview, the author can get to know the reason why she wants to leave without the approval from her manager
Quality, Safety and Environment Manager who works for seven years, understand the company transition throughout seven years
The author analyzed data collected from the answers, and recognized the main problem of the company.
Table 7: Interviewee’s Answers for problem justification
No Answers relate to benefits
1 Office manager I am not satisfied with my benefits I have received Because I work here for 12 years But my salary is not competitive It disappoints me.
I am not happy with my salary I have been paid even I work over time I have not received any reward from the date I joined in Coca-Cola.
After two working years as a temporary staff, my manager informed that my salary will not be increased in this year.
No Answers relate to communication
Although my performance is quite well recently, but I have been not rewarded.
No Answers relate to promotion
1 Office manager No I have gotten stuck at this position for more than 8 years
Although I tried to rotate to another position in another department, but still be rejected.
I have faced a lack of promotion opportunities for several years, with my job grade remaining unchanged The promotion process seems unfair, favoring employees with strong academic records while overlooking those with valuable experience and proven job performance.
No I worked for Coke for 3 years as temporary staff who do not have promotion or salary increase
This year, my workload has increased significantly due to substantial changes in quality and safety policies, demanding greater focus and effort on my part Despite taking on additional responsibilities, my job grade remains the same.
1 Office Manager No My direct manager does not support or guide me in the difficult tasks, and always rejects my ideas that help cut cost for the company.
No I do not get appropriated answers from my manager about job concerns Some tasks are not clear to me.
3 Commercial and Operations Manager in North and Cambodia
I previously worked as a Commercial and Operations Manager in Hanoi, overseeing the North Market for five years before transitioning to the Cambodia Market Despite my lack of in-depth knowledge about this emerging market, I recognized its potential However, my manager offered no support or motivation for my new role and dismissed all my suggestions for improving work efficiency Consequently, I decided to resign from my position.
4 Brand Manager My manager thinks that we should proactive to solve our issues rather than receive her orientation.
No Answers relate to Appreciation
1 Office manager No He did not care and recognize my performance because of his prejudice from my last mistakes.
After five years as a permanent employee, I am now required to sign a one-year contract with an outsourcing company for temporary work This change has left me feeling unhappy and unappreciated for my contributions, and I am uncertain about my future here once my contract expires next year.
No I worked for Coke for 3 years as temporary staff and do not receive any appreciation from my manager.
My new manager consistently prioritizes urgent tasks without acknowledging my efforts to complete other responsibilities Despite my attempts to manage multiple assignments, he focuses solely on pushing me to finish his requests, leaving little room for recognition of my hard work.
I make significant contributions to the company, yet I often feel unappreciated for my efforts Despite the routine nature of my job, a simple acknowledgment or compliment from my manager would go a long way in reinforcing my sense of value within the organization.
Supporting information of problem importance justification
After assessing the existence of a problem within the Coca-Cola Company through interviews, the author conducted a literature review to understand the significance of this issue and its potential impact Research by Saunderson (2004) highlighted the critical link between employee recognition and turnover rates, asserting that increased recognition fosters greater employee loyalty Supporting this, Skudiene et al (2013) identified a lack of recognition as a primary factor driving employees to leave their jobs Additionally, Muthuveloo et al (2013) emphasized that a recognition system encourages employee contributions by making them feel valued Mone et al (2011) further described recognition as a form of positive feedback tied to specific accomplishments The findings underscore the importance of addressing recognition issues within the company, a sentiment reinforced by turnover and performance reports from both Pepsi and Coca-Cola.
Supporting information of potential causes
The author decides to search more information from literature reviews about the potential causes that directly impact to employee recognition level Definition is listed down as bellows.
Table 8: Potential causes and definition
Rewards were defined to include all types of compensation, from cash payments to working conditions
Rustand (2001) Rewards (incentive awards, performance awards) may be available through the human resources department and should be used to show employees how much they are appreciated
Feedback, whether formal or informal, is a dynamic communication process between two individuals that provides insights into the receiver's performance on work-related tasks, fostering a sense of recognition and acknowledgment.
Intrinsic motivation refers to motivation that comes from inside an individual Intrinsic motivation is usually self-applied, and springs from a direct relationship between the Individual and the situation.
4 Koning & John Benefits Benefits are applied to all employees and are
(1993) included as part of the employment package.
Promotions Promotions involved no change in position or duties, but were simply an upgrade of the current position
Supporting information of potential causes justification
After examining the potential causes impacting recognition levels through literature, the author conducted interviews with employees to uncover the actual factors affecting recognition within the company Prior to the interviews, the author clarified the definitions of each potential cause and the recognition measurement scale to the participants The questions were designed based on the recognition measurement scale and the five potential causes identified in the 2011 research by Kopelman, Richard, Gardberg, and Brandwein.
Rewards: cash payment, working condition, compensation, incentive awards and performance awards
Feedback: Formal feedback (company evaluation form, email) and informal feedback (conversation)
Intrinsic motivation: when you do something because you enjoy it or find it interesting.
Benefits: company outing trip, transportation, gifts, vouchers
Promotions: an upgrade of the current position
In section 5.5, table 6 presents responses gathered from employees regarding various terms, aiming to explore their perspectives on potential causes of issues within the company The author directly inquired about the most significant causes as perceived by the employees, prompting them to elaborate on their reasoning This feedback allowed the author to identify the core problems affecting the organization Additionally, the author conducted interviews with the management team to gain insights into their overall viewpoints on the situation.
The questions in table 5 (section 5.5) are developed from the research of Kopelman,
Table 9: Questionnaire items and references for potential cause justification
Rewards How satisfied are you with your current salary?
How do you feel about the fairness of the wages system at your place compare to:
The tasks you do Your co-worker wage Other people working in the same field?
Feedback When you finish your job, do you often get the comments from you manager or co-worker?
How much do you enjoy working every day and performing at your best?
Do you think your work fulfills your basic needs?
Would you say that it is usually nice to come to work?
Benefits Are you happy with your health benefits?
How do you find the company’s benefits compared to other companies’ benefit in the industry?
Brandwein (2011) Promotion How do you feel about the possibilities to be promoted in your work?
The author analyzes the problem basing on the table below:
Table 10: Employee’s answers for potential cause justification
In my point of view, manager feedback and support impact to my performance and commitment It enhances my working spirit The straightforward feedback from my manager can help
Improving weaknesses and developing strengths is essential for personal and professional growth Organizations should recognize and reward the efforts of employees, as this acknowledgment helps them understand their goals and motivates them to strive for excellence.
Timely feedback from my supervisor is crucial for addressing issues and enhancing performance, particularly in the Marketing department where daily communication is essential for the smooth execution of media projects Her insights help me identify project shortcomings, allowing me to promptly reach out to agencies for resolution However, when feedback is delayed or absent, I feel disappointed and uncertain about how to navigate challenges This experience underscores the importance of timely and constructive feedback in fostering a sense of appreciation and clarity in our work.
My former manager consistently assigned me challenging and urgent tasks without offering support This lack of assistance made me realize the importance of feedback and recognition in the workplace, as they are crucial for employee awareness and motivation.
The company should enhance its reward system to better recognize employee contributions, as many have worked diligently without receiving acknowledgment Currently, employees who have been with the company for five years receive gifts such as watches, suitcases, or necklaces; however, implementing a reward every three years would significantly boost morale and appreciation among staff.
To me, the promotion is not quite important, because job title do not play a key role in many cases
Straightforward feedback is crucial for motivating employees and fostering long-term commitment to the company's growth It serves as a direct reflection of managerial recognition With salary increases averaging only 10-15% annually to address inflation, opportunities for position advancement and promotions become vital indicators of appreciation and acknowledgment from the organization.
Rewards are is key factor effects to employee recognition” employee
Finance and procurement assistant- temporary employee
Recognition from line managers is crucial as they directly assess my performance; without their acknowledgment, my efforts can feel futile Positive feedback not only validates my contributions but also enhances my sense of worth in the workplace.
I can acknowledge that my contribution behind has been appreciated Reward is the gift that I get in hand after the effort.
Management trainee Benefits, feedback are the causes of the low recognition in the company.
Manager directly evaluates our performance and our salary increase rate depends on the performance result from manager.
Without constructive feedback, self-improvement becomes challenging My previous manager failed to address my concerns and often evaluated team members based on emotional biases, which was unfair As a result, most rewards were disproportionately tied to performance evaluations.
As an IT manager with seven years of experience, I have seen my salary increase by 15% annually; however, I have not received any rewards or certificates to acknowledge my contributions This lack of recognition has made my job feel routine and unfulfilling.
After justifying the existing potential causes, the author made an interview with management team to make sure the causes that employees stated, are existing in Coca-
Table 11: List of questions and answers in justifying the potential causes (manager).
Do you think that you have provided timely feedbacks to your employees?
Do you think that our reward system is fair to all employees?
References: Kopelman, Richard, Gardberg & Brandwein (2011)
I consistently provide constructive feedback to my employees, yet the international company emphasizes the importance of proactivity, encouraging staff to address issues independently rather than waiting for my guidance From my perspective, the promotion system is effective; after six years with Coca-Cola as a brand assistant, I have advanced to the role of Indochina Marketing Manager The company fosters growth by offering opportunities for promising employees to be promoted and supported in their career development.
Recently, we do not have budget for rewarding So, it is true to say that reward system is quite poor here
Feedback and motivation are essential for enhancing employee performance, which is why I provide constructive comments on their work every quarter I appreciate the promotion system in place, as it empowers employees to make their own decisions However, the reward system has undergone changes recently due to budget constraints, limiting the number of policies we can implement.
As a Technical Manager, I lead a team of seasoned professionals who possess the expertise to navigate challenging situations independently However, I believe the company should enhance the benefits packages for expatriates, as the apartment provided for me is quite small and located far from the city center.
We do not have the policy to reward for outstanding employees this year.
Supporting information of proposed solutions
The author explores literature reviews to identify solutions that mitigate the impacts of underlying causes These proposed solutions are tailored to consider factors such as total cost, timing, participant involvement, and company policy, ensuring they are relevant to the specific company context and can be effectively implemented for long-term success.
A feedback-friendly culture fosters a dynamic organizational identity by establishing shared values, rules, and behaviors among its members, enabling customization and adaptation to evolving needs (Baker, Perreault, Reid & Blanchard, 2013).
A 360-degree feedback report provides employees with insights into how they are perceived by their direct reports, colleagues, and managers This approach is particularly valuable in organizations that prioritize coaching as a means of fostering employee development and maximizing potential By seeking feedback on managerial behavior, the organization promotes a culture of growth and self-awareness.
(Garavan, Morley & Flynn, 1997) presented a 360 degree feedback can help to create better working relationships within the organization and improves the ability of people to work in teams
Organizations should implement cash bonuses to reward employees who demonstrate exemplary performance by exceeding their set targets, thereby making them eligible for such incentives.
Hsieh & Chen (2011) stated that a market reward alternative that pays these individuals at or above the market rate can prove to be a wise investment.
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