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 cooperative projects with Coca-Cola Southeast Asia, Inc It plays a crucial role in executing marketing campaigns and facilitating commerce and investment agreements in accordance with Vietnamese law As a leader in the beverage industry, Coca-Cola offers a diverse range of products, 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 organizational restructuring to reduce costs, streamline the workforce, and align positions with employee capabilities This process involved the elimination of numerous unnecessary roles to support long-term development and achieve the company's vision As a result, half of the employees were terminated, while others were reassigned to new roles or locations Following the restructuring, the company operates with 35 employees—comprising 10 temporary and 25 permanent staff—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, and analyzed data from human resource reports Key findings included a turnover rate comparison from 2013 to 2015 and insights into reasons for employee resignations in 2015, as detailed in supporting information (section 5.1).
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 addressed 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 address concerns about employee turnover The General Manager highlighted that since 2014, the global economic crisis has negatively impacted business performance, leading to cuts in compensation packages to maintain profitability Over the past two years, awards and promotions have been limited, and organizational restructuring has resulted in job cuts and increased workloads for remaining employees Many staff members are now working overtime under pressure to meet project deadlines, leading to requests for additional assistant positions However, due to budget constraints, the General Manager had to decline these requests, resulting in employee dissatisfaction.
According to the Human Resource Department's Turnover Rate Comparison, the turnover rate rose by 8% from 2014 and by 13.7% from 2013 This increase has significantly driven up recruitment and training costs for new employees, reaching $53,690 in 2015 Notably, many managers are among those leaving the organization, which prolongs the recruitment process as selecting suitable candidates takes time This situation places additional burdens on current employees, who must manage the tasks of those who have departed.
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 illustrating potential reasons for employee resignation reveals that 45% of former employees felt devalued and unrecognized by their managers Many expressed frustration over a lack of compliments for completed tasks and a perceived disconnect between their challenges and managerial understanding Additionally, some employees indicated that years of service did not lead to promotions due to insufficient recognition Conflicts also emerged from the manner in which managers provided feedback on challenging assignments.
In 2015, over 30% of Coca-Cola employees left for better job opportunities with competitors like Nestlé, Dutch Lady, and Unilever Additionally, 17% of interviewees cited excessive workload as a primary reason for their resignation The company's headcount freeze has further complicated matters, preventing the conversion of long-term temporary employees—some with over five years of service—into permanent positions This uncertainty has created significant stress for temporary staff regarding their career prospects, as they face anxiety over whether their contracts will be renewed upon expiration.
Coca-Cola faces significant challenges, including low employee recognition, heavy workloads, competing job offers, and concerns about job security Despite these issues, budget and timing constraints limit the ability to implement solutions In interviews 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 agreed that addressing low recognition is essential for enhancing employee morale and fostering 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)
Klubnik (1994) highlights that recognition is a valuable tool for all employees, as it is cost-effective and doesn't require rigid corporate processes Addressing low recognition is crucial, as it significantly affects employee turnover, trust, and relationships between employees and supervisors A breakdown in these relationships can lead to increased conflict within the organization, ultimately diminishing productivity Furthermore, ongoing departmental campaigns necessitate collaboration, and conflicts can hinder project progress and negatively impact the business Many former employees have cited low recognition from their managers as a primary reason for leaving the company.
To enhance job security, it is essential to engage experts who possess a thorough 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 prevailing economic conditions Additionally, such changes may affect the Human Resource structure and have implications for the Legal department.
To retain employees and prevent turnover, it's essential to implement a competitive compensation and benefits system that requires approval from the CEO at headquarters However, executing this plan within a year presents significant challenges.
The General Manager and the Human Resources team identified recognition improvement as a crucial strategy to address the issue effectively and cost-efficiently in a short timeframe, with potential for national implementation To validate the existence of the problem within the company, the author conducted employee interviews, gathering data to determine if the issue is unique to the organization.
Justification of the problem existence
In this phase, the author examines whether low recognition is genuinely the core issue at Coca-Cola To gain deeper insights into the company's challenges, the author conducts interviews with current and former employees across various departments, job levels, and experiences, including those who have submitted termination letters or left the company.
12 understand measurement scale of recognition, there are researches have been cited belows.
According to Hopkins (1995), employee recognition is a form of communication between management and staff that rewards individuals for achieving specific goals or delivering high-quality results This practice aims to encourage employees to repeat desired behaviors by reinforcing their contributions The essence of recognition lies not in the type of reward given, but in the act of acknowledging the employee's efforts As a result, employee recognition has emerged as a vital motivational strategy that increasingly captures the attention of managers in organizations.
Employee recognition involves providing personal non-monetary rewards to reinforce positive behaviors in the workplace It encompasses two key elements: first, the ability to recognize and appreciate an employee’s contributions, which fosters motivation; and second, the tangible actions taken to acknowledge their efforts, such as offering promotions and benefits.
According to Henryhand (2009) and Kopelman, Richard, Gardberg &
In Brandwein's (2011) research, interview questions were developed, with summarized responses presented in section 5.2 To ensure unbiased and straightforward answers, all data will be confidentially recorded 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 recent restructuring, 50% of employees reported dissatisfaction with their salaries, stating they are no longer competitive despite an increase in their workload Additionally, the findings reveal ongoing discontent regarding company benefits Detailed responses can be found in Table 7 (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 have gone unrecognized Among eight employees surveyed, three reported a lack of promotions over many years, highlighting widespread discontent with the company's advancement policies Concerns were raised that promotions favor candidates with strong academic records rather than those with extensive experience and proven job performance The data collected indicates a significant lack of promotion opportunities within the organization, as detailed in Table 7 (Section 5.2).
A recent survey revealed that only 50% of employees feel recognized and motivated by their bosses, with five out of eight respondents indicating a lack of timely compliments or motivation despite performing well For instance, a commercial and operations manager expressed frustration, stating, “My manager did not give me any support and motivation for my new position and rejected all my ideas for improving work efficiency, leading me to decide to quit.” Another employee noted that their boss withholds feedback, believing that employees should proactively address job-related challenges Consequently, it can be concluded that many employees do not receive the necessary feedback and support from their managers, as illustrated in Table 7 of Section 5.2.
In a recent survey, the author explored employee appreciation at Coca-Cola, revealing that five out of eight interviewees felt unappreciated in their roles For example, a Finance and Procurement assistant expressed her dissatisfaction, stating, “I feel unhappy and unrecognized for my contributions, and I am uncertain about my future here as my contract is set to expire.” Despite her years of service, she has been assigned as temporary staff, highlighting a significant concern regarding employee recognition and job security within the company.
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 facing Coca-Cola Southeast Asia, as identified through interviews with the General Manager and Human Resource Manager The importance of addressing this problem is emphasized to ensure a more motivated and engaged workforce.
Justification of the problem importance
The impact of employee recognition on turnover rates is significant, as highlighted in existing literature Saunderson (2004) emphasizes that recognition plays a crucial role in employee retention within a dynamic job market Public sector managers and leaders recognize that meaningful employee acknowledgment fosters morale, loyalty, and commitment in the workplace Increased recognition leads to enhanced employee loyalty toward the company Furthermore, Skudiene et al (2013) identify a lack of recognition as a primary factor contributing to the departure of valuable employees.
Muthuveloo, Basbous, Ping, and Long (2013) highlight that individuals appreciate being recognized for their unique contributions Despite numerous organizations implementing formal rewards and recognition programs for employee ideas, many employees still desire more frequent informal acknowledgment in their daily work.
Employees who feel heard, supported, and appreciated for their contributions are more likely to be engaged in their work Conversely, a lack of employee recognition significantly influences their decision to leave an organization The Turnover Rate Comparison table from 2013 to 2015 reveals a concerning trend, with a turnover rate increase of over 8% from 2014 to 2015 and a 13% rise compared to 2013 This data highlights a rapid escalation in turnover rates over the three years, particularly among managers.
In 2015, Coca-Cola's turnover rate peaked at 82%, significantly higher than Pepsi's by 12%, indicating a growing disparity between the two companies This trend reflects underlying issues affecting employee retention at Coca-Cola When employees feel recognized and valued, they are more likely to commit to their career paths within the company Conversely, a lack of appreciation drives them to seek better opportunities elsewhere This not only impacts short-term revenue due to increased recruitment costs—amounting to $53,690 in 2015—but also has long-term effects on profit and employee development Thus, recognition plays a crucial role in influencing turnover rates at Coca-Cola, highlighting the need for careful evaluation and resolution of these issues.
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 company success, as highlighted by Mone, Eisinger, Guggenheim, Price & Stine (2011) The absence of recognition can lead to mental distress and burnout among employees Effective performance management relies on a robust recognition system and continuous feedback to boost employee performance An analysis of performance records from 2015 reveals a decline in Coca-Cola's employee performance, with a completion rate of only 72% in Quarter 2, compared to Pepsi's 81% in Quarter 1 This significant disparity underscores the importance of recognition in influencing turnover rates and overall employee performance within the Coca-Cola Company.
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 plays a crucial role in influencing employee turnover rates and 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 stage, the author identifies the potential causes affecting recognition These causes are systematically outlined, supported by relevant literature that emphasizes the importance of considering these factors in detail.
According to ệzutku (2012), rewards encompass various forms of compensation, ranging from cash payments to enhanced working conditions Organizations provide both intrinsic and extrinsic rewards to enhance human resource outcomes Intrinsic rewards, such as a sense of achievement and personal satisfaction, play a crucial role in motivating employees.
An extrinsic reward is a tangible acknowledgment given for achieving specific goals According to Rustand (2001), incentive and performance awards, often provided by the human resources department, serve to demonstrate employee appreciation He also found a statistically significant link between reward and recognition, highlighting the importance of these incentives in fostering a motivated workforce.
Feedback, as defined by Baker, Perreault, Reid, and Blanchard (2013), is a dynamic communication process between two individuals that conveys information about the recipient's performance on work-related tasks, fostering a sense of recognition It serves to inform individuals about proximal goals and recent behaviors, while also guiding them toward desirable development and outcomes Research by Lorenzet, Cook, and Ozeki (2006) highlights strategies for delivering feedback and creating action plans that enhance the likelihood of lasting recognition changes, ultimately leading to increased employee recognition through effective feedback practices.
Intrinsic motivation, as defined by Masvaure, Ruggunan, and Maharaj (2014), originates from within an individual rather than from external rewards It compels individuals to modify their behavior for personal satisfaction and fulfillment This type of motivation is inherently self-driven and arises from the individual's direct connection with 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 integral to the overall employment package and play a crucial role in recognizing employee contributions These benefits encompass a range of offerings, including health care, vacation, sick leave, child care, scholarship funds, elder care, fitness facilities, and various insurance types Notably, there is a positive correlation between the provision of benefits and the recognition of employees.
Promotions, as defined by Pergamit & Veum (1999), entail an elevation within the same role without altering duties, serving as a reward for productivity The likelihood of achieving this promotion correlates directly with an employee's output Those who succeed in obtaining the promotion benefit from enhanced salary, increased prestige, additional training opportunities, expanded supervisory responsibilities, and greater recognition within the organization.
Literature reviews identify five key factors related to recognition: rewards, feedback, intrinsic motivation, benefits, and promotions Additionally, a cause-effect map is presented based on research that highlights 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
After identifying potential causes from the literature (see Table 8 in Section 5.4), the author conducted in-depth interviews with twenty current and former employees across various departments and job levels to explore factors influencing recognition 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 highlighted five potential causes of employee recognition, with timely feedback and rewards from managers identified as key factors by fifteen employees.
Support and timely feedback are essential for employee recognition and performance, as noted by administrative assistants who emphasize that such acknowledgment fosters a sense of appreciation Interviews reveal that constructive feedback from direct managers significantly influences employee commitment and productivity For instance, one Commercial and Operations assistant highlighted that lack of support from her former manager hindered her ability to tackle challenging tasks, reinforcing the idea that feedback is vital for recognizing contributions Similarly, a Brand Manager assistant expressed disappointment due to delayed feedback, which left her feeling confused and unsupported in difficult situations Overall, 80% of employees agree that manager feedback is a crucial factor in their recognition and motivation at work.
Eleven employees emphasized the significance of rewards, stating, “Reward is the gift that I get after my efforts; it shows my contributions are recognized.” Long-term employees noted that routine work can become monotonous, and rewards serve as a vital motivator to reinvigorate their engagement One office manager expressed frustration over a lack of recognition despite years of hard work, highlighting a growing concern among loyal employees at Coca-Cola regarding the ineffective rewards system Knowledge & Insights Specialists and former employees echoed this sentiment, with one IT manager noting, “While my salary increased by 15% annually over seven years, I received no rewards or certificates acknowledging my contributions.” Despite management's belief that they provide adequate feedback and encourage proactivity among employees, many feel that the absence of tangible recognition undermines their commitment and satisfaction.
All team members are seasoned professionals, equipped with the experience and capability to navigate challenging situations independently Relying excessively on managerial support can hinder their growth and performance evaluation Furthermore, the management team is fully satisfied with the promotion system, which consistently provides support and opportunities for career advancement.
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
A significant portion of employees at Coca-Cola, over 80%, identifies two critical issues affecting workplace satisfaction: inadequate rewards and insufficient feedback While some employees feel that promotions and job titles are not vital, the ongoing lack of recognition can lead to a detrimental company culture over time This situation is exacerbated by conflicts between managers and staff, which negatively impacts employee commitment and performance Additionally, many employees believe their colleagues can resolve issues independently, contributing to the lack of feedback and highlighting the ineffectiveness of the current rewards system Addressing these concerns is essential for fostering a more positive and productive work environment.
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 manager feedback and an unsatisfactory reward policy, based on employee interviews and literature review To address these challenges, it is essential to implement effective solutions that align with human resource requirements, ensuring they are applicable within the company, easy for employees to engage with, culturally appropriate, and completed within twelve months and a budget of $20,000 The proposed solutions aim to enhance feedback mechanisms and reward systems, drawing inspiration from scholarly and management literature, which offer valuable insights and strategies for effective implementation.
A feedback-friendly culture is essential for organizations, as it establishes a shared identity and set of values among members According to Baker, Perreault, Reid, and Blanchard (2013), three key elements contribute to this culture: the learning series, trustworthy psychological safety, and open dialogue The learning series fosters continuous improvement, while a trusting work environment ensures that employees feel safe to communicate freely These two elements are crucial prerequisites for establishing effective communication channels and authentic conversations Ultimately, dialogue across all organizational levels is vital for cultivating a feedback-friendly culture, enhancing collaboration, and driving overall success.
Many employees reported a lack of feedback from their managers during their second interviews, highlighting the need for a feedback-friendly culture within the organization By fostering an environment where feedback is a natural part of the workplace, managers can recognize its importance in maintaining company culture rather than viewing it as an optional task According to Baker, Perreault, Reid, and Blanchard (2013), creating a proactive feedback culture is essential for shaping a safe environment for sharing insights Ultimately, cultivating such a culture encourages behaviors that promote open communication and continuous improvement.
This solution offers significant growth opportunities across various organizations and is applicable in most industries It requires one month to arrange for a motivational trainer with extensive experience to effectively convey the importance of feedback to employees, along with an additional two weeks to secure suitable training locations.
Investing in training is a worthwhile expense, as it allows employees to actively participate in projects and encourages them to strive for excellence By fostering a supportive environment, organizations can motivate their teams to achieve outstanding results based on the guidance provided by their trainers.
360-degree feedback is a multi-source assessment method that evaluates an individual's performance through input from managers, subordinates, colleagues, and customers This feedback, which includes ratings on specific performance dimensions, is particularly valuable in organizations that prioritize coaching for employee development Companies often utilize 360-degree feedback data before sending employees to external leadership programs, fostering two-way communication and encouraging employee involvement This process not only demonstrates respect for employees by valuing their opinions but also trains them in giving and receiving feedback Additionally, it aids in building stronger working relationships and enhances teamwork Furthermore, it increases awareness of competencies for both employees and senior management, highlighting areas for development.
360-degree feedback is a widely adopted tool in companies globally, significantly enhancing employee performance by identifying strengths and weaknesses However, at Coca-Cola, employees often feel unaware of their performance metrics due to a lack of feedback from managers, leading to confusion about necessary improvements Implementing 360-degree feedback can bridge this gap, fostering active participation from both employees and managers in the feedback process and promoting a better understanding of each other's perspectives.
The implementation of 360 feedback systems can be quite expensive, with initial costs reaching around $1,200 and ongoing fees of over $150 per user, totaling more than $30,000 in the first year This approach often demands significant time and requires numerous surveys from each employee, yet it may yield limited tangible results Additionally, honest feedback can be hindered by stress on individuals to provide input, a lack of follow-up actions based on the feedback, and an over-reliance on technology (Clark & Whittall, 2003).
Organizations can effectively motivate employees by offering cash bonuses for exceptional performance that surpasses established targets The bonus amount is typically determined by the extent to which an employee exceeds these targets, or it may be influenced by their rank or job group within the company.
Cash bonuses serve as a reward for employee performance during the appraisal year, while also creating an implicit expectation that these incentives will motivate future performance and enhance feelings of recognition for achievements (Njanja, Maina, Kibet & Njagi, 2013).
In many companies, including Coca-Cola, cash bonuses are a popular way to reward employees for their contributions, as employees often prefer cash for its versatility over gifts However, Coca-Cola's policy prohibits cash rewards, requiring employers to use gifts or vouchers instead To implement this, the request must be escalated to the upper human resource department for approval, which can result in delays.
According to Hsieh & Chen (2011), offering market-rate compensation or higher can be a strategic investment, particularly when replacing employees would incur significant costs or disruptions This strategy not only retains talent but also enhances 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 salaries, Coca-Cola must conduct market research to compare pay levels with other companies in the industry Feedback from former employees indicates that some left for better offers, highlighting the need for salary adjustments to retain talent Implementing this solution may necessitate significant changes to the entire compensation and benefits system, especially if Coca-Cola's salary ranges are currently below market 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, resulting in increased recruitment costs Utilizing data from various sources, including human resource reports from Coca-Cola and its competitors, the author identifies low recognition and appreciation from management as the primary issue affecting employee satisfaction Many employees express dissatisfaction with their roles and the feedback they receive, while the current 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, proposing the establishment of a culture of open feedback where employees can communicate freely Additionally, the author suggests that appreciation should extend beyond feedback to include annual gifts such as cash bonuses or certificates Implementing these solutions is expected to reduce turnover rates and boost employee morale, ultimately enhancing company performance.
Conclusion
This thesis examines the factors contributing to high employee turnover at Coca-Cola, which leads to increased recruitment costs Utilizing data from Coca-Cola's human resource reports and those of its competitors, the author identifies low recognition and appreciation from management as the primary issues affecting employee satisfaction Many employees express dissatisfaction with their roles and the feedback they receive, while the current reward and promotion systems fail to meet their long-term needs To address these challenges, the author proposes two key solutions: fostering a culture of open feedback that encourages communication between all levels of staff, and implementing annual appreciation initiatives, such as cash bonuses and certificates These strategies aim not only to reduce turnover rates but also to boost employee morale and enhance 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 to gain a comprehensive understanding of the company's conditions This information, illustrated by a pie chart depicting employee resignations at Coca-Cola, highlights existing issues within the organization.
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 and limited awards for high-performing employees over the past two years 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 and increased 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 impacting employee trust in the company.
A recent analysis by the Human Resource Manager revealed that 45% of resigning employees at Coca-Cola felt devalued and unrecognized by their managers, citing a lack of compliments and understanding of their challenges Many long-term employees expressed frustration over stagnant promotion prospects due to insufficient recognition Additionally, conflicts often arose from the manner in which managers provided feedback on difficult tasks The average salary at Coca-Cola is less competitive compared to similar companies in Ho Chi Minh City, leading over 30% of employees to leave for better offers from competitors like Nestle, Dutch Lady, and Unilever Furthermore, temporary employees reported feeling stressed about their career advancement opportunities.
The author conducted an analysis of the reasons provided by the general manager and human resources, utilizing turnover rate data from 2013 to 2015 and a pie chart depicting employee resignations in 2015 This analysis offers a comprehensive view of the company's business performance in 2015, highlighting trends in turnover rates and the 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 data from in-depth interviews based on a questionnaire derived from the research of Achim, Dragolea, and Balan in 2013.
The interviewees consist of employees from various departments, possessing diverse work experiences, statuses, and positions, highlighting the underlying issues The questionnaires are designed to assess employee recognition and are crafted to be clear and straightforward, minimizing bias to ensure the authenticity of the collected information.
Supporting information of problem existence justification
Recognition, as defined by Hopkins (1995), refers to the communication between management and employees that acknowledges their achievements in meeting specific goals or delivering high-quality results It encompasses various aspects such as benefits, promotion opportunities, appreciation, and effective communication.
To assess the presence of issues within the company, the author employs Henryhand's (2009) questionnaires The analysis of responses focuses on identifying potential problems, utilizing a scale of 19 questions that examine key aspects of 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 possesses valuable insights into the company's current condition and can clearly identify the negative changes it has experienced 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.
Lack of promotion opportunities has left my job grade stagnant for years The evaluation process for promotions seems unfair, favoring employees with strong academic records over those with extensive 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 major 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
With five years of experience as a Commercial and Operations Manager in Hanoi, I was responsible for managing the North Market before transitioning to the Cambodia Market Despite my lack of deep knowledge about the Cambodian market, I recognized its potential Unfortunately, my manager did not provide the necessary support or motivation for my new role and consistently rejected my ideas for improving work efficiency As a result, I made the decision 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.
No I worked for Coke for 3 years as temporary staff and do not receive any appreciation from my manager.
My new manager constantly pressures me to complete urgent tasks without considering my efforts to manage other responsibilities Despite my attempts to meet all deadlines, he fails to acknowledge my hard work and dedication.
Despite my significant contributions to the company, I often feel unappreciated, as my manager rarely offers compliments Even though my role involves routine tasks, receiving acknowledgment for my efforts would reinforce my sense of value within the organization.
Supporting information of problem importance justification
After confirming the existence of a problem within the Coca-Cola Company through interviews, the author conducted a literature review to explore the significance of this issue Research by Saunderson (2004) highlighted the connection between employee recognition and turnover rates, stating that increased recognition fosters greater loyalty among employees Further supporting this, Skudiene et al (2013) identified a lack of recognition as a primary factor driving employees to resign Muthuveloo et al (2013) emphasized that a robust recognition system encourages employee contributions by making them feel valued Additionally, Mone et al (2011) described recognition as a form of positive feedback linked to employee performance and goal achievement The findings underscore the critical role of recognition in employee retention at Coca-Cola, further corroborated by turnover and performance reports from both Coca-Cola and Pepsi.
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, serves as a dynamic communication process between individuals, providing essential information about the receiver's performance in work-related tasks while fostering a sense of recognition.
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 affecting recognition levels through literature, the author conducts employee interviews to uncover the actual factors influencing recognition within the company Prior to the interviews, the author clarifies the definitions of each potential cause and the measurement scale for recognition to the interviewees The questions are designed based on the recognition measurement scale and 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 from employees regarding key terms, shedding light on their perspectives about potential causes of issues within the company The author directly solicited employees' views on what they believe are the most significant factors, encouraging them to elaborate on their reasoning This feedback allowed the author to identify the primary challenges facing the organization Additionally, interviews with the management team were conducted to gain a comprehensive understanding of their insights on the overall 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 are essential for personal growth Additionally, the efforts that yield positive outcomes should be recognized by the organization, as this helps employees understand their true motivations and aspirations.
Timely feedback from my supervisor is crucial for resolving issues and enhancing performance, particularly in the Marketing department where daily communication is essential for the smooth execution of media projects My manager's insights help me identify project shortcomings, enabling me to promptly address problems with agencies However, there are times when feedback is delayed or absent, leading to disappointment and confusion about how to navigate challenges Therefore, I believe that timely and constructive feedback is vital for fostering appreciation and motivation in the workplace.
My former manager consistently assigned me challenging and urgent tasks without offering any support This experience highlighted the importance of feedback and assistance in helping employees feel recognized and valued in their roles.
The company needs to enhance its reward system to recognize employee contributions more effectively Currently, employees feel undervalued, as many have worked diligently for years without receiving any acknowledgment While the company does offer gifts such as watches, suitcases, or necklaces to employees after five years of service, implementing a reward system every three years would significantly boost morale and demonstrate appreciation for hard work.
To me, the promotion is not quite important, because job title do not play a key role in many cases
Straightforward feedback is essential for motivating employees and fostering long-term development within a company, as it demonstrates managerial recognition With salary increases of only 10-15% annually to combat inflation, promotions and position advancements become crucial indicators of appreciation and acknowledgment of employee contributions.
Rewards are is key factor effects to employee recognition” employee
Finance and procurement assistant- temporary employee
Recognition from a line manager is crucial as they directly assess my performance; without their acknowledgment, my efforts can feel meaningless Positive feedback from my manager fosters a sense of recognition and validation.
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, personal improvement becomes challenging My previous manager failed to address my concerns and instead assessed team members based on emotional judgments, which was unfair Ultimately, most rewards are based on performance evaluation results.
As an IT manager with seven years of experience, I have consistently received a 15% salary increase annually Despite this growth, there has been a lack of recognition in the form of rewards or certificates for employee contributions, leading to a sense of routine in my job.
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, but the international company emphasizes the importance of proactivity, encouraging employees to take initiative in problem-solving instead of waiting for my guidance In my experience, the promotion system is effective; I have been with Coca-Cola for six years, starting as a brand assistant and recently advancing to Indochina Marketing Manager The company actively supports and promotes potential employees, fostering their growth and 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 crucial for enhancing employee performance, which is why I provide constructive comments on their performance quarterly I appreciate the promotion system in our organization, 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 experienced professionals who are capable of navigating challenging situations independently However, I believe the company should enhance the benefits packages for expatriates, as the apartment provided is small and located far from city centers.
We do not have the policy to reward for outstanding employees this year.
Supporting information of proposed solutions
The author examines literature reviews to identify solutions that mitigate the impacts of underlying causes These proposed solutions are tailored to the company's specific circumstances, considering factors such as total cost, timing, participant involvement, and company policies to ensure their long-term effectiveness and applicability.
A feedback-friendly culture enhances organizational identity by establishing shared values, rules, and behavioral guidelines This dynamic environment allows members to customize their interactions, fostering a sense of belonging and collaboration.
According to Robertson (2008), a 360-degree feedback report allows employees to understand how they are perceived by their direct reports, colleagues, and managers In organizations that prioritize coaching as a means for employee development, this feedback mechanism encourages individuals to gain insights into their managerial behavior from various perspectives.
(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 established targets, 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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