Dealing with low intrinsic motivation of functional employees in pepsico foods vietnam company

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Hoang Thi Thanh Lam DEALING WITH LOW INTRINSIC MOTIVATION OF FUNCTIONAL EMPLOYEES IN PEPSICO FOODS VIETNAM COMPANY ID: 22140025 MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR NGUYEN PHONG NGUYEN Ho Chi Minh City - 2016 Executive summary Vietnam has recently been regarded as a prospective destination of foreign investment presented with its high-speed development, especially for Fast Moving Consumer Goods (FMCG) As one of the leading producers in the FMCG market, PepsiCo Foods Vietnam Co., Ltd (PepsiCo) is following towards the development of the industry and improving its execution to gain higher performance results However, there are potentially existing problems in the company which may reduce the competition edge of organization and harm to its culture This research was commissioned to examine what problem in PepsiCo, the causes leading to problem are and to suggest the validated solutions to deal with problem, which are in line with company’s policy and resources Method of the analysis is combination between theory-informed and validated data, collected through interview and survey to identify and confirm existence of the problem as well as causes and alternative solutions From the general diagnosis of potential problem at PepsiCo, findings suggest the existence of low intrinsic motivation of functional employees as the main problem Problem scope to work is including Finance, Planning, Human Resources, Procurement and Legal Department Low intrinsic motivation is analyzed in terms of its existence, antecedents, consequences, and solutions are proposed to tackle such a problem Finally, this report indicates organization of actions to deal with problem in the lead time of one year and limited budget approved by the company Recommendations discussed focus on two main causes of low intrinsic motivation of functional employees in PepsiCo, which are job characteristic and lack of verbal recognition and rewards The report also investigated three accordant solutions: - Re-assessing and launching detail job description - Offering functional employees extracurricular sub-task to develop their interpersonal skills - Improving verbally recognition and rewards activities Total estimated cost to implement these solutions is approximately 234mil VND, which is in line with company’s approved budget of 250 mil VND while benefit brought is 453 mil VND Annual net saving is calculated as 219 mil VND Since there is finiteness of time and resources constrain, limitation of the research exist such as the current company conditions data did not provide enough information and only sample of interviews are performed However, the report provides diversified and validated data in conjunction with theory to propose meaningful suggestion for PepsiCo to strengthen its personnel resources and organization behaviors List of tables and graphs: Table 1: PepsiCo Organization Health Survey condition (Pepsico, 2015) - page 11 Table 2: PepsiCo Organization Health Survey result 2016 (PepsiCo) - page 12 Table 3: Summary of interview result – Potential problems - page 19 Table 4: Summary of problem existence interview - page 29 Table 5: Cost – benefit of alternative solutions – page 50 Graph 1: PepsiCo new POM (PepsiCo) - page Graph 2: Fast Moving Consumer Goods dynamic (Total cities) (Nielsen, 2016) page Graph 3: Growth of Beverage, Food and Milk based product (Nielsen, 2016) - page Graph 4: Causes – effect map - page 39 Table of content Executive Summary 1 Problem identification 1.1 Problem conceptualization 1.1.1 Company overview 1.1.2 Business overview 1.1.3 Symptoms 1.2 Problem identification 14 1.3 Problem definition 23 1.4 Justify problem in term of existence 26 1.5 Justify problem in term of importance 30 1.6 Potential causes 34 1.7 Causes validation 38 Solutions 40 2.1 Proposal of Solutions 41 2.2 Evaluation of solutions 44 Organizations of actions 50 Conclusion 54 References 55 Appendices Problem identification 1.1 Problem conceptualization 1.1.1 Company overview Established through the merger of Pepsi-Cola (1890s) and Frito-Lay (1961) in 1965, PepsiCo is a global food and beverage leader with twenty two mega brands, whose annual retail revenue is more than $1 billion for each The group’s mission is clear that to provide consumers around the world diversified range of foods and beverages to satisfy their demand to enjoy, from healthy products to for - fun ones PepsiCo's people are united by commitment “Performance with Purpose” to provide a wide range of products, which included both fun and healthy characteristics to consumers, respect the environment people are living in and commit to hold a great working place for associates PepsiCo Foods Vietnam Ltd (PepsiCo), who has operated in Vietnam for years, became one of the leading food manufacturers in the country with main brand “Poca” and 300 employees throughout the country The local company inherited the morale and mission from PepsiCo Group to deliver sustained value by providing diversified products portfolio and taking the role to protect environment Understanding that the success of the business also thanks to the contribution of people in the company, PepsiCo has developed its working environment based on talent sustainability criteria, clear vision and strong business ambition toward future In order to be well – prepared for globalization and localization process, PepsiCo has changed the structure to new PepsiCo Operating Model (POM) In which, the organization has been arranged into vertical multi-layer chart rather than horizontal in the past In that new POM, every operational department will be managed through one concept and direction from global, sector, region, commercial unit to market unit while General Manager will take the lead role as managing local operating concept Therefore, in the new POM, the active involvement of employees in company operation is the most important factor Graph 1: PepsiCo new POM (PepsiCo, 2016) 1.1.2 Business overview In 2016, Vietnam has been rated as top destination of investment together with China and Indonesia, where foreign investors tend to expand their operations In addition, Vietnam is one of Top Optimistic Countries in the world and our consumer confidence index (CCI) was in Top 10 globally for six consecutive quarters since quarter of 2014 as report of Nielsen.1 However, drought and fish crisis recently has hurt the agriculture and thus GDP growth by achieving growth rate of 5.5% in the first half of 2016, lower by 0.8% versus 2015 as Trading Economic 20162 researched Fast-moving consumer goods are dynamic market but it is recorded that the nominal growth rate was decreased in Quarter of 2016 after the strong recovery in quarter of 2015 Graph 2: Fast Moving Consumer Goods dynamic (Total cities) (Nielsen, 2016) Even beverage was a shining star in the FMCG market with the nominal value growth of 39% in 2015, foods business was in recovering trend with positive nominal value growth rate in quarter and of 2015 Graph 3: Growth of Beverage, Food and Milk based product (Nielsen, 2016) In the first half of 2016, PepsiCo has achieved volume of 3,800 tons, which is 28% higher compared with prior year However, in order to achieve volume of 8,000 tons for full year 2016, there is much more obstacles that PepsiCo need to overcome to fulfill the target by keeping driving topline while consciously maintaining low cost structure 1.1.3 Symptoms Initial interviews with stakeholders including Finance Director, Planning Manager, general accountant, former planning analyst and Human Resources director were performed to investigate the current symptoms in the organization Finance team is the biggest functional team in the company, including Commercial Finance, Plant Finance, Agro Finance and Finance team in Head office, located at all branches of the company As they take care of the most important and spread parts in business operation and have direct communication with all other functions but operating separately as back office, their idea are general and unbiased For planning team, their activities are as similar as Finance team but in a deeper level and stressful as they will provide strategic advice to management team for their business decision Therefore, they may have incisive judgment to the problem occurring in the company Last but not least, HR manager will be the one standing at company’s overview to provide the information in the general and proven way The qualitative questions have been used to investigate the interviewees’ point of view about what the concerns exist in the organization are The detail interview is showed as Appendix According to Planning manager, recently his team faced the biggest problem of very “high turnover rate” as 80%, increased by 100% versus last year Team members have decided to take new challenges outside of PepsiCo after average 3-year commitment It brought company a personnel shortage and increased workload for the remaining people As a result, working quality was decreased during a period of time Company was facing resource constrain since the experience employees decide to leave while the new one cannot catch the working pace and satisfy all stakeholder’s requirement perfectly In addition, it is hard to find out the suitable candidate for the vacancy as the labor supplies for analyzing job R: I think it is fine to propose my idea on the information that you are doing investigation I: For yourself intrinsic motivation, when you did work well, does it give you a feeling of accomplishment? R: I have this feeling if I joined big project and event However, I did not have it for finishing daily work I: Does it mean that you are unhappy with your daily work? R: After years after graduation, I feel the daily work is not interesting as in the past I: Do you feel that the benefit is tally with your performance? R: I don’t think so I am an outsource, which means I did not have PepsiCo headcount The contract is signed through a third party due to limited resource approved for function Benefit of an outsource can not be compared with a permanent employee, for example, we not have 24/7 Pepsicare insurance, simpler health check even it is better than other local company, lower bonus and merit increase compared with the average of company announced in Total rewards roadshow I: But when you perform your job well, does it contribute to your personal growth and development? R: I record my growth in experience and ability to deal with problem, but the development in career path is not clear I got the problem in defining my goal and career development Even my boss care about it, I have no room to be promoted to an official position Sometimes, I feel that my performance did not contribute to my personal growth and development I: How is your feeling about your job after years, you have personal satisfaction? R: The working environment is friendly while the work is pressured However, it is not a good place to adhere with and my enthusiasm with work is decreasing So is personal satisfaction I: I got your idea Thank you very much for the information Interview with Indirect procurement executive: I: Hello chi, I’m doing thesis for MBA program as doing problem solving in organization Through the interview and theory validation, the problem chosen is “low intrinsic motivation of functional employees in PepsiCo Foods” In order to have more understanding of the problem in our company recently, I’d like to get your opinion about some queries R: Yes, please go ahead I: Thank you So when you work well in the company, does it give you a feeling of accomplishment? R: I feel like normal job in other company which I have experience to work in There is not much advantage if I comparison the feeling of accomplishment with the effort and pressure I have to adopt PepsiCo is international FMCG whose business requirement is changing day by day Therefore the flexible and in-time decision is important, which may lead to overload working In a different way, I not have time to enjoy the feeling of accomplishment 11 I: However, you feel that performing well in work contribute to your personal growth and development? R: I can not foresee any movement or development in short time for myself I: So it seems that your job did not increase your feeling of self-esteemed? R: Well execution is a part of job requirement, unless you have significant contribution to enhance the process, cost-saving or provide idea for business improvement It is difficult to say exactly I feel self-esteem or not I: So the good job result give you good feeling of satisfaction? R: I am fine when the job go well But it did not bring me great sense of satisfaction I: I have understood and thank you very much for your feedback It is in line with the problem that I indicated to investigation There is confirmation that functional employees’ motivation is reducing in PepsiCo Interview with Legal executive: I: Hello em, I’m doing thesis for MBA program as doing problem solving in organization Through the interview and theory validation, the problem chosen is “low intrinsic motivation of functional employees in PepsiCo Foods” In order to have more understanding of the problem in our company recently, I’d like to get your opinion about some queries R: Okie, I will tell you my opinion if I know about it I: Thank you You have worked in the company since graduation, it is years till now So when you work well in the company, does it give you a feeling of accomplishment? R: My work is checking legal point for contract and giving legal advice There is not much fluctuation in my work, then the eager is reducing day by day So is accomplishment feeling I: Is the benefit tally with your contribution? R: I don’t know I: So it seems that your job did not give you good feeling of satisfaction? R: No, it did not I did as routine work My benefit is not changed as much as my job, then I can not feel motivated well I: However, you feel that performing well in work contribute to your personal growth and development? R: I am taking MBA course, major in economic law and hope that I will have more knowledge and opportunity to have promotion or another better position I recorded the growth when holding my job but it requires more knowledge as well I: So it seems that your job did not increase your feeling of self-esteemed? 12 R: Legal department is important in every company, requires employee who has professional skill and specific knowledge but it is not in use usually Therefore, I have not enjoyed the feeling of self-esteemed I: I have understood and thank you very much for your feedback It helps me in dealing with the problem 13 Appendix 4: Problem importance and causes validation: Interview with the General Accountant: I: In order to investigate the importance and dealing with problem “low intrinsic motivation”, could you advise your idea on the effects of this problem occurred to you, in mental and physical way? R: For mental problem, I feel bored in daily working and not want to devote to the development of company I’m no longer proud being a staff here and I don’t care what is happening to it I: It sounds like your attitude to work turned bad? R: It seems like that in another way of idea express I even recognized it I: Can you clarify exactly your feeling? R: For example, I feel uncomfortable when I come to work every day It is like an obligation rather than a job to enjoy It is a kind of passive thinking and behavior I also rarely chat with colleagues for the problem out of work and sometimes cannot be involved in activity which requires teamwork I: Is that the reason for your intention to find opportunity outside of PepsiCo? R: Yes, it is As I found that I am not satisfied in PepsiCo with no promotion or clear career development opportunity, I have to change my mind toward outside labor environment I: So in the meantime, you feel that you are actively performing in the job? R: Definitely not I have an intention to be passive in most of the time, not only in work Physically, I did not want to join company party, year-end performance or outside trip I’ve tried to be a part of the company but it did not work, then I like to keep silence instead of voice up the personal idea I: Is there anybody else in the company having the similar problem as you? R: Most of members in my finance team have it We have worked here for years or more, but the working criteria is not improved I: If there are potential positions available in the company, will you make some reference to your friend? R: I don’t think I will recommend my friend to apply for a back office job in the company It may be different in other position but for finance team, I will not I: I got your idea In addition, what are the main causes to the problem in your thinking? R: From my point of view, there are two main cause that leads to our team’s low intrinsic motivation Firstly, employees want to be manager, we have ambition and direct goal However, we not find out correctly the way to achieve the goal Secondly, we are not satisfied with benefit in the company, both tangible and intangible ones As I have mentioned to you in previous talk, I have no promotion in recent years After first years, I was promoted to be general accountant but I was at this position without any clear career development The verbal compliment is rare in a big team like accounting team 14 I: I can understand the second point clearly that you feel compensation and benefit program is not attractive to finance team But for the first point, can you make it clearer? R: In an easier way, our goal orientation have problem, we are not clear on what we should to build up career development path In real life, I also face difficulty on concentrating in the specific work It also lead to the feeling of being give-up as I am not master in this area From time to time, the intrinsic motivation is going down and disappeared I: Is this only your personal perception or others have the same? R: I have discussion this topic with some former employees and they have the similar feeling like mine That’s the reason why they decided to leave I: Thank you very much for your sharing Interview with HR executive I: May you take sometimes to continue discussing with me about the topic “low intrinsic motivation” in PepsiCo Foods? Last time, we talked about the existence of the problem in our company and you have expressed the idea that it was be in the organization Now, I’d like to ask your idea on the impact of the problem? R: I think if the employee is not interested in work anymore, they will not have any improvement to enhance working results Furthermore, they will tend to be late in performing their task I: Do you have experience on the behavior that you mentioned? R: I usually face these cases when company have the refresh training on code of conduct, or meeting that all employees need to attend They came late, and sometimes missed the deadline to the test The tardiness also happened when we a survey that encourage people to take part in passively I: Is there any other impact that you have experience? R: One of my department’s target is minimize the impact of high turnover rate recently As you know, there are lots of people resigned these days It is result of long time not being interested in work and under pressure as exit interview with former employees We are trying to investigate the method to reduce turnover intention by seeking advice from Regional HR team and manipulating experience of HR experts to enhance employees’ motivation I:Can you share with me the thought of cause lead to problem in employees’ low intrinsic motivation? R: My personal experience and thinking is that because of personal characteristics and nature of the job As my job, there is not as much flexibility as frontline team and I usually get contact with internal customers Even the way to deal with them also requires creation but it will become boring some days I’d like to be assigned some other tasks to improve my skills I: Do you think it works, I mean the diversified job allocation will help people to overcome bored feeling in work? R: Yes, at least it will bring employee refreshment in their working life 15 I: Thank you very much for your idea Interview with indirect procurement executive: I: I would like to receive your feedback to investigate the importance and dealing with problem “low intrinsic motivation” So could you advise your idea on the effects of this problem occurred to you? R: Honestly, recently I felt that my enthusiasm with work is reducing dramatically, especially after a huge resigned wave of employees, who have worked here for a long time We had been a great team in the past and collaboration is stable As the experienced persons went out, there is gap in the organization and we need to take part in lots of work I: You mean that now you are under overload and your attitude to work is turning bad? R: Yes, I am I: Can you clarify exactly your situation? R: For example, I can not be creative in work in the situation of time and resource constraint I basically finish my task in an exact time and work frame, sometimes I may be late for specific requirement, such as regional report, calculating productivity saving If there is sudden task, as dealing with a new foreign potato supplier to overcome the shortage of our raw materials recently, I easily get stuck and heated due to huge workload Of course, I can not get work – life balance and be tired of working I: So in the meantime, you feel that you are stressed? R: I think I’m definitely in I: Have you shared with your line manager about your case? R: I haven’t I cannot find time to address the problem to my boss I will it in year-end review I: What are the main causes to the problem in your thinking? R: In my opinion, colleagues are under high pressure, from frontline to functional team, but there is not significant recognition and reward for their contribution Company is tightening their belt to reach breakeven, the message is clear to employees but sometimes, the complexity was raised I: What kind of recognition and reward you think of? R: In deed, employees prefer high benefit, merit increase and bonus But it is not applicable for this kind of rewards However, if company can provide the opportunity to discover and offer employees training to shape and satisfy their personal development, it would be a good way Still be great if company care of employees from the small thing like in-time encouragement and oriented employees to reach personal success There is gap in our company’s activities to satisfy staffs In addition, employees dare not express their comment to company and not be forcible to tell their aspiration and there is not any discussion for employees to strongly show their thinking I: Thank you very much for your sharing Have you thought of any other causes which affected strongly to employees? 16 R: I think it was the largest factor now I: I appreciated your contribution to honestly share with me your opinion Interview with Legal executive: I: Can you take your time to discuss with me the importance of the problem “low intrinsic motivation” in PepsiCo Foods? Last time, we talked about the existence of the problem in our company and you have expressed the idea that it was be in the organization Now, I’d like to ask your idea on the impact of the problem? R: I really want to take a long holiday to refresh myself It expressed that I am not motivated in my job and wan to break out of it I also have plan to find out opportunity in other company if there is no change I: May I express it as you have turnover intention? R: Yes, I have I: Is that feeling affected to your involvement in work? I mean you actively in your performance? R: I have tendency to be lazy in doing work as I am bored with repeated paper work, which is checking legal contract as shared with you Yes, it is what I experienced Same as me, my colleague, if they have low intrinsic motivation, they will not have creation in performing their task It may be harmful to company’s performance since we are firmly competing to deliver an outstanding job performance I: Realizing the importance of solving “low intrinsic motivation” in PepsiCo, you have any idea what are the causes of the problem? R: I myself realized that my personal goal is not reached I also faced the feeling overbalance due to be unable to setting target I just finish the work without considering which is good for my career development I need to receive consultancy from experts to get it set up I: You mean by you need personal development specified for you, right? I think it is applicable for each of us, but it now is not executing for employees level R: Yes, it is In addition, as I not have peer, I can not share and discuss straightly my thinking or even compete healthily My team has only my manager and me I: There is idea that since in the company, the competition between employees is not paid attention to even it is one of the factors to push people have higher performance In a different way, motivational climate is exactly the term to use R: I think it is similar to my expression It must be a cause I: Your ideas are so meaningful Thank you very much Interview with the former Planning Analyst: I: Can we continue with the topic “low intrinsic motivation” in PepsiCo Foods? Last time, we talked about the existence of the problem in our company and you have expressed the idea that it was be in the organization Now, I’d like to ask your idea on the impact of the problem? 17 R: I have mentioned in the first interview that the turnover rate in Planning team was very high in 2015, there is no more old member continuing to work in PepsiCo and all are new from end of 2015 except Planning Manager It is the result after a long time of low intrinsic motivation and high working pressure I: It was what happened to your team, but you know how does it affect to other function in the company? R: As Planning team have worked with all functions in the company, I have realized that the low intrinsic motivation can be easily detected in back office operation, especially finance team They have intention to insist on protecting their opinion and not be open-minded That’s the reason why it is very difficult to fully corporated with them They were also late in reactions to request from other team to provide data or advice for actual expenses I: I can notice that they are not actively involved in their jobs and being passive in coordination with other departments R: Yes, it is what I experienced If they have low intrinsic motivation, they will not tend to behave at the norm of activity and accept the achievement at lower rate They also did not try to improve working quality by doing any innovation for better working way The general performance of the company will be affected directly or indirectly I: Realizing the importance of solving “low intrinsic motivation” in PepsiCo, you have any idea what are the causes of the problem? R: In the Planning team meeting before, we have discussed about that matter to have general feedback to other team in 360 degree feedback program It was not debated that job characteristic is one of the cause As finance team’s work is naturally paperwork, they did not have much opportunity to be directly involved in company’s trading or operating actions They may know what the activity is through the claims, the purchase request, etc but they will not view the full picture why we should this activity and how it affected to daily operation or its benefit at the end If they continued to the same work day by day, they will feel demotivated through the repeat of actions I: So it is not only because of job characteristic but also the job environment, right? They not have chance to expand their activities? R: It is not 100% correct They also have chance to discover the activity in different manner but unfortunately they did not I can recognize one more cause is that there is lack of competition between members in a team, which mean the motivational climate in the company is low for functional team It is easier for sales team or operation team to compete since they have clear target, for example to increase route visit, strike rate or sales volume; key performance indicators as controlling manning production, improve yield of material usage,… We can not set the clear target for functional team by numbers or percentage, it is not real In addition, company did not have much competition for employees to show their skills or innovation After a long time, functional team’s will and effort should be affected I: Your ideas are so meaningful Thank you very much 18 Appendix 5: Interview of solution and organizations of actions Interview with General accountant I: We have done a great job in evaluating the “low intrinsic motivation” currently occurred in PepsiCo and find out there are attendances that are caused of this phenomenon However, in term of the main problem and company resource, two short term causes are aimed to be deal with first, it is job characteristic and company recognition and rewards I have done some research on how to deal with these causes and need your opinions on the feasibility of the actions R: I also feel that these two causes you mentioned are easier to deal with in the short time I will try to express my idea in a detail way I: So we begin with the first cause, job characteristic You have mentioned that because of passive thinking and behaviors, your team got problem in develop “intrinsic motivation” What is the good way to improve the performance and amend your team’s thinking in a better direction? R: I think the task should be diversified to foster employee’s skill and knowledge Even I strongly agreed that you can not job of other different departments, for example, as accountant, I can not go to the market and sell product professionally like salesman But I want my job can vary in different aspect of accounting function I: I understood from your idea is that you mentioned about the variety job allocation in one department For example, a Receivable accountant can be reallocated as payable accountant, and so are inventory, Agro and reporting ones It is good for the knowledge sharing in team But you think that there is any disadvantage? R: Yes, of course May be it is not applicable for all, since we have lots of AR and AP accountant but less inventory and reporting ones Therefore, the exchange can not be done in wide area But it should be considered for some candidate to have a chance to enjoy new thing In addition, I hope that company will review the job description again since the last time PepsiCo had done it is before POM model I: What you expect from the revision of job description? R: I want to have a clear one, which is special for each position Currently, for employee, there are similar job description, even our scope, handled area and location, required skills are different The job description should be clear then the job evaluation can be done in a fair way, for both employees and company That is what I think of for my team I: Do you think that functional employees will enjoy the change? R: I have talk with some team mate and they are eager for the change, from which they can have not only clear understanding about their jobs, full mindset of company requirement but also leverage opportunities to be a more active person 19 I: Thank you for your idea I have another cause need to find solution to deal with, it is “recognition and reward” Interview result has shown that there is some feedback of our company’s recognition and reward” However, as the physical benefit is not allowed to be changed in local basic, I would like to take your opinion of “verbal recognition and reward”, whose positive effect has been confirmed through some research R: I think in small scale, for example in department or in specific location, verbal recognition and reward is important It reflects the attention of manager, he followed up his staffs and realized that they did well It is also good if the related stakeholder can perform this action, means by recognizing and appreciating the proactive contribution of functional team in dealing with problem I: what you think is the good aspect of this solution? I mean active verbal reward? R: I think it is easy, on time and have direct mental effect to functional employees Through the compliment, they can confirm their success in work and feel happy I: Is there anything which may become worse? R: It is able to be worse if the compliment is based on biased and personal thinking And sometimes it is not good if the manager cannot see and have done verbal reward on time The employees will feel that it is not necessary to if they cannot get it or try to behave better in front of manager’s observation I: Thank you very much for your idea Interview with HR executive: I: We have done evaluating the “low intrinsic motivation” currently occurred in PepsiCo and find out there are attendances that are caused of this phenomenon including job characteristic, goal orientation, recognition and rewards and motivational climate However, in term of the main problem and company resource, which of these causes you are thinking of as easily dealing in short term? R: I think the first step is that we should have a framework for all of activities before changing big thing That means we should focus on the person before aiming to change the whole company In my point of view, I care of personal development, therefore the antecedent recognition and reward is the most important I: Why you think it is important? R: I myself and other peers care of the benefit when going to work It means that if we are encouraged timely for out good performance, it will push us to achieve a higher and better result I: Can you express your idea as you have stated in the survey of HR sent recently for enhancing the rewards and recognition? In some main idea 20 R: I have stated that the process of recognition is varied from departments and there is not consistence in performing the recognition It is quite formal in a team which has many members but it seems to be superficial in other team In addition, the gift is not well receipt by the employees, it is not attractive I: So you believe that solving this antecedent will help solve the problem we have mentioned? R: Yes, I think it is the most important antecedent lead to the problem and we are fine to implement the methods of this alternative solution It is direct and has strong effect I: So with current company resources, especially HR team, it will be easily implemented? R: With the corporation between our HR team and management team, I think it is I: Thank you again for your direct contribution Interview with Indirect procurement executive: I: We have done evaluating the “low intrinsic motivation” currently occurred in PepsiCo and find out there are attendances that are caused of this phenomenon including job characteristic, goal orientation, recognition and rewards and motivational climate However, in term of the main problem and company resource, which of these causes you are thinking of as easily dealing in short term? R: In my opinion, as I have too many out of scope work, which leads to bad work-life balance, I need an improvement in my job It links to job characteristic you have mentioned I: Can you express it more clearly, means what you really want to be happened? R: For example, I want to have a clearer job description to find out what is the main and sub task, then I can prioritize my work easier Currently, job description of direct and indirect procurement executive are similar while there is difference in the job scope I want something clear and we can based on it to set up our career objectives I: I understand your point It is clear for you that if the job is very detail, you will be out of the overload situation now due to better work allocation R: Yes, it is what I aim to And I think other departments will face the same problem And it is not too difficult to proceed It is internal process of PepsiCo and I believe that other company also that in line of business requirement changed I: Yes, I think it is a very good idea, thank you very much for your contribution Interview with Legal executive: 21 I: We have done evaluating the “low intrinsic motivation” currently occurred in PepsiCo and find out there are attendances that are caused of this phenomenon including job characteristic, goal orientation, recognition and rewards and motivational climate However, in term of the main problem and company resource, which of these causes you are thinking of as easily dealing in short term? R: In short term, it is not easy to change something big like motivational climate, it requires big effort and budget to It also can not be operated for functional employees since the motivation should include competition between all departments, not only functional one I: I think it is general and good clarification It is variance with the objective of this research, so it may be considered to focus on when we have enough resource R: Yes, there is one more thing is that it is very difficult to change the thinking of a person without defined action In my thinking, the personal goal orientation is not easy to be set in a different way with current one First we need to have a clear mission and vision for employees then they can create their own target, and focus on it Back to the antecedents, it should be job characteristic to be enhanced first It will be basic step to improve goal orientation I: It should be considered for its meaning, but from your opinion, it will be fine if we start from the beginning, to enhance the effect of job characteristic first then step to the goal orientation? R: Yes, I think it’s good if we go from basic to have solid method If we can deal with the first antecedent, then the problem is mainly solved I: It is great, thank you very much for your idea Interview with Planning analyst: I: We have done a great job in evaluating the “low intrinsic motivation” currently occurred in PepsiCo and find out there are attendances that are caused of this phenomenon However, in term of the main problem and company resource, two short term causes are aimed to be deal with first, it is job characteristic and company recognition and rewards I have done some research on how to deal with these causes and need your opinions on the feasibility of the actions R: I’m glad to share with you my opinion I: The first cause I have recorded is the job characteristic Due to passive characteristic, there is reality that functional employees are performing with lower intrinsic motivation How you think to resolve this? R: Of course there is some job type in which employees not have chance to contact and deal with other people, even customers, suppliers or other functions And I think its effect is big In a not ideal situation, I suggest that we can have some “out of scope” allocation in work For example, the members of these 22 function can take part in company’s creation team, who takes responsible for all the outdoor activities or anniversary of company I: That’s great Currently, only admin executive handle it by connecting with suppliers, right? R: yes, my previous company has a team like this and I feel it has good effect since the member is changed every year Then every person can have an opportunity to change their selves Of course in a better way I know that there is young and enthusiasm people in the group, and they are very creative in these activities I: It also can help saving cost It sounds good R: Yes, it is I: I appreciated your idea How about the solution to improve recognition and rewards? In some research, result showed that physical reward just have positive effect from the start, after a long time, it may increase the selfishness and affect to different personal goal versus company’s goal Instead of that, verbal compliment have stronger effect on encourage people’s motivation I am thinking of the implementation of verbal recognition and rewards in our company, which is timely and significant to employees How is your idea? R: In my opinion, it is more applicable than thing which can affect to compensation and benefit since as you know, PepsiCo have clear rules about this policy Timely encouragement have big effect and it is cost-saving However, it just can be performed if the manager depends on a standard rule to avoid bias when choosing candidate to give him or her compliment The way to express verbal reward is also important In a public place as company office, a reasonable and meaningful compliment is preferred It has faculty to foster other people to make an effort to achieve reward I: I think so I need to discuss with HR team to identify better way and their professional idea on how to implement this idea So thank you very much for actively attention to this interview 23 Appendix 6: 2016 Rewards and recognition survey (by HR team) Question 1: Could you please express your satisfaction with current Rewards and recognition program of PepsiCo Foods Vietnam: (1) Very dissatisfied (2) Dissatisfied (3) Neutral (4) Satisfied (5) Very satisfied Question 2: Current Rewards and recognition program are good enough to motivate you to finish your work well? (1) Yes (2) No Question 3: Could you share the effectiveness of Current Rewards and recognition program in PepsiCo Foods Vietnam? ( From Not good (1) to Very good (3)) 3.1 Personal verbal recognition (email, verbally) 3.2 Verbal recognition and rewards in group (email, verbally) 3.3 Officially and immediate by Kudos (small gifts like pen, notebook,…) 3.4 Monthly Kudos (department scale) 3.5 Quaterly Kudos (company scale) Question 4: What may cause the ineffectiveness of verbal rewards and recognition? (1) Manager set high standard for job completion which lead to unusual recognition (2) Manager honor too usually lead to boring recognition (3) Manager not care of employees then recognition is not necessary (4) Recognition and rewards are not in time (5) The way of recognition and rewards is not suitable for employees Question 5: Are you satisfied with Kudos gift (Pen and notebook, backpack, Tshirt, )? Please mark from Not good (1) to Very good (3) Question 6: Do you think that suitable recognition and rewards can create motivation for employees to deliver their task well? (1) Yes (2) No Question 7: During recognition and rewards, is it necessary to have physical rewards (1) Yes (2) No Question 8: What factor should company pay attention to during performing recognition and rewards? (1) Clear and fair condition (2) In time (3) Formal recognition and reward deliver (4) Manager have right way for each employee 24 (5) (6) Manager care of employee and recognize the good one Diversified gift Question 9: Other recommendations to improve recognition and rewards 25 ... potential problems occurring in PepsiCo They are company s high business target, problem in employees low extrinsic motivation and low intrinsic motivation Some main and impressed interview result from... of the biggest concern from the interview, the researcher will focus on dealing with low intrinsic motivation of functional team 1.3 Problem definition: Being a critical aspect in investigating... choose low intrinsic motivation to deeper investigation and find out the solutions to solve this problem in term of company resource limitation From the investigation, low intrinsic motivation