To find out the real problem of recognition and its causes, and draw the effective solutions for this issue, the author closely works with human resource department and management team,
Problem Identification
Introduction of the company
Established in 1994, Coca-Cola’s representative office in Vietnam serves as a liaison and communications hub, conducting market research, promoting Coca-Cola Southeast Asia, Inc.’s cooperation projects with Vietnamese partners, and facilitating the execution of contracts and investment agreements in compliance with Vietnam law The office also drives promotional activities, supports marketing campaigns, and implements collaborations in commerce and investment between Coca-Cola Southeast Asia, Inc and Vietnamese companies As a global leader in the beverage industry, Coca-Cola offers hundreds of brands—including soft drinks, fruit juices, and sports drinks—in Vietnam and in more than 200 countries worldwide, continually meeting consumer tastes around the world.
In January 2015, the company carried out organizational restructuring aimed at cost reduction and workforce optimization The initiative downsized staff and created new positions aligned with each employee’s capabilities, while eliminating unnecessary roles to support sustainable growth and the company’s long-term vision About half of the workforce was terminated during this period, with others rotated into new roles or reassigned to different locations After the restructuring, the organization comprised 35 employees (10 temporary, 25 permanent) across seven departments: Human Resources, Knowledge and Insights, Finance, Commercial and Operations, Technical, PAC, and Marketing.
Background of the business problem
This step applies a qualitative approach by drawing on interviews and HR reports Data were reviewed, coded, and analyzed using the responses from the general manager and the HR manager (Section 5.1 of the Supporting Information) and the HR department reports, which provide context for the analysis Key sources include Table 1: Turnover Rate Comparison (2013–2015) and Figure 1: Reasons for Employees’ Resignation in 2015.
During the quarterly meeting, the general manager reported Coca-Cola Vietnam's business performance for the first nine months of 2015 and provided a concise overview of the company's performance over the past three years He also outlined the difficulties the company has faced since January, highlighting the key challenges impacting operations and growth.
In an interview with Coca-Cola Vietnam’s general manager and human resources manager who understand the company situation, turnover rate emerged as a primary concern, as described in section 5.1 of the supporting information The general manager explained that since 2014, the global and Vietnamese crises have impacted business performance, prompting cuts to compensation packages to safeguard profit across divisions Over two years, awards and promotions were limited, and after organizational restructuring, many positions were cut, doubling the workload for remaining employees As a result, staff faced overtime and high pressure to keep projects on track with timelines The increased workload created requests for additional assistant positions, but the cost would exceed the 2015 budget, forcing the general manager to reject the requests and leaving many employees unhappy with the decision.
The Turnover Rate Comparison table from the Human Resources Department shows that the turnover rate rose by 8% relative to 2014 and by 13.7% relative to 2013 Consequently, recruitment and training costs for new employees increased to $53,690 in 2015 (Table 1) In the office, the majority of quitting staff are managers, which prolongs the recruitment process to find suitable candidates and, as a result, places additional workload on the remaining employees who must cover the duties of those who left.
Table 1: Turnover Rate Comparison from 2013-2015
Years Turnover Rate (%) Manager turnover (%)
Source: Human Resource Report in 2015 (Coca-Cola Southeast Asia)
Figure 1 shows a pie chart of the potential reasons for employee resignations, based on interviews with former staff and input from the Human Resources Manager The HR Manager reports that 45% of former employees feel devalued and unrecognized by their managers, noting that tasks were completed without compliments and without managers understanding the difficulties employees faced Some employees claim that after many years with the company they were not promoted due to a lack of recognition and understanding from their managers Additionally, conflicts partly stemmed from the way managers delivered feedback on challenging tasks Taken together, these factors help explain the resignation patterns depicted in Figure 1.
In 2015, more than 30% of Coca-Cola employees left for better offers from peers in the same industry, including Nestlé, Dutch Lady, and Unilever About 17% of interviewees cited workload as the main reason for resigning A headcount freeze to control costs prevented offering permanent positions to temporary staff who had been with Coca-Cola for more than five years, creating career-path stress as their contracts expired without renewal or the option to convert to permanent roles Four key issues—low employee recognition, heavy workloads, competing job offers, and weak job security—were identified as Coca-Cola’s core problems, though timing and budget constraints limit immediate solutions In interviews with the HR department, more than 45% of employees confirmed that recognition is the primary driver of turnover After discussions among the author, general manager, and HR manager, it was concluded that improving recognition is the most urgent issue to lift morale and sustain long-term performance.
Figure 1: Reasons for employees’ resignation in 2015
Source: Human Resource Report in 2015 (Coca-Cola Southeast Asia)
Klubnik (1994) argues that recognition can be adopted across the company as an accessible, cost‑effective tool that doesn’t rely on rigid corporate channels Addressing low recognition is solvable because it heavily affects employee turnover and the trust and relationships between staff and their supervisors; when trust breaks down, conflicts rise and productivity declines Annual campaigns requiring cross‑department cooperation can amplify these conflicts, threatening project progress and overall business performance Most former employees say they left due to a lack of recognition from their managers To reduce workload or increase job security, the process needs experts who deeply understand each department’s structure and functions; it is time‑ and cost‑intensive, depends on headquarters policy in Atlanta and current economic conditions, and can impact HR while interacting with Legal Conversely, retaining talent through better compensation and benefits requires a redesigned, competitive package that must be approved by the CEO at headquarters, making such a plan unlikely to be completed within a year.
Senior leadership—the General Manager and Human Resources—along with the author identify recognition improvement as a key strategy that can resolve the issue quickly, at an acceptable cost, and with a plan that is scalable for nationwide deployment To validate the problem’s scope within the company, the author conducted employee interviews, and the resulting data will justify whether the challenge is confined to this firm or reflects a broader pattern.
Justification of the problem existence
The author investigates whether low employee recognition is the real issue at Coca‑Cola by conducting interviews that assess recognition from a broad cross-section of the workforce, including current and former employees across departments, varying job grades, and different lengths of service, as well as those who have submitted termination letters or already left the company, with the aim of uncovering the company’s underlying problems To frame the findings, the article cites studies that define the recognition measurement scale, establishing a basis for interpreting interview results and comparing perceived recognition across roles, tenure, and organizational experiences.
Hopkins (1995) defines recognition as a communication between management and employees that rewards the achievement of specific goals or high-quality results in the workplace Recognizing employees for such performance reinforces the desired behavior and encourages it to be repeated, with the emphasis on the act of recognition rather than the exact form it takes In organizations, employee recognition is a growing motivational strategy that increasingly attracts managers’ attention as a means to boost performance and engagement.
Employee recognition is typically conceptualized as the assignment of personal non- monetary rewards to reinforce desired behaviors displayed by an employee Feys,
Anseel & Wille (2013) describe employee recognition as having two core components: the ability to notice and identify moments worthy of praise—creating appreciation and motivation—and the tangible acts that acknowledge those efforts, such as promotion opportunities and meaningful benefits In practice, effective recognition blends timely, sincere praise with concrete rewards, reinforcing performance, boosting engagement, and supporting retention.
According to Henryhand (2009) and Kopelman, Richard, Gardberg & Brandwein
In the 2011 study, interview questions were developed and the corresponding responses, briefly summarized in Section 5.2, were recorded confidentially to minimize bias and ensure candor Eight interviewees—current and former employees from diverse departments, with different job grades and varying levels of experience—were included to ensure the data are representative, diverse, and accurately reflect the core issues under investigation.
Four of eight employees reported that their salaries were not competitive after the restructuring, despite their workload doubling The results indicate that employees remain dissatisfied with the company's benefits The responses are shown in Table 7 (Section 5.2).
A finance and procurement assistant who has served five years reports that her contributions were not recognized and she has not been promoted Among eight employees, three confirmed that they have not been promoted for many years and expressed dissatisfaction with Coca-Cola's promotion system, arguing that their long-term contributions should earn higher job grades The assistant also stated that promotion opportunities are unfair because the system predominantly rewards good university academic records, overlooking employees with more experience and strong on-the-job performance Collected data indicate a broader lack of promotion opportunities within the company, with the findings detailed in Table 7 (Section 5.2).
Responses show that 50% of employees feel their supervisors recognize and motivate their work, while about five-eighths report a lack of timely compliments or motivation from their managers despite performing well For example, a Commercial and Operations Manager said his manager did not provide support or motivation in his new role and rejected ideas to improve efficiency, which led him to quit Another interviewee noted that their boss withholds feedback, thinking employees should be proactive in overcoming obstacles These findings indicate that many employees do not receive adequate feedback or support from their managers, as summarized in Table 7 (Section 5.2).
An analysis of employee appreciation at Coca-Cola reveals that five of eight interviewees feel undervalued for their contributions For instance, a Finance and Procurement Assistant said she was unhappy with how her contributions were recognized and worried about contract renewal, noting that after years of service she was ultimately designated as temporary staff The data, including Table 7 (Section 5.2), indicate that a majority of interviewees do not feel appreciated for what they contribute to the company.
By integrating the General Manager's and the Human Resource Manager's perspectives with primary interview data, the author identifies low employee recognition as the central problem affecting Coca-Cola Southeast Asia The analysis shows that insufficient recognition undermines employee engagement, motivation, and retention across the region, and it proceeds to determine the problem's importance by assessing its impact on performance, culture, and the company's competitive position.
Justification of the problem importance
Extant literature consistently links employee recognition to reduced turnover, underscoring its role in an ever-changing job marketplace Saunderson (2004) argues that recognition remains a vital factor in retaining employees amid shifting job dynamics In the public sector, managers and leaders strongly believe that meaningful recognition correlates with higher morale, loyalty, and commitment, with greater recognition boosting loyalty to the organization Conversely, Skudiene, Everhart, Slepikaite, and Reardon (2013) identify lack of recognition as a primary reason why good employees quit Muthuveloo, Basbous, Ping, and Long (2013) note that people want acknowledgment for their exceptional contributions, and although many organizations offer formal rewards and recognition programs, many employees still crave more day-to-day informal recognition.
Employees who feel heard, supported, and recognized for their contributions tend to be more engaged, while a lack of employee appreciation plays a significant role in their decision to quit The Turnover Rate Comparison table for 2013–2015 shows that the turnover rate in 2015 was 8% higher than in 2014 and 13% higher than in 2013, indicating a rapid increase over the three-year period, and manager turnover also rose steeply during the same timeframe.
In 2015 Coca‑Cola reached a peak reach of 82% (Section 1.2), while turnover analysis shows Coca‑Cola’s rate was 12% higher than Pepsi’s in 2015 (Table 2), with the gap widening compared to prior years, indicating ongoing retention challenges When employees feel recognized, they tend to stay; when they feel their contributions are undervalued, they seek other opportunities In the short term, turnover reduces revenue and increases recruitment costs, as new hires require time to learn and adapt to Coca‑Cola’s culture In the long term, turnover affects profitability and employee development The recruitment cost in 2015 reached $53,690 due to higher turnover, illustrating that recognition plays a substantial role in Coca‑Cola’s turnover rates and their consequences, which require careful assessment and targeted solutions.
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)
According to Mone, Eisinger, Guggenheim, Price & Stine (2011), recognition is a form of feedback rooted in positive reinforcement and tied to an employee’s behavior or achievement of a goal, and research links recognition to higher employee performance and company success However, lack of recognition can cause mental and emotional distress and burnout The authors stress that an effective recognition system and ongoing feedback are key elements of performance management that enhance performance To illustrate this, they analyze performance records of Coca-Cola and Pepsi for two quarters in 2015, with evaluations conducted every three months The records show a decrease in objective completion in Quarter 1, while competitors reach a higher rate—81% in Quarter 1 and 72% in Quarter 2 Significant differences emerge between the two companies in the beverage industry, with Coca-Cola’s employee performance lower than Pepsi’s across the first two quarters of 2015 Combining the literature with Coca-Cola’s HR records, the author concludes that recognition relates to turnover rate and employee performance at Coca-Cola.
Table 3: Employee performance in Q1 and Q2 at Coca-Cola and Pepsi
Quarter Objective accomplishment rate in Coca-Cola (%)
Objective accomplishment rate in Pepsi (%)
Source: Human Resource Report in 2015 (Coca-Cola Southeast Asia)
Analysis shows that employee recognition significantly affects turnover rates and employee performance To identify effective solutions, the author investigates the underlying causes of recognition, drawing on a literature review and insights gathered from employee interviews.
Potential causes of the problem
In this step, the author identifies the potential causes that influence recognition and presents them in a clearly organized list, each supported by relevant literature; the focus is on information related to these causes that should be carefully considered, ensuring the discussion is evidence-based and easy for readers to grasp.
According to ệzutku (2012), rewards cover all forms of compensation, ranging from cash pay to working conditions Organizations provide intrinsic and extrinsic rewards to members to enhance human resource outcomes An intrinsic reward is a sense of achievement or conscious satisfaction.
An extrinsic reward is a tangible award given to employees for accomplishing a goal Rustand (2001) states that rewards, including incentive awards and performance awards, may be distributed through the human resources department and should be used to show employees how much they are appreciated, with findings indicating a statistically significant relationship between reward and recognition.
Baker, Perreault, Reid and Blanchard (2013) define formal or informal feedback as a dynamic, two-way communication process that conveys information about a receiver’s performance on work-related tasks and helps them feel recognized It provides guidance on proximal goals and on immediate and recent behaviors, and it informs members about desirable development and outcomes.
A 2006 study examined feedback strategies for employees and the creation of action plans to increase the likelihood that changes in recognition levels become permanent The research concluded that effective feedback tied to clear outcomes leads to higher levels of employee recognition.
Intrinsic motivation, defined by Masvaure, Ruggunan, and Maharaj (2014), is motivation that originates inside the individual rather than from external rewards It drives people to adopt or adjust their behavior for internal satisfaction or fulfillment This form of motivation is usually self-applied and arises from a direct relationship between the individual and the situation, highlighting how personal inner rewards fuel sustained action.
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 applied to all employees and form part of the employment package, with particular usefulness in recognizing and rewarding staff Benefits include health care, vacation, sick leave, child care, scholarship funds, elder care, fitness facilities, and various types of insurance, and there is a positive relationship between offering comprehensive benefits and employee recognition.
Pergamit and Veum (1999) define promotions as upgrades within the current job that do not change duties or position, treating the promotion as the prize The probability of winning the promotion is a function of productivity The winner receives the salary and prestige associated with the higher position Promotions bring consequences such as increased wages, access to training, supervisory responsibilities, and a higher level of employee recognition.
Literature reviews identify five key recognition drivers: rewards, feedback, intrinsic motivation, benefits, and promotions Building on this research about the underlying problem and its impact, a cause-and-effect map is presented below to illustrate how these drivers interact and influence outcomes.
Figure 2: A cause-and-effect map of low employee recognition
The alternative solutions
Justification of the potential causes
Based on literature listing potential causes (Table 8, Section 5.4), the author conducts an in-depth interview with twenty current and former employees across different departments and job levels to identify factors affecting recognition Before questioning, the definitions of each potential cause are clearly explained to help participants understand the terms and to provide meaningful responses for analysis The interview questions are informed by the research of Kopelman, Richard, Gardberg and colleagues, ensuring the questionnaire aligns with established theoretical foundations.
Brandwein (2011) examined interviewees' responses to identify the key factors among five potential causes drawn from literature reviews Fifteen employees reported that timely feedback and rewards from their managers influence recognition.
Feedback and support from managers signal whether employees’ contributions are recognized, and timely, motivated feedback plays a key role in making staff feel valued and in boosting performance and commitment Interview results show that direct manager feedback and support influence performance, and that employees prize fairness and balance in recognition Useful feedback inspires harder work and plays a crucial role in acknowledging employee performance For example, a Commercial and Operations assistant explained that when a former manager assigned hard tasks without backing, the lack of support made her feel unrecognized, whereas timely feedback helps clarify contributions and overcome obstacles A Brand Manager assistant described disappointment when feedback was late or absent, which left her confused about what to do when stuck, underscoring that timely, proactive feedback can help navigate trouble Overall, about 80% of employees regard manager feedback as a crucial factor in recognition.
Rewards are widely seen as an essential factor in employee motivation and recognition Eleven staff members describe reward as the gift you receive after effort, evidence that their contributions are recognized by the company For long-tenured workers whose daily tasks have become routine, rewards can wake them up and refresh their motivation The Office Manager notes that despite their best efforts, they have not received recognition or rewards from the company As more responses come in, the importance of addressing this issue grows, especially among Coca-Cola employees with more than five years on the job who know the current rewards system does not meet expectations, risking loyalty A Knowledge & Insights Specialist, a former employee, argues that rewards are a key factor in recognition, citing, "I have worked seven years; my salary rose 15% each year, yet there was no reward or certificate acknowledging my contributions." The IT Manager echoes this sentiment The management team believes they provide timely feedback and empower experienced staff to resolve issues without their guidance, while the Marketing Manager notes that as an international company, employees are expected to be proactive rather than wait for managers' directives The Technical Manager agrees that all members are experienced enough to handle difficult situations independently This mindset could worsen the situation if employees continually rely on managers to gauge performance Meanwhile, the promotion system seems to suit the management team by offering ongoing support and career advancement, even as frontline staff question its effectiveness for broader loyalty and retention.
Analysis of the responses shows that a small group believes benefits, intrinsic motivation, and promotions help preserve the essential roles that influence recognition, while these factors do not necessarily impact recognition in many cases; others say, "To me, the promotion is not quite important because job titles do not play a key role in many cases." In contrast, more than 80% of respondents confirm two real problems in the Coca-Cola office: rewards and feedback, which require effective solutions to prevent issues from becoming embedded in the company culture over time Conflicts between managers and staff undermine employee commitment and performance A lack of feedback may stem from the mindset that team members can solve issues without support, and the rewards system is not effective.
According to the real problems from the collected data, the author narrows the cause- effect map as bellows:
Figure 3: Final Cause –Effect Map
Proposed alternative solutions
By integrating data collected from employee interviews and a literature review, the author identifies two core issues that directly affect the company’s recognition level: a lack of manager feedback and an unsatisfying rewards policy Finding real solutions is necessary to resolve these problems and limit their consequences, with internal solutions needing to meet HR requirements: they should be implementable within the company, easy for employees to participate in, aligned with the company culture, and the project should take no more than twelve months, cost no more than 20,000 USD, and involve minimal changes to the current business system The author intends to design solutions that address these two potential causes—feedback and rewards—while leveraging literature as a rich source of ideas, since scholarly and management sources consistently provide actionable concepts and justification for why and how to implement them.
According to Baker, Perreault, Reid, and Blanchard (2013) in Take Feedback to the Next Level: The Benefits of a Feedback‑Friendly Culture, an organization builds a feedback‑friendly culture from a shared set of values, rules, and behavioral norms that guide how people act and create a dynamic, customizable identity for members The authors identify three pivotal elements: first, a learning culture (often described as a learning series) that continuously develops capability; second, a foundation of trust and psychological safety that makes individuals feel safe to speak up; and third, open dialogue across all levels of the organization that enables authentic conversations These elements are interdependent, with learning and psychological safety serving as prerequisites that enable free‑flowing communication and meaningful discourse.
Based on the second‑interview responses, the majority of employees report that they do not receive feedback from their managers To address this, we propose building a working environment where feedback is embedded in culture and behavior, so feedback becomes natural and seen as essential to maintaining the company culture rather than a task employees must complete alone Baker, Perreault, Reid & Blanchard (2013) describe a feedback‑friendly culture as a relatively recent concept that promotes proactive feedback and a safe environment for sharing it across the organization When we talk about culture, we mean behaviors that are fluent and automatic, cascading from the top down, and this approach can drive growth opportunities across many industries The plan envisions about one month to arrange a trainer who can inspire participants and persuade employees about the role of feedback, plus two weeks to secure training locations The training costs are reasonable, and employees are expected to participate actively, applying the trainer’s guidance to achieve positive results.
360-degree feedback is a multi-source assessment where an individual’s performance is rated and feedback is gathered from a range of observers—managers, subordinates, peers, and customers—and evaluated against defined performance dimensions When coaching is used to help employees reach their full potential, these reports can support development by informing individual growth plans Some organizations select employees for external leadership programs and collect 360-degree feedback data beforehand to tailor the experience This approach enhances two-way communication, increases employee involvement, and signals that employees' opinions matter It also trains people to give and receive feedback, invites reflection on managers' behavior, and can strengthen working relationships and teamwork Moreover, it raises awareness of competencies and helps senior managers recognize their own development needs.
& Flynn, 1997) 360 degree feedback is popular tool that has been used in many companies over the world Its effect play important role in enhancing employees performance from recognizing and improving their weakness or strength In Coca-Cola, employees told that they do not know how their strength or weakness are, because their manager normally do not provide the comments to their reports or even if they need to correct their reports, they even do not know why This case happens in many departments So, this tool will help the employees and their manager will actively complete their feedback report And both sides can get their involvement in understanding each other
However the 360 feedback cost quite high for installing, such as: 1200 USD for the first use, and more than 150 USD for one person who uses The basic cost for this use is over 30,000 USD for using within first year It consumes time and excessive numbers of surveys are required of each worker with few tangible results provided to individuals, frank and honest opinion may not be received, stress might be put on individuals for giving feedback, lack of action following feedback and Over reliance on technology (Clark & Whittall, 2003)
Organizations should award cash bonuses to employees who demonstrate exemplary performance by surpassing their set targets, making them eligible for the reward The bonus amount should reflect the degree of overachievement and can also be determined by the employee’s rank or job group, aligning recognition with both performance and role level.
Companies often use cash bonuses to reward employees for their performance during the year, as reflected in the annual appraisal An implicit expectation accompanies these bonuses: they should not only recognize past achievement but also motivate future performance and reinforce employees' sense of being valued when they excel, a point highlighted by Njanja, Maina, Kibet, and Njagi (2013).
Across many organizations, cash bonuses are widely used to recognize employee contributions, and at Coca‑Cola offices employees say they prefer cash to gifts because cash can be spent on many needs while gifts are less versatile Yet Coca‑Cola's policy prohibits cash gifts; when rewards are issued, employers must choose gifts or vouchers instead, and the approval must go up to the head of the HR department in the business unit This approval process can be time‑consuming.
Hsieh and Chen (2011) argue that offering market-rate or above-market compensation to key individuals can be a prudent investment, especially when replacement would be costly or disruptive This approach keeps the firm's pay levels aligned with the labor market, ensuring salaries remain competitive for both new hires and existing employees In short, market-based pay strategies help maintain competitive compensation and reduce the risks and costs associated with turnover.
To keep Coca-Cola competitive, conduct market research to benchmark pay levels against peers in the same industry and ensure compensation is aligned with market benchmarks Feedback from initial interviews shows former employees left Coca-Cola after receiving better offers from other companies, underscoring the need to adjust salaries to competitive levels to retain top talent Aligning pay with market benchmarks can help limit talent attrition and reduce the flow of skilled workers to competitors However, implementing this solution may require a major overhaul of the compensation and benefits system, especially if current salary ranges lag behind market levels.
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
An individual portrait and a group photograph are taken; the photos are published in the company newsletter and posted on the canteen noticeboard, and each category winner also receives a personal copy of their photo.
Finally, Quarterly winners of each category also qualify for the Annual Quality Award
Interviews with employees reveal that the current rewards system does not meet expectations, highlighting a gap between incentives and performance Our proposed solution aims to build an effective reward strategy that aligns incentives with results and motivates staff to work toward year-round rewards Realizing this plan requires careful, step-by-step preparation to ensure the program is implemented consistently and delivers timely, measurable results.