Solutions to enhance the level of employee recognition in coca cola southeast asia

List of TablesTable 1: Turnover Rate Comparison from 2013-2015...8 Table 2: Turnover Rate Comparison from 2013-2015 in Coca and Pepsi...177 Table 3: Employee performance in Q1 and Q2 at

Ho Chi Minh City – Year 2015UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-Nguyen Thi Thanh Tuyen

Solutions to Enhance the Level of Employee Recognition in Coca-Cola

Southeast Asia

ID: 22130093

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: Dr Nguyen Thi Nguyet Que

Dr Tran Ha Minh Quan

Table of contents

ACKNOWLEDGMENT 3

Executive Summary 4

Chapter 1: Problem Identification 5

1.1 Introduction of the company 5

1.2 Background of the business problem 6

1.3 Justification of the problem existence 11

1.4 Justification of the problem importance 15

1.5 Potential causes of the problem 18

Chapter 2: The alternative solutions 22

2.1 Justification of the potential causes 22

2.2 Proposed alternative solutions 26

Chapter 3: The Selected Solution 33

3.1 Explanation for selected solutions 33

3.2 Change Plan 40

Chapter 4: Conclusion 47

Chapter 5: Supporting Information 48

5.1 Supporting information of business problem background justification 48

5.2 Supporting information of problem existence justification 50

5.3 Supporting information of problem importance justification 56

5.4 Supporting information of potential causes 57

5.5 Supporting information of potential causes justification 59

5.6 Supporting information of proposed solutions 67

References 69

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List of Tables

Table 1: Turnover Rate Comparison from 2013-2015 8

Table 2: Turnover Rate Comparison from 2013-2015 in Coca and Pepsi 177

Table 3: Employee performance in Q1 and Q2 at Coca-Cola and Pepsi 188

Table 4: A comparison of alternative solutions 333

Table 5: Action timeline and objectives 422

Table 6: Questionnaire items and references for problem existence justification 511

Table 7: Interviewee’s Answers for problem justification 533

Table 8: Potential causes and definition 588

Table 9: Questionnaire items and references for potential cause justification (employees) 600

Table 10: Employee’s answers for potential cause justification 611

Table 11: List of questions and answers in justifying the potential causes (manager) 655 List of Figures Figure 1: Reasons for employees’ resignation in 2015 10

Figure 2: A cause-and-effect map of low employee recognition 21

Figure 3: Final Cause –Effect Map 26

I am heartily thankful to my supervisors, Dr Nguyen Thi Nguyet Que and Dr Tran

Ha Minh Quan, whose encouragement, guidance and support from the initial to the final level enabled me to develop an understanding of problems, solutions and structure At thebeginning of the thesis, I had met misunderstanding about the real problems, their

outcome and factors, Ms Que and Mr Quan instructed me to come over the difficulties, helped me understand the thesis structures, and edited flaws Therefore, I deeply

appreciate their contribution

Lastly, I offer my regards and blessings to all my colleagues, friends and

classmates who supported me in any respect during the completion of the thesis

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Executive Summary

On October 2015, the author got the chance to talk to Coca-Cola’s General

Manager in their quarterly meeting, in which he raised some problems whom company had to face The employee’s turnover rate drastically increased, impacting to the businessand raising a large amount of recruitment cost in the company 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, besides, make interviews with employees and heads of departments to deeply understand the company situation and acquire their view points, combining interview data, literature reviews, and company sources to buttress the argument

This thesis includes five chapters, in each chapter; the author analyses collected data, strengthens the argument by literature, and emphasizes the problem’s consequencesand real causes, and seeks for the effective solutions that are applicable to company problems

Chapter 1: Problem Identification

This chapter includes six sections In the first section, the author makes

introduction that inform company’s general information The following chapter

convincingly shows an interview data that the author makes with employer and human resource manager to understand the basic background of the business problem The thirdand fourth sections are the justification of problem existence, and the justification of problem importance, which clearly indicate the problem’s existence and its’ outcome Then, the author lists down the potential causes of the problem that closely bases the literature in the fifth section Finally, the cause and effect map exhibits the whole

picture of the correlation among potential causes, real problems and their outcome

1.1 Introduction of the company

The representative office of Coca-Cola has been established in 1994 with

responsibilities: to act as a liaison office, conduct market surveys, carry out activities

to stimulate, and establish co-operation projects of Coca-Cola Southeast Asia, Inc in Vietnam, act as a communicative office, execute market research, and promotion activities, and run the marketing campaign and stimulate the implementation of

contracts and agreements in the areas of commerce and investment signed between Coca-Cola Southeast Asia, Inc and Vietnamese Co-operations in compliance with Vietnam Law leader in the beverage industry As a global the Coca-Cola Company offers hundreds of brands, including soft drinks, fruit juices, sports drink and other

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beverage in Vietnam particularly and in more than two hundreds countries in general.Coca-Cola is meeting the tastes of people around the globe.

In January 2015, the company runs the organizational restructuring to cut cost, downsize the workforce and open new positions matching to each employee’s

capabilities Besides, many unnecessary positions had been cut to ensure the long termdevelopment, reaching to company vision A haft of employees was abruptly

terminated in this period; some people were rotated to the new roles or to the new working locations After restructuring, there are thirty five employees (ten temporary employees and twenty five permanent employees) under seven departments, including:Human resource, Knowledge and Insights, Finance, Commercial and Operations, Technical, PAC, and Marketing

1.2 Background of the business problem

In this step, the author applied qualitative method through interviews, and

collected data from human resource reports Data resembled, analyzed and relied on theanswers whose interviewees are general manager and human resource manager (section5.1 in supporting information chapter) and reports were provided from Human resourcedepartment (table 1: turnover Rate comparison from 2013-2015, figure 1: reasons for employees’ resignation in 2015) in this section

In the quarterly meeting, the general manager announced the business

performance at Coca- Cola Vietnam in nine months in 2015 particularly and in threeyears in general He also raised the difficulties that company has met since January

2015 So, the author made an interview with him and human resource manager, who deeply understand about company situation The answers have been briefly described in the section 5.1 of supporting information chapter Firstly, the general manager was asked about turnover rate, which had been stated as a main concern in his speaking General Manager confirmed that since 2014, crisis global economy in general and in Vietnam in particular has attacked to business performance in Coca- Cola Vietnam, many compensation packages have been cut to ensure the profit in each division throughthe interview For two years, the award and promotion have been limited Besides, after organizational restructuring, many positions have been cut, and many employees’ job tasks have doubled, workload has been over Many employees have worked over time and under the pressure to ensure the project run smoothly and match with project

timeline Many of them required to add more assistant positions, causing the cost would

be over budget for 2015 Therefore, General Manager had to reject the request, making employees unhappy with his decision

According to the Table of Turnover Rate Comparison that is provided from Human Resource Department, the turnover rate increases 8%, comparing to in 2014, increases 13.7%, comparing to 2013 So, the cost for recruitment process and trainingcourses for new employees strongly increased to 53,690 USD in 2015 (table 1) In theoffice, the major of staffs in office who decided to quit their jobs are managers,

causing to the recruitment process always takes time to select the suitable candidates

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and consequently this process impacts to the current employees who have to cover thetasks whose staffs were already left.

Table 1: Turnover Rate Comparison from 2013-2015

Years Turnover Rate (%) Manager Recruitment and Training

Source: Human Resource Report in 2015 (Coca-Cola Southeast Asia)

According to the pie chart of potential reasons (figure 1), all former employees who had been interviewed with human resource department before leaving, Human Resource Manager stated that 45% of them feel devalued and unrecognized from their managers Because when the job got done, they did not get any compliments from theirmanager, even they did not understand the difficulties that employees had been meeting

at Some of employees assert that after so many years, they were not promoted because

of the lack of recognition and understanding from their managers Moreover, the

conflicts partly rose from the way that their mangers gave feedback to their concern in hard tasks As the figure 1 shows in the pie chart of employees’ resignation reasons in

2015, there are more than 30% employees who left Coca-Cola because they got the better job offers from other companies in the same industries, such as: Nestle, Dutch

lady, and Unilever 17% interviewees implied that over workload is main reason for resignation Besides, headcount freeze is established to limit cost, so company cannot offer the permanent positions to temporary employees who work for Coca-Cola more than five years So, temporary employees feel stress about their career paths when theyare not extended their contracts as permanent employees They do not know whether their contracts can be renewed when it expires, they can sign a new contract or not There are four reasons, such as: low employee recognition, over workload, other job offers, and job security which are considered as problems in Coca-Cola However, there are limitation about timing and budget to plan for the solutions In the interview with Human resource department, more than 45% of employees confirmed that

recognition is the main reason pushing them to quit the job The author, general

manager, and human resource manager discussed and decided low recognition is key problem needs to be immediately solved to improve working spirit in the long term

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Figure 1: Reasons for employees’ resignation in 2015

Reasons for employees' resignation

45%

Source: Human Resource Report in 2015 (Coca-Cola Southeast Asia)

To explain for the skeptical decision making, first of all, Klubnik (1994) said that recognition also has the appeal of being appropriated for everyone in the company-

a tool that does not have to be expensive or flow through rigid corporate channels The low recognition can be solved immediately because it heavily impacts to the employee turnover rate, the relationship and trust among employees and their supervisors When the relationship and trust have been negatively broken, they raise the conflict in the organization and greatly reduce the employee’s productivity In addition, there are so many campaigns have been activated every year, requiring the cooperation in each department Therefore, the conflict may effect on the project progress and impact to thebusiness The majority of former employees confirmed that they left the company because of the low recognition from their manager Secondly, to decrease workload or

increase job security, the process required the experts who deeply understand the

structures and function in each department This process consumes time and cost, and depends much on Headquarter policy in Atlanta and economic condition, and this change can impact to Human Resource structure and interacted to the Legal department

In another hand, the solutions that limit the employees from leaving by better job offers,request a competitive Compensation and benefits system that need to be changed and rewrote, should be approved to the CEO in headquarter So, this plan is impossible if theproject should be completed in a year

Hence, the General Manger, Human Resource and the author confirmed that therecognition improvement is a key strategy that adequately solves the problem in the short time with the acceptable cost and the plan can be nationally acted However, testing the existence of the problem in the company, the author made an interview withemployees The data collected from their answers would be justified whether the

problem solely exists in the firm

1.3 Justification of the problem existence

In this step, the author justifies whether low recognition is the real problem in Coca-Cola The author decides to make an interview that focuses on the recognition assessment from current and former employees who are under different departments, jobgrades and working experiences, or submitted termination letters, or who already left company to deeper understand company’s current problems purposely To understand measurement scale of recognition, there are researches have been cited belows

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Hopkins (1995) define recognition is communication between management and employees which rewards them for reaching specific goals or producing high quality results in the workplace Recognizing or honoring employees for this level of service is meant to encourage repeat actions, through reinforcing the behavior would like see repeated The key is not necessarily what recognition is bestowed, but the fact that the employee is being recognized In organizations, employee recognition is one of the motivational strategies that are gaining more and more attention from managers

Employee recognition is typically conceptualized as the assignment of personal monetary rewards to reinforce desired behaviors displayed by an employee Feys, Anseel & Wille (2013) There are two aspects to employee recognition The first aspect

non-is to actually see, identify or realize an opportunity to pranon-ise someone, such as:

appreciation, motivation The other aspect of employee recognition is, of course, the physical act of doing something to acknowledge and praise people for their good work, such as: promotion opportunities, benefits

According to Henryhand (2009) and Kopelman, Richard, Gardberg & Brandwein(2011) research, the author develops interview questions and the answers that are brieflyshowed in the section 5.2 The answer data will be confidentially recorded to make sure all answers are not biased and are straightforward There are eight interviewees who are current and former employees in different departments, job grades, and working

experiences to insure that all data are collected, are diversified and accurately reflect substance of the problem

1.4 Data analysis

Benefits

Four over eight employees answers that their salary has not competitive after the restructuring when their tasks have been doubled The result indicated that employees are still not happy with the company benefits The answers are showed in table 7 (the section 5.2)

Job promotion opportunities

The finance and procurement assistant shared that her contribution was not recognized and she had not promoted, although she works for 5 years There are three

of eight employees confirmed that they have not promoted for many years, and poorly asserted that they total unhappy with the promotion system at Coca-Cola, because their job grade should be upgraded for their contributions that they contribute to company for

many years The finance and procurement assistant shared “The promotion chance is unfair when it just evaluates employees who have good academic records from

university, and do not qualified people who had more experiences and good job

performance” The collected data informed that there is the lack of promotion chances

in the company The answers are showed in table 7 (section 5.2)

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According to the answers, 50% employees think that their bosses recognize and motivate their jobs, five over eight interviewees stated that they did not get the timely compliments or motivation from manager, although they got the job well done For

example: Commercial and operations manager said that “my manager did not give my any support and motivation for my new position He rejected all my ideas that change the way to work effectively, so I decide to quit the job” And another one emphasizes

that his boss does not give the feedback because his boss think that they need to be proactive in the job obstacles that they met Therefore, the author can conclude that many employees do not received the feedback and support from their managers The answers are showed in table 7 (the section 5.2)

Appreciation

The author asked about the appreciation that employees realize Five of eight

interviewees said that they did not felt appreciated when they work in Coca-Cola For

instance: Finance and Procurement assistant said: “I feel unhappy and appreciation in

my contribution, and do not know about the next year when my contract will be expired, whether I can continue working here She think that she contribute to company for many years And then she is assign to be a temporary staff” in table 7 (section 5.2) The result from data indicated that a majority of interviewees feel that they are not

appreciated for what they contributed to the company

Combining the General Manager and Human Resource Manager’s ideas and primary data throughout interview, the author asserts that low employee

recognition is a main problem happening in Coca-Cola Southeast Asia In the next step, the author determines the problem’s importance

1.4 Justification of the problem importance

Firstly, the author searches for the impact of recognition to employee turnover rate in the literature to emphasize and support for the conclusion Saunderson (2004) also stated employee recognition is still seen as an important part in helping to retain employees in an ever-changing job marketplace Managers and leaders in the public sector strongly believe in the importance of giving meaningful employee recognition correlating with good morale, loyalty and commitment in the workplace The more recognition employees get from their job, the more they want to be loyalty to the company Skudiene, Everhart, Slepikaite & Reardon (2013) presented that a lack of recognition is one of the main reasons why a good employee quits the job

Muthuveloo, Basbous, Ping & Long (2013) shared that People like to be acknowledgedfor their exceptional offerings and contribution Interestingly, even though a lot of organizations offer formal rewards and recognition programs for employee ideas and contributions, many employees are still ambitious for more day-to-day informal

recognition Employees who sense they are listened to, supported and recognized for their contributions are expected to be more engaged He also indicated that the lack of employee appreciation plays a serious role in employees' decisions to quit the job and

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leave their organizations According to literatures and the actual consequences from Turnover Rate Comparison table from 2013-2015 (table 1), the table shows that the turnover rate in 2015 is more 8% than in 2014 and 13 % than in 2013 The turnover raterapidly increases through three years Besides, manager turnover rate steeply rises in

2015 and reach at the peak in three years with 82% as mentioned in the section 1.2 In addition, the author makes the research about the turnover rate at the competitor; the record shows that there is disproportionate rate between Coca-Cola and Pepsi Coca-Cola’s rate gets 12% higher than Pepsi’s rate in 2015 (table 2) and the distance is

constantly farther than previous years This negative change faithfully reflects the consequences of the problems that effect to the turnover rate in Coca-Cola If People arerecognized, they tend to commit their career path the company In the contrast, if they feel that their contribution is not appreciated or is disregarded, they toward to look for another better place to contribute In the short term, it impacts company’s revenue, while it has to spend more money to recruit the new employees taking time to learn newthings and adapt themselves to the new cultures In the long term, it impacts to the profitand employee development The cost for the recruitment in 2015 reached at 53,690 USD as the result turnover rate increase Therefore, the recognition substantially

influences the turnover rates in Coca-Cola with itself consequences that need to be precisely evaluated and primarily solved

Table 2: Turnover Rate Comparison from 2013-2015 in Coca and Pepsi

Source: Human Resource Report in 2015 (Coca-Cola, Suntory Pepsico)

Secondly, Mone, Eisinger, Guggenheim, Price & Stine (2011) show that

recognition can be viewed as a form of feedback rooted in positive reinforcement and tied

to an employee’s behavior or accomplishment of a specific goal or task, research shows that recognition links to employee performance and company success However, if

employees are not recognized for their efforts, they could experience mental and emotionaldistress and burnout He also assures that an important component of the performance management process is the effective use of recognition system and providing ongoing feedback to employees, improving performance To clarify this judgment is happening in the company, the author analyzes the performance records of employees in two quarters in

2015 They were made every three months to evaluate the employee performance The records show that there is decrease in objective completion in Quarter 1, while the

competitors get the higher rate at 81% in Quarter 1 and 72% in Quarter 2 There are significant differences between two companies in the beverage industry This case shows that the employee performance in Coca-Cola is lower than

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employee performance in Pepsi through two first quarters in 2015 Combining the literature support and records from Human Resource in Coca-Cola Company and PepsiCompany, the author can finalize that recognition relates to the turnover rate and

employee performance in the Coca-Cola

Table 3: Employee performance in Q1 and Q2 at Coca-Cola and Pepsi

Quarter Objective accomplishment rate Objective accomplishment rate

Source: Human Resource Report in 2015 (Coca-Cola Southeast Asia)

From the analyses, the author confirms that recognition significantly effect to the turnover rate and employees performance To find out the appropriate solutions, theauthor continues to find the causes that influence the recognition by literature supports and employee interview

1.5 Potential causes of the problem

In this step, the author finds the potential causes that impact on the recognition Potential causes are listed down with the literature supports that focus on information thatrelated to causes that should be clearly considered

According to Özutku (2012), rewards were defined to include all types of

compensation, from cash payments to working conditions Organizations offer intrinsic

and extrinsic reward to members for the purpose of improving human resources

outcomes An intrinsic reward is a sense of achievement, or a conscious satisfaction

An extrinsic reward is an award that is tangible or physically given to you for

accomplishing something Rustand (2001) also stated that 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 and he concluded that there is a statistically significant relationship between reward and recognition respectively

Baker, Perreault, Reid & Blanchard (2013) defined formal or informal feedbacks

as a dynamic communication process occurring between two individuals that convey information regarding the receiver's performance in the accomplishment of work-related tasks and make them feel recognized Feedback is used to provide information

on proximal goals and immediate and recent behaviors It is also utilized to inform members of desirable development and outcomes Lorenzet, Cook & Cynthia Ozeki (2006) research that the strategies use for providing feedback to employee and for creating action plans to increase the likelihood that the recognition level changes will become permanent They also concluded effective feedback with the end of result increased employee recognition

Masvaure, Ruggunan, & Maharaj (2014) defined intrinsic motivation refers

tomotivation that comes from inside an individual rather than from any external or outside rewards It drives an individual to adopt or change a behavior for his or her

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own internal satisfaction or fulfillment Intrinsic motivation is usually self-applied,and springs from a direct relationship between the Individual and the situation

According to Dar, Bashir, Ghazanfar & Abrar (2014) indicated that intrinsic

motivation has positive influence on employee recognition

Koning & John (1993) stated that benefits are applied to all employees and areincluded as part of the employment package They are particularly useful in

employee recognition Benefits include: health care, vacation, sick leave, child care, scholarship funds, elder care, fitness facilities, and various types of insurance There

is a positive relationship between benefits and employee recognition

Pergamit & Veum (1999) defined promotions involved no change in position orduties, but were simply an upgrade of the current position A promotion is the "prize," and the probability of winning it is a function of productivity The winner of the prize receives the salary and prestige associated with the higher position Consequences of promotion included increased wages, training receipt, supervisory responsibilities, andincreased level of employee recognition

According to the literature reviews, we have five factors relate to the

recognition, including: rewards, feedback, intrinsic motivation, benefits and

promotions In addition, basing on the above research about the real problem and their impact, the cause- effect map is presented as bellows:

Low employeerecognitionBenefits

Low employee performanceKoning & John (1993)

Mone, Eisinger, Guggenheim,Price & Stine (2011)Promotions

Pergamit, M R., & Veum, J

R (1999)

Figure 2: A cause-and-effect map of low employee recognition

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Chapter 2: The alternative solutions

In this chapter, the author made an interview with the employees to fully grasp thecauses that exist at Coca-Cola After collecting and analyzing data, the author searchesfor the solutions from literature and replies on the requirements from the company topropose the suitable solutions to the existing problem

2.1 Justification of the potential causes

After listing the potential causes from the literatures (table 8 in section 5.4), the author made an in depth interview with twenty current and former employees from different departments and job levels to find the potential factors impact to the recognition.Before asking, the author clearly explain the definition of each potential causes to help employees understand the term of each causes, giving the useful answers for the analysis.The questions are developed on the research of Kopelman, Richard, Gardberg &

Brandwein (2011) The questions focus on the interviewees’ answers that related to what are the key factors in the list of five potential causes, which are selected from literature reviews, fifteen employees answered that the timely feedback and reward from their managers have impacted to recognition

Feedback

Admin assistant said that: “support and feedback make employees aware whether we

are recognized” Or “timely and motivated feedbacks play important role in making us feel appreciated” Some people confirmed that the feedback from direct managers and

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their support impact to employees’ performance and commitment Employees appreciatebalance and fairness Interview results have showed that useful feedback inspire

employees to work hard and play an important role in recognizing employees ’

performance For instances: the Commercial and Operations assistant answered when the

author asked them why she think that feedback is real cause of the problems “My former manager always assign the hard tasks for me He even did not support me to complete it.

So I think that support and feedback make employee aware whether our contribution is highly appraised” The feedback and support also help them to clear the mess, and

overcome the problems to work smoothly Brand manager assistant claimed that she had feel disappointed about her jobs because, she did not get the prompt support from her

manager when she asked for help – “the feedback come late, or even my manager did not give any feedbacks I feel very disappointed; the feeling makes me confused about what I should do when I got stuck in the mess So I think that timely and motivated feedback plays important role in making us defeat the trouble” 80% employees

admitted that the feedback from their manager is crucial factor that impacts to

recognition

Rewards

Besides, eleven employees agreed that reward is essential factor “reward is the gift

that I get after the efforts It shows that all my contributions have been company

recognized”- Management trainee answered Some employees who work for so long time

and their job becomes routine Rewards are an effective way wake them up and refresh

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best, but have not gotten any reward as recognition from the company” The more

answers the employee raised about the real problem, the more importance of the problem

are The reward concern have been raised from staffs who work for Coca-Cola for a long

time over five years, they know how the rewards system here do not work This seems to

be a big concern to loyalty employee Because they works for a long time, but the

rewards are not satisfied them In the answers of Knowledge & Insights Specialist –

former employee she said that reward are key factor effect to employee recognition “I have worked for seven years, my salary increased 15 % every year However, there no reward or certificate has been issued to recognized employee contributions.”- IT

manager The management team always thinks that they have provided timely and

necessary feedbacks to employees, who get enough experiences and powers to solve their

issues without help from them Marketing manager said: “the international company always requires employees to be proactive, they should be active to solve the issues rather than wait for my advices or guides?” And Technical Manager confirmed “all members are experienced employees So they have enough experiences and power to come over the difficult situation without my helps” This type of mindset will form the

current situation become worst if the employees always need the helps from their

managers as a way that show them how their performance is good or bad In addition, management team is totally happy with the promotion systems that always give to them support and chances in getting the excellent moves on their career paths

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

recognition level, so they do not impact to the recognition, while others think that “To

me, the promotion is not quite important, because job title do not play a key role in many cases” employees shared In contrast, there are over 80% people confirm that the result showed that there are two real problems: rewards and feedback that happen in the

Coca-Cola office, requiring the adequate solutions to solve them accordingly Because after years to years, the issue will become the steady company culture, the problem will become worse The conflicts among the managers and staffs raise impact to employee commitment and the performance The lack of feedback can come from the employee mindset that they think that all their team members can solve the issue by themselves without their support And the rewards system is not effective

According to the real problems from the collected data, the author narrows thecause- effect map as bellows:

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High employeeturnover rate

Rewards

(Skudiene,Everhart, Slepikaite(Rustand, 2001) and (Özutku, 2012) & Reardon, 2013)

Low employeeFormal and informal Feedback recognition Low employee

performance(Baker, Perreault, Reid & Blanchard,

Guggenheim, Price

& Stine, 2011)

Figure 3: Final Cause –Effect Map

2.2 Proposed alternative solutions

Combining data that collected from the employees interview and literature review,the author confirmed the real problems that directly impact to the company recognition

level, are the lack of manager feedback and unsatisfying reward policy Finding the real

solutions are completely necessary to solve the problems, limiting their consequence Thesolutions that solve the problem within the internal scope, should met the requirements

from human resource department, such as: the solutions can be applied in the company, it

is easy for employees to participate, and suitable to company culture and the project

should take no more twelve months, no more 20,000 USD should be spent, and the

intends to design the solutions that can improve two potential causes: feedback and rewards The literature is a source of idea because the scholarly literature and the

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management literature always provide the golden solution concepts and general

information on how to take actions on the plan and why we need to use them

communication channels and authentic conversation Accordingly, the third and final

element required to shape a feedback-friendly culture is dialogue (i.e., discourse between all levels of the organization) Each element will be considered in the following section to further elucidate their importance in the development of a feedback-friendly culture

According to the employee answers in the second interview, the majority of

employees confirmed that they do not receive feedback from their manager, so with the solutions bellow, if we build the working environment, in which providing feedback is culture or behavior The feedback will come in nature and manager will think that feedback

is necessary to maintain the company culture instead they think that individual need to complete their job tasks by themselves rather than provide advise feedback to

their employees Baker, Perreault, Reid & Blanchard (2013) stated that the notion of

a feedback- friendly culture is relatively recent and it advocates proactive feedback in theorganization as well as shapes a safe feedback-sharing environment When we mention about the culture, we mention about the behavior that act fluently and naturally It is identical from bottom down It also creates growth opportunities in various organizations and can be widely applied in most of industries This solution will take a month to

arrange trainer who can deeply inspire the participants, have experiences to persuade employees about the role of the feedback and two weeks to find the training locations But the cost spends for this training is acceptable and employees are able actively join theproject Encourage employees to try their best to release the good results from instruction

of trainer

360 Degree feedback

Robertson (2008) indicated that a 360 degree feedback a multi-source assessment,where individual’s performance is assessed and feedback is recorded from a number of people that may include Managers, Subordinates, Colleagues and customers The

assessment in the feedback takes the form of rating against certain performance

dimension In organizations where coaching is viewed as a way to help employees

develop to their fullest potential, 360° feedback reports may be used as a tool to support that process Some companies send select employees to leadership programs conducted

by external organizations where 360° feedback data is collected before attending the program It enhances two-way communication and increases the opportunity for

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employee involvement, and demonstrates respect for employees by showing them that their opinions count It trains employee to give and receive feedback The organization is asking for their perspective on the behavior of their manager It can help to create better working relationships within the organization and improves the ability of people to work in teams It enhances awareness and relevance of competencies and awareness for senior management too, as they will get to know their need for development (Garavan, Morley

& 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)

Cash bonus

Organizations should use cash bonus to reward employees for exemplary

performance that is if they have performed higher or exceed their set targets, this hencemakes them eligible The amount of cash is determined by how high the employee has over exceeded the set targets or they can also be based on ranks or job groups

Companies use cash bonuses to reward their employees' performance during the year under appraisal But there is also the unspoken expectation that these bonuses will be

a factor in motivating employees’ performance next year as well and make them feel recognized when performing well (Njanja, Maina, Kibet & Njagi, 2013)

In some companies, cash bonus has been widely used to appreciate employees’ contribution Especially, in Coca-Cola office, employees confirm that they prefer to receive cash than gifts Because cash can be used in many purposes but gifts are not However, according to the Coca-Cola policy, cash gift is unacceptable If the employerwants to reward employees, they always use gift or vouchers This solution need to be escalated to the upper human resource department in the Business unit to get approval.This process might take time

A market reward alternative

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, especially if their replacement would be particularly expensive or disruptive This approach ensures

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that the firm's pay levels are at least competitive with the labor market This solution willmake sure the salary company pay to employee is competitive to the market.

These solutions require us to make a market research to find the pay levels at othercompany in the same industry to make a comparison and make sure company pay are competitive Because in some answers from the first interview, the former employees stated that they decided to quit Coca-Cola because they got the better offer from other companies So the Coca-Cola Company should adjust their pay to match with the market levels It aims to limit the flowing of talent to other pools However, this solution

requires the big change in the whole compensation and benefit system if the company’s salary range is less than others’

Annual Quality Award

Firstly, London & Higgot (1997) set up 3 categories:

Category 1 – teamwork recognition for individuals who perform tasks on a day-to-daybasis

Category 2 – excellent key tasks recognition for individuals who perform their day-to-dayactivities 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 thecompany 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 groupswhich 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 aprestigious hotel or a money order to a leading retail store;

A framed certificate from the company

An individual and group photograph (photos are used for publication in the company newsletter and are placed on a noticeboard in the company canteen; each category winneralso receives an individual copy of the photo)

Finally, Quarterly winners of each category also qualify for the Annual

Quality Award

In the interviews, many employees confirmed that the rewards system of company

do not match to employees expectation So we think this solution helps to build the effective reward strategy completely The employees can have motivation to work hard

to get the reward during year It requires the careful preparation for each step to make sure the plan will be follow and release the results on time

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Chapter 3: The Selected Solution

In this chapter, the author chooses the solutions can be solved the issues and combing with the literature to confirm the selected solution is possible The comparison

is made to ensure the choice is suitable to company requirement with many advantages and can be applied at the company

3.1 Explanation for selected solutions

Table 4: A comparison of alternative solutions

Feedback Feedback- To advocate proactive feedback in the

Friendly organization as well as shapes a safe

Culture feedback-sharing environment

Be suitable to

It is identical from bottom down It also

Company culturecreate growth opportunities in various

organizations and can be apply widely in No more than 12

Timing requirements: 1 year No more 20000

USDCost: 18.000 USD

The solutions

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Degree using should change as

feedback

Consume Time in using (1 year to apply little as possibleand haft of year for result evaluation in the current

business systemRewards Cash Widely used to appreciate employees’

unacceptableViolate the company policy in giving

cash to employees

Need to be escalated to the upper humanresource department in the Business unit

to get approval

Market Require the big change in the whole

reward compensation and benefit system if the

alternative company’s salary range is less than

others’

Costing over 10,000 USD for salarymarket research, and more than 15,000USD to reward employee if the rewardpackage is less than others