Dealing with low intrinsic motivation of functional employees in Pepsico Foods Vietnam company

Abstract

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 3 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.