Relationship between Education and Experience on the Employee Performance in Coca-Cola

free essayThe Coca-Cola Company has long enjoyed monopoly powers in the beverage industry. This company is the sole producer of beverages in many of the countries worldwide, and it has branches in over 85% of the countries (Yaghoubi, Rakhsh, Javadi, and Bahadori 89). The success of Coca-Cola can be attributed to several factors, some of them being the performance of its employees.

Research Literature

There have been several research studies which have investigated this topic. A study by Yaghoubi et al. (88) tries to look at whether the level of education is in any way related to the performance of employees. The study selects a random sample of employees from various public and private companies from the United States. The study concludes that it is a positive linear relationship between the two variables. This study also recommends that more research should be done on the same topic, but now taking into consideration other variables such as the level of experience, gender, and employees’ age.

In addition, Amin et al. (55) study the effect of work experience on the performance of workers, using two confounding variables, which are age and employees’ gender. This study uses a sample of employees from the major multinational companies. The study reveals that there is a strong relationship between the level of experience and performance. Also, the confounding variables (gender and age of employees) have a significant effect on the employee performance.

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From the above literature review, it is evident that this is a common topic among the researchers. Moreover, it is clear that there is no research which has taken into accounts both the level of education and experience (AL-Hussain 66). It is true that many companies are struggling to come up with a model which can predict the output of a person. This model can be important when a firm is conducting employment or promotion exercises. Therefore, these are the main reasons why I chose to study this topic.

Research Question

Is there a significant relationship between the level of education and experience on the performance of employees in the Coca-Cola Company?

Hypothesis

Ho (Null hypothesis): There is no significant relationship between the level of education and experience in the performance of employees in the Coca-Cola Company.

Ha (Alternative hypothesis): There is a significant relationship between the level of education and experience in the performance of employees in the Coca-Cola Company.

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Experimental Design

This study uses quantitative data in testing the hypothesis of interest. Also, the research uses the survey method in collecting the data. The researcher employs stratified random sampling, where he categorizes the Coca-Cola Company into the departments. There are four main departments which are of the researcher’s interest. They include the finance department, the research, and development department, marketing and human resources. After forming the four strata, the researcher then collects simple random samples from each of the departments. The sample size in each department depends on the stratum size, where larger groups get relatively large sample sizes. Therefore, the largest department is the finance department, and the researcher obtains a sample of ten respondents from this department. Next, the sample size in the research and development department was nine, while the marketing department has a sample size of five. Lastly, the sample size in the human resources department was six. The overall sample size was 30.

The survey tool has two sections: the demographic section and the main section. The demographic part contains the following questions:

  1. Which is your department?
  2. Which is your level of employment?

The main aim of the researcher is to obtain the background information of the respondent. Secondly, the main section contains the following questions:

  1. What is your level of education?
  2. How many years have you worked with the Coca-Cola Company?
  3. I completely understand the Coca-Cola Company culture.
  4. I understand my job requirements of my field.
  5. I have an excellent working relationship with other employees and the general manager.

In this section, the researcher wants to know the level of education and the years of experience of the respondent (first two questions). The first question has response categories, where each category has a numeric value. The last three questions try to test the performance level of the respondent. The questions have a Likert scale response categories. The performance of each employee is determined by averaging the responses to all the three questions. The lowest possible score is 1 (least performing), and the highest score is 5 (best performing). The questionnaire and data are included in the appendix.

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Ethical Considerations

This paper addresses different ethical issues. When implementing the questionnaire, respondents are informed not to indicate their names or personal id/passport/job numbers and no part of their information or data will be given to the unauthorized persons. Also, it was made clear that the data will only be used for the purpose of this study alone. Lastly, the raw data will be stored in an encrypted computer drive, and the password will be given to the primary researcher (Wackerly, Mendenhall, and Scheaffer 156). All these strategies are meant on securing the respondents privacy.

Results, Discussion and Interpretation of Results

This paper employs regression analysis in testing its hypothesis. The dependent variable, in this case, is the performance of employees, and the independent variables are the level of education and experience. The first section is the descriptive statistics while the second part covers the inferential statistics.

Descriptive Statistics

This part discusses the characteristics of respondents. According to Larsen and Marx (59), the demographic characteristics of respondents help to examine the appropriateness of the data collection tool and the research design. Figure 1 below is a bar graph showing the proportions who come from each of the department. From the output, it is clear that most of the respondents come from the finance department (count=10, proportion=33.3%). The research and development department comes second with a total of nine respondents accounting for 30% of the total sample size. The human resource has six respondents (20.0%) while the marketing department has five respondents (16.67%).

On the other hand, Figure 2 below shows the level of employment across the sample size. The output reveals that 26.67% of respondents were just regular employees, and 26.67% were the junior managers. Also, around 26.7% of the sample size was the middle managers and lastly, 20% of the respondents were senior managers. This analysis reveals that the research design is accurate because it covers employees from all departments and all the levels of employment. Therefore, it is evident that the results of this study are accurate and generalizable.

Next, the paper looks at the descriptive statistics of the highest level of education, the level of experience and the performance variables. Table 1 below shows that the mean for the level of employment is 3.4 with a standard deviation of 1.5. This result implies that most of the respondents have a master’s degree and post-graduate degree. Table 2 shows that the mean years of experience of employees is 3.9 with a standard deviation of 1.7 years. It is also clear that the least number of years of experience in the sample was 1, and the highest was eight years.

Table of Descriptive Statistics 1

Statistic Std. Error
What is your highest level of education? Mean 3.4000 .27792
95% Confidence Interval for Mean Lower Bound 2.8316
Upper Bound 3.9684
5% Trimmed Mean 3.4444
Median 4.0000
Variance 2.317
Std. Deviation 1.52225
Minimum 1.00
Maximum 5.00
Range 4.00
Interquartile Range 3.00
Skewness -.613 .427
Kurtosis -1.217 .833

Table of Descriptive Statistics 2

Statistic Std. Error
How many years have you worked with Coca-Cola Company? Mean 3.9000 .31930
95% Confidence Interval for Mean Lower Bound 3.2470
Upper Bound 4.5530
5% Trimmed Mean 3.8519
Median 4.0000
Variance 3.059
Std. Deviation 1.74889
Minimum 1.00
Maximum 8.00
Range 7.00
Interquartile Range 2.00
Skewness .495 .427
Kurtosis -.107 .833

Table 3 below shows the descriptive statistics of the three questions which examine the level of experience. From the output, it is evident that the mean responses of the question, which examines the proportion of people who completely understand the organizational culture of the Coca-Cola Company, is 3.5 with an understanding deviation of 1.25. On the other hand, the mean score of the people who fully understand the job requirements is 3.5 with a standard deviation of 1.33. Lastly, the mean score of the responses to the question which evaluate the working relationship of employees is 3.1 and a standard deviation of 1.5. These results imply that most of the people have an average and above performance since all the mean scores are above 2.5 which is the average score. Table 4, on the other hand, examines the descriptive statistics of the mean of the three variables. This variable shows the real level of performance of each employee. The output reveals that the mean performance score is 3.37 with a standard deviation of 1.3. This value is above the average score of 2.5. Therefore, it is evident that most of the Coca-Cola employees have a significant level of performance.

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Table of Descriptive Statistics 3

Statistic Std. Error
I completely understand the Coca-Cola organization culture Mean 3.4667 .22861
95% Confidence Interval for Mean Lower Bound 2.9991
Upper Bound 3.9342
5% Trimmed Mean 3.5185
Median 4.0000
Variance 1.568
Std. Deviation 1.25212
Minimum 1.00
Maximum 5.00
Range 4.00
Interquartile Range 1.25
Skewness -.653 .427
Kurtosis -.508 .833
I completely understand my job requirements of my field. Mean 3.5000 .24330
95% Confidence Interval for Mean Lower Bound 3.0024
Upper Bound 3.9976
5% Trimmed Mean 3.5556
Median 3.5000
Variance 1.776
Std. Deviation 1.33261
Minimum 1.00
Maximum 5.00
Range 4.00
Interquartile Range 3.00
Skewness -.281 .427
Kurtosis -1.187 .833
I have an excellent working relationship with the other employees and the general manager. Mean 3.1333 .27847
95% Confidence Interval for Mean Lower Bound 2.5638
Upper Bound 3.7029
5% Trimmed Mean 3.1481
Median 3.0000
Variance 2.326
Std. Deviation 1.52527
Minimum 1.00
Maximum 5.00
Range 4.00
Interquartile Range 3.00
Skewness -.115 .427
Kurtosis -1.498 .833

Table of Descriptive Statistics 4

Statistic Std. Error
Average Mean 3.3667 .23617
95% Confidence Interval for Mean Lower Bound 2.8836
Upper Bound 3.8497
5% Trimmed Mean 3.4013
Median 3.6700
Variance 1.673
Std. Deviation 1.29355
Minimum 1.00
Maximum 5.00
Range 4.00
Interquartile Range 2.42
Skewness -.351 .427
Kurtosis -1.276 .833

Inferential Statistics

This section studies the relationship between explanatory and response variables of interest using regression analysis technique. The response variable of interest is the performance of a worker, and the explanatory variables are the experience and education level. The regression output is clear in the Tables 5, 6 and 7 below. Table 5 shows regression summary statistics which reveals that 90.5% of the variation is the performance and is explained by the level of experience and education level (Adjusted R-Squared=0.905). Table 6 is the regression ANOVA table, and it shows that at either one of the two explanatory variables or both variables have a significant linear relationship with the dependent variable (F (2, 27) =138.6, p<0.0001). Lastly, Table 7 shows the regression coefficients. From this table, it is evident that the years of experience have a significant linear positive relationship with the performance (b=0.279, t=3.5, p=0.002). Also, the level of experience has a significant positive linear relationship with the explanatory variable (b=0.523, t=5.7, p<0.0001). Therefore, the linear model is

Model Summary Statistics

Model R R Square Adjusted R Square Std. Error of the Estimate
1 .955a .911 .905 .39943

Table 6

ANOVA Table

Model Sum of Squares df Mean Square F Sig.
1 Regression 44.217 2 22.108 138.572 .000b
Residual 4.308 27 .160
Total 48.525 29

Table of Coefficients

Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
1 (Constant) .504 .187 2.690 .012
How many years have you worked with the Coca-Cola Company? .279 .079 .377 3.517 .002
What is your highest level of education? .523 .091 .615 5.744 .000

 

This paper recommends that more research works should be done on this topic. The future research should consider including other confounding variables such as the age of the employees. Also, the major weakness of this study is that it uses a relatively small sample size. The future research works should ensure that the sample size is relatively large so as to achieve more accurate results.

How It Works


In conclusion, it is clear that there is a significant relationship between the level of education and experience on the performance of employee of the Coca-Cola Company. Also, it is evident that there exists a positive relationship between the response and explanatory variables. Despite that, the regression analysis reveals that the level of education has a greater impact on performance than the years of experience. The results also show that there might be more confounding variables which might have an effect on the level of performance. Such variables include employees’ gender or age. Therefore, the Coca-Cola Company should employ the above model when determining the performance of any employee. Also, this model applies to any other company since the research is generalizable.