Performance Feedback in Multinational Companies in Vietnam

The purpose of this study is to examine the performance feedback process from the perspectives of managers and employees, and to explore how both groups construct and interpret meaning during the feedback process in ways that shape employee learning and performance outcomes This study draws on Weick’s (1995) sensemaking theory and Argyris and Schon’s (1996) theories of single-loop and double-loop learning to examine how employees interpret performance feedback and how these processes influence learning and performance outcomes This study adopted a qualitative research approach to gain an in-depth understanding of managers’ and employees’ perceptions and experiences during the performance feedback process. A total of 14 semi-structured interviews were conducted with managers and Employees working in multinational companies in Vietnam. The findings revealed that managers in Vietnam strongly preferred constructive feedback aimed at performance improvement and employee development rather than criticism, while employees demonstrated high levels of feedback orientation and willingness to learn from feedback. The study also found that high power distance and hierarchical workplace relationships, shaped the performance feedback process and influenced how managers and employees engaged in sensemaking during feedback conversations. The findings show that performance feedback in Vietnamese workplaces primarily operates at the single-loop learning level. Managers tend to focus on fixing task-related issues immediately to ensure timely completion, without questioning deeper assumptions or values. In addition, several barriers to learning from feedback were identified, including unclear or non-specific feedback and managers’ limited focus on employee development. Based on these findings, the study proposes practical recommendations for improving performance feedback practices within Vietnamese MNCs through more contextualised training for both managers and employees on feedback delivery and feedback reception.