2. Performance Appraisal

Empowering and encouraging staff members to do the best job they’re capable of helps create job satisfaction, lowering turnover in an industry that has a reputation for burning through its employees. And a happy, stable workforce not only delivers better customer service, it is also more effective at building sales and attracting repeat business. These are the reasons, why motivation is vital.

A performance appraisal system helps to evaluate the job performance of an employee generally in terms of quality, quantity, cost, and time). Nestle treats it as a part of guiding and managing career development. The process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization helps the company to establish long-term relations with personnel. Analyzing the employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training, the company helps to reveal the mistakes and correct them, increasing the overall performance. The aim of a performance appraisal in Nestle company is to give employees feedback on performance (especially, 360-degree feedback: Interviews of a current post holder, its supervisor, subordinates, colleagues, clients); to identify employee training needs (Nestle has a variety of development and trainee programs for both employees and graduates)

After conducting job analysis the Nestle company improves the content of training & development programs, revises the structure of compensation & benefits, is able to strengthen the relationships among employees. The company uses a wide range of methods: direct observation of the employees, questionnaires, previous studies. I would be also useful to introduce work dairies.

By decentralizing operational responsibility, the company creates strength and flexibility and is able to make decisions that are better attuned to specific situations in a given country. Policies and decisions concerning personnel, marketing and products are largely determined locally. This policy creates stronger motivation for Nestle 's executives and employees and a greater sense of identification with Nestle 's business. It is not Nestle 's policy to generate most of its sales in Switzerland, supplemented by a few satellite subsidiaries abroad. Nestle strives to be an "insider" in every country in which it operates, not an "outsider."³⁴

Setting high expectations and giving employees the tools they need to meet them is one of the most important facets of motivation. Comprehensive new-employee orientation and there is no matter how it’s conducted — online, through special training shifts, or through shadowing more experienced co-workers. There several tips that Nestle company keeps in mind:

• Training is not a one-shot deal. An ongoing program not only makes for more valuable employees, it also helps with retention.

• Employees who are always learning new skills are continuously challenged to grow, and consequently work better as both individuals and team members.

• Many managers conduct regular weekly or even preshift meetings. In addition to keeping staff members up-to-date on changes, regular meetings are a great vehicle for new skill building, such as discussions of trends, or an opportunity to share news about the business³⁵.