It can be said that appraisal system plays an important role in company operation. To be specific, it was stated that appraisal system is one of the key element to increase employee motivation and productivity (1). Therefore, ineffective appraisal system can make employees feel dissatisfied with the job and as the result, there would be low productivity (2). Moreover, it was also mentioned that about low organizational commitment and intention to leave of employee when the company appraisal was not effective (2). Furthermore, high employee turnover rate has many hidden costs such as productivity loss, workplace safety issues, and morale damage (3). That is the current situation at Nike customer service department in Damco, ineffective appraisal system is the central problem causing low customer satisfaction and low employee satisfaction which resulted in high turnover rate as well as high recruitment cost. After conducting researches by both qualitative and quantitative method, the main causes found are unclear key performance indicators (KPI) and lack of ongoing performance feedback, one way of communication appraisal process. In order to solve the central problem of ineffective appraisal system, the possible solutions are developing detail, specific KPI for Nike customer service department employees and building up effective appraisal process including self-appraisal as well as ongoing performance feedback. This solution can take advantage of available resource with the coordination between human resource department and manager of Nike customer service department in estimated six months with no extra cost. The aim of this low cost and feasible solution is to lower the high turnover rate at Nike customer service department. Furthermore, it is also the solution to increase employee satisfaction which also linked to customer satisfaction. In addition, lower turnover rate can save money for new recruitment and training program for new employees as well as keep Nike customer service department stable. In short, this cost saving solution can eliminate almost the current problems of Nike customer service department in Damco.
University of Economics Ho Chi Minh City; ISB (International School of Business)