citibank performance evaluation
... The evaluation of the employees’ performance will allow determining what are the weaknesses and strengths of the employees. This mechanism not only identifies the deficient aspects but also finds their causes. With this feedback, the company and the employee could propose training and development courses in order to get a performance linked with the business goals. This might be one of the most important aspects of the implementation of the performance scorecard, since this system seeks to tie the formal performance appraisal process to the company’s strategies by specifying at the beginning of the evaluation period the types and level of performance that must be accomplished to achieve the strategy – in this case customer satisfaction. Value of the Performance Scorecard to the employee From the employee point of view, the implementation of the Performance Scorecard is useful, because employees know how performance is evaluated. Of course, it can turn out to be unfair and inequitable, but in that case the employee should discuss those issues with his/her manager in order to solve this problem. A well done performance evaluation will increase employee’s level of motivation and performance, helping the company to meet the organizational objectives. In other words, the performance scorecard uses feedback in order to evaluate the performance of each member of the organization, providing information that could lead to their effort and work recognition. With this feedback the members of the organization could define their work objectives for the future and discuss ideas in order to get a better performance (training and development plans) and work conditions. Citibank performance Scorecard Appraisal Criteria and Evaluators Recommendations Regarding the performance scorecard in Citibank it is essential to evaluate it in terms of the appraisal criteria. The bank decided to establish 5 different types of measures: financial, strategy implementation, customer satisfaction, control, people and standards. In our opinion the criteria were well chosen but the way they are measured could be improved (ATMs shouldn’t be included). They should have had their staff involved in the process of defining the way those criteria should be evaluated. It would also be useful to have the customers’ opinion on the best way to measure their satisfaction. The way that consumer satisfaction is assessed could be improved by adding another variable to the third criterion, like for example, the level of loyalty of the clients (number of years with the bank) Besides the criteria improvement, another aspect that crossed our minds was the fact that the evaluation was only done by the supervisor (Lisa Johnson), and the client. We believe that it could be useful to introduce a 360ª Feedback and change the instruments used to get the performance information. It is important to have the opinion of subordinates and colleagues because they have a direct professional relationship with the assessed employee. We also believe that the self-evaluation could be useful because in this way the person could identify his own weaknesses and strengths. Implementing the 360ª Feedback could promote training and development courses in order to get a performance linked with the business goals. Appraisal Instruments Recommendations In our opinion the attribute scale (below par, par, above par) can create difficulties while evaluating, because the scale is very narrow. By expanding the scale we would create a more fair way of evaluating employees’ performance. James Performance Evaluation Taking into consideration James’ performance during the whole year he can be given either par or above par evaluation. To decide we have to analyze consequences of both options in terms of company’s and James’s point of view. Par Evaluation If James is given a par evaluation it will mean that the company is strict about all its strategic goals, especially consumer satisfaction. In this way employees will realize the importance of this non-financial criterion. Furthermore, since James is exceptional in four other criteria by giving him a par evaluation the company will not make the “halo” error. In this way his outstanding results will not cover his bad performance in customer satisfaction criterion. It will also be a sign for his co-workers that everyone is treated equally when it comes to performance evaluation. Another positive aspect of giving James a par evaluation is the fact that it will prove that Performance Scorecard works because it identifies employee’s weaknesses. Citibank will then have legitimacy to propose a training program to ensure that James will improve in the customer satisfaction criteria. The negative aspect of giving James a par evaluation is the fact that it could dismotivate him and make him more ready to accept job offers from competitors. As we saw, James can feel dismotivated with this decision, since he does not agree with the way the customer satisfaction is measured, for example, his grade is influenced by factors (ATM’s) for which he is not responsible. On the other hand he might feel motivated and try to achieve the customer satisfaction goals for next year, to prove that he is not just good at financial skills. Above Par Evaluation If James is given an above par evaluation it will have several negative aspects. First, it will indicate that the company is not strict about its non-financial strategic goals and that it does not give enough importance to customer satisfaction. Second, employees will feel that the way that performance is measured is not equal for everybody. It might lead to deterioration of team cohesion. Third, James will have no incentive to improve the level of satisfaction among branch’s clients in the future, because if he gets an above par evaluation he might think he h...