Agricultural Bank Of China Shenzhen Branch BSC A Performance Appraisal System Design Research

Recent years, China’s commercial banks are experiencing an increasinglycomplex and volatile financial environment. On one hand, with China’s accession toWTO and the domestic financial market’s fully being open, China’s financial marketis progressing towards internationalization, which brought a big impact to China’scommercial banks. On the other hand, with the deepening of the reform of China’sfinancial system, the competition in banking is growing, which have broughtunprecedented opportunities and challenges to the development of China’scommercial banks.In the past few decades, large state-owned commercial banks have played as thebackbone in national economy. Currently, the financial environment is ever-changing,large state-owned commercial banks must continue to strengthen their corecompetitiveness to respond quickly to the changes and challenges, so as to beinvincible in the fierce competition. As the basic management function of commercialbanks, performance appraisal is a powerful weapon to establish a scientific operationmechanism, and enhance the core competitiveness. For the large state-ownedcommercial banks, how to measure the operating performance of the largestate-owned commercial banks through performance appraisal and manage theperformance, so as to maximize the banks’ value, has become a problem that can notbe ignored for the large state-owned commercial banks.In view of this, we take the A sub-branch of the Agricultural Bank of China inShenzhen as an example, to study the performance appraisal situation of China’scommercial banks, large state-owned commercial banks in particular. Based on thestudy of the concepts and basic theory of performance appraisal, we review thedifferent historical stages of the development performance appraisal in domestic andforeign commercial banks. In the study of the research at home and abroad in thisfield recently, we find there are some problems existed in the performance appraisalof China’s commercial banks, such as the positioning of the performance appraisal isnot clear, the indicators are set short-term oriented and the incentives that support theappraisal and employees’ participation are lacked. At the same time, we further studythe performance appraisal system of A sub-branch of the Agricultural Bank of China in Shenzhen, in order to provide a scientific and effective BSC performance appraisalsystem optimal design for China’s commercial banks. This study also do help for thestudy of the development of large state-owned commercial bank performanceappraisal.