The Research On PM’S Compensation Optimization Of Bank Of Ningbo

Product manager has been playing an increasingly important role for variousdomestic commercial banks. Therefore it becomes the prior task for those banks toexplore an efficient compensation incentive scheme. By introducing the status quo ofcompetition that Chinese commercial banks have faced. This paper analyzes firstlythe definition of product manager as well as its functions and characteristics， andpoints out that a competitive financial product has been the central elementdetermining whether one commercial bank could be advantageous in the market. Thispaper then moves on to discuss some basic concepts and theories associated withcompensation and incentive scheme，and introduces compensation incentive schemesthat have been adopted by domestic commercial banks and certain typical overseascommercial banks， such as banks from British， US， German and Japan，respectively. What has been analyzed and stated earlier provides both basic theory andpast experience for the exploitation of Ningbo Commercial bank’s individualcompensation incentive scheme. Hence， the purpose of this paper is to employ theproduct manager’s compensative incentive scheme in Ningbo Commercial Bank as aresearch object， so as to unveil this object’s present situation and problems， andprovide some optimized designs as well as corresponding measures.For the product manager，the contemporary compensation incentive scheme thathas been applied by the Ningbo Commercial bank is annual salary system. It meansthat the bank decides the annual salary of its product manager according to itsperformance index. The salary of product manager in Ningbo commercial bank iscomposed of fixed annual salary， accessed annual salary and welfare. The paymentof such salary is directly executed by the human resource department of the bank’shead office or its branch， subjecting to the evaluation method. With regards to suchscheme， there are five substantial problems. First， the competitiveness of the salaryis weak if compared with other banks in the market. Second， the value of incentivescheme by employee’s performance has been weakened. Third， the salary increase isoverly subjected to promotion. Fourth， marketing and service process are notreflected in the compensation incentive scheme. Lastly， the salary and performanceare weakly connected.In responding to the five substantial problems， some recommendations which could help to optimize the product manager’s compensation incentive scheme inNingbo Commercial bank are as follows. The first idea is to stick to the principle ofcompensation incentive scheme and the second is to give performance annual salariesto product manage on the basis of various businesses. Developing an efficientperformance evaluation system is the third idea. The fourth one is to set up evaluationrules concerning marketing promotion for product manager and to adopt aprioritization scheme concerning product manager’s compensation incentive schemein Ningbo Commercial bank. More concretely， obtaining support from the banksenior manager is one issue. The second is to launch efficient training for productmanager and the third is to pay attention to progress management. The fourth is toestablish a comprehensive evaluation mechanism for product manager. The fifth is todelegate more powers to product manager and the sixth is to enhance professionaltraining for product manager.