Study On Application Of Balanced Score Card In Performance Assessment Of Management Personnel In Jiaxing Bank

Faced with a slowdown in China’s economic growth and acceleration of interest rate liberalization reform which faster than expected, domestic banks are experiencing ever fiercer competition from peers, still less the gradual narrowing in interest spreads of deposit and loan. In a word, commercial banks are unprecedentedly encountered with daunting challenges in management and development.Currently, it is significant for commercial banks as to how to improve their business performance. Against the same backdrop, general business performance of a bank to a large extent relies on the efforts on the management level’s side. Success of a certain organization calls for a methodical performance assessment system coupled with the operation of the management mechanism so that all employees could work with one heart in maximizing the values for the organization. In the formulation of the management system, the organization is expected to pin down its own visions and goals before conveying them to the staff of all levels (esp. the management level) through the sound performance assessment management mechanism.Therefore, based on the cause-and-effect relationship among the four aspects of the Balanced Score Card (financial, market and customers, business processes and learning and growth), the key performance indicators will be found out and analysis and measurement conducted on the indicators will bring about a reasonable, effective and well-balanced performance assessment plan through which the behavior of the management staff in a bank will be directed and regulated. In such cases, the business performance of the bank will be enhanced with the competitive edge gained, attainment of its strategic goals ensured and core competitiveness reinforced.Adopting Jiaxing Bank as the individual study case, this paper aims at integrating the mission, vision and strategies of an individual bank according to the cause-and-effect relationship among the four aspects of the Balanced Score Card and conducting studies on the performance assessment of management personnel in the bank before mapping out a performance assessment plan aptly suited to the bank.The main contribution of this paper lies in that it has provided effective methods for commercial banks in the improvement of traditional performance assessment systems and strategic development, which to a certain extent is of pragmatic significance. The individual case study has designed a performance assessment scheme model for the individual bank and more importantly, ameliorated the performance assessment system, directed the previous thought of management personnel focusing solely on financial indicators towards on both financial and non-financial ones, combined internal with external balanced development goals and view the business performance and future development of banks from a strategic perspective.