Performance Evaluation Of Industrial And Commercial Bank Of China's X Branch

As the mainstay of the finance sector,the growth of commercial banks contributes a great deal to the development of China's finance industry.However,thanks to the globalization of financial markets,the domestic market has become more inclusive to foreign banks.With the increasing demand of capital,the State began to gradually loose restrictions on private financial institutions.As the legalization of private financing and marketization led to the rise of Internet banking,the domestic market competition has become more intense than ever.Especially since 2015,the Central Bank has cut interest rates for five times,and allows commercial banks to set floating rates according to their own situations.Faced with the accelerating process of interest rate marketization,Chinese commercial banks,as financial enterprises aimed at making profits,the bank staff must take into account how to build a scientific and effective performance evaluation system.Due to late start,the performance evaluation system of Chinese commercial banks has been unable to fully evaluate the knowledge service performance with the drawbacks of overemphasis on short-term financial indicators,ignorance of non-financial indicators,setting indicators out of touch with strategic goals and so on.Commercials banks play an important role in the financial system which affects all aspects of social economy.In order to run smoothly in this ever-changing market,the performance evaluation system of the commercial banks must be able to assess the efficiency of fund operation and the performance of their service practically.To a certain extent,the balanced scorecard method meets the requirements mentioned above.Not only does it take both external and internal environment into consideration,but also it takes non-financial indicators into account.Obviously,it has certain advantages compared to traditional performance evaluation.We found commercial banks have various methods of performance evaluation but there exists a number of issues in the basic-level subbranches.As the basic-level subbranches encounter their customers directly in every branch,they are assigned to fulfill the performance objectives.The reasonability of the design of the performance evaluation plan has a direct impact on motivating employees and the growth of business.Therefore,the improvement of evaluation methods in the branches is of great practical significance.In terms of this background,from the perspectives of the balanced scorecard,this study focuses on x branch of ICBC's performance evaluation.First of all,the article introduces the main advantages and disadvantages of performance evaluation method on the basis of illustrating the performance evaluation principles therefore provides a theoretical basis for the introduction of the balanced scorecard performance measurement system in the x branch.Second,studying on the case of ICBC x branch with the combination of qualitative,quantitative analysis method and AHP along with the analysis of the current performance evaluation system,we summarized problems in this system.It is found that currently the focus of the performance evaluation are financial indicators in x branch and they does not motivate or restrain effectively.Thus,it is necessary to implement balanced scorecard method in x branch for performance evaluation.Next,adding up the enterprise social responsibility dimension to the balanced scorecard,with this five dimensions:financial,customer,internal process of enterprise,learning and growth of employees and enterprise social responsibility,we firstly choose the key performance indicators and then use AHP to calculate the weight of each key performance indicator to build a balanced scorecard performance review system.Lastly,taking the key department and positions as an example,we design the detailed implementation plan for branches,department and employees by different levels and illustrate the conditions and supporting measures for the balanced scorecard method to work successfully.In this paper,we base our research on the the balanced scorecard theory and attempt to design a performance evaluation system for x branch in order to inspire the senior management team of x branch strategic to employ a multi-perspective strategic management thinking.By introducing a balanced scorecard performance system,we aim to promote employee motivation and the market competitiveness of x branch and consequently maximize shareholder interest.