Research On Performance Management Optimization Of Bank A Based On Balanced Scorecar

Performance management is a management tool that helps commercial bank monitor and evaluate their employees’ work.It plays an important role in promoting and ensuring the sustainable development of commercial banks and the implementation of banking strategies.Traditional performance management methods pay too much attention to the financial indicators which are directly linked to operating profits,while other non-financial indicators which would potentially affect the financial results are overlooked.Specifically,a competitive commercial bank is not only characterized by its stable growth performance,but also by its flexible organizational structure and perfect middle and back office settings.Therefore,the traditional performance management method has been unable to effectively manage the performance of modern commercial banks.To ensure sustainable development of commercial banks,both financial and non-financial indicators are urgently needed to be considered.This paper investigated current performance management practices of Bank A,and explored the potential limitations of this system.We found the problems of current performance evaluation system of Bank A lies at: unclear purpose of performance evaluation,unreasonable performance evaluation indicators,insufficient cognition of employees on performance evaluation,lack of employee participation in the efficiency evaluation process,and lack of systematic application of performance evaluation results.These deficiencies in the old performance management system greatly hindered the strategic role play and long-term development of Bank A.In view of these problems associated with traditional performance management system,balanced scorecard was implemented to optimize performance management evaluation system in Bank A.Here,we proposed four optimized practices to address these problems.Firstly,decompose the bank’s strategy into the categories of finance,customers,internal operational processes,learning and growth,and draw a strategic map to ensure the final assessment indices are consist with the enterprise strategy of Bank A.Secondly,assign weights to the performance indices by experts grading and hierarchical analysis,and design of employee performance evaluation system;Thirdly,define the optimized assessment framework from the perspective of principal and deputy manager of department and office.Fourthly,provide more training program for employee on one hand,and periodically held work meeting on the other hand to analyze and assess the effectiveness of performance management practices.Lastly,develop feedback channel and complaint handling systems for performance assessment,and take salary adjustment,position promotion,training and career development,last optimization and non-material incentives into account during implementation processes of performance appraisal.Conceptual framework of balanced scorecard implementation in performance management developed in this study,combined with continuously improvement of comprehensive competitiveness of the enterprise would enable Bank A gain competitive advantages in the local market.