Case Stduy on Citibank Performance Management
Introduction
This case revolves around the performance evaluation process at Citibank and the introduction of a new performance scorecard. The meeting is between the President of Citibank, California and his management to discuss the performance evaluation and bonus decisions for James McGaran, the star performer of the branch
James career with Citibank has been a quick progression through the ranks from the assistant branch manager to the manager position. His performance exceeded expectations in every single year especially financial results which have been truly impressive.
The company introduced the new performance scorecard which reflected the company’s broadening of the evaluation scope to customer satisfaction score. Frits Seegers, President of Citibank California, was convinced that customer satisfaction indicator was important not only for meeting ever-increasing expectations of highly-sophisticated clients, but also for achieving strategic goals of the division, and staying competitive. Performance of James was impressive in all the dimensions except Customer Satisfaction which is an important dimension for measuring overall performance especially in banking sector
Objectives
1. Understanding the importance of performance scorecard, why in the first place it is implemented, does it fit the company’s strategy, how does it work and what will the company as well as its employees derive out of that performance evaluation system?
2. Understanding all the components of the performance evaluation system, their relevance and importance to the system and on what parameters the components involved will be assessed.
3. Bringing in objectivity to the components involved in the performance evaluation system because any component with subjective evaluation can lead to an ambiguous result and hence can show negative effect on the incentives and other related areas.
Problems
• Performance evaluation of James McGaran.
James McGaran was the manager
This case revolves around the performance evaluation process at Citibank and the introduction of a new performance scorecard. The meeting is between the President of Citibank, California and his management to discuss the performance evaluation and bonus decisions for James McGaran, the star performer of the branch
James career with Citibank has been a quick progression through the ranks from the assistant branch manager to the manager position. His performance exceeded expectations in every single year especially financial results which have been truly impressive.
The company introduced the new performance scorecard which reflected the company’s broadening of the evaluation scope to customer satisfaction score. Frits Seegers, President of Citibank California, was convinced that customer satisfaction indicator was important not only for meeting ever-increasing expectations of highly-sophisticated clients, but also for achieving strategic goals of the division, and staying competitive. Performance of James was impressive in all the dimensions except Customer Satisfaction which is an important dimension for measuring overall performance especially in banking sector
Objectives
1. Understanding the importance of performance scorecard, why in the first place it is implemented, does it fit the company’s strategy, how does it work and what will the company as well as its employees derive out of that performance evaluation system?
2. Understanding all the components of the performance evaluation system, their relevance and importance to the system and on what parameters the components involved will be assessed.
3. Bringing in objectivity to the components involved in the performance evaluation system because any component with subjective evaluation can lead to an ambiguous result and hence can show negative effect on the incentives and other related areas.
Problems
• Performance evaluation of James McGaran.
James McGaran was the manager