Citibank: Performance Evaluation Essay

1755 Words Jun 15th, 2011 8 Pages
I. Critical evaluation of Citibank performance evaluation form:
Citibank corporate strategy: focused on combining excellent customer service strategy along with relationship banking to build a profitable competitive franchise. Customers were offered the convenience of choosing the type of service delivery, whether personal or remote. But as high end customers become more and more valuable to the bank, their service expectations also went up. Increased service demands included broad array of financial products and careful personal attention. Thus improving customer satisfaction was realized to be of paramount importance for a successful future financial performance. President of Citibank California, Frits Seegers and top managers were
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Below 4 ratings meant that branch`s business was at risk and did not meet the minimum requirements for effective control. Reliable and objective.
5. People and Standards: refer to manager`s efforts in training/ development, teamwork, performance management, employee satisfaction, leadership, business ethics/integrity, customer interaction/focus, community involvement and contribution to overall business. Non-quantifiable and subjective. Lacks objective indicator hence determined by area manager (branch manager`s boss).
All measures except for people and standards have predetermined performance thresholds to assess if performance is “below par”, “par” or “above par”.

II. Critically assess the motivational aspects of the performance evaluation form as presented. What theories underlie the form? What control mechanisms are functioning in the form?
A team comprising of Frits, Lisa and managers from human resources, quality and finance would jointly evaluate every branch manager using this new scorecard for their year-end performance evaluation. This was tied to a branch managers` bonus along with several other motivational elements. “Below par” rating got no bonus. “At par” rating received a bonus of up to 15% -20% of basic salary. “Above par” rating carried 30% bonus. To get an “Above par” rating, a manager had to get “par” ratings in ALL the components of the Scorecard without any exceptions. This extrinsically motivated the managers
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