Citibank Performance Evaluation

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Table of Contents

Performance Evaluation
Performance Evaluation: Citibank Case
Benefits of Performance Evaluation
References

Performance Evaluation

This is a process that a company uses to scrutinize employees’ performance, areas of effectiveness and efficiency. It also looks at points of weakness. Its aim is to improve future performance, foster company growth, and career progression as well. A company should engage employees in formulating this process. That way, employees know what the employer expects of them.

Performance Evaluation: Citibank Case

In the case above, a Citibank Manager’s performance undergoes scrutiny from superiors. In the past, he has had stellar performance based on the standards then.

However, the Bank introduced new standards touching on customer satisfaction. In this area, the manager scored ‘below par’. Hence, he is uneasy about the reaction of the supervisors and the recommendations in their report. In this regard, I choose to look into the effect of performance evaluation on employees. Citibank is the focal point of this discussion (Harvard Business Review, 1997).

In the case study, the bank’s customers were sophisticated. They demanded high-quality services. Employees, therefore, were under constant pressure to meet the standards. This way, the bank would retain and acquire more customers. However, the employees needed the motivation to ensure customers kept coming. At the same time, the manager had to evaluate performance to ensure this was happening (Harvard Business Review, 1997).

The company employed the James McGarans scorecard. This score recognizes aspects such as financial performance, strategy implementation, customer satisfaction among others as measures of performance. From the case study, after Chief Executive James was rated below par, he did all to ensure he scored well from these areas.

This was in consistent with an organizational look. Of importance is the fact that all through 1996 (the year of the analysis), James scored below par on performance evaluation throughout the four quarters despite scoring well on other measures. This means that performance cannot be exemplary from all fronts (Harvard Business Review, 1997). Below is an evaluation of the latest benefits scholars attribute to performance evaluation.

Benefits of Performance Evaluation

Employee Motivation

This evaluation motivates employees to work harder. At Citibank, the historical evaluation focused on performance in the balance sheet or financials. However, more focus nowadays is on customer satisfaction (Citibank, 2011). This is the reason why the bank introduced online banking services. Managers at the local level need to continue fostering this. Therefore, when customers report satisfaction, employees feel the urge to serve them better. This leads to motivation (Human Resource Management Services, 2010).

Personal Satisfaction

Evaluation leads to personal recognition for particular effort. The employee achieves personal goals. Additionally, when an employee achieves targets he set out to achieve, it amounts to personal development, which is inwardly satisfying. At Citibank, after the introduction of a new Manager Evaluation System, Branch Managers report new satisfaction level expectations. This is a good thing as it leads to better input towards customer satisfaction too (Human Resource Management Services, 2010).

Control Work

Lastly, this evaluation benefit is to employers. An employer correctly controls work. At Citibank, a manager knows the employer’s targets in terms of satisfying customers (Citibank, 2011). He even knows what measures the employer will use to ensure this happens. In the end, all parties are happy. Does this reduce the work of employers? The answer is no. This is because there is the downside of performance evaluation.

Limitations

Performance evaluation is a critical tool in business. However, it may be the Achilles heel if not carried out well. It may lead to employees’ perception of discrimination and over-expectation in the process. Failure to achieve targets and goals may lead to de-motivation.

It is the work of the managers to ensure this does not happen. At Citibank, an ‘above par’ performance on customer satisfaction does not mean that all customers are happy. It means that a good number derives satisfaction from the services. Therefore, it is the responsibility of the company to ensure that it strikes a good balance between these two (University of Tennessee, 2011).

Reasons for Evaluation

At Citibank, the main reason for evaluation is to ensure observation of its motto. It desires to have a local presence but a universal approach to banking. Hence, individual satisfaction is critical to the core business definition of the company. The company values its employees too. Hence, performance evaluation is another way to keep them motivated and happy. Lastly, it is a tool to enable the company to meet goals and objectives (Citibank, 2011).

References

Citibank. (2011). About Us: The Way We Do Things. Web.

Harvard Business Review. (1997). Citibank: Performance Evaluation. Web.

Human Resource Management Services. (2010). Management: Performance Management. Web.

University of Tennessee. (2011). Performance Evaluation. Web.

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