CITIBANK :

PERFORMANCE Submitted by:

EVALUATION Abhishek Gupta

Group 13
MBA19167
Arti Patidar MBA19181
Hardik Sinha MBA19192
Shashank MBA19227
Shubham Vispute MBA19243
 CRITICAL EVALUATION OF
APPRAISAL PROCESS
Performance Scorecard:
The traditional method of performance
evaluation only took into consideration the
financial measures and did not have
indicators to communicate the service
strategy of Citibank. Hence, a new
performance scorecard was designed .
It incorporated six different types of
measures:
• Financial
• Strategy Implementation
• Customer Satisfaction
• Control
• People and Standards
Advantages
 Focused on different target customer segments
 Rise in service expectations with increase in focus towards customer relation
 Customer Satisfaction was termed as a critical measure for long-term success
 Aligned to the strategy of the bank
Disadvantages
 Evaluation included non-branch banking services like phone banking & ATM
services
 Customer Satisfaction survey did not have adequate sample size (only 25
people were surveyed)
 Lack of an appropriate objective indicator for comparison of People &
Standards rating
 The scorecard did not take into consideration branch-specific challenges and
work environment
 The new system was not run on a trial basis prior to its full-fledged
implementation
 A marginal bad performance in one area impacted the entire rating.
 IMPLEMENTATION IN OTHER
BRANCHES

Limitation of universal performance

scorecard:

 Different Geographical locations

 Customer satisfaction and Control goals common
across all branches
 Different Customers and Client base
 Diverse customer base means diverse service
quality requirements
 Different competitive environment leading to
different requirement for Bank Branches
 Different branches require different goals to cater
to. Thus requires different weightage to different
parameters based on Branch requirement
 Larger customer base for John’s Branch that
included mostly business people with few retail
customers
Recommendations:
 Evaluating performance on same customer
satisfaction level and control goals across all branches
is wrong
 Giving same weightage to each goal across every
branch should not be done. Weightage should be
given to goals based on the branch priorities
 Thus, it is advisable to cluster similar type of banks in
customer base and requirements can have similar
kind of performance appraisal system
 ALTERNATIVE MECHANISM

Improvement of the System

 The company should apply more than one method to calculate the customer satisfaction score instead of single
telephonic interviews
 360 degree feedback should be taken into consideration, when it comes to evaluation of someone's performance
 An additional parameter of “leaning and growth” should be added which would make the scorecard look balanced
 Regular timely meetings should be conducted to discuss progress on the goals set for all individual
 In-branch services and out-of-branch services should have separate surveys and the respective evaluation
 Each branch should get target on the basis of their particular needs – e.g. some might have high financial standards
target to improve on the customer satisfaction level gradually
 Survey should be conducted from a large pool of customers of the branch and various channels like random face-to-
face interviews, questionnaires etc. should be used
 The achievement of one goal should not come at the expense of another
 AWARDING OF BONUS TO
JAMES

‘Above Par’ Rating

20% increment in the
James should receive an ‘Above Par’ rating because salary as bonus
of the following reasons:

• Employee gets 30% increment only when he scores

 For his excellence performance in other dimensions
‘above par’ rating in all dimensions
 His financials were outstanding
 Had worked hard to improve customer satisfaction during • Will lead to more efforts in improving customer

the last quarters satisfaction in the next quarter

 Had strong sense of teamwork
 Exceptional performance manager
 Will keep him motivated to work with same rigor in future
THANK YOU