Identify The Key Problems With The Existing Performance Management System In The Bank: Business- People Management Report, UCD, Ireland

Case study

Performance management at Harvesting Corporation

Harvesting Corporation is a large (fictitious) bank located in London, UK. The organization employs 350 employees at its London office. The bank provides corporate and institutional banking, treasury and security services to its clients around the world.

The bank operates a performance management or appraisal system which covers all financial staff in the company. Every year, an annual performance appraisal interview is conducted whereby line managers, using a rating scale, are required to judge the performance of their subordinates. Developed by a group of HR consultants when the business initially began trading in 2013, the performance management system uses a points scale with the following ratings: (a) = excellent, (b) = good, (c) = satisfactory and (d) = unsatisfactory. The following criteria form the basis upon which performance evaluations are to be made: sales, introduction of new business, client satisfaction, cross-referral of business within the firm, and financial miscalculation errors/service complaints. Employees’ monetary rewards are decided based on the ratings that they receive.

No Comment.