Citibank: Performance

Evaluation

Submitted By
Group No : 03

Mannava Krishna Chaitanya MBA19201

Maulik Pancholi MBA19206
Pendyala Anand Sainath MBA19209
Petkar Suraj Ashok MBA19210
Sowjanya Yeduru MBA19245
a) The critical evaluation of the appraisal process
The Appraisal process based on the Performance Scorecard with six types of measures: Finance,
Strategy implementation, Customer Satisfaction, Control, People and Standards.
• Qualitative and Quantitative Measures: Each measure should have both the parts of qualitative and
quantitative criteria, so evaluation is being done from both the perspectives. Only qualitative criteria
having subjectivity leads to biased evaluation where only quantitative criteria does not consider
differentiating factor for various situational performances.
• Customer Satisfaction Measure: It only approximately 25 surveys that to with a telephonic interview.
Given the size of the branch, it is a small sample set, it also does not give exact information about
how satisfied the customers are with the services provided by that branch. There should be a
separate evaluation for staff and branch services and other common services which does not involve
branch operations. Other modes of communication should also be used for surveys while gathering
information.
• Ratings: Given with only 3 rating options, it would not be fair evaluation as differentiating horizon is
narrow between various categories of performers.
• Jack of all Ace of none: Citibank having a appraisal system where manager has to meet the minimum
performance requirement to receive a bonus (in this case they have to score at par in every measure
to get above par rating). This clearly indicates that each manager has to perform to certain level in
every aspect of bank’s performance scorecard to get higher ratings.
• Goal Setting: It has been done individually with area manager for each branches for financial
measure but C.S. and control measure are common for all branches despite having different
environment and affecting factors. So different goals should also be set for different branches based
on their customer base and impacting factors to business.
 b) Can this be used in other branches?

• Not every Californian branch of the Bank is identical, few branches have a higher
footfalls of customers with high demands, expectations of availing niche services and
threat of business loss due migration of customers other large competitor banks, while
the others might have diverse customer pool placed within different wealth brackets
and wide variety of clientele. So, the Performance Scorecard of the Bank should factor
these uniqueness of various branches.
• Critical aspects like Control, People and Standards criteria of the performance
scorecard can be standardized as these criteria have to be met irrespective of the size
and diversity of the branches.
• Flexibility has to be provided in the aspects of Finance, Strategy Implementation and
Customer Satisfaction since each branch has to deal with a different set of customers
with different requirements, there will be branches which have to handle higher
footfalls of customers whilst the other branches have to cater to a fraction of those
customers.
• In this case the targets have to be decided in consultation with the local branch
managers and collectively involve them and their team in the collective goal setting.
 c) Alternative Mechanism
• By critically evaluating the present Performance Scorecard, following methods
can be followed to ensure that performance evaluation can be done in a right
way
• Implementing the 360 degree feedback system, to ensure that feedback from
the subordinates of bank managers will also be taken into consideration
• By proposing weightages to each components of the feedback by
differentiating banks based on their revenue growth and branch size. For
example, branch under James McGaran has better revenue growth and
toughest to handle. Hence, by assigning such weightages will ensure the bank
managers work for better output while simultaneously handling customer care.
• Continuous feedback from the customers should be taken. The telephonic
interviews were taken for 25 customers which may not ensure that those
experiences are accurate as they were not fresh experiences. Instead
implementing a system, such that the feedback is taken 24 hours of their visit
will ensure accurate feedback.
• In the case, there is no system observed to ensure that problems faced by past
customers have been resolved. By acting on the issues after the feedback has
taken will resolve the issue immediately, thus implementing the smooth
service for the next customer.
• Such evaluation component can also be added to the Scorecard, by measuring
the number of issues resolved per number of issues reported. This will ensure
Citibank’s service stays ahead.
• By differentiating between bank services and branch services. By doing this,
services like ATMs and 24 hour banking service which will not come under the
purview of a bank manager will not effect his performance evaluation
d) Should James be given a bonus if so how much.
• James overall ratings for each measure are as follows:
• Financial measures: Above Par
• Strategy implementation: Above Par
• Control measures: Par
• Customer Satisfaction: Below Par
• People: Above Par
• Standards: Above Par

 According to us, James is an exceptionally talented and hard working employee.

 Based on his performance, he can be given above par rating and 30% Bonus which has been decided for an
above par employee.

• Reasons:
• Customer satisfaction has been added into performance evaluation measures recently, and the importance
which hasn’t been properly communicated to the entire organization.
• After knowing about this measure, James have taken measure to improve customer satisfaction levels within
his branch (Results are evident from the fourth quarter evaluation).
• And also their branch was the most complicated having diverse set of customers. James had always been the
best in showing results in such branch.
• For the future evaluation process, there should be a proper communication to the entire organization about
the equal importance of customer satisfaction along with other measures.
Thank You