Performance Management in Banking Sector
Capko (2003), discuss that Performance evaluations, which provide employers with an opportunity to assess their employees contributions to the organization, are essential to developing a powerful work team.
In
our banking sector timing is important, evaluations undertaken soon after the
employee joins the bank provide a baseline against which to measure the
employee’s progress. In terms of the employee’s abilities, timing will relate
to how long it takes the employee to complete a task assigned to him/ her, such
as completing a customer transaction, amount of waiting time takes to each
customer.
According
to Yaseen (2015), performance
management can be viewed as a proactive system of administration of employee
performance for motivating the individuals and the organizations towards
desired performance results.
When
measuring performance in our bank, it is crucial that the employee can be
measured against clearly defined objective of the bank. The Key Performance Indicator are being
explained to the employees prior to the assessment of their performance.
And
also objectives include areas such as operational errors, customer
satisfaction, attendance, and even timekeeping will be measured from our Bank
employees. Employees are assessed whether they have adequate knowledge and
understanding which covers aspects from why certain security features are
required the processing of system related works.
Brumback (2015),
discussed that the purpose of managing performance is simply to help the
organization fulfill its purpose and goals, thus. Everyone in the organization
should be responsible for managing performance.
In
our bank the components of a performance management system provides the
framework which managers and employees operate in, united in their journey
towards a clearly articulated, regularly reviewed and reinforced set of goals.
Video 1: Performance Management
Fundamentals
Pandey (2017),
discuss that the reality of talent and human resource management is that
employee performance evaluation can be extremely difficult to carry out,
especially in the area of sales.
Traditional business has always mandated sale people to perform in terms
of achieving a particular sales target quota.
Personal
selling which focuses on selling skills of our banking employees becomes a very
important banking function. The
relationship between determinants namely teamwork, learning, leadership,
communication and high performance culture and Key Performance Indicators (KPI)
are interrelated. Our bank cultivates
and promotes teamwork and high performance culture to ensure KPI is highly
achievable and enhance banks profitability.
As
per Lloyd (2017) discussion,
performance management processes are over-engineered and time consuming, and
they tend to demotivate employees while hindering candid and honest
conversation.
Our
branch has introduced a system to evaluate the staff performance on a daily
basis by way of maintaining daily log books.
Each and every staff member has to canvass products and record it in the
log book and this would be added to the Annual Performance Review. And also
daily updations with regard to the customer expectation, new competition, marketing
skills and new technologies are being learned.
Huprich (2008),
reveals that, Performance Management is a system designed to identify the ways
to achieve organizational goals through constant assessment and feedback
leading to improvement of employee performance.
In the prevailing circumstances many activities are taking place in our organization such as setting of highly aggressive sales targets, customer service bench marks, frequent goal tracking, continuous coaching and mentoring in order to maintain a better employee experience. Maintaining Legal compliances. Planning of workplace for productivity and profitability.
Figure 1: Performance Management Cycle
Huprich (2008)
Personal Development Planning
Eastwood (2019), states
that accomplishing the goals that laid out in the plan should require wholesale
changes as to how to work or learn.
After all, the plan is meant to help to continue to grow, not start over
completely.
In
our banking sector, planning stage is the ground work for success is laid
down. Before management converse with
the employees, the management team meet and decides the organization’s goals
and objectives. Well trained and
engaged teams can bring value to our banking sector, customer and business.
This helps to provide a competitive advantage.
Team members are more confident and competent in task that we
undertake. This will help add value to
the business. Professional development
plans are created by the manager working closely with the staff members to identify
the necessary skills and resources to support the staff member’s career goals
and our organization’s business needs.
Performance
Marfuah (2017), describes
that, company’s performance or job description create parameter that can be
measured in accordance to the Key Performance indicator by comparing the
achievement of predetermined targets.
In
our banking sector productivity is a very crucial factor in making the
organizational great and profitable. Our
organization create a win-win situation and conditions to the staff. Our managers delegate portions of workload to
team members that want to grow and develop, allowing managers to focus on
higher level strategic initiatives.
Human Resources add value for managers by providing training and tools to
mentor coach our teams on an ongoing basis.
Performance Review
According
to Migiro (2011), effective
performance appraisal system entails insuring that the system focuses on
performance variables as opposed to personal traits. Appraisal process to be conducted
in a productive manner.
Performance
appraisal of employees are always a very important part in our banking sector,
performance appraisal helps to motivate the working team and retain it. Employee’s performance of a job is dependent
on job promotions, training programs, flexibility to balance between work and
home, career development opportunities.
Figure 2: Elements of appraisal effectiveness
Migiro (2011)
Performance Agreement/ Rewarding
Eshun (2011)
discuss that, most organizations view rewards as a means of motivating certain
behaviors in employees, special, rewards are intended to motivate employees to
perform effectively and efficiently towards achieving organizational goals.
This
stage cannot be overlooked in our organization, as it is the one that is the
most important for employee motivation.
Employees who do not receive a proper reward after a year of striving to
meet organizational gals, and succeeding in doing to, will lose motivation for
the next year. Employees might lose
faith in their organization, feel that their talents are not appreciated. In order to eliminate this mindset our
organization, awards staff members who are performing well by salary
increments, promotions and cash prizes.
When our management fairly reward our employees and gives them
recognition for their efforts, they are ensuring that the employees will
continue to work hard to achieve organizational goals.
Njuguna W. K. (2017),
reveal that the choice of appraisal techniques are paramount in determining how
well the process is received since it is only with better comprehension of the
method that the exercise can bear more fruits.
The methods of appraisal are 360 degree feedback, personal ranking and
appraisal system on a regular basis.
We
in our bank carry out Management by Objectives method where our Managers and
employees together identify, plan, organize and communicate objectives to focus
on during a specific appraisal period.
After setting clear goals, managers and subordinates periodically
discuss the progress made to control and debate on the feasibility of achieving
those objectives. We have annual review
and employees are judged by their results.
Success is rewarded with salary increments or promotions. Failures are transferred or further training
is given.
Reference
Brumback
G. (2015), Performance Management
Fundamentals, Cambridge University Press (online), available on: https://www.cambridge.org/core/journals/industrial-and-organizational-psychology/article/abs/performance-management-fundamentals/E5E0EECE62A2BA0C6F53C86CA5A26B1D#
cited on 28th April 2021.
Capko J. (2003), 5 steps to a Performance Evaluation System, Keep
your staff productive and motivated by conducting regular performance
evaluations, Fam Pract Manag. (online), available on : https://www.aafp.org/fpm/2003/0300/p43.html
cited on 23rd April 2021.
Eastwood
B. (2019), How to Create a Personal
Leadership Development Plan, Northeastern University, Bachelor’s Degree
Completion (online), available on: https://www.northeastern.edu/bachelors-completion/news/personal-leadership-development-plan/
cited on 26th April 2021.
Eshun
C. and Duah F. K. (2011), Rewards as a
Motivation Tool for Employee Performance, School of Management (online),
available on: http://www.diva-portal.org/smash/get/diva2:832968/FULLTEXT01.pdf
cited on 27th April 2021.
Huprich
J. (2008), A Brief Introduction to
Performance Management, Library Worklife: HR E-News for Today’s Leaders
(online), available on: https://ala-apa.org/newsletter/2008/06/15/a-brief-introduction-to-performance-management/
cited on 26th April 2021.
Marfuah M., Dewiyani L. and Mutmainah (2017), Bank Employee Performance Analysis Using
Human Resource Scorecard, European Journal of Business and Management, Vol
9, No. 11 (online), available on: https://www.iiste.org/Journals/index.php/EJBM/article/view/36397/37410
cited on 26th April 2021.
Migiro
S.O and Taderera M. M (2011), Evaluating
the performance appraisal system in the bank of Botswana, African Journal
of Business Management Vol 5(10) (online), available on: https://academicjournals.org/article/article1381158924_Migiro%20and%20Taderera.pdf
cited on 26th April 2021.
Njuguna
W. K. (2017), Performance Appraisal
Systems and Employee Productivity in Commercial Banks in Nairobi County, Kenya,
International Academic Journal of Human Resources and Business
Administration, Vo. 2, Issue 4 (online), available on: https://www.iajournals.org/articles/iajhrba_v2_i4_329_346.pdf
cited on 27th April 2021.
Odsulearing, Performance
Management Fundamentals [Video file].
Retrieved from https://youtu.be/p3UF7F2fBIM ,
available on: https://www.youtube.com cited on 27th
April 2021
Pandey
A. K. (2017), Best Practices for a
Positive Employee Performance Management, Gethow (online), available on: https://www.gethow.org/best-practices-positive-employee-performance-management
, cited on : 26th April 2021.
Yaseen A. (2015), Performance Management Practices And Its
Impact on Bank’s Performance In Pakistan, International Journal Human
Resource Studies (online), available on: www.macrothink.org
cited on 23rd April 2021.
Hi Treva agree with you.
ReplyDeletePerformance management is one component of talent management and has been defined as the measurement and management of employee and organizational performance (DeNisi, 2000). Performance management consists of the following elements: setting performance goals, conducting performance appraisals and rewards (Roberts, 2003).
Exactly Nivethini, as Brumback (2015), discussed the purpose of managing performance is simply to help the organization fulfill its purpose and goals. Thus, everyone in the organization should be responsible for managing performance.
DeleteAgree with you Treva, further Armstrong and Barron(2002) emphasize that performance management is a kind of strategy and consolidated approach in terms of delivering constant success to an organization in the way of improving the performance of every individual employee of an organization.
ReplyDeleteCorrect Pernalla, Strategic Performance Management requires ongoing mechanisms for feedback and adjusted course. It is a fluid process by which the strategic performance management leadership develops and operationalizes a plan that goes beyond the basic elements of vision, mission, values, goals, and strategies to include careful analysis of the functions performed by the organization (Sam 2015).
DeleteYes Treva , further Armestong, (2006) emphasize that performance management is a continuous and flexible process, which involves managers and those whom they manage acting as partners within a framework that sets out how they can best work together to achieve the required results.
ReplyDeleteIn addition, Enrique et al (2006) discussed that, organizations and employees work more effectively when the goals and objects are linked. When people in the organization understand how their work contributes to the success of the company, morale and productivity usually improve. Performance management processes allows the organization to support the planning, control and monitoring of the organization operations and projects and their results, assure the control and identification of deviation.
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ReplyDeleteYes Treva, performance management reflects on common goals of the organization. Performance management can be defined as “identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization” (Aguinis, 2013, pp.2-3).Furthermore, Researchers have historically placed considerable weight on psychometric properties, in particular reliability, validity and freedom from bias as criteria for effective performance management (Catano, et .al., 2007; Kinicki, et. al, 2013).
ReplyDeleteAddition to you valuable remark, Performance management is a process for setting up a shared understanding of what is to be achieved at an organization level. It involves the alignment of organizational objectives with the individual’s agreed measures, skills, competency requirements, development plans and the delivery of results. The focus is on performance improvement through learning and development in order to achieve the overall business strategy of the organization (Rajendran 2021).
DeleteCorrect Treva, performance management are crucial to enhance organizational performance, that consist with critical elements, performance goal setting for the organiazation-team,departmental & individual level, conducting performance appraisal & developing systems to provide rewards,feedback,coaching & measuring the effectiveness of performance management system(Ricci,2016).
ReplyDeleteAgree with you, and Performance is usually depicted as desired results, behaviors, attitudes, or traits. Some argue that performance refers to the final results as what get accomplished. Others argue that performance has to do with behaviors people exhibit in the course of producing results and with their basic competence or ability to perform various aspects of the job Bae (2006).
DeleteYes Treva I agree with you, adding to that performance management has developed from a very operational focus to a more strategically oriented concept, where it plays an integral role in the formulation and implementation of strategy (Scott-Lennon, 2005). It is this strategic impetus which differentiates it from performance appraisal. Performance management seeks to align a number of processes with corporate objectives (McKenna and Beech, 2008).
ReplyDeleteIn addition, a good performance management system is the central nervous system of the organization since it is providing operational intelligence on a real time basis, indicating performance relative to goals, effectiveness and efficiency of programs and services, performance of process, and customer satisfaction levels (Moran et al., 2013).
DeleteAgree with you. Each performance evaluation approach has its benefits and limitations and may not be fitting for one company. As a result, no particular evaluation system is admitted and applied by all companies to evaluate employee performance (Silverstein, 2019).
ReplyDeleteAccording to Alexe (2020), a good organizational culture boosts performance. Organizational performance is tightly related to the company’s Management Style and then to the belief system of the employees, as they are the pillars of the organization and can make ideas happen.
DeleteAgree with you. Employee’s appraisal system may be considered one of the indicators of the quality of Human Resource Management in an organization. Properly designed and realized process of employees‟ appraisal is not only the necessary basis of successful employee performance management, but also provides valuable information for other human resource management functions (Aggarwal & Thakur, 2013).
ReplyDeleteIn addition, Performance management is a process for setting up a shared understanding of what is to be achieved at an organization level. it involves the alignment of organizational objectives with the individual’s agreed measures, skills, competency requirements, development plans and the deliver of results (Rajendran, 2021).
Delete
ReplyDeleteYes, I agree with your idea the basic intention of performance management is to get better results by providing the means for individuals to perform well within an agreed framework of planned goals, standards and competency requirements. As defined by Aguinis (2005) Performance management is a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. Furthermore, Its five elements are agreement, measurement, feedback, positive reinforcement and dialogue (Armstrong, 2014).
Exactly, Modern organizations deal with operations where continuous Human Performance Management processes mush be in place to achieve high performance goals. Performance Management Systems support project managers to in global environment where geographically distributed teams are working virtually with very low face to face supervision (Capella et al., 2006).
DeleteAgreed Treva. Boxall and Purcell (2011) state that skill and competencies of employees are important to gain distinctive advantage over competitors. Effective performance appraisal technique will evaluate the performance level and identify the skill gap need to be fill to develop overall performance.
ReplyDeleteAgree with you, Performance management success depends on having a clear purpose and overcoming misalignment barriers. But even with purpose and attention to alignment, it is helpful to have clear success criteria and to explore new ways to achieve performance management goals (Schiemann, 2016).
DeleteAgreed with you, and Performance appraisal can use tool. Performance appraisal is potentially a key tool for organizations to make the most of their human resources and the use of appraisal is widespread (Prowse & Prowse, 2009). Performance appraisal can be defined as the formal assessment and rating of individuals by their managers at, usually, an annual review meeting (Armstrong, 2006).
ReplyDeleteAgree with you, performance management and particularly performance appraisal is one of the most important HRM practices as it identifies individual responsibilities, objectives and required behavior with the ultimate goal to align employees behavior and goals with the company’s strategy (Curzi, 2019).
DeleteYes, while understanding that PM- Performance Management is an important part of Human Resources Management further Armstrong (2009) Defines "Performance management is a systematic process for improving organizational performance by developing the performance of individuals and teams."(Armstrong, 2009, p.618).
ReplyDeleteAnd also, Performance Management can be described as a process by which organizations set goals, determine standards, assign and evaluate work, and distribute rewards. In effect it is used to improve organizational, team and individual performance and development, including activities designed to ensure that goals are consistently being met in an effective and efficient manner (McMahon, 2013).
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