Citibank: Performance Evaluation Essay

1432 Words Oct 26th, 2011 6 Pages
CASE
“Citibank: Performance Evaluation”
Harvard Business School 9-198-048 rev: October 14, 1999

The Performance Scorecard: a strategic management tool
Frits Seegers, President of Citibank California, is convinced that “in a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy”1. Fulfilling customers’ expectations is a critical issue for the long term business sustainability and profitability. This realization is what underlies the decision of the top management to develop and complete the former Citibank’s performance evaluation system mainly based on financial measures. In 1996, a new Performance
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It could dramatically improve the management decision making quality.
Evaluating James’ Performance
If I am Lisa, I would give “above par” global rating to James. I am aware that my intercession could be interpreted as a temptation to bend the rules to protect an “exceptional performance manager”7. Let me explain the reasoning for my recommendation that in fact would protect Citibank California interests. As we have seen before, it is critical to effectively manage customer satisfaction. But we are not alone to be strongly convinced by that, James also is aware of the vital necessity to meet customers’ expectations, right now, to maintain high “future financial performance”8 and he has already understood why customer satisfaction is “his own concern as a whole”9. He doesn’t need to be sensitized to this crucial issue by giving him a punishment consisting in a substantial decrease of his year-end bonus for “below par” measures10. I firmly believe that “the central dilemma in the appraisal process is […] preventing damage to the individual’s self-esteem and to his or her confidence about organizational rewards”11. Five of the six performance measures in James’s year-end are “above par”, and for one point where he is seen as struggling we will blame him! This would be unfair and non-productive for our company. He needs feedback not penalty. I suggest giving him a substantial bonus this year

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