PERFORMANCE MANAGEMENT SYSTEM

Strategic Business Decisions and its Effects to Performance Management System

Case Study: XYZ Rural Bank implemented its initial attempts to manage the performances of its 150 employees. XYZ Rural Bank has 10 branches all over Zamboanga Peninsula and each branch is supervised by a branch manager and has 10-15 employees working directly under his supervision.

In its initial implementation of its own performance management system, its HR department sent a Performance Appraisal (PA) Template that all branch managers need to fill out. PA tool includes the following aspects of the employees performances: Attendance (lates, absences, undertime etc) Successful collection done (for Account Officers, Loan Officers, Credit Investigators) Loans processed (For Account Officers and Loan Officers) Every July and January, all branch managers should submit the filled-out PA templates to HR for recording and consolidation. One week before the deadline for such PA template to be submitted to HR, the branch managers fill out the templates themselves based on their own observations. These templates are forwarded then to HR. For employees with negative results on their PA, the HR sends a notification of the employee. These negative results will be used in giving the employee's incentives and bonuses.

Given the above case, comment on the following aspects. Cite the advantages and disadvantages given the setup of XYZ Rural Bank. 1. Who gives the performance data 2. What data to evaluate 3. Describe how should the data be evaluated (attendance, collection and loan processed) 4. Given the overall set up of the bank, give your general comments about their performance evaluation tool.