Performance Evaluation at Citibank: Case Questions
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The top management team of Citibank California is meeting to review the performance of the bank’s branch managers and decide their bonuses. James McGaran is next in the review process. The committee must decide whether to give him an “above par” rating (with a bonus of 30 % of his salary), a “par” rating (with a 15% bonus) or a “below par” rating (with no bonus). Citibank has just implemented a balanced scorecard performance evaluation system and this is the first occasion where both financial and non-financial performance criteria have been applied to branch managers of the bank. This case also looks at the alignment between the performance management system and other human resource management systems and business strategies.
1. Why has Citibank introduced a performance scorecard and what was it intended to accomplish?
2. What are the cause-effect relations between the measures used in the performance scorecard at Citibank?
3. What should Lisa Johnson and Frits Seegers do about McGaran’s year end performance evaluation?
4. What revisions (if any) to Citibank’s performance scorecard would you propose?
5. What conclusions about performance evaluation do you draw from this case?