Citibank - Performance Evaluation

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INDIAN INSTITUTE OF MANAGEMENT LUCKNOW

Written Executive Communication

PROJECT REPORT

Citibank – Performance Evaluation
Submitted to – Dr. Payal Mehra
Date – 26/10/2012

Submitted By Group 8, Section C
Anuradha Tyagi (PGP28128)
Aditya Singh (PGP28158)
Bholendra P.Singh (PGP28143)
K. Aditya Das (PGP28139)
Vishal Raju (PGP28155)
Shweta J. (PGP28159)
Table of Contents
1. Abstract2
2. Brief Overview of the current situation3
3. Strategy for Case Analysis5
4. Case Analysis6
5. Recommendations9
6. Implementation11
7. References12

Abstract
Frits Seegers, President of Citibank California was put in a tough spot when he had to evaluate James McGaren. Mr. McGaren had for long been a good performer, but with the new performance evaluation criteria that take customer satisfaction into consideration, he fared “below par”. It is now up to Mr. Seegers to take a call on James, should he be given an “above par” or a “below par” rating and how will this be communicated to him.

Brief Overview of the current situation
James McGaran is the manager of the flagship office of Citibank in the Los Angeles area which also happens to be the most important of Citibank’s 31 branches. He has been a veteran not just in the banking sector but also at Citibank. He had delivered impressive financial results for four years in a row exceeding expectations every single year. But when customer satisfaction was included as a decision parameter in when it comes to evaluation, it was evident that James did not fare very well on that front. The new criteria for employee evaluation are as follows:

* Financial Measures: Focus was on total revenue and profits * Strategy Implementation: Tracks revenue from a particular segment relevant to the Bank’s strategy. * Customer Satisfaction: Surveys were conducted. Emphasis was laid on long term association. * Control Measures: Based on banks internal control processes. If rating < 4, bank is said to be at risk. * People and Standards: Focused on the efforts of the manager to develop and communicate with peers/ employees. Based on the employees performance in these factors a rating was given, the various ratings that can be given were “Par”, “Below Par” and “Above Par”. Finally, a global rating and overall rating for the manager was awarded. Due to the change in performance evaluation criteria, two major complications flared up: First and foremost, Lisa Johnson has to decide the rating of James. According to bank’s rule an employee can be given above par rating if and only if he is performing at par in all the criteria. John has been excellent at five performance measurement statistics but lags in one i.e. customer satisfaction. So as per the rules he can be given “at par” rating at best. But Lisa believes that John deserves an above par rating because of his excellent work when it comes to revenues. Secondly, if Lisa decides to give him an “at par rating”, she has to decide the best possible way to communicate her decision. She has to inform him in such a way so that it does not have any negative effect on James. Lisa wants James to stay with the company and she has to make sure that the message is communicated properly. It is clear that James will not accept a “below par” rating and at this juncture, Citibank cannot afford to lose an employee of James’ stature. This is a typical Human Resources related situation which has to be dealt with extreme caution, else there can be dire consequences. Should James’ ego be hurt, there is a good chance he will quit the company and with his credentials, he should not have much trouble getting another job. At the same time, should he be given an “above par” rating, it would go against the long term vision of the company.

Strategy for Case Analysis
This case focuses on the performance evaluation James McGaran. Though the performance evaluation parameters...
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