Assignment 1: Citibank Performance Appraisal
Jack Welch Management Institute
May 3, 2015
Being in charge of an organization may seem easy. Yet leading and managing are difficult tasks. One of the most difficult tasks as a manager is evaluating your employees. Your company knowledge, financial acumen or marketing abilities may be dismissed if you don’t know how to communicate with your employees. Knowing what to say and when to say it are the most effective means of ensuring your employees understand your message and is one of the most important attributes of a good manager/leader. Effective communication increases your credibility (Munter, 2012) whether that communications be stating company performance at an annual meeting of stockholders or a one-on-one employee performance appraisal.
Knowing which style of leadership to use (Goleman, 2000) and the tone you chose to use during the process (Munter, 2012) will be deciding factors on how the appraisal is received by your employee. Background
This case study (Citibank: Performance Evaluation) discussed how Lisa Johnson the area manager evaluated James McGaran, a branch manager, in one of the most important branches in Los Angeles, California for Citibank. James supervised 15 personnel and had revenues of $6 million, and a profit margin of $4.3 million. He rose rather quickly through the Citibank process and was promoted to his current position in 1992. His branch surpassed all goals every year for four years. In 1996, Citibank expanded performance indicators to include non-financial measures and for the first time a problem had been identified by Citibank in relation to James’ branch performance. His customer service ratings did not follow his financial performance.
Citibank was relatively new in the California marketplace which had been dominated by Wells Fargo for a lengthy period of time. Because of this, Citibank wanted to build their reputation in California as a banking system that provided a high level of customer service to outshine its competitors and capture a larger percentage of the banking market. To this end, Citibank created a stand-alone Performance Scorecard for customer service. This scorecard focused on six different types of measurement from Financial to Strategy Implementation to Customer Satisfaction. Based on measurement in each of these six categories, quarterly and annually an employee would receive a bonus and the potential for advancement.
Although James’ branch was excelling in the financial arena they had some problems in the newly created non-financial areas. Everyone knows that customer expectations rise concurrently with an individual’s net worth. However, James’ branch was barely passing the 50th percentile for customer satisfaction. Citibank believed in quarterly reviews followed by a final annual appraisal so that employees knew throughout the year where they stood in relation to the evaluated parameters.
At each quarterly review James received an overall rating of “Par” or “Above Par” yet for his final/annual appraisal we are discussing what his yearly overall assessment should be. Approach
It is my opinion that the approach to consider his overall assessment and the approach to presenting the findings to James needs to be based on facts. It is very clear how to show James the performance for the financial scales, these are straight forward numbers based on daily recordings.
After reviewing James’ quarterly assessment’s the terms “strong manager”, “high standards’ and “teamwork” (Dunne, 2011) were repeated several times over. It is in my judgement that any approach other than the “accusatory” approach to review his appraisal would work for James.
If I were Lisa I would schedule a meeting with James to discuss his annual appraisal and compare the annual assessment to that of the quarterly assessments. First and foremost, as...
References: Araoz, C., (2007). Great People Decisions, Wiley and Sons, Inc., Hoboken, New Jersey
Ceconi, T., (2015). Giving Negative Feedback During Performance Reviews - Part 2 [Video Blog] , http://blog.hr360.com/hr-blog/giving-negative-feedback-during-performance-reviews-part-2-video-blog
Dunne, R., (2011). Delivering Performance Review Phrases and Messages That Motivate, http://product-ivity.com/performance-review-phrases
Editors, BMD., (2015). Employees must be held accountable, http://www.businessmanagementdaily.com/43001/employees-must-be-held-accountable
Goleman, D. (2000). Leadership that Gets Results, Harvard Business Review, Harvard Business School Publishing,
Johnson, A., Performance Appraisals: The 5 Biggest Mistakes Managers Make And How To Avoid Them, http://www.businessknowhow.com/manage/performance-appraisal.htm
Lloyd, K., How to Provide Negative Feedback during Employee Appraisals, http://www.dummies.com/how-to/content/how-to-provide-negative-feedback-during-employee-a.html
Munter, M. (2012). Guide to Managerial Communication. Prentice Hall Publishing
Puckett, R., (2005). How to Deliver an Effective Performance Appraisal, http://www.anfponline.org/Publications/articles/2005_09_070Appraisal.pdf
Wiley and Sons. (2014). DiSC Management Profile, Center for Internal Change
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