Scribd
Upload
73 views

Assignment 4

Citibank introduced a performance scorecard to provide a more well-rounded evaluation of employee performance that considers both financial and non-financial measures. The scorecard evaluates employees on customer satisfaction, strategy implementation, and other qualitative factors in addition to traditional financial metrics. Citibank felt that over-relying only on financial measures did not adequately reflect their strategic focus on high customer service or capture important non-quantitative aspects of performance.

Uploaded by

Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
73 views

Assignment 4

Citibank introduced a performance scorecard to provide a more well-rounded evaluation of employee performance that considers both financial and non-financial measures. The scorecard evaluates employees on customer satisfaction, strategy implementation, and other qualitative factors in addition to traditional financial metrics. Citibank felt that over-relying only on financial measures did not adequately reflect their strategic focus on high customer service or capture important non-quantitative aspects of performance.

Uploaded by

Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

OB & HRM

Assignment 4

Question: Read the case study “Citibank: Performance evaluation”, and explain why Citibank
has introduced performance scorecard?

The main purpose of the balanced scorecard is to set goals and allow managers to complete well-
rounded performance reviews using both quantitative and qualitative measures. While financial
measures are important in analyzing performance of the bank, they do not provide any insight
into non-quantifiable measures that can be equally important in performance assessment. In
addition, the balanced scorecard forces employees to adopt a broader view of the business and
concentrate not only on financial measures, but on measures that are truly important to the
success of the company. In the service industry, customer satisfaction is a particularly important
measure in determining how the company is doing. A high level of customer service is a
significant component of Citibank’s strategy in California. Frit Seegers saw it as a leading
indicator of future financial performance of the bank. From the past experiences, it was
determined that customer satisfaction ratings do not follow the same pattern as financial
performance, and it is necessary to measure customer satisfaction separately. Top managers felt
financial measures had dominated Citibank past performance evaluations but felt these measures
were poor vehicles to communicate the high service strategy of the bank. Frits wanted managers
to have a broader view of the business and focus their attention on those dimensions that were
critical to the long-term success of the franchise. To reflect the importance of non-financial
measures as a leading indicator of strategy the scorecard say that all 6 measurements were equal.
financial measures, Strategy implementation, Customer satisfaction which was the leading
indicator of long-term financial success measured through telephone interviews with 25 branch
customers. Scores came from branch services as well as others Citibank service not in the hands
of branch if this dropped it could take some time to show up in the financials

You might also like