2) Performance Evaluation and Employee Productivity in Banking
Performance Evaluation
One of the most significant human resource procedures in firms is performance evaluation, which helps to assess people and improve their performance.
However, there are a number of issues with performance rating processes in businesses, particularly in the public sector.
Despite the fact that research on performance evaluation and employee productivity has been undertaken, there remains a research gap in the public banking industry.
The way to close this gap is by examining the relationship between performance rating systems and staff productivity in banks.
Employees are expected to work hard to achieve the goals, objectives, and targets established for them in order to be rewarded by using Performance Appraisal Systems. In other words, it acts as a foundation for advancement and pay raises.
It may also lead to disciplinary measures, such as demotion or even dismissal of unproductive staff who fail to fulfill their targets.
The key to encouraging people to perform is to set clear goals with the personnel you manage, train them to success, and praise them for their achievements.
This would boost their motivation to fulfill their goals and take control of the company. Workers are thus expected to be evaluated with the goal of identifying their talents and limitations in order to empower them for the organization's advantage.
As a result, performance appraisal is a management tool for evaluating performance in reaching organizational objectives.The information gathered may be used for various reasons such as: Promotions. Identify training needs, delegation, deployment and reward/sanction.
The process of reviewing and evaluating an individual's and a team's contribution to the attainment of the organization's goals is known as performance appraisal.
A performance appraisal system is an important tool that a business may utilize to improve the quality of its personnel & a component of Performance Management is the Performance Appraisal system (PM).
Performance management seeks to improve efficiency and productivity by giving employees the opportunity to examine agreed-upon work objectives, subordinate work-related behavior, and agreed-upon actions to address any inadequacies on a regular basis.
It also serves as a foundation for career planning in light of identified strengths and shortcomings, as well as providing data on which to make award decisions. A good Performance Management System (PMS) will also boost the individual employee's motivation and performance, which will have a favorable impact on the organization's performance.
As a result, the purpose of a performance appraisal is to compare an employee's performance to the job's criteria or targets and to provide objective feedback based on job-related aspects.
Managers or supervisors are in charge of evaluating employees, and they require training to gain the relevant information and abilities.
Productivity In Banking System
It is commonly known that numerous banks throughout the world are underperforming due to low service quality and thus profitability. This is true for both public and private sector banks.
Various factors have been discovered to have an impact on the quality of bank services, including:
- The type of banking model used
- The number of services
- Effectiveness of banking services
- Efficiency of the service providers (bank employees)
- The technology used
- Safety for depositor’s money
- The security & error free transactions
Employee Productivity
- Planning
- Target setting
- Motivation
- Work Strategies
- Responsibility
- Role model
- Monitoring & Guiding
- Accountability
When the managers have set a Strategic performance management system the goals of the company or even the key performance activities of the employees can be designed with the involvement of the employees. But this is not easy for most of the banks as the staff they have is high and they are in several geographical areas. Sometimes when setting marketing goals a common set for all branches wont definitely work and has to set up several goal sets based on the relevant factors. On the other hand defined Performance appraisal system will also be complicated.
ReplyDeleteIt is a good point
DeleteIt is not 100% accurate in most of the auctions.
But some of the banks have evaluated all the aspects that has an impact in the performance and have modified there evaluation system.
For an example the branches are been categorized in different categories and the targets differ from each others.
Still the out put of the evaluations are not perfect as the environmental aspect even can play a vital role in the final performance (Example - the current pandemic situation)
Appreciate your emphasis on the positive aspects of our evaluation, Romesh.
ReplyDeleteAside from the difficulties of performance evaluations in the banking industry, Differences in opinion among raters, a misunderstanding of the relationship between performance and potential, faulty assumptions, evaluation tampering, erroneous judgment, ineffective organizational policies and practices, and cultural biases are just a few of the issues that can arise.
An open and honest evaluation system must therefore be implemented by the employer.
Uditha totally agreed for the point that you have made, As stated by you there are few practical issues related to the performance management.
DeleteMost of them can be properly managed by the higher authorities of the company.
To minimize such errors, there can be a group of evaluators appointed instead of single persons view for the final output of the evaluation.
Good article Romesh. In fact we can see a huge positive impact on the banking customer service compared to a few years ago which is really good. Thus I hope most of the banks practice the above factors that boost productivity. Do you think they should use new technologies & devices too in order to improve the productivity?
ReplyDeleteDefinitely Chanika, new technology implementation for the banking industry is a must and it has been continuing from the past. As banking industry is very much related with modern day technology it can be implemented for the performance evaluation system too.
DeleteAs an example the attendance can be totally monitored using a fingerprint machine and the aqurassey of it is 100% & it will be very much useful for the finale output of the evaluation.