Case Background and Questions for Discussion:
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. This is the first time where both financial and non-financial performance criteria have been used to evaluate the performance of branch managers. This case looks at the alignment between the performance management system, HR strategy and practices, and the business strategies.
- Why has Citibank introduced a performance scorecard and what was it intended to accomplish?
- How are the measures used in the performance scorecard at Citibank linked to business strategy implementation?
- What should Lisa Johnson and Frits Seegers do about McGaran’s year end performance evaluation (use Exhibit 1)? How should they rate him on customer service (below par, par, above par) and what should his overall rating be (below par, par, above par)?