Citibank: Performance Evaluation Case Study

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ACCT 801 -- Management Accounting and Control FINAL CASE – 14F (12 points) Due: Tuesday, Dec. 9th by 9 am Answer ALL of the following questions: Citibank: Performance Evaluation a. In the case, Citibank’s California division embarked on a strategy which emphasized relationship banking combined with a high level of customer service. Assume that you are brought in as a consultant to Citibank to evaluate the new Performance Scorecard and its implementation. The Customer Satisfaction Score metric is clearly a very important component. Briefly describe any deficiencies you see in the process used to determine the Customer Satisfaction Score and/or in the way the scores are being used. Provide sufficient detail so it is clear what you mean (bullet-points are fine). (2 points; 1-2 double-spaced pages) First, there were only three rating categories of Performance scorecard: “below par”, “par”, and “above par”. The narrow rating range could not totally reflect the real situations of the branches. Thus, it is hard to distinguish the branches’ performances which were “below par” or “above par”. For the managers, such as James who run the largest and toughest branch in the division, it is unfair to use the same rating criterion to judge all the branches’ performance. Moreover, there was not an appropriate objective indicator to the ratings related to people and standards. The manager’s superior determination was likely to be subjective and unstable. The subjective measures cannot be independently measured and verified. The personal relationship between the superiors and managers may impact the rating. This measure relied on the personal judgment of superiors, which required a high trust among the subordinates. Thus, it was not a perfect objective indicator to the rating of people and standards. Another deficiency is

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