Research On BSC-based Performance Evaluation System For The Central Bank

Performance Evaluation (PE) is both a leading subject and a hard nut in modern public organization managements. As the central bank of the state, the People’s Bank of China(PBC) needs to improve its current PE efficiency by solving drawbacks and problems caused by the unspecified target orientation, lack of universal standard, and divorce of the performance evaluation it uses now from its execution strategy. Balanced Score Card (BSC), a strategic management tool, has proved its usefulness in helping many organizations to make record-breaking performance in competition since it can convert their strategy into a comprehensive set of manageable objects and indexes.This article, containing six sections, takes the performance management (PM) of the PBC Nanjing Branch as a starting point to study how BSC theory can be applied in constructing an effective PE system in PBC architecture.Section1reveals the necessity to establish a scientific PE system in PBC architecture. The reason is obvious for the organization cannot function well unless every part of it operates properly as designed, especially when dealing with the current international financial crisis and carrying out the macroeconomic adjustment.Section2, which forms the theoretical basis for the BSC application in PBC architecture, provides not only a review of the PE theories and practices in our and foreign governments, but also the origin, contents and features of BSC theory and its applications among various government agencies.Section3presents a feasibility analysis of the BSC application in PBC’s PE system after the existing one and its problems are analyzed,.Section4attempts to establish a BSC-based PE system among PBC branches by summing up the PE practices in the PBC Nanjing Branch from the aspect of four fundamental PE factors (functional performance, leadership building, internal management and creative learning). Attached here is also a questionnaire of PBC Nanjing Branch employees’attitudes towards this BSC-based evaluation system and changes it has brought in their performance evaluation.Section5is about the procedures to organize and implement BSC-based PE system in PBC architecture. Obstacles and objections this new PE system might face, along with other issues that request our attention at the implementation stage, are mentioned, followed by some directional advice and recommended skills in handling them.The last section, Section6, summarizes the major innovations as well as drawbacks of this article and predicts the future of the PE system in PBC architecture.