A Study On Performance Management Of Lianhua Sub-branch Based On Balanced Scorecard

With the deepening of China’s financial reform, each back is putting division reforminto trial use. The retail business is becoming a new starting point in the operation of acommercial bank cause of the high stability, dispersed risk and scale effect. Since2005,Industrial Bank CO., Ltd has started her retail reform, the arm of which is to establish aretail team with a strong product creativity and the capability of sales and service from thehead office to every affiliated agency. However, it is becoming a facing problem formanagers to conduct effective performance evaluation to members of a retail team.The paper chose Xiamen Lianhua Sub-branch as the research object, which is anexperimental unit of the reform on retail division in Industrial Bank Co., Ltd. The authoranalyzed the comprehensive evaluation system combined with the actual operation, thenfound some exist problems. Through a brief review on the history of performancemanagement in foreign commercial, the author summarized and compared the theories ofperformance management during various stages and gave a feasibility analysis on thesuitability of Balanced Scorecard on native retail bank. The author designed the keyperformance index combined to strategic development objectives according to the basicprinciple of Balanced Scorecard. Non-financial indicators were introduced to themanagement system, which was combined to financial indicators and made all theindicators more systematic. The author organized the system of Balanced Scorecard andevaluated the effect of this strategy.The paper aimed to a research and exploration on the application of the BalancedScorecard in the grassroots level sub-branch, then provide reference on the grassrootsmanagers’ performance management.