A Study On H Bank Performance Evaluation System Based On Balanced Scored Card

With the overall opening of the financial market, the financial environment thatcommercial banks in China are confronted with is increasingly inconstant, along with thehighly intensive competition among those commercial banks. The strengths andweaknesses of these commercial banks must be deeply realized, and the developmentalstrategies, which would be applied into various hierarchies, should to be generatedaccording to the current situation. Therefore, a scientific performance evaluation system isin great request to be established in order to promote the reform and implementation of thestrategies in China’s commercial banks, which may lead to the sustainable development.H Bank is taken as the research target in this study. The overview of the H Bank isintroduced firstly in order to illustrate its prospect and goal. Then the presentcomprehensive performance evaluation system of H Bank is stated, whose featuresinclude: first, the combination of comprehensive evaluation indicators with single rankingindicators for the longitudinal branches; second, the establishment of the performanceevaluation system across the department; third, the establishment of annual performanceevaluation system for the employees. Analyses had been performed to discover thedisadvantages of the current performance evaluation system, the results show that: first,the goal of performance evaluation is inconsistent with the overall strategy of the H Bank;second, overemphasis on financial indicator while the non-financial factor is overlooked;third, overemphasis on short-term goal while the long-term development is neglected;forth, lack of employee involvement.Directing at the H Bank’s disadvantages concerning the current performanceevaluation system that drawn from analyses, this study set KPI and its weight from fourdimensions, which are finance, customers, the process of internal operation, and learningwith developing, based on strategic objective and the designing procedure of performanceevaluation of BSC (Balanced Scored Card). In order to improve the current performanceevaluation system, lengthways, the BSC has been designed for the bank headquarters leveland bank branches level; breadth wise, the BSC has been designed for departmental leveland employee level. Finally, the precautions are made related to the implementation of the BSCperformance evaluation system in H Bank. In addition, the author prospects futuredevelopment of the BSC performance evaluation system.