Research On EVA Management And Performance Appraisal Of ICBC Jilin Branch

As an important part of the Performance management, performance assessmentis the prerequisite of the human resource management. The implementation ofperformance appraisal must be based on the current banking tasks and the futurestrategy objectives of the bank. At present, the goal of China’s commercial banks is tocreate more value for the shareholders, means that creating more value for thedormant partners. To meet this demand, the performance evaluation of commercialbanks should be gradually transformed into indicators for the assessment of dormantpartners. As for the indicating improvement of economic capital or the dormantpartner value, the commercial banks gradually have a deeper understanding of theimportance of Economic Value Added (EVA). Since EVA is a comprehensiveindicator, which reflects the operating results of the commercial bank branches, it alsohas take more attention to the finance costs, capital costs and risk costs, which cangreatly help all the banks to achieve their performance greatly. In order to achievetheir aims to create more value, some commercial banks would strive to makeassessment and ranking equally diverse when they are setting the course of theappraisal indicators, including EVA ranking, managing performance and the rankingof all-inclusive business development. This kind of indicators is good for thebranches of commercial banks to pay more attention to the controlling the risk costs,decreasing the economic costs and saving the financial costs.Currently, EVA also just stays in the context of a simple evaluation indicator, inlight of the application stage of the national commercial banks, presently EVA is just restricted as a simple appraisal indicator, which has restricted function. EVAmanagement is the essential foundation of the accomplishment of value management.Under the influence of EVA philosophy that overstresses the consequence, the presentperformance assessment methods—the simple EVA assessment appraisal indicatorcannot completely meet the qualification of the management and appraisal. Thisthesis, however, under the EVA managing philosophy, we analyzed the establishmentof performance assessment indicators, which are based on the theory of EVA andperformance appraisal.This thesis has five chapters. The first chapter is introduction part, mainlyelaborating the back grounds, relevant information, goal, method deficiency as wellas innovations of this study. In the second chapter, the performance appraisal andEVA theory of Industrial and Commercial Bank of China branch in Jilin Province aremainly analyzed and elaborated the present achievements of performance appraisaland EVA theory. And the third chapter mainly discusses current applications statusand relevant problems of EVA and performance appraisal theory. In the fourth chapter,under the EVA management of philosophy based on the design of assessmentindicators, analyzes the EVA performance appraisal system in the construction of theIndustrial and Commercial Bank of China branch in Jilin Province. In chapter five,some relevant instances of Industrial and Commercial Bank of China branch in JilinProvince were analyzed.In this thesis, on the basis of the complication of the performance assessmentindicators, during the selection of the method of performance appraisal, we used aBalanced Score card method, which is more comprehensive relatively. CombiningEVA management theory, established an innovative design concept of assessmentindicator which is named EVA-BSC performance appraisal indicator. The capitalcosts are also divided into four different parts, including the internal managingprocess, finance, study and development and customers. And each organizing postand each department was localized its own Performance appraisal indicator. Theestablishment of EVA-balanced scorecard performance appraisal indicators is good for commercial banks to achieve its strategic goals and find its effective channel, sothat the operators can better adjust and control every stage of their businessdevelopment goals.