Study On The Application Of Balanced Scorecard In Performance Management Of Sub-outlets Of State-owned Bank

A fair and reasonable performance appraisal management system serves as an important method to mobilize all positive factors of the employees and plays a role for the commercial bank in improving the service quality, increasing the profit and boosting the achievement of the strategic plan. Also, it optimizes the resource allocation from the perspective of sustainable development. Some traditional performance appraisal methods of the commercial bank usually focused on the achieved financial target, but neglecting some key non-financial targets, which, as a result, cause the latent good performance employees devoted without equivalent awards, weakening the quality service and good profit of the bank. Therefore, a fair, balanced and reasonable performance appraisal management system is necessarily needed to be established.In 2004, Balanced Score Card(BSC) was introduced to the performance appraisal management system of commercial bank. This thesis briefs the BSC Theory and analyzes the advantages of BSC-based performance appraisal management system. An example of a state-owned Branch Bank-A Bank, T Branch- is shown to analyze the existing problems in current performance appraisal management system and the feasibility of applying BSC into the system. The thesis also makes an overview of procedures of the performance management in town-level bank branches. Based on the previous years’ data analysis and questionnaire survey of those bank branches, the BSC method is adopted into bank branches’ operation as an evaluation index for the appraisal of performance management. The analytic hierarchy process method is used for determining the proportion of the evaluation index. Then the result of performance management is assessed based on the normalization method. The thesis also details the BSC methods for the application of performance management of employees. The performance of employees and branches are combined and balanced to motivate the positive factors of the personnel. The thesis takes a detailed analysis on the performance management of T Branch Bank with BSC method. In closing, this thesis presents some critical control points and some issues that needed to be highlighted to balance and enlighten the application of BSC in performance management of bank branches.BSC Performance Management System is set up for its application in town-level bank branch based on the employee’s expectations and actual conditions of the operation, in a bid to try to establish a fair and reasonable performance management index and produces favorable results. Also, the system could be adjusted following the practical situations to satisfy the dynamic requirements of the employees. It is believed that the BSC method in the application of the Performance Management System for bank branch operation will show its advantages in current economic environment and future bank development.