The Research On Optimizing The Performance Management Mechanism Of Investment Banking Business Of GS Bank

Investment banking business generally is kind of capital market related business,including security underwriting,corporate finance,M&A,which plays an important role in the development of modern economy and society.As the business operation activity has become more and more complicated,the traditional banking businesses,such as accounting settlement,deposit and loan,tend to be hard to meet the customers’ need.With the progress of finance reform and multiple level capital market,banks,security companies,insurance companies and fund companies cooperate with each other.Actually,the mixed business situation in finance market of China has formed.Therefore,many banks set up investment banking department to accelerate to carry out investment banking business.As one of the biggest commercial banks in Jiangxi province,GS bank has set up independent investment banking department since 2011,becoming the earliest bank that entered the new business in the province.To promote the business,GS bank provided the investment banking sector with some policies about performance appraisal and the allocation of resources close to the market.The bank invested relatively large manpower as well as financial resources,and has achieved significant results.However,with the bank’s investment banking business up to a certain scale in near years,the problem about performance management has gradually become a heated issue.It is the core of the article that how to improve diversity and sustainability of investment banking business by perfecting performance management on the background of commercial bank.Based on the case study,combined with literature method and interview method,this article analyzes the existing performance management,finds out some problems and raises the corresponding countermeasures.Part I is the introduction that tells some background,ideas and methods.The background introduces the generation and understanding of investment banking business as well as brief situation of the investment banking business of GS bank.Part II is the literature review that sums up some theories about performance management and investment banking business.Especially,the article introduces the different experts’ understanding of performance and performance management,then tells some main contents about 6 different performance management systems based on KPI,BSC,Benchmark,EVA,Process and 360 degree assessment.Part III is the situation of performance management of GS bank’s investment banking business.This part introduces the development,business pattern,and the implementation of performance management of GS bank’s investment banking business.As for the process of performance management,this article mainly tells the planning and decomposition,performance appraisal and etc,.Part IV is the problems of performance management.From the perspective of performance management cycle,this part sums up 7 problems including inconsistent target,lack of performance coaching,no clear responsibility,too much attention to result,poor maneuverability,single application and poor incentive.Part V is the optimization countermeasures.Also from the perspective of performance management cycle,this part raises 7 solutions such as perfecting performance targets,providing performance coaching,improving management system,optimizing appraisal method,improving salary,enriching spiritual incentives and strengthening career management.Part VI is the conclusion.This article argues that the 7 problems are all objective existences and the 7 corresponding solutions are practical.However,due to the limitations of theoretical level and the enterprise culture,countermeasures provided by this paper are only temporary.To effect a permanent cure,the financial reform and top design of head office should be implemented.