The Research On Performance Evaluation System Optimization For Rural Commercial Bank In Y City

In order to better the financial services for agriculture,rural areas and farmers,Rural Credit Cooperative of China has gone through several reforms since 1950 s.In 2016,Shandong Rural Credit Cooperative completed the banking reform,facing the issue of breaking down strategic objectives quickly into grassroots units in the process of strategic transformation.Performance evaluation changing with the arm of strategic objective can offer an effective method.Based on the work practice,the improvement of the performance evaluation system for Rural Credit Cooperative in Y country is discussed in four steps.Firstly,main tools and current status of rural credit cooperatives performance evaluation are defined after the induction of domestic and foreign research.Secondly,the existing performance evaluation problems for Rural Credit Cooperative in Y country are listed by original data analysis,which be confirmed by statistical analysis using questionnaire data.Thirdly,an index system is built based on balanced score card,and their weight are obtained through the analytic hierarchy process.Finally,implementation and safeguard measures are designed for Y country on performance evaluation optimization.After the comprehensive application of literature review,investigation and research,the main factor analysis,analytic hierarchy process and other methods,the main conclusions can be obtained as follow.Firstly,in the current performance evaluation,quantitative indicators are used to assess business and financial effects,and qualitative indicators are used to check business compliance.But for the strategic transition period,the shortage of customer and employee indicators easily leads to the loss of customers and employees.The results of the questionnaire survey and analysis further confirmed that the internal staff that the current performance appraisal system lacks strategic orientation,uncover the whole dimension,and fail to form an effective competitive incentive.Secondly,the key influencing factors can be listed in four dimensions as the evaluation index system is established.In detail,financial dimension are mainly consist of income structure optimization,cost reduction and income improvement.There are customer service,market share and customer training for customer dimension.Business dimensions focus on business processes,product innovation,compliance management,risk control,and employee training,information systems and corporate culture are concerned by learning and growth dimensions.In order to simplify the evaluation,the posts can be classified into four types,such as managing post,operation post,technical post and marketing post.Then,the flexibility of evaluation can be improved by indicator selection for different careers in the same post.Thirdly,in the reform process of performance evaluation for Rural Credit Cooperative in Y country,a stakeholder performance appraisal team should be firstly set up,in the target setting process to improve participation.Then the assessment period and agencies must be clear for its rapid implementation.The communication and feedback should be carried out under the guarantee of the mechanism as the performance is evaluated.If the appraisal results are gained,they should be used on the arrangement for incentive and training.Finally,the appeals process should be designed to ensure the dynamic adjustment of the performance appraisal system.In order to improve the efficiency of assessment implementation,the management system and information management should be taken as the indemnification.The innovation of this paper can be expressed as follow.According to the performance evaluation problems and business characteristics in the strategic transition phase for Rural Credit Cooperative in Y country,a new indicators system is designed after adding KPIs for commercial bank evaluation to optimized original index system.The BSCs are designed from head office to basic posts.Finally,a reform and implementation plan is put forward,which can be used to solve the performance evaluation for Rural Credit Cooperative in Y country.