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Bank Appraisal Systems Compared

The document compares the appraisal systems of two banks, Paradise Bank and PLN Bank. PLN Bank uses a traditional appraisal system where targets are set by management and employees are expected to achieve them. Paradise Bank does not use a traditional system; instead, department heads and employees discuss future strategies and how to attain targets based on various factors. The appraisal system at PLN Bank focuses on achieving targets rather than identifying employee skill gaps. The document recommends the assessment center method or management by objectives approach for PLN Bank to address issues and involve employees in the target setting process.

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118 views5 pages

Bank Appraisal Systems Compared

The document compares the appraisal systems of two banks, Paradise Bank and PLN Bank. PLN Bank uses a traditional appraisal system where targets are set by management and employees are expected to achieve them. Paradise Bank does not use a traditional system; instead, department heads and employees discuss future strategies and how to attain targets based on various factors. The appraisal system at PLN Bank focuses on achieving targets rather than identifying employee skill gaps. The document recommends the assessment center method or management by objectives approach for PLN Bank to address issues and involve employees in the target setting process.

Uploaded by

simlimisra
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Brief analysis of the case:

The case is a comparative study of the implementation of the appraisal systems in two banks :

 Paradise Bank
 PLN Bank

Both the banks had similar appraisal and compensation systems.

Appraisal System in PLN Bank

 It follows the traditional system of appraisal.


 During the appraisal period,Department heads and employees meet to discuss about
unattained targets to reach a consensus about salary hike and related aspects.

Appraisal System in Paradise Bank

 Does not follow the traditional system of appraisal.


 During the appraisal period,the department heads and the team members meet to
discuss about future profitable strategies to attain targets based on market
conditions,consumer feedback,deployable energies and resources.
 In this form of appraisal system,the employees identify their lacunae in their skillsets.
Issues Involved in the Implementation of Appraisal
System of PLN Bank
 The management laid stress on achieving pre-set targets rather than setting a target in
consensus with the department heads and team members of the bank.
 PLN Bank never concentrated on the pitfalls of its employees. It should have rather
identified the lacunae in the skills or knowledge of its employees which eventually
hinders their growth and performance.
 The employees were never given the freedom to estimate and determine targets rather
were imposed to achieve them by the management.
THEORETICAL INPUTS RELEVANT TO THE ISSUES

Performance management and compensation.


Performance appraisal personal development.
Training needs analysis.
VARIOUS ALTERNATIVES AVAILABLE TO ADDRESS THE ISSUES

 Assessment centre method:Observe and evaluate participants to determine


the individual training and development needs of employees
 360 degree Performance App: appraiser should be any person who has
knowledge about the job, contents to be appraised, standards of contents and observes
the employee performance.
 Management by Objectives: This is a process where by the superior and subordinate
managers of an organization jointly identify its common goals, define each individual’s
major area of responsibility in terms of results expected of him and use these measures
as guides for operating the unit and assessing the contributions of each of its members.
RECOMMENDATION OF ONE OF THE ALTERNATIVES WITH JUSTIFICATIONS

Assessment centre method:Observe and evaluate participants to determine the


individual training and development needs of employees

Here in this case we see that there is a need to fill in the lacunae for individual training and
development needs of employees of PLN bank .Since they have been using traditional method
of appraisal , they should now move into modern methods of appraisal(assessment –centre
method in specific).

Management by Objectives: This is a process where by the superior and subordinate


managers of an organization jointly identify its common goals, define each individual’s major
area of responsibility in terms of results expected of him and use these measures as guides for
operating the unit and assessing the contributions of each of its members.

Here in this case we see that Paradise bank uses the above technique to set its target and
maintain a relationship amongst its department heads and employees.Similarly ,the above
technique can be used by the PLN bank to solve its target-setting problems.

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