[3] IMPORTANCE OF PERFORMANCE MANAGEMENT IN BANKS
Banks are operating in highly competitive financial market &
competitive advantage can be gained by the Knowledge and skills of their
employees, which they provide customer service efficiently & effectively.
In order to get business success and competitive advantage banks are so
much concerned about satisfying and motivating their employees. This fact
introduces the concept and need of effective Performance Management
System.
Performance management system has a direct impact on five critical
organizational outcomes including financial performance, product or
service quality, productivity, customer satisfaction, and employee job
contentment. (Yaseen. A., 2015). According to the De Waal, in 2007, the
effectiveness of the performance management is recognized as the achievement
of both financial and non-financial objectives, the development of skills and
abilities of employees and the improvement of customer care and quality of
process.
Achievement of both Financial and Non-Financial Objectives
Development in performance management
system, improve employee performance ultimately leads to significant
improvements in organizational performance. For an example, Sampath Bank successfully
achieved its year-end profit budget & cross selling target through
effective & efficient performance management system.
Development of skills and abilities of Employees
Performances
management is important to improve communication among the employees, monitor
& improve their skills via training programmes in order to minimize the
performances gaps.
Increased Employee Engagement
Performance management sets expectations of bank staff in a
transparent way. Further, it provides them with learning and development opportunities with a clear
career path in the organization. Continuous performance management helps
employees feel valued and cared for, making them more open for receiving
constructive feedback and working to improve.
Higher Employee Retention
Employees
are able to determine their
progression at work and clearly understands their career path. Employees are
benefited by rewards, incentives & promotions through effective performance
management, which leads to more employee engagement who are likely to stay without
leaving the organization.
REFERENCES
1) Aburub, B.S.H. (2020) Employee Retention &
Engagement Solutions. Open Journal of
Bussiness and Management,8(6, Nov) [On line] Available from https://www.scirp.0rg [Accessed 09 December
2023].
2) Vulpen, E.V. (2021) What is Performance Management? The Complete Guide [blog entry] 15 Dec. Netherlands: Vulpen. Available from https://www.aihr.com/blog/what-is-performance management/#Examples [Accessed 09 December 2023].
3) Yaseen, A. (2015) Performance Management Practices and Its Impact on Banks’ Performance in Pakistan. International Journal of Human Resource Studies,5(4)110-125.
Folan in 2005 stated that the knowledge, experience and skills of the employees will affect future innovations and job commitment. How do you relate the same to performance management in banks?
ReplyDeleteTraining and development, career development and motivation affect for the perception of employees towards the performance management. (Levay and Williams, 2004). According to Kuvaas, (2008), employees will probably show higher affective commitment to the organization.
DeleteAccording to these arguments identifying training needs through the PAS can be considered as a significant influencing factor for the employees’ job commitment of present research context.
This results improvement in work quality & efficiency related to customer service. Moreover, it will build strong banker-customer relationship, while creating switching barriers to customers.
Moreover to Rasika's point of view, Drucker, (2013) noted that career development of the employees through performance evaluation may lead to high levels of psychological obligations of the workforce towards the organizations.
ReplyDeleteYour comment can be strengthening that, Anthony and Govindarajan in 2007 also suggested that effective Performance management helps to identify the organization's expectations on employees’ activities, actions and results, through that it is possible to equip employees with knowledge and skills. Accordingly, training and development support to enhance the employee commitment, behavior and attitudes towards their carrier and organizations (Pettijoghn, et. al., 2001).
ReplyDelete