CAIIB · ABM

PERFOMANCE MANAGEMENT

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.

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Q

What is Performance Management in the context of banking organizations?

A

Performance Management is a continuous process of identifying, measuring, and developing the performance of individuals and teams, aligning their performance with the strategic goals of the bank.

Q

What is the primary difference between performance appraisal and performance management?

A

Appraisal is periodic review; management is continuous ongoing process.

Q

What is the primary purpose of a Performance Appraisal system in banks?

A

The primary purpose is to evaluate an employee's job performance against pre-set targets, provide feedback, and inform decisions on promotions, increments, training, and career development.

Q

What is the concept of Pay-for-Performance in bank HR management?

A

Linking employee compensation directly to measured performance outcomes.

Q

What is the difference between Performance Appraisal and Performance Management?

A

Performance Appraisal is a periodic, retrospective evaluation of past performance, while Performance Management is a broader, ongoing process that includes goal-setting, coaching, feedback, and development planning throughout the year.

Q

What is the BARS method of performance appraisal?

A

Behaviourally Anchored Rating Scale linking ratings to specific behaviours.

Q

What is a Key Result Area (KRA) in bank performance management?

A

A KRA is a specific, measurable area of output for which an employee or department is responsible, directly linked to the bank's strategic objectives such as credit growth, NPA reduction, or CASA mobilisation.

Q

What is the purpose of a mid-year performance review in banks?

A

To assess progress, provide feedback, and adjust goals if needed.

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