CAIIB · ABM · Chapter 14

Performance 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 System (PMS)?

A

is not a luxury but a survival tool.

Q

Informal appraisal?

A

possible only in very small organisations where the employee's contribution is directly visible to the owner / supervisor. Subjective, undocumented.

Q

Formal appraisal?

A

structured, periodic, documented; mandatory in banks, NBFCs, and any large enterprise. Uses defined rating scales, written records, and an appeal mechanism.

Q

Judgmental — Purpose / Example in a Bank?

A

Purpose: Salary increases, transfers, promotions; Example in a Bank: AGM promotion list, annual increment grid

Q

Developmental — Purpose / Example in a Bank?

A

Purpose: Telling employee how he is doing; suggest changes in skills, attitude, behaviour; Example in a Bank: Feedback to a clerk on KYC errors; coaching on customer handling

Q

Counselling by superior — Purpose / Example in a Bank?

A

Purpose: Giving feedback and understanding reasons for poor performance; Example in a Bank: Branch Head sitting with a relationship manager whose NPA is rising

Q

Free-Form Essay — How It Works / Key Drawback?

A

How It Works: Unstructured, open-ended write-up by superior on knowledge, attitude, development needs.; Key Drawback: Highly subjective; mainly used for top management.

Q

Straight Ranking — How It Works / Key Drawback?

A

How It Works: Oldest, simplest. Employees ranked in order of merit and placed in groups.; Key Drawback: Difficult to compare employees with varying traits.

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