CAIIB · ABM

Employees feedback and reward system

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

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Q

What is the primary purpose of an employee feedback system in banking organisations?

A

Employee feedback systems help identify performance gaps, align individual goals with organisational objectives, and improve employee engagement and productivity.

Q

What is a continuous feedback model in modern banking HR practices?

A

Ongoing, real-time feedback replacing annual review cycles only.

Q

What is a 360-degree feedback system?

A

A 360-degree feedback system collects performance input from multiple sources including superiors, peers, subordinates, and sometimes customers, providing a holistic view of an employee's competencies.

Q

What is the critical incident method of performance appraisal?

A

Recording specific examples of exceptionally good or poor employee behaviour.

Q

How does a reward system contribute to employee motivation in banks?

A

A well-designed reward system links compensation and recognition to performance outcomes, reinforcing desired behaviours and improving retention of high-performing employees.

Q

What is the behaviourally anchored rating scale (BARS) in performance appraisal?

A

Rating scale linking performance levels to specific behavioural descriptions.

Q

What is the difference between intrinsic and extrinsic rewards in the context of HR management?

A

Intrinsic rewards are internal satisfactions such as sense of achievement and growth, while extrinsic rewards are tangible benefits like salary increments, bonuses, and promotions offered by the organisation.

Q

What is the strictness bias in employee performance ratings?

A

Rater consistently assigns lower scores than deserved to all employees.

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