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The effect of performance management on the organizational results of a bank

André A. de Waal (Maastricht School of Management, Maastricht, The Netherlands)
Vincent Coevert (Erasmus University Rotterdam, Rotterdam, The Netherlands)

International Journal of Productivity and Performance Management

ISSN: 1741-0401

Article publication date: 26 June 2007

8974

Abstract

Purpose

This paper aims to identify the impact and workings of a new performance management system in a branch of a national bank.

Design/methodology/approach

Performance data of the branch, before and after introducing a new performance management system, were collected and the results of actions taken by managers in the commercial divisions of this bank, to improve performance management, and the results of their responsibility areas were observed.

Findings

The striking issue in this case study is the different effects the introduction of the new performance management system had in the two commercial divisions of the bank branch. However, only the Private Clients division improved its results significantly while those of the Business Clients division only improved slightly. After analysis, it turned out that this difference was due to the way the new system was used. The divisional manager of the Business Clients division paid virtually no attention to the behavioural factors of importance to the successful implementation of performance management, with detrimental effects.

Research limitations/implications

The main limitation is that the research concerns a case study in which only one fairly small organisation has been the subject of investigation. Whether the same effects of performance management can be found in other, bigger organisations remains to be studied.

Practical implications

During the implementation of a performance management system an organisation has to expressly pay attention to fostering and improving the behavioural factors of performance management, in order to increase the chance if a successfully implemented and used system.

Originality/value

This article describes the results of a study that explored the impact and working of a new performance management system in a branch of a bank, and thereby sheds light on the important role behavioural factors play in the successful implementation and use of performance management.

Keywords

Citation

de Waal, A.A. and Coevert, V. (2007), "The effect of performance management on the organizational results of a bank", International Journal of Productivity and Performance Management, Vol. 56 No. 5/6, pp. 397-416. https://doi.org/10.1108/17410400710757114

Publisher

:

Emerald Group Publishing Limited

Copyright © 2007, Emerald Group Publishing Limited

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