The Evaluation of Branch Manager Performance Evaluation System (Case Study at PT. Bank Pembangunan Daerah Sumatera Barat)

RAHMI, YESSI YUNELIA (2011) The Evaluation of Branch Manager Performance Evaluation System (Case Study at PT. Bank Pembangunan Daerah Sumatera Barat). fakultas ekonomi.

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Abstract

Currently, the economy grows and develops with the various kinds of financial institutions. One of those financial institutions which seem to be a big role in the economy is a bank. The advanced development of banking industry is highly requiring a good performance. Banking performance is supported by each of its branch offices. The performance of its branch offices is determined by the people who led those branches. In measuring the performance of branch manager is designed a system which are developed to provide some directions for manager to evaluate and improve their perfomance in the next period. In measuring of its branch manager performance, top management can obtain an objective basis to provide reward and compensation in accordance with the achievement of each responsibility center to the company as a whole. It is expected to motivate and stimulate branch manager performance in every branch offices to work more effectively and efficiently. This research is purposed for evaluating the branch manager performance evaluation system in Bank Nagari. The result of this research shows that Bank Nagari used traditional performance measurement system in measuring and evaluating the branch manager performance. It is indicated by the five financial elements used in every branch offices of Bank Nagari, they are total assets, loan distribution, non performing loan, third party fund and profit before tax. The evaluation of branch manager performance will be done by comparing the budget of those five financial elements with its realization using variance analysis. The highest score of the achievement for those five financial elements will getting the reward from board of directors and division leaders. Bank Nagari should consider non financial elements and also the development of Balance Scorecard system as comprehensive measurement that cover operational, customer, internal business process and learning and growth perspectives. The reason is the five financial elements as the basis for evaluation is not completely enough in measuring the branch manager performance as a comprehensive measurement system.

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