Performance Management At Countrywide

Question 1-500

Problems with Countrywide’s performance appraisal process

Objectives of performance appraisal should include performance-based discriminating and rewarding, employee development and feedback to employees. However, Countrywide failed to achieve at least two of them according to the information provided in the case. First of all, although the company paid a bonus to branch managers according to their performance review rating, managers of poor performance branches still received the same bonus as those of good performance branches. This fact implied that the performance review rating of branch managers that the company was conducting did not link to the real performance of the branches of which the managers were in charge. As stated in the case, some of the Countrywide Credit Union branches received low customer satisfaction, generated decreasing sales, or had poor compliance levels, which all indicated that performance of branches varied from each other. Nevertheless, the company did not reward branch managers with performance-based bonus, in spite of the existence of the performance appraisal. The second objective that Countrywide failed to meet is developing employees. Because of its poor evaluation of performance, it also could not provide immediate and appropriate training after the annual performance appraisal. For example, the compliance levels of some branches were low because staff was lack of knowledge on financial regulations. If the company could identify the causes, design an employee development system accordingly, and trained staff with knowledge of regulation or marketing skills, the problems facing its branches would eventually be solved or at least alleviated.

Problems with Kevin’s review manner

Peo...

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