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Finance and Credit
 

Rolling-out competence-based personnel appraisal to build an effective personnel management system in commercial banks

Vol. 21, Iss. 19, MAY 2015

PDF  Article PDF Version

Available online: 31 May 2015

Subject Heading: Banking

JEL Classification: 

Pages: 22-31

Voronova N.V. Kazan National Research Technological University, Kazan, Republic of Tatarstan, Russian Federation
audit-voron2012@yandex.ru

Subject Competence-based personnel appraisal is very important in the modern business, as personnel are deemed to be the asset requiring special attention of the management. In addition, corporate competence models play an important role in personnel training and management. They are essential for building a clear-cut human resource management system in commercial banks, as they enable to fully use the potential of every employee.
     Methods The article summarizes and systematizes theoretical and methodological approaches and methods for competence appraisal. These methods and approaches served as a basis for developing the algorithm for bank personnel appraisal to determine specialists' eligibility using the competency model.
     Results I offer a scenario of building a system of business appraisal of bank personnel. Its results will help coordinate various aspects of the bank's human resource activities and ensure their continuity. The introduction of the personnel appraisal system based on competences implies multivariance of the bank's personnel management. So, competence models are applicable in the policy for monitoring activities and developing job descriptions and job expectations, in the policy for staff recruitment, selection, and adaptation, policy for personnel competence assessment, motivation and remuneration, training and development, policy for formation and development of talent pool, etc.
     Conclusions and Relevance If introduced, the proposed competence-based personnel appraisal technology will enable to determine the effectiveness and potential of each employee, and to use the potential to implement strategic objectives of the bank. Furthermore, this type of appraisal allows identifying employees with very low potential. This prevents from investing in their development.

Keywords: personnel management, human resource management system, bank, personnel appraisal, competence, model

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