1. 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.