Performance Evaluation at Bank of Maharashtra

Description

In January 2013, the general manager of the Planning Division of the Bank of Maharashtra in Pune, India, is considering how best to analyze the performance of the bank’s 1,728 branches in 28 states and two union territories and its staff of nearly 14,000 people. Such a process would help develop a comprehensive yearly plan by setting realistic targets for each of the bank branches, which have a wide variety of operating conditions. With its market share falling and increasing competition from major players in both the private and public sectors, the bank must take proactive steps to develop a strategy for expansion. The general manager meets a business school graduate who suggests using performance evaluation and benchmarking tools that will not only help evaluate performance in terms of an efficiency score but also indicate possible potential improvements. Should the general manager trust that the young analyst can pinpoint why some branches are not meeting their targets and suggest how their performance can be improved, or should he hire a more experienced consultant?

Learning Objective

The case can be used in the second year of a regular MBA program or in executive level courses on service operations and business analytics. Its teaching objectives are to: ·Identify and analyze similarities between this case and various managerial situations and practices in the corporate world. ·Understand and evaluate the operational performance of a business unit in general and the bank branch in particular. ·Understand the concept of benchmarking performance and measuring it using multi-criteria decision-making tools such as the technique of order preference by similarity to ideal solution (TOPSIS) and data envelopment analysis (DEA). ·Identify areas for improving the performance using optimum resources. ·Solve the given problem with the help of relevant computer software and packages.

Keywords

Banks data envelopment analysis India Performance Evaluation