EMPLOYEE PERFORMANCE EVALUATION AS THE BASIS OF THE MOTIVATION SYSTEM FOR FINANCIAL INSTITUTIONS IN CRISIS CONDITIONS

Abstract

This article addresses the issues of employee performance evaluation, which is central to the formation of a system of motivation, since skills, knowledge and efficiency of employees affect the financial and economic performance of the entire enterprise. The external environment of the business entity is risky and unpredictable; therefore, to maintain a high level of competitiveness, special attention should be paid to evaluating and improving the employee efficiency. The article uses general scientific and special methods of system-structural analysis to clarify the motivating influences; identify the latest methods of motivation; group different types of motivation and establish links and relationships between motivation and employee efficiency; it uses diagnostic techniques (Bennett test) for employee performance evaluation in a financial institution The purpose of the work is to study the specifics and analyze the existing methods of employee performance evaluation as a basis for motivation in crisis conditions. Theoretical research revealed that the existing system of motivation for pawnshop employees provides for marginal (tentative) surcharges, allowances, bonuses to the basic salary; the specific amount of incentive payments is defined by the manager depending on the employee’s qualifications, complexity and scope of work, and the employee’s performance. It has been found that the standard of efficiency and criteria for its evaluation are set for each employee. It has been proven that the employee’s performance evaluation is documented and a decision is made on the choice of an appropriate system of motivational factors and incentives. For a network of pawnshops, performance evaluation of middle-level managers was carried out according to the method of R. Bennett, in order to determine the management style. An analysis of evaluating the effectiveness of 7 managers working for the network of pawnshops showed that 5 out of 7 managers promptly settle current operational work problems; poorly cope with operational work problems – 2 managers; show a balanced approach to decision-making – 6, do not take into account the factors of the external and internal environment - 1; allow subordinates to take initiative – 4, suppress it – 3; personally communicate with employees – 5, prefer written orders – 2; have an innovative mindset – 6, ignore innovations – 1; are considerate towards subordinates – 6, are indifferent to subordinates – 1; motivate employees – 5, do not consider motives – 2. The analysis shows that to eliminate any negative consequences, it is necessary to dismiss the personnel manager whose results were all negative. Based on the definition of basic principles of the impact of employee performance evaluation on the motivation system in crisis conditions, it is advisable to introduce a grading system as a further step.