DOI: 10.36347/sjebm.2017.v04i03.003

Pages: 151-158

This case depicts Shinhan Bank's performance based evaluation systems, which contributed it to become a leading bank in Korea. There are two main performance based evaluation and pay systems Shinhan Bank implemented: Group based evaluation and Differential salary peak system. The former Group based evaluation is a re-formation of original relative evaluation of branch's performance with absolute evaluation of individual performance for the sake of fairness. The latter Differential salary peak system is an evaluation system that excludes high performance employees from being vulnerable of termination from salary peak by regulation in Korea. This system allows superior senior employees to carry out their long working experiences and expects to enhance morale and motivation. Differential salary peak system ultimately results in maximizing Shinhan Bank's productivity and profits. The case can be used for the topic of human resource management.