Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Examining the Dual Effects of the Pandemic-Induced Telework and Financial Liquidity Crisis in Lebanon on Performance Appraisals in the Banking Sector : A Case Study.

Version 1 : Received: 5 April 2023 / Approved: 6 April 2023 / Online: 6 April 2023 (10:45:48 CEST)

How to cite: KASSAR, G. Examining the Dual Effects of the Pandemic-Induced Telework and Financial Liquidity Crisis in Lebanon on Performance Appraisals in the Banking Sector : A Case Study.. Preprints 2023, 2023040090. https://doi.org/10.20944/preprints202304.0090.v1 KASSAR, G. Examining the Dual Effects of the Pandemic-Induced Telework and Financial Liquidity Crisis in Lebanon on Performance Appraisals in the Banking Sector : A Case Study.. Preprints 2023, 2023040090. https://doi.org/10.20944/preprints202304.0090.v1

Abstract

The Covid-19 health crisis and its related confinement measures and policies has had a significant impact on the telework adoptions rates, where many businesses were affected abruptly without being prepared, resulting in numerous ad-hoc applications especially while assessing employee’s performance and productivity while working remotely. The difficulties that have emerged with the pandemic have revealed the fragility of the traditional performance appraisal process and the unintentional existence of proximity bias. The Lebanese liquidity crisis is an ongoing financial crisis affecting Lebanon that became fully apparent toward late-2019 when large demonstrations erupted amid acute political instability and economic challenges. In light of the compounded simultaneous occurrence of recurring episodes of COVID-19 outbreaks and the ongoing country’s financial liquidity crisis, the standing of the Lebanese banking sector – who played key roles in the Lebanese economy and were long considered as financially sound and stable – has drastically changed. Faced with such a situation, Lebanese commercial banks started contracting both their branch network and human capital base, and thus they been forced to rethink their human capital strategies by implementing new practices allowing them to adapt to this context of crisis. It is in this perspective that the present research work is inscribed, where we explore the main managerial practices and processes implemented within top Lebanese banks to assess their employee’s performance during the compounded simultaneous crises. A thematic qualitative analysis method of an exploratory nature was adopted, and semi-structured interviews were conducted with senior managers from top Lebanese commercial banks. Results were processed using a deductive approach for themes identifications. Accordingly, it was concluded that in such times of acute crisis, Lebanese banks have altered the purpose of their Performance Appraisal Review (PAR) process and have implicitly or explicitly adopted a Forced Ranking method to primarily focus on retaining just the top performers, while placing those at the bottom on probation with the risk of termination.

Keywords

performance appraisal; management; financial crisis; covid-19; banking sector; Lebanon

Subject

Business, Economics and Management, Business and Management

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