Performance can be mean many things because it is an ambiguous term and not a simple definition. From the psychology, social sciences and managerial sciences view that performance is depending more on the individual, societal, or organizational and system performance. Performance is important as an evaluation for an organization. The top management of the organization requires a standard of accuracy, completeness, cost and other aspects that can be measured to compare with their accomplishment. Performance refers to the productive organization, that is, an organization that has the capacity to perform and converts this capacity into results – outputs and outcomes. (Wouter Van Dooren, 2015) Performance is not only a concept but it is an agenda that express change and improvement. We study how the measurement on the capacity to result in the public sector in Malaysia. Public sector performance in Malaysia has continuously been improving efficiency at the bureaucratic. The government has done a lot of continual effort and attempts to enhance public administration in the country.
Performance management can be defined as the process of continuous of identify, measure and develop the performance of workforce. It is the solution for the public sector to ensure they fulfil their targeted performance and achieve the goals. The system implemented by the organisation is to ensure all employees are aware of the level of performance expected of them in their respective role, as well as any department objectives they will need to achieve to achieve overall organisational objectives. Performance management is also about agreeing on the behaviours and values to be demonstrated when undertaking work and identifying employees' development activities to ensure they work to their full potential. (State Services Authority, 2011)The ongoing system needs the supervision of the top management and the employees that ensure the whole organization's vision and mission are met efficiently. When employees are committed and performing to their full capabilities, the agency will be able to function most effectively. The performance management process has a direct impact on how much effort employees dedicate their effort to their work, as well as on their attitudes and commitment to their agencies (Government Reform Commission, n.d.)
1.3 The Importance of Leadership
Bouckaert & Peters (2002) argue that performance measurement is the ‘Achilles' heel' of many public sector reforms. The accessibility of performance information is a necessary but insufficient condition for the success of many reform initiatives. Performance information plays a role in daily management practice and essential to the public sector. (Bouckaert, 2015) The most visible management subsystems that contribute to management capacity that is potential for performance included financial management, human resources management, capital management and information technology management. Moreover, the main indicator that led to the performance of the organization is a leader. The advocacy of performance management by a CEO is a key shaper of an agency's performance management system. (Management Advisory Committee, 2001) Leaders are in the privilege position to influence the behaviour of other people or groups toward the achievement of organisational goals. (Kruse, 2013)The organisation is where to meet its objectives if the members are imbued with leadership quality; this is especially true for huge and complex public sector organization. The top management of organization is having the responsibilities of making informed decisions, to provide guidance and direction, to develop the vision, mission, and objectives of the organization, to communicate these to the members and to coordinate organizational components.
1.4 The Performance Measurement and Performance Management
According to The Economist, there is argue on the revolution of the performance measurement and performance management. (Neely, 1998) Performance measurement is the act of measuring the performance while performance management targets to react to the “outcome” measure using it in order to manage the performance. For example, the performance measurement is the measure on the key success factors, measure on the inputs and outputs, track the past performance and etc. However, for the performance management system involves the management style, training to the employee, the rewards and incentives and others that also need establish of vision and mission of the organization. For example, the system like balance scorecard, strategic mapping and etc.
Performance management is a vital control system in the public sector. It is difficult to establish as the evolving of formal and informal mechanisms, processes, systems and networks that convey the main goals and objectives elicited by management, for assisting the strategic process and ongoing management through analysis, planning, measurement, control, rewarding and broadly managing performance for the organization learning and changes. Performance management covers all aspects of the business. It can be found contributors from a wide variety of subject areas including management, operations management, marketing, finance, accounting, economics, human resource management, organisational behaviour and public sector management. (Marr & Schiuma, 2003) In expressing the need for performance management system is to modernise government services, the Audit Commission (1999) emphasis two key reasons, namely, the need:
i. to improve public services such as by increasing the economic condition, efficiency and effectiveness of service delivery
ii. to reinforce accountability, so that organisations are clearly held to account for the resources they use, and the outcomes achieved. (Audit Commission, 1999)
Performance measurement is regarding the past, while performance management extrapolates the data to provide information about the future (Lebas, 1995). There is also another differentiation between performance measurement and performance management:
“Performance measurement is quantifying, either quantitatively or qualitatively, the input, output or level of activity of an event or process. Performance management is action, based on performance measures and reporting, which results in improvements in behavior, motivation and processes and promotes innovation.” (Radnor & Barnes, 2007)
Currently, in 2018, the Federal Ministries of Malaysia have been updated to 25 ministries. We analysed historical annual data to determine how the public sector as a whole was conducting performance management. We examined whether agencies had performance management policies if they monitored whether meetings took place and whether employees were participating in the process. We have selected four agencies to examine in details. They are:
• Ministry of Education (MoE)
• Ministry of Transport (MoT)
• Ministry of Defence (MoD)
• Ministry of Health (MoH)
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