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Master of Public Policy (MPP) : Individual Assignment Question
Master of Public Policy (MPP) : Individual Assignment Question
Master of Public Policy (MPP) : Individual Assignment Question
and another country. Do you think these measures are effective in increasing
a) Introduction
activities which are designated in the job description and scope to ensure that
1
In performance measurement, an organisation conducts a comparison of the output or
tangible results set against a fixed standard. In a broader context, organisations now
performance of the organisation to the best practices in the industry – is also a vital
Management
Human Resource Management
Performance Management
Performance
Measurement/Appraisal
Lebas (1995) argues that performance is defined as the “potential for future successful
implementation of actions in order to reach the objectives and targets” and that
1
See Donnelly, Jr., J. H.; Gibson, J. I. & Ivancevich, J. M. (1995). Fundamentals of Management. Richard D.
Irwin, p. 290.
2
Lebas, Michel J. (1995). Performance measurement and performance management. International
2
which consists of planning, organising, controlling and leading – as constituting the four
There many more definitions of performance management which apply to public and
“evaluating how well organizations are managed and the value they deliver for
(1990):
Source:
<http://www.sciencedirect.com/science?_ob=MImg&_imagekey=B6VF8-3YSXP6K-3-
1&_cdi=6004&_user=152948&_pii=092552739500081X&_orig=search&_coverDate=10%2F31%2F1995&_
sk=999589998&view=c&wchp=dGLbVzb-
zSkWA&md5=f4f25a70ac9fa61f6c93a3661cd5d65b&ie=/sdarticle.pdf>.
3
For a guide to planning, organising, controlling and leading, see Daft, R. (2008). The New Era of
4
Quoted by Fabrizio Bocci. (2004). “Defining performance measurement – A comment.” Perspectives on
Source: <http://www.balancedscorecardreview.it/c2005/Definition-of-Performance-Measurement.pdf>.
The Moullin article, Performance measurement definitions “Linking performance measurement and
organisational excellence.” International Journal of Health Care Quality Assurance, can be found at
Source: <
<http://www.emeraldinsight.com/Insight/ViewContentServlet?Filename=Published/EmeraldFullTextArticl
e/Articles/0620200301.html>
3
“… an integrated set of planning and review procedures
which cascade down through the organization to provide a
link between each individual and the overall strategy of the
organization.”5
management.6
A BPM system enables the organisation to more effectively plan, design, control,
implement and monitor its performance measurement in each of the elements or stages
5
Rogers, S. (1990). Performance Management in Local Government. Longman: London. The above
passage was quoted by Smith, P. C. & Goddard, M. (2002). “Performance management and operational
research: A marriage made in heaven? The Journal of the Operational Research Society, 53(3), pp. 247-
255.
Source: <http://www.jstor.org/stable/822890>.
6
Franco-Santos, M. et al. (2007). “Towards a definition of a business performance measurement system.”
International Journal of Operations and Production Management. Vol. 27(8), pp. 784-801.
Source:
<https://dspace.lib.cranfield.ac.uk/bitstream/1826/2789/1/Towards%20a%20definition%20of%20busines
s%20performance%20measurement%20system.pdf>.
4
Nonetheless, for the purposes of this essay, the elements of performance management
• Planning;
• Monitoring;
• Developing;
• Rating; and
• Rewarding.
This essay will analyse the performance management of the public and private sectors in
both Malaysia and Singapore as a comparison. The analysis will include the elements of
productivity in both the administrative machinery and delivery mechanisms and provide
7
US Office of Personnel Management. Source: <http://www.opm.gov/perform/overview.asp>.
5
Malaysia through the Public Service Department (PSD).8 This was known as the New
The NPAS is a continuous process which begins in January and ends in December
purely “unilateral,” i.e. the value of output is determined solely on one side by the
both sides as equally subjects provide input into the performance measurement
exercise.11
This is demonstrated in the context of the public sector in Malaysia. Rusli & Azman
(2004) mention that the initial stage is a meeting encompassing senior officers and rank-
8
Rusli Ahmad & Nur Azman Ali. (2004). Performance appraisal decision in Malaysian public service. The
Source:
<http://www.emeraldinsight.com/Insight/ViewContentServlet;jsessionid=8DF853935CE84500EF639550D
16A1C0A?Filename=Published/EmeraldFullTextArticle/Pdf/0420170103.pdf>.
9
Ibid.
10
Ibid.
11
Ibid. As citing Armstrong, M. & Baron, A. (1998). Performance Management: The New Realistic, Institute
of
6
and-file to determine departmental activities for the year, detailed programmes and
projects, etc.12 The next stage requires that first rater officers (FRO) and second rater
officers (SRO) project the targets and key performance indicators (KPIs).13 The process
Figure 2. Elements in the performance appraisal process in the Malaysian public sector
The employees is responsible for implementing the detailed task activities as agreed.
The mid-year performance review starts in June to compare the employees’s actual
12
Ibid.
13
For a recent discussion on the development of KPIs in the Malaysian government, see Ismail Adam. (12
July, 2009). “Taking public service beyond the ordinary.” New Straits Times.
14
Ibid.
7
performance and targets. A mid-year performance revision of work progress is required
between June and July. The NPAS is also flexible in that it allows for the planning and
targeting to be changed according to constraints, pressures and other factors which can
committee (PAC) which functions as the co-ordinator. During the preparation, the PAC
will collect the relevant evaluation forms – the first half of which has been filled in the
employees concerned – and hand them to the FRO as the immediate supervisor for
assessment.16
If and when necessary, the FRO and the employees will have a preliminary discussion
regarding the performance appraisal process and decision. Only then will the decision
be subjected to the SRO for the overall departmental rating. The next stages are the
performance appraisal and salary movement co-ordination.17 PAC will maintain all the
performance appraisal reports and submit them for action by the Board of Salary
15
Ibid.
16
Ibid.
17
Ibid.
8
However, there had been strong criticism of the NPAS emanating from Congress of
Union of Employees in the Public and Civil Services (CUEPACS), the union representing
the welfare and interests of civil servants in Malaysia.18 A survey by the CUEPACS
showed that 90 per cent of civil servants were dissatisfied with the NPAS.19 The main
reasons had to do with lack of objectivity and competency in performing the appraisal.20
18
Op. cit.
19
Ibid.
20
Ibid.
21
Known as cognitive processing model (CPM).
9
On 1 November 2002, a revised scheme called the Sistem Saraan Malaysia (SSM) or its
complement the MRS, a sub-tool termed the Competency Level Assessment (CAL) or
Penilaian Tahap Kecakapan (PTK) was designed to raise the capacity and capability of
CAL were subjected to the same criticism by CUEPACS. Intriguingly, CUEPACS thought
that the NPAS was better and urged for a revamp in favour of a more “workable”
appraisal scheme.24
implementation of ICT which was in introduced in 1996 as one of the seven flagship
programmes of the Multimedia Super Corridor (MSC).25 The agency tasked with the
22
Ibid.
23
Sayed Mahmud Afdhal Yamani. Penilaian tahap kecakapan (competency level assessment) as a
problematic human capital developing strategy for Malaysia’s public servant. Network of Asia-Pacific
24
Ibid.
25
“A decade of e-government.” (12 October 2009). The Star.
10
architecture and construction of ICT initiatives in the public sector towards an e-
Unit (MAMPU).26
system to:27
• Promote access and integrate data automatically from disparate operational, budget,
• Boost links between programme and service costs at the individual agency level;
• Consolidate information from all departments and agencies for a 360-degree view of
performance; and
• Use analytics to transform that information into insights that can drive confident
decision making.
Raha and Abdul Razak (2005) note that the outcome had been mixed.28 One of the
critical findings was the lack of a consistent and thorough conformity to the
Source: <http://www.mampu.gov.my/pdf/star121009.pdf>.
26
Website: <http://www.mampu.gov.my>.
27
Source: <http://www.mampu.gov.my/1e-gov/papers/Plenary5/P5P1.pdf>.
11
implementation of the e-government blueprint.29 This resulted in an uneven application
of the ICT to the entire public sector organisational structure. Such a characteristic
feature which currently besets the public sector not only impedes the full extent of
improved existing performance levels cannot take place. The end result is that
28
Raha Othman and Abdul Razak Rahmat. (2005). The analysis of electronic government blueprint for
Source:
<http://eg2km.org/articles/The%20Comprehensive%20Analysis%20of%20e-
Government%20Blueprint%20for%20Implementation%20towards%20the%20Actual%20e-
governemnt%20Implementation.pdf>.
See also Sharifah Mariam Alhabshi. (2009). Case Studies on Government Programs and Policies. Kuala
29
See also Raha Othman. (2005). A comprehensive analysis of electronic government blueprint for
implementation towards the actual e-government implementation. (Master’s thesis, Universiti Utara
Malaysia).
Source: <http://ep3.uum.edu.my/1329/1/RAHA_BT._OTHMAN.pdf>.
12
Furthermore, employees are demoralised and lack confidence in the performance
management system. And they suffer a drawback in terms of output for fear that it will
productivity. Noore Alam (2006) has documented the persistent sluggish performance
For example, the public sector recorded 58 per cent increase in formal complaints from
the public. The complaints revolved around issues such as delays in service provision,
officials, failure to enforce rules are among the common complaints made to and
In addition to the NPAS, there is also the Malaysia Modified Budgeting System (MBS).
The MBS offers “greater managerial flexibility and accountability … it performs on par
with international best practice and is being used in some developing countries as a
30
Noore Alam Siddique. (2006). “Public management reform in Malaysia.” International Journal of Public Sector
Source:
<http://www.emeraldinsight.com/Insight/ViewContentServlet?Filename=Published/EmeraldFullTextArticle/Article
s/0420190403.html>
31
Ibid.
13
model.” World Bank Report (1999).32 The MBS makes use of Integrated Performance
Performance data are explicitly focused on measuring performance progress areas such
as key result areas (KRAs), goals, objectives, outcomes, outputs, and activities. Such
performance data are monitored against predetermined targets.33 The MBS was actually
introduced in 1990 and revised as the Integrated RBM (IRBM) system in 1999 to take
• It did not integrate the operating and development budgets, and the personnel
• It created only limited linkages between budget performance, resource usage, and
policy implementation.
Despite the revision, there were still short-comings which had to be rectified. The
32
Public Expenditure Management in Malaysia: How Malaysia Performs Malaysia, cited in Thomas, K.
(2007). Integrated results-based management – the Malaysia experience (Part III). Managing for
Source: <http://www.mfdr.org/sourcebook/2ndEdition/4-2MalaysiaRBM.pdf>.
33
Ibid.
34
Ibid.
14
solution or platform known as the PPMSTM8 (Programme Performance Management
System) in 2004.35
performance. And one of the critical tools used to measure performance in the public
following objectives:38
35
Ibid.
36
Kon, D. “Performance measurement and management: a Singapore perspective.” Measuring Business
Excellence, 9(3).
Source:
<http://www.emeraldinsight.com/Insight/ViewContentServlet?contentType=NonArticle&Filename=Publis
hed/NonArticle/Articles/26709caf.004.html>.
37
Source:
<http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx>.
38
Ibid.
15
• Clearer linkages between vision, mission and action;
An example where BSC has successfully applied is the court system. The BSC started
with one division, i.e. the Small Claims Court as pilot project in 1998.39 A Steering
Committee reviewed and monitored the BSC every month. After 6 months, the Steering
Committee decided to cascade the implementation of the BSC to the entire judiciary.
Chan Wai Yin, Director of Research and Statistics Unit stated that:
39
Enterprise Performance Management (EPM) Review.
Source: <http://www.epmreview.com/Resources/Case-Studies/Subordinate-Courts-Singapore.html>.
40
Ibid.
16
The key success factors for the BSC implementation in the Small Claims Court of the
attitude to change in the organisation; and d) effective communication of the goals and
a study on small and medium-sized enterprises (SMEs) in Malaysia with a special focus
on healthcare service providers (i.e. private firms contracted as vendors to the public
healthcare system), it was found that the implementation of BSC in four key areas of a)
learning and growth; b) mission and vision; c) customer satisfaction; and d) internal
41
Abdullah Mohd Ayedh. (2007). Performance measurement practices in the Malaysian companies: An
42
Budi Suprapto, Hasnida Abdul Wahab & Jatmiko W. A. (2009). “The implementation of balanced score
card for performance measurement in small and medium enterprises: evidence from Malaysian health
17
technical efficiency and reduce wastage.43 This is amply illustrated in the case of
Malaysia’s container haulage industry where there are very few players, and many of
the existing ones are subsidiaries of conglomerates such as MISC44 and Kontena
Nasional.45 The implication is that even in the private sector, performance management
with specific reference to BSC still has a long way to go. In the meantime, the lack of a
43
Zailani Mohd Zaid & Mohd Zaly Shah. (2007). “Performance measurement in Malaysian container
Malaysia).
Source: <http://eprints.utm.my/1834/1/Zailani_and_Zaly__Transport_.pdf>.
44
The parent company of MISC is PETRONAS, a government-linked company (GLC). Website: <http://
www.misc.com.my>
45
Ibid.
46
Goh, E. A., Suhaiza Zailani & Nabsiah A. Wahid. (2006). “A study on the impact of environmental
47
Montabon, F., Meinyk, S.A., Stroofe, R. & Calantone, R.J. (2000), “ISO 14000: Assessing its perceived
pp. 4-16.
18
“insatiable,” environmental management is concretely premised on the scarcity of
resources and constraints of space; hence, the concept of sustainability applies equally
to profit-driven institutions.
Through the introduction of international standard indices such as ISO14001, firms can
benchmark against good environmental practices. ISO 14001 consists of five essential
elements:48
• Planning;
It has been found to have a positive impact on the business and environmental
their stakeholders, particularly customers and help to properly optimise the use of
48
Op. cit. Based on Boiral, O. & Sala, J.-M. (1998), “Environmental management: should industry adopt
49
Ibid.
19
Whereas EMS applies more specifically to the former, in meeting the uncertainties and
collaborate closer with the government in re-training and upgrading the skills of the
introduction of the New Economic Model (NEM) in mid-2010 to coincide with the
introduction of the 10th Malaysia Plan is timely to spur the country towards high-income
on performance appraisal of the private sector. It has been shown that where TQM was
Singapore Airlines (SIA) has found that its business and organisational performance in
the industry is almost unrivalled anywhere in the world due to its resilience and
50
Hamisah Hamid (7 August, 2009). “Trained workforce will drive performance.” New Straits Times. Tan
Sri Sulaiman Mahbob in a Public Policy Colloquium lecture on “labour, wages and productivity” dated 22
51
Shaukat A. Brah, Tee, S. S .L. & Rao, B. M. (2002). “Relationship between TQM and performance of
Singapore companies.” International Journal of Quality & Reliability Management. 19(4), pp. 356-379.
Source:
<http://www.emeraldinsight.com/Insight/ViewContentServlet?Filename=Published/EmeraldFullTextArticl
e/Articles/0400190401.html>.
20
competitiveness.52 One of the critical determinants in the success of SIA has been its
hallmark.53 Thus, SIA’s performance management involves, inter alia, setting up very
high customer service standards. This is supported by a rigorous quality control system
in employee recruitment and selection.54 Hence, the productivity levels of SIA have been
d) Conclusion
management techniques such as the BSC has produced varying results in the Malaysian
and Singaporean public sectors. On the whole, the Singapore public sector fared better
Malaysian public sector. In its Annual Productivity Report (2008), the Malaysian
Productivity Corporation (MPC) stated that public sector productivity only grew by
52
Chan, D. (2000). “The story of Singapore Airlines and the Singapore Girl.” Journal of Management
53
Ibid.
54
Ibid. Citing Asia Business Review (1996, p. 34).
21
about 3.8 percent in 2008.55 Although this figure is commendable, it hardly constitutes a
management elements and measures. On the other hand, productivity growth in the
private sector is comparable, i.e. on average trailing closely.56 In such a case, comparing
the performance of performance management in both the Malaysian public and private
go far enough.
Rather, whilst rating should not be necessarily displaced, the focus should be on the
subject to less controversy, e.g. on the subjectivity of the rater; and more on ensuring
self-evaluation. Such self-evaluation can then be put to rigorous comparison with that of
55
Chapter 7: Productivity performance of the public sector.
Source: <http://www.mpc.gov.my/v1/files/APR2008/Chapter7.pdf>
56
Chapter 1: Productivity performance of Malaysia.
22
It is clear, nonetheless, the lack of total commitment and support by CUEPACS is a
the Malaysian public sector. Thus, the success of performance management in the
pressure,” which ironically may affect work morale and motivation, and therefore
productivity.
In the case of the private sector scenario, again it is arguable that Singaporean firms
counterparts. However, it is clear that Malaysia private sector are just as quick to adapt
to new performance management measures and use them to their own advantage.
What is needed is a dynamic synergy between the public and private sectors in
Malaysia.
The private sector can respond to the policies of the government by establishing
institutions which promote efficient performance and good practices in the work
(TFP).57 The private sector can help to formulate, improve upon and monitor the
57
The MPC’s definition of TFP is “efficiency and effectiveness of all factors of production.”
Source: <http://www.mpc.gov.my/home/?sstr_lang=en&cont=ds&id=1i9&item=d1&t=4>
23
One example is the formation of the Malaysian Alliance of Corporate Directors (MACD)
in mid-2009. The MACD aims to develop professional standards for the captains of
industry. Moreover, in view of the current global financial crisis and economic doldrums,
relevant than even to ensure realistic adjustments are correspondingly made to the
The private sector need not be overly reliant on external stimulus such as tax incentives
to boost productivity of the workforce. Instead, they can partner with the public sector
in enhancing the exchange of good practices and technical expertise so that the
performance management can enjoy “cross-fertilisation,” i.e. the “best of both worlds”
in the quest to boost productivity in line with gross domestic product (GDP), and elevate
Selected bibliography:
58
For performance management in the case of top executives, see Dharma Chandran. Manager@Work:
24
2. Donnelly, Jr., J. H.; Gibson, J. I. & Ivancevich, J. M. (1995). Fundamentals of
25
26