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Declining Employee Performance in Public Sector Organizations: An Etiological Study of Public Sector Organizations in Pakistan
Declining Employee Performance in Public Sector Organizations: An Etiological Study of Public Sector Organizations in Pakistan
Declining Employee Performance in Public Sector Organizations: An Etiological Study of Public Sector Organizations in Pakistan
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not live up to his list of “ideals.” Others Wright & Bonett in 2002 observed
have even claimed that Weber’s accountability as a variable influence job
bureaucratic organization is “imaginary”. performance, Cronin & Becherer, 1999 and
Stephen P. Osborne (2002: 3) argues that Fort & Voltero, 2004 found non-financial
“public sector organizations perform poorly rewards like recognition of achievement and
in many developing countries’ because of McConnell, 2003; Tzeng, 2004 found job
‘poverty, economic crisis, corruption and satisfaction influenced job performance.
political instability’. On the other hand, this Researchers found various factors enhance
is not to suggest that public sector is or reduce employee performance but most of
incompetent of performing well all over the the researchers are convince that
developing countries. On the basis of in- accountability, reward and environmental
depth empirical verification, Grindle factors have positive influence on employee
explains that it is possible to point out key job performance.
organizational characteristics which enable
optimal performance; including “an LACK OF ACCOUNTABILITY
attention to organizational values and
cultures and positive human resource Public sector of Pakistan is not well-reputed
management.” (Stephen P. Osborne (2002: due to corrupt practices, bureaucratic and
3) Public Management: Critical Perspective political influences, and incompetent
Volume 4). appointments by influential individuals of
Organizational values, customer focused the staff, scarcity of resources and low
strategies and effective performance salaries of government servants. Dr. Sultan
evaluation is necessary for the successful Khan (2002: 250) argues that “in Pakistan
working of public sector organizations. The the bureaucracy which is the tool of
possible reasons for variation in government to provide all facilities to the
performance include the characteristics or citizens, failed to provide anyone…
needs of the people served; the skills or Expanding bureaucracy’s means and
motivations of the direct service workers; increasing their expenses resulted in
the quality of local site management; the lowering the productivity of the country;
clarity of policy direction; factors in local which made the system closed.” Hence,
environment; the extent of system-wide bureaucracy has created a dilemma for the
coordination; strength and enforcement of people of Pakistan. It is perceived that
performance incentives; and other structural government organizations lack technology,
characteristics of system. Some of these process and training but it is not the case.
factors are likely to be much more Most of the public sector organization have
influential than others, making it important reasonable budget allocated for training &
to know which factors matter most if better development, acquiring new process and
system performance is to be attained technology but due to less motivation,
(Laurence E. Lynn Jr. et. al 2000). corruption, biasness and political pressures
these programs goes in vain. It is found that Pakistan, first introduced, Zulfikar Ali
employee’s selection for training is on the Bhutto in order to lay the foundation of
bases of nepotism/favoritism instead of socialist economic reforms to improve the
merit and selecting incompetent firms for growth of national economy of Pakistan.
process or technology re-engineering that Since the 1950s, the country had a speedy
gives lowest bid and pay bribe to high industrialization and became an industrial
officials. That is why public sector paradise in Asia. But, as time progressed,
organizations not succeeded to produce the labor trade unions and labor-working
expected outcomes through training and class had strained relations with the
technological innovations. industrial business oligarch classes,
CORRUPTION completely neglected the work conditions
It encourages extensive corruption, while at and failed to provide healthy environment to
the same time lowering morale and the workers class in the industries.
increasing ineffectiveness. Many capable “Riazuddin, Riaz: Pakistan: Financial Sector
officials wish to join the private sector. It is Assessment (1990-2000)
observed that low salaries and benefits are a
major cause of bureaucratic inefficiency. RATIONALE
The decline in employee performance is It is a fact that poor performance is
largely due to low salaries and wages as widespread in our public organization. The
compare to private sector. (Reforming increasing losses of public organizations in
Pakistan’s Civil Service). Pakistan seem to be a challenge for state.
The government is spending Rs. 400-600
RECRUITMENT IN PUBLIC SECTOR
billion per year on these organizations as a
Definitely being an Asian tiger by now" result of this reducing allocation for the
Abdul Hameed. M. Dadabhoy, Interview development budget. Therefore, it is
with Daily Dawn September 9, 1995. This essential to identify the underlying causes of
statement describes the whole picture that poor performance in public organization.
our public sector was performing quite will The objective of this research is to identify
during 1960’s. As all development the determinants of employee performance.
indicators show that our economy was An effective performance management
fastest at that time in entire Asia. Our public system can be developed by using these
sector organization PIA, which is declining determinants. The findings of the research
today, has developed Chinese national flag will be very productive for public sector
carrier airline and world’s leading airline organization as it will highlight the grey
Emirates Airways. The Nationalization areas in employee performance. Moreover,
process in Pakistan was a policy measure the findings of this research will be helpful
program in the economic history of in devising any performance management
mechanism in public sector organization.
HYPOTHESES
H1 The decrease level of performance will be because of political interference.
H2 The decrease level of performance will be because of low environmental facilitation i.e.
a) lack of technology
b) lack of process
c) lack of training
H3 The decrease level of performance will be due to corruption
H4 The decrease level of performance will be due to lack of employee participation in the
decisions making
standard employee performance,
METHODOLOGY absenteeism, delayed process, loss of
This is an exploratory research conducted to revenue. In addition to this poor public
identify the factors that induce or hinder image, inability to promptly deal customer
public officials to work efficiently for complaints and reduction in operational
providing service to the public. The content capacity is also considered as decreased
analysis method is used in this study. The level of performance in organization.
data has been collected from articles,
performance evaluation reports, global Where it is common?
competitiveness reports, judicial reports and
books relating to employee performance. Stephen P. Osborne (2002: 3) states that
After the collection of information, it is “public sector organizations perform poorly
studied that which factors cause major affect in many developing countries”. It is a fact
on employee performance. On the basis of that decreased level of performance is more
expert’s opinion elicit in their research common in public sector organization due to
studies and findings of the reports on lack of ownership, accountability and in
employee performance are used to drive efficient management system. Whereas
results. Moreover, factual data, economic private organizations have ownership,
indicators and surveys results are also used effective management system and profit
in identifying the most relevant determinants focused strategies that enforce them to work
of employee performance in public sector. effectively. In private sector employees
performance directly linked with their pay.
ANALYSIS AND DISCUSSION However in public sector organizations
What is decreased level of performance in employee receive pay increase on the bases
organization? of length of their service (seniority) instead
of job performance. Private organization
The decrease level of performance in uses performance appraisal to take objective
organization can be defined as below decisions regarding employee’s promotion,
demotion and termination. Performance system, which set an objective criterion for
management work as positive or negative promotion, demotion and termination.
reinforcement at the same time by Government employees enjoy high job
encouraging through rewards; (increment, security and promoted on various bases,
perks, promotion, appreciation) if perform which include nepotism, paying-off,
effectively otherwise they will be terminated political affiliation and tenure of their job.
on the bases of underperformance. Most of
the public sector organizations do not have Large organizations that are experiencing
any effective performance evaluation decreased level of performance in public
sector are:
discretionary power, misuse of regulatory not PIA has developed world’s leading
authority, as well as institutionalized Airline Emirates airways. It not only works
powers. Furthermore, recruitments, postings as Chinese national airline but also help
and promotions are given through biding the them in developing their national flag
highest rate or political pressure is also carrier. PIA was renowned for its services
cause massive damage to public sector and customer care but now it is close to
organizations. financial collapse.
Last but not the least is absence of proper Since the 1950s, the country had a rapid
performance evaluation mechanism that industrialization and became an industrial
hinders employee performance. Government paradise in Asia. Zulfiqar Ali Bhutto
employees get promotion, increment and adopted nationalization policy in 1970’s in
transfer on the bases of nepotism, order to improve the growth of national
favoritism, and political affiliation rather economy. But after nationalizing all large
than job performance. corporations, mills, factories and banks
government failed to manage them
What are the genetics of decreased level of effectively. Bhutto allowed unlimited
performance in public sector organization? powers to labor unions and also recruited
large number of employees on political
Intensive study of public sector bases. Consequently, the organizations that
organizations from 1950 till today reveals were earning huge revenues before
that government organizations were highly nationalization converted into burden on
effective and efficient till 1970. Abdul national economy after nationalization due
Hameed. M. Dadabhoy state that “Had we to lack of ownership, accountability and
gone at the rate of growth during the decade corruption.
of 1960's, I reckon we would have definitely
been an Asian tiger by now". All economic Is it learned or by nature?
indexes which include Gross National
product, Gross Development Product and It is learned through social adaptation. When
foreign exchange index demonstrate that hard working employees do not get any
Pakistan was leading in Asia. Pakistan has benefit or development in their job through
highest economic growth rate during 1960’s. their job performance, then they adapt the
Our public organization that are attitude of non performers. Because they
experiencing worst recession today, were learnt that the standard for success in their
considered elite in their fields. For instance organization is something else instead of job
Pakistan International Airline (PIA) is performance.
facing most terrible decline in its history and
requires Rs. 200 billion every year from Is decreased level of performance due to
government in order to remain operational. political interference?
Is it always in similar situation? Obviously
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Determinants of Public Sector Employee’s Reforming public institutions and strengthening
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Psychology and Business Vol. 5 No. 2) Reconstruction and Development/ The
WorldBank: Washington, D.C.)
[2] Dr. Abbasi A. (2011) Public Sector
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(International Journal of Politics and Good public sector enterprises’
Governance Volume 2, No. 2.1 Quarter I 2011)
[13] June 2, 2011Dr. Ishrat & Kumar, Rajiv
[3] Adams A., Delis M. D., and Kammas P. (2010) ‘Reviewing Structural Reforms in India
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field between OECD countries. MPRA Paper No
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