PERFORMANCE MANAGEMENT SYSTEM

IN MALAYSIA:Lessons For Bangladesh

Tanzina FerdousDepartment Of Public AdministrationUniversity Of Dhaka.

Performance Management Performance Management is a process of

getting the best output/result from the individuals/employees through creating a working environment, which needs a common framework, agreed by the employees and employers, through the measurement of the performance of the employees for the achievement of the organizational goals or objectives.

Performance Management System in Malaysian Public Sector

Productivity Improvement Initiative (PMI), Total Quality Management (TQM),

Modified Budgeting System (MBS) programs

Performance-Based Pay of civil servants, New Remuneration System (NRS), Client’s Charter Key Performance Indicators (KPIs) Integrated Results Based

Management (IRBM) and some others.

Main Performance Management System to be focused

Key Performance Indicators (KPIs) of National Registration Department (NRD), Pulau Pinang

Integrated Results Based Management (IRBM)

Productivity Improvement Initiative (PMI), Total Quality Management (TQM).

Key Performance Indicators (KPIs) of National Registration

Department (NRD), Pulau Pinang

Adopted to the response of Govt. Circular 20.

Introduced in 2004. Achieve great success in National

Registration Department (NRD), Pulau Pinang

NRDPP adopted KPI in October, 2004.

Main focuses of using KPIs in National Registration Department (NRD)

Firstly, to measure efficiency and effectiveness of work process to provide and deliver quality services to customers.

Secondly, NRD focuses on their KPI to assess the customers’ satisfaction.

Contd…

Customer Satisfaction- Provide rewards to the employees.

Customer Dissatisfaction- Provide Only Advice to the respected employees

How NRDPP develop their (KPIs)

To check the application and give the queue number to the customers, which take only 2 minutes .

before setting the target performance management team initially will conduct a research to find out the actual minutes spending in carrying out every work .

then set the KPI and performance target for every staff

How NRDPP measure their employees’ performance

Working times for 1 employee: 9240 minutes (1 month)

Application that they should process in 1 year: 6282 application for My Kid

Thus, in 1 month the employee should process only 523.5 applications. Therefore, for 1 person (PP1): (40% workload x 9240 minutes) = 3696 minutes. The actual time for PP1 to check the application is 5 minutes; therefore, for 1 employee their KPIs is to produce 739 applications per month.

Integrated Results Based Management (IRBM) In Malaysia

Results Based Management (RBM) focuses on timely achievement of the targeted goals .

RBM were either centered only on the budgeting system or through the personnel performance system. As a response to this, an Integrated Result-Based Management (IRBM) system was developed in the late 1990s.

IRBM system is made up of 4 key components

Results-Based Budgeting System (RBB), and

Results-Based Personnel Performance System(PPS)

Results-Based Management Information System (MIS)

Results-Based Monitoring and Evaluation Framework (M&E)

1. Results Based Budgeting (RBB) System

Main Focus- improve resource management and public sector accountability.

Performance Agreement in Malaysia is prepared and submitted at the activity level by the activity manager to the Controlling Officer who in turn aggregates all these documents and submits them to the Central Budget Office.

Through an administrative circular, the Ministry of Finance mandates the process. d submits them to the Central Budget Office.

Contd..

Through an administrative circular, the Ministry of Finance mandates the process. d submits them to the Central Budget Office.

Inputs defined in the documents have to be driven from the top with the departmental heads.

2. Results-Based Personnel Performance System (PPS)

Linkage can be easily established through the IPMF between the organizational performance and personnel performance.

Results Based PPS provides better opportunity for the planning and implementation of HRD and HRM.

3. Results-Based Management Information System(MIS)

Management Information System will identify the need of information at the different levels.

There should be a clear alignment between the information identified and the needs of the users as this information will be incorporated in the planning process at an early stage.

4. Results-Based Monitoring and Evaluation Framework (M&E)

Program Monitoring refers to the on-going process of tracking key performance indicators(KPI) at different program levels so that timely and appropriate actions can be taken to keep a program on track and to ensure that its objectives or goals are met in the most efficient and effective manner.

Productivity Improvement Initiative (PMI), Total Quality Management (TQM)

PMI introduced -1991 TQM introduced -1992. Main purpose of the first attempt was

obviously to make civil servants more aware of the impact of their decisions and actions on productivity of service delivery system.

Seven Principles Of TQM

Senior management; Support and commitment of top management; Strategic quality planning; Customer Focus or Orientation; training and recognition; Teamwork; Performance measurement; and Quality assurance.

Seven Programmes

A quality suggestion system; Quality process; Quality inspection; Quality day; Quality slogan; Feedback on quality; and Quality information.

Strength of the Performance Management System

Make Public Employees accountable, transparent and responsive to the citizens.

Make a competitive environment within the public organizations

Ensure consensus building and people participation.

TQM provides the opportunities to improve service delivery, draws a line of responsibility and greater accountability of the civil servants.

IRBM system focuses more on result, so the produced output can be more effective.

Weakness Of The Performance Management System

Does not include participation of civil societies, which sometimes may not be able to serve the public’s interests.

By the end of 2007, many local authorities and even some local council still haven’t fully implemented the KPI system. Some have just received training by their respective state government on the concept of indicators.

KPI reports are meant to be used only for internal purposes as external monitoring and evaluations aren’t possible to be made .

Contd… Absence of mechanism to serve as a

‘carrot and stick’ for promoting the KPI agenda.

According to Pn Norhayati, few cases have been resolved but only advice is given to the staff as it is not considered as serious case. There is no provision for punishment for under-performing as it’s considered as to demotivate the employees.

Applicability of the Performance Management System in Bangladesh

Key Performance Indicator (KPI) in the Union Parishad Of Bangladesh

Total Quality Management (TQM) In the Civil Service of Bangladesh.

Not Applicable: Integrated Result Based Management

There are 4 core elements in the IRBM system and if the system has to introduce in our public sector, then the whole Budget, Personnel, Management & Information System and Monitoring and Evaluation System have to be made result-based. And it’s not so easy to accomplish within the existing institutional and administrative framework.

Contd…

The Medium Term Budgetary Framework (MTBF) has been successfully introduced in 10 line Ministries and gradually, MTBF will be rolled-over to all the remaining ministries in Bangladesh. So, in this situation, a totally new and sophisticated IRBM system can not be applied easily.

Concluding Remarks

42 years have passed but no effective initiatives have been taken to reform the civil service or the Civil service recruitment system.

To keep pace with the changing world in the race of competition, it’s high time to call for a change in the public sector of Bangladesh.

Key Performance Indicators (KPI) and Total Quality Management can play a great role to improve the quality of service delivery of the public service and also can make the public servants accountable, transparent, responsive and responsible to the govt. and citizens.

Contd… Key Performance Indicators (KPI) and

Total Quality Management can play a great role to improve the quality of service delivery of the public service and also can make the public servants accountable, transparent, responsive and responsible to the govt. and citizens.

Necessary initiatives have to be taken in this regard by the GOB (Govt. of Bangladesh).

THANK YOU