A case study of performance management system in a Malaysian government linked company

Mohd. Alwi, Norhayati and Abdul Khalid, Siti Nabiha (2009) A case study of performance management system in a Malaysian government linked company. Journal of Accounting & Organizational Change, 5 (2). pp. 243-276. ISSN 1832-5912 E-ISSN 1839-5473

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Abstract

Purpose – The purpose of this paper is to explain the institutionalization process of the performance management system (PMS) in a Malaysian government-linked company (GLC). The study specifically looks at the changes brought by the GLC transformation programme introduced by the government. Design/methodology/approach – An explanatory case study method is used whereby data are collected through semi structured interviews, document reviews, informal conversations and observations. Findings – Despite attempts to link the organisational activities to the system through the business operating plan, the data reveal that the PMS-related activities have somehow been viewed as a routine mechanism for appraising the employees’ performances and become decoupled from the organisational activities. Thus, the new PMS did not really change the way organisational members view and do things in the organisation. Research limitations/implications – This study shows that the intention to institutionalise a new practice may not be materialised if there are not enough forces to support the change. The adoption of the new PMS practices may be due to isomorphic pressures to mimic other organisations in the same environmental field leading to ceremonial adoption of the practice. Originality/value – This research provides evidence to the government that the process involved in transforming the organisational culture of a government-linked organisation by using accounting tools might be time consuming, costly and subject to resistance. Hence, any change management programme introduced in a government-linked organisation should have strong top management support, good financial standing as well as a reliable technical backup to the programme.

Item Type:	Article (Journal)
Additional Information:	3574/581
Uncontrolled Keywords:	Performance management systems, Organizational change, Government policy, Public sector organizations, Malaysia
Subjects:	H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5549 Personnel management
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User:	Dr Norhayati Mohd Alwi
Date Deposited:	27 Jun 2011 17:25
Last Modified:	15 Sep 2023 09:07
URI:	http://irep.iium.edu.my/id/eprint/581

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