An institutionalist study on the performance management system in a government- linked organisation
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Date
2009
Authors
Mohd Alwi, Norhayati
Journal Title
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Abstract
This study aims to explain the process of institutionalization 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. An explanatory case study method is used whereby data
is collected through semi structured interviews, document reviews, informal
conversations and observations.
The data reveals 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. Although there were attempts made to link the
organisational activities to the system through the business operating plan,
organisational members still view the PMS practices within the domain of the HR
function. Thus the new PMS did not really change the way organisational members
view and do things in the organisation.
This study has shown 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. This
research offers insights into the role of the dominant stakeholder in bringing changes
into a government-linked organisation. It provides evidence to the government that the
process involved in transforming an organisational culture of a government-linked
organisation by using accounting tools might be time consuming, costly and can be subject to resistance. There is always a tendency to resist if the change programme is
embedded with different norms and values from the existing ones. Therefore, a deeper
understanding on the embedded values and norms of the organisational members could
assist the change agent to reduce the barriers to change. Hence, any change management
programme introduced in a government-linked organisation should take into account the
norms and values of the organisational members, and receive strong support from both
the top management and the trade unions.
Description
PhD
Keywords
Management , Institutionalist , Government