An institutionalist study on the performance management system in a government- linked organisation

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Date
2009
Authors
Mohd Alwi, Norhayati
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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
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