Faculty of Administrative Science and Policy Studies

Universtiti Teknologi MARA

Seminar in Public Management

(ADS656)

Implementation of Key Performance Indicator and The Issue of

Occupational Stress In Malaysia
Name of Group Members:

N
o Matric No Student Name

1 2017744013 Maisarah Binti Mahat

2 2017752273 Dayana Syazana Binti Jacky

3 2017552487 Nurmunirah Binti Harun

4 2017190509 Nurul Ain Arifah Binti Ismail

5 2017547999 Tg Nur Zamzatul Akmal Binti Tg Zainal Alam Shah

Class: AM2286A

Submission Date: 20/11/2020

Name of Lecturer: Dr. Ahmad Faiz bin Yaakob

Article Summary: Implementation of Key Performance Indicators and The Issue of
occupational Stress in Malaysia by Muzaffar Syah Mallow.

This article is about the implementation of Key Performance Indicators and the issue
of occupational stress in Malaysia. Because of the growing rivalry especially in the business
world today, most businesses must change their strategy and adopt the latest mechanism for
measuring results. As a result, the worldwide trend is now growing including Malaysia where
companies use the Key Performance Indicator (KPIs). KPIs were also used to measure the
success of a single company or programme for each year. Though in Malaysia KPIs have
used private industry for the last few years, in reaction to the 2005 government circular, the
country's public sectors recently introduced it. In 2019, stated in the article that the new
country leader emphasized for the fully adoption and implementation of KPIs for every sector
in the country mostly in public sector.

KPI is being used to evaluate the success of any organizations of a particular activities
or programs in which they have set out earlier within specific period of time [ CITATION
Bid09 \l 1033 ]. The organization will be considered success if they able to meet with the KPI
that have been planned and will automatically consider as a failure on their part. It is very
important for us to take note that Key Performance Indicator is vary from industry to industry
as the industry itself have different nature of business.

Also highlighted in the article that the use of KPIs is now also part of the
governments’ policy to transforms the country and fulfilled its goal to become fully
developed and fulfilment the transformation by the year 2050. There are certainly many
benefits or advantages of KPI deployment within any organisations and sectors if it is well
drawn up and coordinated. KPIs can help activate or identify any issues quickly and easily,
among the advantages or benefits that can be illustrated here. These issues include problems
of labour efficiency or matters affecting the inability to satisfy consumers' or customers'
needs. With KPI, tasks get even simpler when the company specifically describes and
recognises the emphasis on success and goals they aim to meet. Stated by the writer in the
article that KPI is also able to categorise expenses or financial saving possibilities in the
business and create ways to reduce waste investment in the future. The implementation of
KPIs will also involve tracking committed costs where necessary. Explained in the article that
both expenditures should provide proof or evidence of expenditure which is usually related to
the KPI. It will make the KPI more accurate and easier to audit by getting such facts or
evidence in place.

Writer said that KPI may be an effective method for capturing prospective clients or
consumers, since clients or customers typically use KPI to determine the suitability of a new
company. The client or consumer will typically ask organisations to include details on their
success and accomplishment and to closely analyse the KPI as well as a comparison analysis
with the KPI of another company before making a final decision. Clearly that KPIs is helpful
to the organization to fulfil their objective and guide company to make decisions. KPI may
also support the company by revealing its own future strengths. If they use the right KPI in
the targeted time frame, the company will have a good perspective of what they plan to do
and the resources it allocates. If the organisation can accomplish all these aims, so it can
reach the KPI and show it to its own power.

On the other hand, while we listed all the advantages of KPIs implementation, it also
could lead to a dilemma if not closely followed. The writer stated in the findings in the
article that employers and staff are expected to perform their roles and obligations effectively
and with due care and to fulfil the job standards of the company to which they belong. As
already stated, all organisations have their own KPI, which they must meet. Both staff are
required to meet their default job goals in compliance with the KPI. The writer stated that we
cannot disregard the concerns and criticisms made by the staff themselves regarding the use
of the KPI, which is not practical to be carried out within the organisation. Unrealistic or
unfeasible KPIs typically see staff grappling to meet the targets set at the cost of their fitness,
leisure, families, and inducing them to spend a significant amount of time at the workplace to
satisfy the needs of their employers and thereby increase the problem of job tension.

In the worst-case situation, stated by the writer in this article that serious disciplinary
consequences may be raised against staff, like civil or criminal action. He adds that what
makes it stressful, would its output eventually deteriorate if the staff were faced by
constraints to attain such impossible KPI. It will continually troubling the employees if the
goal set by the unrealistic KPI have not been achieved. This will add to discomfort and
tension by comparing individual performance to his peers and assessing based on his results
by the supervisors. If the superior does not incorporate corrective action plans and this in fact
may give the employee additional pressure to reach the goal resulting in extreme stress-
related diseases. Stressful working environments can lead to three types of main impacts,
including actions, absenteeism, or bad behaviour, according to several reports. The writer
also adds in this article that this will result to a negative symptom such as headache, sleeping
disability and many others.

The writer makes a few suggestions in the article which is in order to avoid the
creation of a hostile environment, a more practical and fairer KPI is necessary for the
company, which can lead to productive dismissal of staff. The organization must develop and
implement realistic and reasonable KPI [ CITATION Par07 \l 1033 ]. A high quality KPI
collection would require significant effort. Managers and functional consultants should work
closely constantly to recommend a variety of steps and evaluate the relative importance of
different initiatives. A variety of significant obstacles to produce a practical and rational KPI
include objectives are not explicit, then activities begin to focus normally on benefit
outcomes. Thus, too high reliance on finance metrics gives a very unbalanced and fragmented
view of the wellbeing of the company, initiatives that are deemed relevant by one region
cannot be considered important by others. The analysis of leading indicators is a very
complex process and significant bias into the process, and it may be difficult or impossible to
precisely quantify and report on the measures found.

The writer also suggests that consultation, debate, and meeting with their staff must
be conducted in the administrative stage of the company before any KPI is drafted. This
means that the company, before implementing the KPI, has received input and
recommendations from its staff. The organisation must make sure the KPI is realistic for the
resources allocated, the resources and the capacity of the organisation and their number of
staff or employees. and their number of staff or employees.

References

Bidin, N., & Sellasamy, S. (2009). Health Management Excellence: Strategic Manangemnet & Key
Performance Indicators (KPIs) . Kuala Lumpur: Institute for Health Management.

Mallow, M. (2017). Implementation of Key Performance Indicators and The Issue of Occupational
Stress in Malaysia. International Conference on Education and Social Sciences.

Parmenter, D. (2007). . Key Performance Indicators: developing, Implementing, and Using Winning
KPIs. New Jersey: John Wiley & Sons.