Malaysia's experience in implementing the new performance appraisal system

DOIhttp://doi.org/10.1002/(SICI)1099-162X(199610)16:4<341::AID-PAD886>3.0.CO;2-N
Date01 October 1996
AuthorHALIM BIN SHAFIE
Published date01 October 1996
PUBLIC ADMINISTRATION AND DEVELOPMENT, VOL.
16, 341-352 (1996)
Malaysia’s experience
in
implementing the new performance
appraisal system
HALIM BIN SHAFIE
National Institute
of
Public
Adminktration Malaysia
SUMMARY
Malaysia introduced a new performance appraisal system in 1992, as part of its administrative
reform efforts to improve the public sector performance in achieving higher productivity and
service quality. The New Performance Appraisal System is a departure from the traditional
system of appraising employees as it is a performance-based reward system and emphasis is
given to performance planning, performance monitoring and review, performance feedback,
and development of action plan to coach and counsel employees on an on-going basis. The
most notable features of the NPAS include the need to set annual work targets and standards
of performance between the manager and the subordinate, a mandatory mid-year review of
the work performance in relation to the target set, the use of different appraisal forms for
different categories of employees according to grades, and the setting up of a Panel on the
Coordination of Performance Appraisa! and Salary Progression in each ministry/agency to
ensure fair, transparent and objective appraisal, and the selection of excellent employees for
reward and recognition. Nevertheless, to ensure the effective implementation of the WAS,
various issues need to be addressed such as commitment by top management, rater bias,
training and quotas for recognition and reward.
INTRODUCTION
In a public sector environment that emphasizes output or results, performance
management has become increasingly central to Malaysia’s public sector
organizations. Performance management can be approached at two levels, the
organizational and the individual. At the organizational level, administrative
improvement programmes such as Total Quality Management (TQM), Modified
Budgeting System (MBS), Micro Accounting System, the New Remuneration
System and the Clients Charter, have been implemented. These aim to enhance
performance and to institutionalize a culture of excellence in public sector
organizations. The focus of this article
is
performance management
at the
individual
level, emphasizing Malaysia’s experience in the implementation of the
New Performance Appraisal System (NPAS).
Dr.
Shafie is Director, National Institute
of
Public Administration (INTAN), Public Service Department,
Bukit Klora,
Off
Jalan Damonsara, Kuala Lumpur
59700,
Malaysia.
Paper presented to
1996
CAPAM Biennial Conference, ‘The New Public Administration: Global
Challenges-Local Solutions’, Malta,
21-24
April,
1996.
CCC 027 1-2075/96/040341-12
0
1996 by John Wiley
&
Sons, Ltd.

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