Convincing Features
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The changing business world provides challenges for organizations to maintain the current performance of the business. Performance management is related to the issue of the management control system and its main objective is to manage and control organizational performance (Otley, 1999). Companies must consistently and critically review their PMS and take drastic action (if required) to address the challenges encountered during its implementation.
In Malaysia, the performance of GLCs continuously remains the main concern because they certainly influence the economy in Malaysia. In order to transform the GLCs into high-performing entities, the government introduced the GLC Transformation (GLCT) program and one of the initiatives is to intensify performance management. This initiative is known as the Blue Book policy. The GLCT program was introduced by the government in 2004 and successfully completed in 2015. GLC performance is still monitored even though the GLCT program was completed in order to achieve Wawasan 2020 initiatives.
PMS implementation is one of the requirements under the GLCT program. The study provided an understanding of how PMS is being implemented after several changes during the implementation phase. This will broaden the understanding of how control is used to mitigate the challenges encountered during the implementation of PMS in GLC. To pursue the aims of the study, a case study of a large Malaysian GLC was conducted. Semi-structured interviews, organizational documents, and observation were used in the data collection process.
This paper is organized as follows. The next section provides a literature review, which begins with a discussion on the studies of the implementation of PMS in GLC, and challenges encountered during the implementation of PMS and Management Control System (MCS). This is followed by a section on the research method and design of the study. The subsequent section focuses on the analysis of the case study, including the background of the case organization, and the implementation of the performance management system. This is followed by the discussion and conclusion sections.
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