The effects of the performance management system and the organisational culture on the employees attitude in Malaysian government statutory bodies : a case study of Majlis Amanah Rakyat (MARA)

Abstract

This research focuses on the effects of the attitude on the employees in one of the biggest statutory bodies in Malaysia, Majlis Amanah Rakyat known as MARA. Using a quantitative approach, this research was largely descriptive in nature. The structured questionnaire survey used for data collection was distributed to MARA employees throughout Malaysia. The objectives of this research were to investigate the impact of the employee attitude derived from the usage of Balanced Scorecard (BSC) as the performance management system in MARA as well as investigating the implications on its organisational culture. Other important objectives were to offer recommendations for good Performance Management System (PMS) practices and to identify issues meriting further research. The key findings of this research are as follows; first, the Malaysian government should review its policies on MARA’s functions in developing the indigenous or the Malay community in the area of business and education. Second, MARA should appoint top management through open recruitment system. Thus, in this way, the key professional personnel will not only be able to lead this public agency but also to act as a change agent. Third, using the Balanced Scorecard as the strategic management system will enable the management’s strategy and vision to be translated into realistic and achievable goals. Fourth, from the hypotheses, the findings also found through BSC Learning and Growth perspective, the lack of training and development program has caused dissatisfaction among the MARA employees. Fifth, the emphasis on Organisational Development (OD) was found to be critical which would enable MARA to engage in performance-based culture as well as to integrate training and motivation. Sixth, the findings also revealed that the current practice of promoting employees solely based on seniority should be abolished and must be based solely on merit. Seventh, this research has found that MARA should act as a learning organisation to absorb the rapid changes in the business environment as well as to cater the needs of the Malay community in Malaysia.

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