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Managing Performance

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Summary of the Case (John, 2012)

Objective of the Case Study:

The case study relates to the issues and progress of Lowesia Government's key performance indicators (KPI's) project for secretaries-general and selected department heads. It relates to the implementation of KPI and to appreciate the critical success factors in implementing the reformation of public service particularly on the performance management.

The KPI project for department heads:

The President of Lowesia had announced in Parliament that department heads in the public service would be subjected to KPI. The President appointed an advisory committee comprising of senior members of the public service and captains of industry with the Chief Secretary to the government as the Chairman. The advisory committee was responsible to oversee the implementation effort. Mr. Adam, the Director General of Performance Management Department (PMD) was appointed to lead the implementation. PMD appointed YAH Consultants to design the project. The project will be implemented once PMD receive approval from the advisory committee.

The KPI project implementation team meeting:

Mr. Adam chaired the meeting and informed the team members on the comments that he received from the department heads on the implementation of KPI. Some departments are interested in the implementation but they want KPI that are easy to measure and achieve so that they can be considered as super-achievers. Some department resisted the implementation as they think that there is nothing good that can come out it. Some department heads insist on inserting KPI that the minister wants irrespective of whether these will contribute to achieving the national objectives. Mr. Adam and his team are trying to solve the issues and find solutions for the implementation of KPI.

What is KPI?

KPI is a type of performance measurement. An organisation may use KPI to evaluate its success or to evaluate the success of a particular activity in which it is engaged.

Issue 2: Employer Perspective

Role of power in organizational politics

Before the implementation of KPI can take place, it is important to know how the powers of a leader in the organizational politics can affect others. Power is the capacity of a person, team and organization to influence others. Power may have the potential of changing someone's attitudes or behaviour.

In the case study, we can see that the power exercise by the President and Director General of PMD to implement KPI has no binding force. The implementation requires agreement among the department



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