AN INVESTIGATION OF THE PERFORMANCE MANAGEMENT SYSTEM OF CIVIL SERVANTS IN THE PROVINCIAL GOVERNMENT OF KHYBER PAKHTUNKHWA

http://dx.doi.org/10.31703/ger.2023(VIII-II).29      10.31703/ger.2023(VIII-II).29      Published : Jun 2023
Authored by : Tariq Mehmood , Junesso Lee

29 Pages : 401-413

    Abstract:

    The performance management system of civil servants (PMSCS) is one of the key areas of human resource management (HRM) doctrine. This paper examines the current status of the (PMSCS) in the provincial government of Khyber Pakhtunkhwa; the causes of delays in implementation; identifies the best (PMSCS) practices in the world and suggests recommendations to the policymakers. This is exploratory research and uses both secondary and primary data. The findings are analyzed through the lens of Galbraith's Star model and the two-factor motivation theory. This study validates secondary data by relying on in-depth interviews of civil servants belonging to various government departments. This study finds out that (PMSCS) is weak due to political interference; lack of internal accountability; absence of vigorous human resource policy; and non-linkage of (PMSCS) to performance-based promotion and reward systems. Measures such as goal identification, de-politicization of the civil service system, and 360-degree evaluation system can help to strengthen (PMSCS).

    Key Words:

    Performance Management System of Civil Servants, Performance Measurement, New Public Management, Human Resource Management, Galbraith’s Star Model, Two-factor motivation theory, Civil Service, Performance Evaluation Report

    Introduction

    The 21st century is considered an age of governance by the 'performance management system' (PMS). Its basic principle is that information received from performance indicators helps to make better decisions in public sector organizations. It further leads to employees' accountability and efficiency. In point of fact, the government of New Zealand adopted the New Public Management (NPM) model from private sector organizations and implemented it in the public sector in the late 1980s. Performance appraisal is an important decision-making tool and part of the NPM reform agenda (Moynihan, 2008). Armstrong (2001) argued that a performance system is an organizational tool that is related to the evaluation, execution and improvement of organizational performance. Potgieter (2005) maintained that performance management is all about the performance appraisal of employees. Moynihan (2008) argued that a performance appraisal system is a management tool for increasing the efficiency and effectiveness of employees and ensuring enhanced service delivery. The main doctrine of the performance management system is to link individual and organizational goals to create "results-oriented cultures" on the basis of objective information. According to Moynihan (2008, p.5):

    “Performance management is a system that generates performance information through strategic planning and performance measurement routines and that connects this information to decision venues, where, ideally, the information influences a range of possible decisions".

    Efficient civil service and development of the country are co-related. Accurate assessment of employee performance is highly important because, for effective performance management, it is important to measure it first (Tanvir & Chaudhry, 2016). The central focus of performance is on human resources and measurement practices in an organization (Poister et al., 2015). Quantifiable performance measurement indicators are an essential feature of NPM (Norman, 2002). The performance management helps to measure and evaluate employee performance targets (Mughal et. al., 2014; Hanif et. al., 2016; Smith et. al., 2017). It associates ‘organizational strategies and results’ and motivates employees (Bhatia, 2016). 

    The most important features of performance management are: 1) hiring and employment of professional managers; 2) clear performance measures and standards; 3) assignment of more weight to reliability and stability of services; 4) more autonomy and decentralization; and 5) competition within all units and sub-units of organizations for better outputs (Fryer & Ogden, 2009). 

    Introduction

    The 21st century is considered an age of governance by the 'performance management system' (PMS). Its basic principle is that information received from performance indicators helps to make better decisions in public sector organizations. It further leads to employees' accountability and efficiency. In point of fact, the government of New Zealand adopted the New Public Management (NPM) model from private sector organizations and implemented it in the public sector in the late 1980s. Performance appraisal is an important decision-making tool and part of the NPM reform agenda (Moynihan, 2008). Armstrong (2001) argued that a performance system is an organizational tool that is related to the evaluation, execution and improvement of organizational performance. Potgieter (2005) maintained that performance management is all about the performance appraisal of employees. Moynihan (2008) argued that a performance appraisal system is a management tool for increasing the efficiency and effectiveness of employees and ensuring enhanced service delivery. The main doctrine of the performance management system is to link individual and organizational goals to create "results-oriented cultures" on the basis of objective information. According to Moynihan (2008, p.5):

    “Performance management is a system that generates performance information through strategic planning and performance measurement routines and that connects this information to decision venues, where, ideally, the information influences a range of possible decisions".

    Efficient civil service and development of the country are co-related. Accurate assessment of employee performance is highly important because, for effective performance management, it is important to measure it first (Tanvir & Chaudhry, 2016). The central focus of performance is on human resources and measurement practices in an organization (Poister et al., 2015). Quantifiable performance measurement indicators are an essential feature of NPM (Norman, 2002). The performance management helps to measure and evaluate employee performance targets (Mughal et. al., 2014; Hanif et. al., 2016; Smith et. al., 2017). It associates ‘organizational strategies and results’ and motivates employees (Bhatia, 2016). 

    The most important features of performance management are: 1) hiring and employment of professional managers; 2) clear performance measures and standards; 3) assignment of more weight to reliability and stability of services; 4) more autonomy and decentralization; and 5) competition within all units and sub-units of organizations for better outputs (Fryer & Ogden, 2009). 

    Background of the Study

    Pakistan came into being as an independent Muslim state on the 14th of August 1947. Until the 1980s, Pakistan performed well with a cumulative economic growth of 6.5 per cent and was among the top ten world economies. Regrettably, Pakistan's economic and social debacles started in the 1990s with increased political polarization, corruption, and nepotism in the government organizations (Hussain, 2018). 

    The World Bank Governance Indicators Project (2020) studied two governance indicators including 'government effectiveness' and 'political stability' of about 200 countries including seven South Asian countries. The percentile score is ranked from 0 to 100. The bigger the score, the more effective the government is. In the indicator 'government effectiveness' Pakistan's percentile rank is (31.73) which is slightly better than Bangladesh's score of (20.19), and much lower than that of India's (66.83); Bhutan (65.87) and Sri Lanka's (50.96). The WGI report further revealed that Pakistan is the least 'politically stable country' in the South Asia region with a percentile rank of (5.19) as compared to Bangladesh (16.04); Bhutan (84.91); India (16.98); Maldives (58.49); Nepal (41.51) and Sri Lanka (45.28).

    According to Majeed (2011), the World Bank studied a governance indicator ‘bureaucratic efficiency’ for various countries of the world and concluded that Pakistan has the lowest bureaucratic efficiency (4.3) out of 10. On the other hand, its regional peers were better, as India’s score is 5.5, Sri Lanka’s 6.7, and Bangladesh’s score is 4.7.

    Background of the Study

    Pakistan came into being as an independent Muslim state on the 14th of August 1947. Until the 1980s, Pakistan performed well with a cumulative economic growth of 6.5 per cent and was among the top ten world economies. Regrettably, Pakistan's economic and social debacles started in the 1990s with increased political polarization, corruption, and nepotism in the government organizations (Hussain, 2018). 

    The World Bank Governance Indicators Project (2020) studied two governance indicators including 'government effectiveness' and 'political stability' of about 200 countries including seven South Asian countries. The percentile score is ranked from 0 to 100. The bigger the score, the more effective the government is. In the indicator 'government effectiveness' Pakistan's percentile rank is (31.73) which is slightly better than Bangladesh's score of (20.19), and much lower than that of India's (66.83); Bhutan (65.87) and Sri Lanka's (50.96). The WGI report further revealed that Pakistan is the least 'politically stable country' in the South Asia region with a percentile rank of (5.19) as compared to Bangladesh (16.04); Bhutan (84.91); India (16.98); Maldives (58.49); Nepal (41.51) and Sri Lanka (45.28).

    According to Majeed (2011), the World Bank studied a governance indicator ‘bureaucratic efficiency’ for various countries of the world and concluded that Pakistan has the lowest bureaucratic efficiency (4.3) out of 10. On the other hand, its regional peers were better, as India’s score is 5.5, Sri Lanka’s 6.7, and Bangladesh’s score is 4.7.

    Significance and Objective of the Study

    This study is highly significant, because the performance management system of civil servants is a critical issue. Due to many obvious challenges, the Provincial Government of KP has been unable to achieve the targets of Sustainable Development Goals (SDGs). In order to remove this deficiency, the provincial government must adopt such system which can effectively manage employees' performance. The legal ground of the performance management system in the civil service is composed of Civil Servant (Act), 1973; KP Civil Servants (Efficiency & Disciplinary) Rules, 2011 and KP Civil Servants (Appointment, Promotion & Transfer) Rules, 1989. Unfortunately, these rules and regulations are not implemented in true letter and spirit.

    Existing domestic literature on the topic is insufficient because only a few researchers such as (Ikramullah et al., 2012; Hanif et al. 2016; Tanveer et al., 2016) studied the role of the performance appraisal system in the public sector in Pakistan. However, the researchers have not investigated this topic at length. In order to fill the knowledge gap, it is necessary to identify major weaknesses in the (PMSCS) and take remedial measures for improvement. The overall objective of this study is to analyze the (PMSCS) in the provincial government of (KPK) in Pakistan. Precisely, specific objectives are to:

    i. Examine whether the (PMSCS) is effectively implemented in the government of (KPK);

    ii. Analyze the causes of delays in the implementation of the (PMSCS) in the provincial government of (KPK);

    iii. Diagnose the best (PMSCS) practices worldwide;  and

    iv. Suggest policy measures for improvement of (PMSCS) in the provincial government of (KPK).

    Literature Review

    The literature review of this study is divided into two parts. One studies the history of (PMSCS) in the contemporary world including Pakistan. The second one investigates the importance and major characteristics of (PMSCS) system.

    Part 1: History of the (PMSCS): International & Domestic History of the (PMSCS) in the World

    Although the precise emergence moment of (PMSCS) is elusive, the Graphic Rating Scale (GRS) is believed to be the first measurement technique that was used in 1920 to rate the performance of army officers based on various traits. However, the main drawback of GRS is that it deals with the personal attributes of employees only. In 1940, another assessment technique called the Annual Confidential Report (ACR) was set up which empowers the supervisor to assess the subordinate. However, there is no feedback mechanism provided by the employees and there are few chances for improvement and betterment (Mughal et al., 2014). According to Condrey (2010), in 1958, an Australian-American management consultant Peter Drucker framed an objective-based performance measurement technique called Management by Objectives (MBO). MBO, in the public sector, provides managers with high authority as it controls objectives and activities, but the negative side is that it leads to centralization. The three major principles of MBO are a daily basis feedback mechanism; focusing on rewards and not punishment; provision of a performance scoreboard to managers and focusing on results and less on means of achieving them. In the public sector, its implementation is hampered by political ambiguity. 

    According to Norman (2002), Drucker observed the functioning of large companies and concluded that organizational goals need to be specific and attainable so as to achieve maximum output. Norman mentions another rating scale called Behaviorally Anchored Rating Scales (BARS) which is used to assess the performance of employees or trainees on a behaviour scale. According to Condrey (2010), both BARS & MBO emphasize detailed job analysis and the critical incident technique is the main part of the BARS system. Additionally, in the 1970s, Practical Performance Appraisal (PPA) was introduced with the aim of providing feedback to all employees for improvement. In reality, the above-mentioned measurement techniques helped to form modern performance management systems (Mughal et al., 2014). According to Poister et al. (2015), the main notion of NPM is that private-sector performance methods can be implemented in the public sector as well to run it in a market-like manner. Performance measurement is highly influenced by the NPM movement and citizens are considered customers in this new paradigm. 

    The Current Status of (PMSCS) in Provincial Governments in Pakistan

    In 1947, Pakistan inherited British civil services to run the affairs of the newly created country. The hallmarks of those civil servants were integrity, merit-based recruitment, and political neutrality. Muhammad Ali Jinnah (the founder) also aimed for “apolitical, neutral and independent civil service’’ (Hussain, 2018, p.210). According to Haque and Khawaja (2007, p.19) (PMSCS) is not implemented in the provincial governments mainly due to political interference, lack of internal accountability; weak human resource management system and unwritten job descriptions. According to Mughal et al. (2014), (PMSCS) is still a new concept in Pakistan's public sector. Similarly, Khan and Din (2008) maintained that bureaucratic inefficiency and weakness (PMSCS) pose serious challenges to civil service functioning in the federal and provincial governments in Pakistan.

    Hussain (2018) further revealed that 93 per cent of civil servants themselves consider civil service inefficient and corrupt. Second, internal accountability of civil servants and accountability to the citizens is lacking, which amplifies government infirmity. Third, the in-service training mechanism is weak and often neglected. Training evaluation reports are not utilized to identify the skills and competencies of civil servants. These are considered formalities for elevation and not for skill development and preparation for future challenging jobs. Fourth, the PER system is not given any weightage in the promotion system. It is subjective based; performance targets are not defined; no clear goals and objectives; no agreed upon performance agreement; no feedback mechanism; gap between employee and immediate supervisor due to the centralization of authority and a strong hierarchical system. The link between organizational goals and employee performance is missing. Tanvir and Chaudhry (2016) studied the PER system in the civil service and found that evaluation is subjective based on quantitative targets and is used as a behavior-controlling tool. 

    According to Hanif et al. (2016), all the reforms made so far including the ‘Basic Democratic system’ (1960s), ‘lateral entry system’ (1970s), and ‘Devolution Plan’ (2000) focused on restructuring administrative and financial practices only and contextual and functional aspects were ignored. 

    Part II: Main Features of the Performance Management System What are Performance Management and Performance Measurement?

    According to Fryer and Ogden (2009), 'performance management' and 'performance measurement' are distinguishable concepts. It was in 1976 when Beer and Ruh coined the term 'performance management' to assist organizational managers in using performance appraisal and reward systems effectively. They assumed that a performance system may be developed by involving all stakeholders in decision-making processes. Tobias and Peter (2009) emphasized that performance is a valued contribution to reach the goals of an organization. According to Mughal et al. (2014), the basic aim of (PMSCS) is better decision-making and development of employees in an organization. Poister et al. (2015) supported the fact that performance measure improves decision-making, enhances management style and ensures accountability. On the other hand, Smith and Bititci (2017) viewed 'performance measurement' as a 'metric' to measure productivity and success. It is a goal-setting process and developing performance measures. 

    Research Questions and Theoretical Framework

    This is not an empirical study to test hypotheses but an exploratory study to seek answers to open-ended questions which focus on the employee (PMSCS) system. After reviewing the available literature, the following research questions are framed.

    Research Questions

    i. Is the performance management system of civil servants (PMSCS) effectively implemented in the provincial government of (KPK) Pakistan?

    ii. What are the causes of the delay in the implementation of (PMSCS) in the provincial Government of (KPK)?

    iii. What Pakistan can learn from the (PMSCS) in the developed countries?

    iv. What kinds of measures are required to install efficient (PMSCS) in the Provincial Government of (KPK)?

    Theoretical Framework

    The following two theories support this research:

    Frederick Herzberg’s two-factor motivation theory Galbraith’s Star Model

    According to Dartey-Baah and Amoako (2011), Frederick Herzberg propounded the two-factor motivation theory to explain the positive and negative factors that impact motivation. These are hygiene and motivation factors which are viewed as extrinsic and intrinsic factors respectively. However, this theory is not free from limitations. Firstly, satisfiers can change during the lifetime of an individual. Second, though, Herzberg studied the connection between 'satisfaction and productivity' but he put much emphasis on the satisfaction factor while ignoring the productivity factor. According to Poister et al. (2015), there are many factors which can motivate employees towards the achievement of organizational objectives. "Public service motivation (PSM)" is related to higher motivation (Perry & Wise, 1990). In Pakistan, extrinsic factors such as government human resource policies, and low salary packages deeply impact the civil servant's motivation level.

    According to Galbraith and Kates (2007), alignment and connection among the five factors (needs) strategy, structure, people, rewards and processes is the key to successful organizational design. The concept of alignment is significant to Galbraith's Star Model. Each component of the model supports the strategy which enables the organization to achieve its goals. The theoretical framework is designed by incorporating the Two-factor theory and Galbraith's Star model.  

    Research Methodology Data Collection Data type and sampling method

    This is a qualitative and exploratory study of (PMSCS) in the provincial government of Khyber Pakhtunkhwa in Pakistan. According to Patton (2002, p.227), "qualitative methods typically produce a wealth of detailed data about a much smaller number of people and cases". Data is collected from two sources. Secondary data was collected from already available sources including international and local research journals, government documents and books. However, primary data was obtained through an in-depth interview method from the sample group consisting of thirty-five civil servants of various scales (basic scale 14 to basic scale 20) belonging to ten major departments (located in Peshawar city) of the provincial government of Khyber Pakhtunkhwa including (Finance, Planning & Development, Establishment, Administration, Sports & Tourism, Elementary and Secondary Education, Home & Tribal Affairs, Higher Education, Health, Energy & Power). 

    Moreover, a 'non-probability consecutive sampling procedure' is used to collect samples. The profiles of respondents consist of assistants, section officers, assistant directors, deputy secretaries, deputy directors, district education officers, district health officers, additional secretaries, special secretaries and secretaries. The participants were asked open-ended questions and given a full-time opportunity to present their viewpoints. Participants were asked questions both in Urdu (Pakistan's national language) and English. The answers were noted down and transcribed later on. In this regard, participants were interviewed from 13th August 2022 to 30th August 2022. Most of the interviewees had experience in both secretarial and fieldwork. 

    Table 1

     

     

    Proportions of Civil Servants

    in Interview

    Gender

    Male

    70 %

    Female

    30 %

    Age

    The average number of years

    40.2

    Education Level

    University Graduates

    85%

    Non-University Graduates

    15 %

    Designation

    Administrative officers (BS 17 to

    20)

    75 %

    Professionals (Teachers & Dr.)

    15 %

    Secretariat Officials (BS 14-16)

    10 %

    Years of Experience

    The average number of years

    14.4 %

    Job Type

    Permanent

    100 %

    Interview Mode

    In-person

    100%

    Data Analysis The Procedure of Data Analysis

    This study conducted face-to-face interviews and interpreted the themes. Additionally, the two-factor motivation theory and Galbraith's Star Model are used to check external validity and internal validity. In this study, the thematic interpretive analysis method is used to validate data. 

    Findings and Discussion Primitive Analysis Using Secondary Data

    One major finding is that the provincial government of (KPK) lacks the vision to implement (PMSCS). Thompson and Rainey (2003, p.41) argued that organizational strategy should be “integrated, coherent and comprehensive”. Also, there is high political interference in the civil service affairs. There is no practice of SWOT analysis of organizational internal assessment of capabilities and limitations as well as external environment scan to assess threats and opportunities. Galbraith’s Star model terms strategy as the most significant component of every organization. Perry (1993) argued that the strategy (HRM) supports strategy-driven activities. 

    Another finding is that there exist many structural issues as well. The system is highly centralized (middle-level managers have little role in decision-making); less internal accountability; nepotism in the recruitment and promotion system and a dearth of clear (KPIs). According to Galbraith and Kates, (2007) structure of an organization aligns other design elements with strategy.

    Additionally, the provincial government lacks an effective human resource policy for the evaluation, placement, rotation and training of civil servants. An automatic promotion system makes civil servants inefficient and lethargic. Employees' evaluation system is weak as (PER) lacks objective assessment techniques. 

    Another finding is that there is limited use of Information Technology (IT) at the provincial level. There is no online (PMSCS) and a higher portion of official business is performed manually. According to Poister et al. (2015), evidence-based practice (EBP) in the governance framework ensures performance and accountability. 

    One important finding is that employees’ performance and rewards and not linked. According to Lee (2013), the quality and motivation of civil servants are important factors of public sector productivity. 

    Validating Analysis Using Primary Data

    Participants were asked the following open-ended questions which are discussed below in detail.

    Perceptions of Provincial Employees about the Performance Management System

    Discussing "positive and negative aspects of the performance management system," 75 per cent of participants believed that the provincial government lacked a clear vision and strategy to implement (PMSCS). 

    The majority of participants mentioned that the Establishment Department lacks a robust human resource strategy to drive civil servant matters efficiently. Participants from the education and health sectors mentioned that the main reasons for weakness (PMSCS) are political interference, inefficiency and lack of internal accountability. 

    Performance Management and Employee Needs at the Organizational Level

    The majority of civil servants believed that the "existing performance system at the organizational level does not meet their needs" of placement, belongingness, services and recognition. Further, the organizational structure at the provincial level is highly centralized and political connections play a key role in placement. 

    The majority of participants mentioned that there is a practice of an automatic promotion system in all provincial organizations. Pakistan follows rank in the personal system which generates generalists. However, there are certain conditions for promotion including; 1) minimum length of time in service; 2) fit on disciplinary grounds; 3) complete PERs of previous years; and 4) employee should have attended mandatory courses such as MCMC, NMC and SMC. Senior civil servants termed existing promotion policy suitable as they keep institutional memory. While on the other hand, young civil servants believed that promotion should be performance-based. After analyzing both points of view, it is concluded that there is a divergence of opinion on the issue. Similarly, there exist many loopholes in the (PER) method as well. First, supervisors do not take the assessment process seriously. Second, (PER) lacks clear performance indicators to assess employees. Third, it is unable to differentiate between good performers and bad performers. Moreover, it has no significant weightage in the promotion system. A participant said that:

    Your personal relationship with your supervisor determines your grade in the annual performance evaluation report. 

    The majority of participants pointed out that there is no reward system in place to motivate efficient employees. There are no post-retirement benefits for provincial employees on the pattern of the federal government. However, participants talked positively about the healthcare system initiated by the previous government and the 'executive allowance' being given to the executive cadre officers. 

    Performance Management and HRM in Organizations

    While discussing the "human resource management system at the organizational level", the participants confirmed that there is a separate recruitment policy for each cadre. The positions of grade 14 and above are filled by the Khyber Pakhtunkhwa Public Service Commission (KPPSC), while grade 12 and below are recruited by the respective departments. The exam system is mostly subjective, and non-conceptual and encourages rote learning. According to Lee (2013), organizations should recruit talented employees, train them according to the needs of the modern civil service and retain them.

    More than 85 per cent of participants responded that there is no robust professional and skill-based training mechanism for the majority of civil servants. Female civil servants exclusively discussed the issue of the patriarchal nature of society, and its negative impact on their professional career. 

    Main Challenges of PMS at the Provincial Level

    When asked about the "main challenges confronting performance management system", the majority cited lack of vision as the first and foremost challenge. The provincial cabinet and provincial assembly are least interested in bringing reforms to the provincial civil services. The second major challenge is political interference, discrimination and favouritism in the recruitment, training and placement process. 

    Young and mid-level civil servants considered resistance among senior bureaucrats to structural reforms and faulty evaluation systems as other challenges. PER is not quantifiable and lacks measurement tools to judge employees. Another weak point is the practice of an absolute evaluation system which does not compare the performance of all employees. Besides, local cultural values also negatively impact the PER system due to strong bondage among people. 

    The majority of participants believed that the lack of e-governance initiatives hampers (PMSCS). Moreover, participants considered the training mechanism as an ordinary one. According to Hussain (2018), there is no national-level integrated plan for academies which can impasse the national governance agenda of the participants. 

    Main Challenges of PMS at the Provincial Level

    When asked about the "main challenges confronting performance management system", the majority cited lack of vision as the first and foremost challenge. The provincial cabinet and provincial assembly are least interested in bringing reforms to the provincial civil services. The second major challenge is political interference, discrimination and favouritism in the recruitment, training and placement process. 

    Young and mid-level civil servants considered resistance among senior bureaucrats to structural reforms and faulty evaluation systems as other challenges. PER is not quantifiable and lacks measurement tools to judge employees. Another weak point is the practice of an absolute evaluation system which does not compare the performance of all employees. Besides, local cultural values also negatively impact the PER system due to strong bondage among people. 

    The majority of participants believed that the lack of e-governance initiatives hampers (PMSCS). Moreover, participants considered the training mechanism as an ordinary one. According to Hussain (2018), there is no national-level integrated plan for academies which can impasse the national governance agenda of the participants. 

    Actions and Steps for Improvement

    When asked for "recommendations to improve the system", 95 per cent of participants emphasized there should be no political interference in the affairs of civil service. Second, placement should be based on rotation policy and competency. Third, the PER system should clearly define performance indicators. Besides, promotion and rewards should be performance-based. 

    Discussion

    In this section of the study common things of the primary and secondary data in terms of 'problems' and 'solutions' at each dimension of the Galbraith Star model are summarized.

    Effectiveness of (PMSCS) in the Provincial Governments

    Analysis of primary and secondary data shows that (PMSCS) is ineffective in the provincial government. The relevant organizations lack a future-oriented strategy regarding personnel evaluation systems and career development based on modern strategic management principles. Political interference and nepotism in the recruitment & placement process are rampant. There are other structural issues as well including the absence of a performance measurement mechanism; lack of clearly defined roles; imbalanced work distribution; and lack of accountability and centralization. Due to the minimal use of information technology, there is a lack of performance information for evidence-based decision-making. The rule of the automatic promotion system makes employees inefficient and lethargic. Also, the lack of capacity-building measures, faulty evaluation systems and absence of job agreements make performance systems ineffective. 

    Policy Recommendations and Conclusion Summary

    A robust performance management system is highly essential for any organization because it helps to achieve organizational goals and enhance the motivation level of employees. The significant aim of this paper was to study the (PMSCS) in the provincial government of (KPK) in Pakistan. It examines four things. First is the current status and efficiency of (PMSCS) in the province of (KPK). The second is to investigate the causes of the delay in implementation of the (PMSCS) in the province of (KPK). The third aim was to diagnose the best (PMSCS) practices worldwide. Fourth, suggesting policy recommendations. In fact, civil servants play a critical role in national development as they formulate and execute public policies. They also play a significant role in civic affairs and service delivery. OECD countries realize the importance of civil servants and have adopted best performance management practices. The situation is otherwise in Pakistan due to many obvious reasons as discussed above. 

    An efficient civil service is mandatory to achieve social and economic progress. Pakistan is unable to achieve the targets of (SDGs) due to a lack of efficient and motivated civil servants. Jorgensen and Bozeman (2007) emphasized that the public sector creates social cohesion; and ensures public interest and regime stability.

    The theoretical model of this study consisted of two-factor motivation theory and Galbraith's Star model. For effective organizational design, the five components of Galbraith's Star model should be aligned. This study is exploratory in nature. It uses secondary data from already accessible sources. To validate secondary data, primary data is obtained through in-depth interviews. A comparison of secondary and primary data reveals that lack of organizational vision, political will, centralization, lack of accountability, bureaucratic inefficiency, lack of e-governance initiatives, nepotism and lack of robust HR policy regarding recruitment, promotions, placement and career advancement are the main hurdles which impede PM system in the provincial government. Initiatives taken in the social sector, such as the Independent Monitoring Unit in the education department, with the help of international organizations, improve the system in developing countries. Pakistan needs to initiate such projects in other provinces as well.

    Policy Implications and Recommendations

    This section also includes the best performance management practices of the international world.

    i. Goal setting is highly essential for public sector organizations. It is important to link the national development agenda to organizational and individual goals. Kotter (1999) argued that for organizational transformation it is mandatory to create a vision and management should hire, train, promote, and empower those individuals who can stimulate organizational vision. Latham and Locke (1979) emphasized that goals should be precise and stimulating followed by performance feedback. Thompson and Rainey (2003, p.41) stressed that leaders should "promote new organizational values and processes".

    ii. To implement the organizational vision, it is paramount for the political leadership to depoliticize the civil service control system. Sahling and Mikkelsin (2018) recommended that public sector jobs should be advertised following by objective-based examination and interview process. Additionally, the Public Service Aptitude Test (PSAT) system of Korea may be adopted to recruit motivated, skilful and educated manpower.

    iii. Performance Evaluation Report (PER) should be goal-oriented with realistic and achievable (KPIs). Indicators should be agreed upon at the beginning of the year between the supervisor and the subordinate. Nasreen and Naz (2019) argued that regular evaluation enhances skill development and goal setting for the future. To avoid central tendency errors, the reporting officer should clearly divide employees among best performers, average performers and poor performers. According to Latham and Locke (1979), goals should be specific, measurable, achievable, reasonable, and timely (SMART). Moreover, the Korean model of performance agreement system and job evaluation technique for senior and junior level civil servants may be useful. According to Lee (2013), at present, Singapore's 'performance appraisal system', which 'runs on a quota-based bell curve', is regarded as the perfect system. This appraisal system clearly distributes employees among the best, average and poor performers. In this regard, 15 per cent are considered the best performers; 80 per cent are valued as average performers and the remaining 5 per cent are termed as poor performers.

    iv. 360-degree evaluation system helps to inculcate leadership skills among employees and develop them. According to Condrey (2010), a 360-degree appraisal is a highly participatory technique and encourages peers to rate their colleagues. According to Poister, et al. (2015), a 360-degree assessment is a feedback mechanism from all stakeholders. 

    v. Interviewees recommended that there should be a mandatory rotation policy, and no civil servant be retained in an administrative post for more than two years. Tenure of civil servants should be ensured to carry out official work with diligence and peace of mind. Exchange programs for federal and provincial government civil servants, on the pattern of South Korea, will provide a fair opportunity for collaboration and learning.

    vi. In order to bring competition in the civil service, an exam-based promotion system should be introduced. The United States and Korean exam-based promotion system creates a sense of competition and eagerness to acquire more skills among civil servants. Sahling and Mikkelsin (2018) also supported the idea that promotion and placement policies should be performance-based. 

    vii. Based on the suggestions of female civil servants, it is recommended to provide them safe and secure environment to work. It is necessary to promote a culture of respect, inclusion and pluralism. Thompson and Rainey (2003) argued that the Inland Revenue Service (IRS) of the United States treats its employees with dignity and without any discrimination. Diversity culture should be promoted through training and awareness sessions. 

    viii. Recognize and give rewards to the best performers. People and organizations are interdependent. The outsiders (customers) will get services only when the insiders (employees) are satisfied and motivated. Vroom (1964) emphasized that rewards and recognition motivate an employee to perform better. According to Latham and Locke (1979, p.68) incentives like "money", "organizational development" and "participation in decision-making" can direct employees towards the achievement of organizational goals. Thompson and Rainey (2003) studied HR management practices in the United States Inland Revenue Service (IRS) and found that the IRS was transformed from a low-performing organization in the 1990s to a "customer-centric and performance-oriented" organization in the 2000s by adopting modernized human resources practices and considered workers satisfaction as major goals of IRS strategic HR policy. According to (Maslow, 1954), in order to achieve growth needs (self-actualization), it is important to achieve deficiency needs first. There are two kinds of PRP schemes in South Korea namely 'Annual Merit-based Increments' (AMIP) and 'Performance Bonus Program' (PBP). The former is exclusively meant for senior civil servants, and under this scheme annual salary is increased based on performance grades. While PBP is for middle and lower-level employees. Under this program annual performance-based bonus is awarded to them. The key objective of the reward scheme is to encourage competition among civil servants. 

    ix. Talent management schemes will bring competition and instil policy-making skills among civil servants. Lee (2013) found that many countries had initiated talent management schemes to retain the best people in their bureaucracies. These schemes include the 'United States Senior Executive Service', the ‘United Kingdom’s Fast Stream,’ and ‘Singapore’s Administrative Services’.

    x. Provincial government organizations should define and communicate job performance competencies to employees. Gupta et al. (2018), studied the leadership abilities of "218 Indian Administrative Service Officers'' and found eight core competencies explicitly: "people first"; "leading others"; "integrity"; "decision-making"; "planning", "coordination and implementation"; "problem-solving"; "self-awareness & self-control"; and "innovative thinking". These competencies are highly important to achieve national development goals as well.

    xi. E-governance initiatives quickly process information. Shark (2020) argued that government employees can also bring innovation to the public sector through innovative technologies such as artificial intelligence, blockchain, hybrid cloud technologies, advanced data management and data analytics. It increases organizational efficiency and motivates people to perform better. Lee (2013) maintained that digital technologies provide new avenues for strengthening governmental capability. The Human Resource Integrated System (HRIS) database should be designed to provide information about employees to be used in HR strategic planning. In 2007, the Korean government introduced the "Electronic-Integrated Public Service Evaluation System (e-IPSES)" and "E-HRM system" to successfully install efficient "performance management processes" and "performance appraisal systems". E-IPSES (online evaluation system) has helped to minimize paperwork and increased bureaucratic efficiency manifold. 

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Cite this article

    APA : Mehmood, T., & Lee, J. (2023). An Investigation of the Performance Management System of Civil Servants in the Provincial Government of Khyber Pakhtunkhwa. Global Economics Review, VIII(II), 401-413. https://doi.org/10.31703/ger.2023(VIII-II).29
    CHICAGO : Mehmood, Tariq, and Junesso Lee. 2023. "An Investigation of the Performance Management System of Civil Servants in the Provincial Government of Khyber Pakhtunkhwa." Global Economics Review, VIII (II): 401-413 doi: 10.31703/ger.2023(VIII-II).29
    HARVARD : MEHMOOD, T. & LEE, J. 2023. An Investigation of the Performance Management System of Civil Servants in the Provincial Government of Khyber Pakhtunkhwa. Global Economics Review, VIII, 401-413.
    MHRA : Mehmood, Tariq, and Junesso Lee. 2023. "An Investigation of the Performance Management System of Civil Servants in the Provincial Government of Khyber Pakhtunkhwa." Global Economics Review, VIII: 401-413
    MLA : Mehmood, Tariq, and Junesso Lee. "An Investigation of the Performance Management System of Civil Servants in the Provincial Government of Khyber Pakhtunkhwa." Global Economics Review, VIII.II (2023): 401-413 Print.
    OXFORD : Mehmood, Tariq and Lee, Junesso (2023), "An Investigation of the Performance Management System of Civil Servants in the Provincial Government of Khyber Pakhtunkhwa", Global Economics Review, VIII (II), 401-413
    TURABIAN : Mehmood, Tariq, and Junesso Lee. "An Investigation of the Performance Management System of Civil Servants in the Provincial Government of Khyber Pakhtunkhwa." Global Economics Review VIII, no. II (2023): 401-413. https://doi.org/10.31703/ger.2023(VIII-II).29