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 Appraisal 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 NPAS, various issues need to be addressed such as commitment by top management, rater bias, training and quotas for recognition and reward.
Performance Appraisal in Malaysia
The implementation of PA in Malaysia has taken place almost a couple of decades
ago. The evidence can be found from several articles (e.g. Ahmad & Ali, 2004;
Halim, 1996; Kumar, 2005; Poon, 2004; Vance, McClaine, Boje & Stage, 1992)
which describe the implementation of performance appraisal in Malaysia. From the
review of these articles, PA in Malaysia can be divided into 3 different stages, which
is shown in Figure 1.1 below.
achievement during the year of evaluation. In this system, each targeted departmental...