Performance Management

2.1

Introduction

An organisation is driven by its mission and strategic objectives coupled with core values and various methods of managing people in the organisation. A study was carried out on three organisations which have varied methods of doing so depending on the industry, size, professional mix and structure.
Table 2.1 below shows 3 different types of organisations and their demographic and structure:

Demographic

Industry
Organisation type
Department size
Gender mix %
(Male:Female)
Organisation structure Department structure Bank Islam
(eChannels
Department)
Banking - Islamic

KHEC Systems

PwC Advisory

Information technology –
Software
SME (Micro enterprise)

Consulting

5
60:40

280
55:45

Divisionalised form

Simple structure

Divisionalised form

Flat

Flat

Tall

Corporation (Public
Listed)
36
65:35

Corporation

Table 2.1: Organisations demographic and structure

The comparison study is done between the eChannels department in Bank Islam, KHEC Systems Sdn
Bhd (“KHEC”) and PwC Malaysia Advisory (“PwC Advisory”). The 3 organisation are from different industries; banking, information technology and consulting. The structure of each organisations are derived from Mintzberg (1979). Organisational structure evolves through time due to expansion and each structure has its unique sets of challenges. One of the challenges includes managing people and their performances.

2.2

Performance management of organisations

Performance Management is about doing everything in your power to help your employees succeed and encouraging them to manage their own performance. Effective performance management helps employees help themselves and this can be done through formal or alternative approaches. Whether the organisation has 1 person or 100 people, performance management is a systematic approach.

Each organisation has its formal and informal ways of managing performance. For the