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Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 05
June 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 55
Declining Employee Performance in Public Sector
Organizations: An Etiological Study of Public
Sector Organizations in Pakistan
Syed Kashan Ali Shah1, Najabat Ali2 Zulfiqar Ali3
1Faculty Member, Hamdard Institute of Management Sciences, Hamdard University, Karachi,
PAKISTAN
2Research Scholar, Hamdard Institute of Education and Social Sciences, Hamdard University,
Main Campus, Karachi, PAKISTAN
3PhD Scholar, Department of Public Administration, University of Karachi, PAKISTAN
Email: kashan_shah@live.com
ABSTRACT
Declining employee performance is the most
widespread problem in public sector
organizations. The purpose of this study is
to identify the genetics, reasons and domain
of poor employee performance in Pakistan’s
public sector organizations. Employee
performance has been center of attention for
researchers for many years due to the
difference of competence level between
private and public sector organizations. The
study examines the determinants of
decreased level of employee performance in
public sector organizations. This paper
reviews and evaluates the academic
literature, articles, performance evaluation
reports, global competitiveness indices and
books relating to employee performance to
gather information. The study found that
corruption and political interference have
significant effect on employee’s
performance. Whereas, environmental
factors; lack of
training/processes/technology and lack of
employee participation in the decision
making have little impact on the employee’s
performance. The results of this study are
useful for policy makers as well as
authorities concerned with devising
performance management system in public
sector organizations.
Keywords: Public sector, employees,
declining performance, politicization,
corruption, environmental factors, Pakistan.
INTRODUCTION
It is a fact that in today’s world the economy
is most critical factor for the development of
any country. The economic prosperity
ensures sovereignty, stability and
development of a country. And economic
prosperity can only be achieved through
high level of performance, good governance,
focused national strategies and industrial
growth. Governments in any part of the
world are responsible to manage the public
resources to generate maximum public good.
Government plays vital role in various
aspects that directly impact on citizen’s
welfare. Government institutions are
responsible for providing basic services such
as security, law and order, justice, health,
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Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 05
June 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 56
education, employment, transportation etc.
Pakistan’s public sector is not very efficient
due to various reasons, which include lack
of accountability, political influences, lack
of resources, delayed projects. In addition to
this over staffing, unskilled work force, low
compensation and benefits, unfair
employment opportunities and promotion
criteria are also potential problems that
hinder employee performance.
The governance conditions are worst in
Pakistan than most parts of the world. The
Global Competitiveness Index (GCI), which
measures competitiveness of an economy on
the basis of 12 major indicators. Pakistan
has lost on almost all indicators of
performance and ranked at 124 in 2012-13.
The World Bank has stated in its reports that
Pakistan’s bureaucracy is having structural
problems. Although plenty of efforts have
been made to improve governance but
politicization is the foremost barrier in
implementing policies to establish culture of
performance in Pakistan. The Transparency
International Pakistan in its National
Corruption Perception Survey (NCPS 2012)
stated that corruption in last five years has
increased by 400% in Pakistan. According
to Transparency International Pakistan, the
main reasons of corruption were lack of
accountability, lack of transparency and
unlimited powers.
It is a fact that bureaucracy in Pakistan is
astonishingly problematical by different
rules and regulations. While dealing with
bureaucrats it requires some personalized
relationships and third party interference to
get work completed in appropriate time. The
accumulated effects of poor employee
performance of government institutions
result in massive economic losses, energy
crises, decline in industry, poor health and
education facilities, delayed projects,
corruption, disturbances prevailing in
citizens and other number of crises.
In order to generate clear understanding of
performance dilemma in public sector, we
studied its genetics as well as its domain to
explore when poor performance culture
induced and where it is common. As we
know that Pakistan was fastest growing
economy in Asia during 1960’s, all
economic indexes illustrate that institutions
were performing well in all directions. Then
we adopted nationalization policy, it results
in gradual decrease of performance in public
sector.
In this study we analyze numbers of
researches conducted on employee
performance measurement in public sector,
which use various models to identify the
significance of factors like civil servants
wages, internal enforcement of policies,
autonomy of organization, external
influences, transparency and politicization
as variables that affect quality of employee
performance in public sector. This research
aims to investigate the factors that stimulate
or hinder the government servants to
perform competently. The factors thus
identified can be used to enhance the
employee and overall performance of the
public sector in Pakistan.
LITERATURE REVIEW
PUBLIC SECTOR DEFINED:
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e-ISSN: 2395-0463
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Public sector organizations have broad- based responsibilities of serving “people”,
taking care of their interests, enable suitable
environment for business, provide sound
policies, information, assistance etc.
According to World Bank “it is imperative
for the state to create, sustain and augment
institutional structures befitting the myriad
of minimal, intermediate and activist
functions it performs to improve social
equity and address market failure (The
World Bank, 1997, p. 27). First of all we
will discuss the ‘public sector’, it is
important to understand the word “Public”
in public sector. A statement by Ranson and
Stewart (1994: 59-60) generate clear
understanding about the functions and
obligations of public sector that is “The
essential task of the public domain can now
be interpreted as enabling authoritative
public choice about collective activity and
purpose. In short, it is about clarifying,
constituting and achieving a public purpose.
It has the ultimate responsibility for
constituting a society as a political
community which has the capacity to make
public choices. Producing a ‘public which is
able to enter into dialogue and decide about
the needs of the community...is the uniquely
demanding challenge facing the public
domain.”
In the above statement it has been stressed
that the basic purpose of public sector is
“collective” activity, purpose, and choice for
the welfare of people.
PERFORMANCE DEFINED:
Briscoe and Claus (2008) defined
Performance management is a systematic
process for improving organizational
performance by developing the performance
of individuals and teams. It is a means of
getting better results by understanding and
managing performance within an agreed
framework of planned goals, standards and
competency requirements. Processes exist
for establishing shared understanding about
what is to be achieved, and for managing
and developing people in a way that
increases the probability that it will be
achieved in the short and longer term.
New approach towards performance
management describes that organizational
values, employee participation, continuous
and objective assessment, mutual goal
setting, customer focus and use of key
performance indicators are inevitable for the
successful working of public sector
organizations. But Max Weber, designer of
bureaucratic style of management argues
that only bureaucracies are capable of taking
rational decisions and state political leaders
can direct and mobilize state organizations.
Weber defends that Bureaucratic types of
organization are technically superior to all
other forms of administration, much as
machine production is superior to handicraft
methods. The characteristics of an ideal
bureaucracy have been identified by Weber
as Hierarchy of authority; Impersonality;
Written rules of conduct; Promotion based
on achievement; Specialized division of
labor; and Efficiency (‘Max Weber on
Bureaucracy’). Weber’s notion of
bureaucracy is not without criticism. Some
have claimed that he liked bureaucracy, that
he believed that bureaucracy was a “rigid”
organization. Others have pronounced
Weber “wrong” because bureaucracies do
