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Performance Management And Measurement Systems


Question: Critically assess the importance of performance management and measurement systems in relation to adoption and implementation of continuous improvement initiatives such as Total Quality Management (TQM). Support your answer with evidence from a MENA- or UAE-based private or public sector organization.

Answer: Introduction: Performance is understood as accomplishment of organizations in relation with its set objectives. This involves results attained, or achieved through contribution of groups or individuals to the company's strategic goals. This term incorporates financial and behavioral results. It has been seen that, doing focuses on the management of functions, which are variably efficient at various levels in the organization: that influence performance of different roles dependent on the managing output, and the company's performance. The procedure of performance management is combines of three significant parts; management and planning development and performance, reviewing performance and development progress and yearly stock taking. On the other hand, performance evaluation of workers provides various purposes in companies. Management applies evaluations for human resource decisions. Examinations offer input into significant decisions like transfer, reward management or terminations. Performance evaluation process also help in recognizing development and training needs. This outline worker skills and competency level, which are recently inadequate but for which plans could be increased to remedy. This study will be evaluating current practices, procedures involved in the performance management systems such as necessity of TQM in public sector organizations with emphasis on the evidences gathered from Air Arabia.

Critical assessment of the relevant literature to performance management in public sector organizations

Assessment of the vision 2021 in perspective of developing performance measurement: It can be said that the Middle East is one country, which recently has distinguished itself through developing interests in increasing public sector performances. Some of the difficulties outlined by the KPI institute in the public sector organizations associated to performance measurement and management are listed below;

Public sector organizations are missing connections between strategic objectives and observed KPIs. There is a serious mismanagement and communication gap between departments and governmental agencies. Challenges in managing and collecting information in an effective way are one of the biggest problems in the public sector organizations currently. The systems and structures related to productivity measurement is also defective. Individual and collective employee performance level is also somewhat low in this sector and difficulties in managing workers' performance level is still existing (Mihailoaie, 2016). Companies are having low knowledge regarding performance management effective practices. Although, various of these difficulties seem to slowly fading away, as governments have started to concentrate in increasing a sustainable performance management framework or system in the organizations. For example, the Vision 2021 could be counted as an efficient effort and a long-term strategy to improve performance standards.

On the other hand, in the procedure of strategy development, this is significant to recognize several facts, which will contribute value or effective points for the companies, to ensure a strategic position that would explore these value drivers. To attain the above-mentioned vision, or "to be among the best countries in the world by 2021", the government of UAE has recognized seven different enablers (Brownie et al., 2015). The seven different enablers are effective and efficient human capital, consumer-centric services, effective economic management, effective and cooperative institutional governance, dynamic governmental networking system, efficient legal processes and integrated policy-making, and good governmental communication. The future increasement of the seven-performance management strategic pillars must be done through leveraging the cost and value drivers outlined above. Each strategic pillar of performance management and measurement need some specific investments to be made by the government. Either the existing policies needs to be changed of some modifications needs to be made. The main targets of this type of governmental initiatives are listed below;

• Unified society and preserved individuality

• First-rate educational scheme

• A competitive knowledge economy

• Sustainable infrastructure and environment

• Strong international standing

Every strategic objective or pillar has its own distinctive KPI indicators, which would offer clarity on the UAE governmental progress to achieving its set targets.


Current performance standards in public sectors organizations in UAE

According to Bin Taher, Krotov and Silva (2015), further investigations also focused the fact that public sector organizations in the UAE are confronting pressures to modify or change their ways to manage performance. This represents governmental departments with both difficulties and opportunities included in attaining a new outlook to the performance measurement. There are series of factors that posing immense pressures on companies in this country to become more concentrated on performance measurement from the point of their existing consumer and key stakeholders. This type of transformation could be attained by lessons learned from other public sector organizations around the glove, which have already changed the ways through they governed. Rahman and Said (2015) have identified that developing public sector companies should be interested in increasing and deploying efficient performance measurement and management systems. It is because, only with the help of these modifications and changes, organizations could be able to offer their community quality services and products. Existing government companies in this country should increase and execute their strategic plans, which outline their commitment to developing the value and quality of services and therefore, examine the performance standards to make sure future best practices. All the strategic planning processes are thus the initial points for an efficient performance measurement system as public organizations create organizations aims and objectives, underline how a company intends to attain those objectives and demonstrate evaluation parameters on performance.

Assessment of the mGOV indices in UAE

As stated above, the mGOVenablers characterises a comprehensive working system implemented through Telecommunications Regulatory Authority or TRA under the management of the Prime Minister's Office in Ministry of Cabinet Affairs and Future. These enablers target to evaluate and develop the level of consumers' experiences in applying electronic or mobile services around UAE (Al-Jenaibi, 2016). This performance measurement and development system is based on improving the quality services in the future and develop a consumer-centric environment. Telecommunications Regulatory Authority reviews and examine the development of governmental units or mobile services as per the seven indices that are effectively studied to attain the national aims. These categories or directories are listed below;

• Mobile services incorporation index

• Increasing public knowledge about electronics

• Government websites' quality directory

• Developing electrical and mobile services index

• Level of service usages and service satisfaction index

• Developing electrical or mobile transformations

This system is a fragment of the projects under the supervision of National Plan to funding mGovernment Initiative. This targets to make sure the pioneering responsibility of the UAE in developing a mobile government, which makes the community satisfied with the fast and quality services. The above-mentioned directories target to develop the per cent of electronic service users to around 80 by 2020 and the satisfaction of consumers according to the UAE leaders' determined vision (Shareef et al., 2016). These indices mentioned above are fully integrated. The quality parameters of the service delivery channels are evaluated as a basis for mobile services. The evaluation team responsible in this regard will measure the level of electrical transition of government services and their quality level to make sure consumer satisfaction with the new provision is effective, simple and ensure high-quality services. The responsible team will then evaluate the level of public knowledge regarding these services to develop consumers' understanding and ultimately the usage of these modified services.

Relevant Evidence from a local organization

Starting form the vision of Air Arabia, it could be understood that what are the performance measurements and management of this company are based on. The vision statement of this company is "To be one of the world's leading budget airlines" (blueswandaily.com, 2019). This vision statement is based on the parameters such as developing profit margins, integrating innovation, increasing reputation worldwide and operational excellence.

The operational excellence and innovative technology development are evident in adopting the next-gen passenger management system. It is evident that with a quickly developing international network served from all the regional hubs around North Africa and Middle East, this organization has introduced SITA's next-generation passenger management system to ensure even better effectivity around the operations (sita.aero, 2019). This current passenger service system would help this organization to manage all the boarding of customers around all destinations while rationalization of the turnaround of the airline aircraft. On the other hand, Air Arabia had the chances to pursue a greater share of the itinerant public market with the help of developing promotions to make awareness and indicating the factors, which triggered people when considering an airline. For instance, the prior marketing efforts can have given better safety guarantees by outlining that experienced Canadian pilots were controlling, Airbus A-320 planes were currently off the assembly line (McKechnie, Grant and Fahmi, 2007). From the explanation above, it could be understood that the performance management plans regarding on board operations and system management are lacking proper communication and analytical solutions. For these reasons, it is obvious that implementation of Total Quality Management is necessary.

The external accounts auditor engagement such as KPMG is a wise step. This step is taken for a remuneration of AED 455,000/ and other services. This step is suggestive of the fact that, Air Arabia is concerned in developing their performance standards in terms of profitability, consumer services and consumer satisfaction level.The Internal Control Department in Air Arabia, is an integrated policy, which imposes processes, conditions and administrative rules and monitors their practical application throughout the organization's operations (blueswandaily.com, 2019). This internal performance management system is not a challenge or an obstacle to the efficiency of the work and operational speed of service delivery and performance, but on the other side, this make sure the organization's development of efficient and relevant performance and accountability of the risk management as well as internal control scheme. Therefore, it could be said that, parameters form Vision 2021 such as outstanding as a best airline organization around the glove and total internal performance management are the foremost for this company.


(Current market performances are given in Appendix)

Total quality management processes in Air Arabia

The dimensions of Total Quality management adopted by Air Arabia for a competitive advantage in the past few years are listed below;

Consumer focus: As involved in the aviation industry, this organization turned their operations in developing and fulfilling the needs and wants of their consumers so, that consumer satisfaction level could be retained and developed.

Process management: The management in this company is determined to managed the available resources and organizational activities as a process.

Continuous improvements: This organization applies Plan-Do-Check-Act cycle in their processes. The first part comprises of forming objectives and processes as per the customer requirements. The second part involves the operations (airarabia.com, 2019). "Check" consists of monitoring the processes and services against policies, aims and others. The last stage is engaging in process and system development and performance maintenance.

Airport total quality management: From the above discussion and Approach of Air Arabia in TQM initiatives, it has been understood that besides service level arrangements and assessments, airports are starting to concentrate more on consumer expectations and various satisfaction derivers, while also implementing TQM technologies and methods of other industries like telecommunications, hospitality, system management and others.

(The approach model of TQM in Air Arabia is attached in the Appendix)

Conclusion and recommendation: From the above discussion on performance management and measurement standards in UAE and the evidences form Air Arabia, it has been understood that performance measurement and evaluation standards are becoming high in this country, specifically in public sector organizations. Form the above literature review, it has been identified that government initiatives are mainly focusing on developing consumer-centric working environment and modules for services that could enhance consumer participation and satisfaction level. On the other hand, form the evaluation, it has been identified that individual performance measures and employee performance measures are need to improved in this sector. External performance is not developed of an organization if the productivity and performance of internal departments or groups are not in track. On the other hand, form the organizational insight, it has been underlined that, Air Arabia is trying its best to achieve a global standard through their services and worldwide performances. Obviously, the consumer service development is not excluded from their planning process. Overall, from the analysis of performance management directives and current positions of public sector organizations in the UAE, it has been understood that importance of total quality measurement along with other systematic approaches of performance measure is important to ensure organizational development. 

Recommendations related to future performance management and measurement directives are listed below;

• As an aviation company, by performing systematic consumer satisfaction surveys, the management gauge how many of the consumers will rate their level of fulfillment as very or extremely satisfied. The more consumers who rate their service experiences highly, the better is consumer service.

• On the other hand, consumers who are very satisfied with the available consumer service are likely to even go a step beyond and recommend services to others. Therefore, organization's net promoter score, or rate of consumer who will recommend to others about the services of Air Arabia, can be an effective indication of where the consumer service stands and other way to evaluate consumer service.

• Various kinds of organizations apply varied methods to evaluate workers' productivity. However, it is a significant factor when it comes to consumer services. If the company, Air Arabia wants their consumer issues to be solved and effective in a timely way, workers required to for their responsibilities efficiently.

• One of the core elements that has been identified by several researches is the matter of stakeholder engagement in the planning of performance measurement. Stakeholders could be widely defined as candidates, which are part of the performance management system involving those responsible for increasing and gathering the performance indicators and more direct potential users of this data like politicians and higher public sector managers, which are held responsible for the performance of the company.


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