pms assignment 1

8/8/2019 PMS Assignment 1

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Assignment 1

Performance Management System

by

Gul Zaib


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Four aspects of Organizational performance:

Book Field Guide to Consulting and Organizational Development by

http://www.authenticityconsulting.com has suggested following four aspects evaluate and

increase organizational performance

1. Organizational stability

First factor is how stable the organization. Stability in this context would not just deal

with the that the organization can exist or continue to exist or not, but how stable is the

organization regarding the consistency of the services it has to offer.

2. Financial stability

Financial stability is based on the capability of the organization to meet all of its financial

liabilities It focuses especially on short-term survival, for example, the ability to pay its bills.

Financial stability is often ignored as an area of importance during capacity building.

3. Program quality (products and services)

This stability factor is based on indicators of impact, including adequate research about

effective programs and an outcomes management system. This aspect also is often ignored.

Basic focus on formulation and effective implementation of management level processes.

4. Organizational growth

Growth which is usually considered the only performance measure aspect is placed in the

last. This aspect is based on attracting resources and providing more services. How good

your market growth rate is, how many customers you are attracting, how much profit you are

generating and other growth indicators.

In addition, a fifth key capacity has been mentioned.

5. Generative capacity

It is the ability of the organization to positively change its external environment. This

capacity is exercised by engaging in activities to inform, educate and persuade policy makers,

community leaders and other stakeholders.
http://www.authenticityconsulting.com/http://www.authenticityconsulting.com/


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Aspects with regard to organization:

The organization that was selected for our groups discussion was WAPDA, now I will discuss

the aspects with respect to this organization

1. Organizational Stability (Rank: 8/10) Wapda does not perform in a perfect competitive environment. Its a monopoly

funded by state so its exist, but it is severely needed to be rebuilt to increase its

performance. With regards to the consistency of service, it can meet the customer

requirements for cheap, continuous electricity. Stability is further hampered by new

govt. regulation Day in Day out.

2. Financial Stability (Rank: 6/10)

For all its financial needs WAPDA depends on the Govt. Tax Generation. And in

reality the foreign aid because of poor performance of CBR. In essence Finances ofWAPDA are as unstable as the economics of our country.

3. Program Quality (Rank: 4/10)

Quality of management processes at the organization are abysmal. Typical public

sector bureaucratic red tape. Even in the past management by the army was tried

but instead of any betterment of Wapda, the repute of army as an institution was

hurt due to being involved in civilian organizations.

4. Organizational Growth (Rank: 7/10)

Population grows, electrical connections grow, electricity consumption grow,

revenue grows but so does losses. The only solution to achieve absolute growth

would be to create deregulate power generation and distribution sector, so that

several companies can enter the market, make it competitive, it will be better for the

customers as well as for the power sector.

5. Generative Capacity (Rank: 3/10)

The organization is not capable of influencing its external factors. This is partly in

due to the regulators, who are politically appointed.


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Best Value Framework:

Best Value was introduced in England and Wales the 1999 Local Government Act by the UK

Labor Government, and its provisions came into force in April 2000. The aim was to improve

local services in terms of both cost and quality:

A Best Value authority must make arrangements to secure continuous improvement in the

way in which its functions are exercised, having regard to a combination of economy,

efficiency and effectiveness

The range of activities affected includes almost all local authority functions, including for

example social services, environmental health, housing and planning.

Best value framework for performance management sets five dimensions of performance

indicators. These are:

strategic objectives: why the service exists and what it seeks to achieve. What is the

purpose of organizations existence and to what extent the purpose is being met.

cost/efficiency: the resources committed to a service and the efficiency with which they

are turned into outputs.

service delivery outcomes: how well the service is being operated in order to achieve

the strategic objectives

quality: the quality of the services delivered, explicitly reflecting users' experience of

services & is the service meeting their requirements

fair access: ease and equality of access to services, for all the customers and how

closely rules and regulations relating to customers are adhered too.

Best Value framework with regards to WAPDA:

strategic objectives: Objective of WAPDA is Power generation and distribution to meet

the requirements of the nation. The organization has utterly failed in this regard, with

massive blackouts and brownouts through out the country.

cost/efficiency: Like other Governmental bureaucratic organizations, operating

efficiency is pretty low, even currently there is a case proceeding in High Court

regarding the cost effectiveness of different electrical generation projects


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service delivery outcomes: Due to Govt. regulations and budget constraints, the

organization has not been able to develop its generation and distribution infrastructure

according to changing needs. Therefore there is a shortfall of 2000 megawatt (source:

pepco.gov.pk)

quality: There is rampant corruption in meter reading, large delays in customer servicerequests. Poor distribution infrastructure

fair access: Big wigs are allowed to bypass rules, they get free connections, monthly

bill and late fees are waived off overall very poor fairness records

pms assignment 1

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