Assignment 1

Performance Management System

by

Gul Zaib
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.
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 of
WAPDA 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.
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
• 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 service
requests. 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