IMPLEMENTATION OF KEY PERFORMANCE INDICATORS AND THE ISSUE OF OCCUPATIONAL STRESS IN MALAYSIA

Muzaffar Syah Mallow
Dr. Senior Lecturer, Faculty of Syariah & Law, Universiti Sains Islam Malaysia (USIM)
Bandar Baru Nilai, Negeri Sembilan Darul Khusus, Malaysia
Email: muzaffarsyah.mallow@yahoo.com

Abstract
Due to the increasing competition especially in the business in today’s world, most organizations are obliged to adjust their way of doing business and follow the new mechanism to evaluate their performance. As such, it’s now become worldwide trend including Malaysia where organizations are using the Key performance Indicator’s (KPIs) to measure their performance and achievement. KPIs often been use to evaluate the success of an organization or of a particular activity in which it engages for each year. In Malaysia, though KPIs has been using by private sectors for the last many years, the country public sectors has recently implemented it in response to the government circular in 2005. In 2009, the new country leader has give emphasized for the fully adoption and implementation of KPIs for every sector within the country in particularly the public sectors. The use of KPIs has also now become part of the government strategy to transform the country and to fulfill its ambition to become fully developed nation by year 2020 and fulfillment of its transformation programs by year 2050. Though the implementation of KPIs brings many advantages for the organization as they would able put target which they ought to achieve, it also could lead to problem if it not being observed cautiously. Often there are KPIs that being design which are not in line with the reality. As such, it leads to the issue of unrealistic or unachievable KPIs which affected the workers health, leisure time and their relationship with family. This eventually will give rise to the issue of occupational stress which affects the workers. It is the object of this paper to further analyse the advantages as well as the disadvantages on the use KPIs, the issue of bad KPIs and its connection with occupational stress, the implementation of KPIs in the country, and finding steps to produce a more reasonable, realistic and holistic KPIs which are suitable to be adopted and implemented by the organization.

Keywords: Key Performance Indicator, Occupational, Stress