Performance Management: Public and Private Sector Assessment Report

This report provides a critical assessment of performance management initiatives in both the public and private sectors, with a specific focus on the UAE context. The study explores the significance of effective performance management in achieving organizational goals, highlighting the importance of aligning performance management systems with strategic objectives. It examines the challenges and differences in performance management approaches between the private and public sectors, considering factors such as stakeholder satisfaction, employee engagement, and the use of performance indicators. The report also includes evidence from local organizations, such as Emirates Airlines, to illustrate the practical application of performance management principles. The conclusion emphasizes the role of performance management in promoting efficiency and productivity, acknowledging its impact on both financial and social objectives. The report draws upon various sources to support its findings, including academic research and industry practices.

Running head: MANAGEMENT
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Name of the student
Name of the university
Author note

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Table of contents
Introduction......................................................................................................................................3
Critical assessment of performance management in public and private sectors..............................3
Evidence of local organizations.......................................................................................................5
Conclusion.......................................................................................................................................5
Reference and bibliography.............................................................................................................7

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Introduction
The significance of effective performance management is highly concentrated towards
the business practices. In the words of Molleman and Timmerman (2003), by following both the
formal and informal practices, the resources, systems and employees are being properly
managed. The performance management is not limited to the appraisals, its implication can
promote better performance in the workplace. On order to implement the potential balanced
scored system, the performance management accounting system plays the significant role in both
the small, medium and large sized business context. The purpose of this study is to develop a
critical assessment based on the performance management initiatives in both the public and
private sectors. By continuing this, for strengthening the content, evidences of performance
management in the local organizational context has been described.
Critical assessment of performance management in public and private sectors
The performance management execution is being developed based on the commitment of
the organization towards its goals. It is true that ion the 21st century performance management
has become the important contributor in the strategic management process as it influences
maximization process of company betterment (Halachmi 2005). It is true that in the current
business scenario, maintaining the strong relationship with the stakeholders has become quite
challenging. Through the effective performance management process, the situation handling the
stakeholder related issues have become easier. It is true that the performance management
implementation in both the private and public is significant. It is true that in the current business
scenario, the organizations are dealing with the performance management challenges, which is
influencing the employee commitment towards the organization. The implementation of

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traditional performance appraisal system has become improper to fulfill the present
organizational requirement.
In case of private sector, the work environment is extremely competitive and in the battle
of leadership, enhancing thee employee performance, performance management initiatives have
become necessary (Paul, Mittal and Srivastav 2016). It is true that the key indicators of
performance management system are crucially being designed in the private sector. Especially in
the commercial banking sector, the PMS determines the customer relationship, job description
and quality management in the workplace. In case of private sector, the performance
management system is being aligned with the organizational goals. It is true that especially in the
private sector, the performance management relies on the great deal on incentive that encourages
the employee engagement. Enhancing the primary organizational values it maximizes the rate of
profitability.
On the other hand, it has been identified that in case of public sector, the performance
management system can deal with the complexities and maintain the transparency. In order to
gain the effective organizational approach, the performance management system has become
necessary in the public sector (Oseifuah 2014). However, it is true that in case of public sector,
the performance management process depends on limited application of high performance. In the
comparison of performance management implications in both the private and public sector, it has
been identified that the structural as well as operational differences among the organizations are
visible (Paul, Mittal and Srivastav 2016). In case of private sector, the performance management
system mainly focuses on the stakeholders’ satisfaction for improvising the financial areas,
however, in case of public sector, it has been identified accomplishing the social goals, the public
organizations try to satisfy different interest areas of the stakeholders. In case of manufacturing

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industry, there is not any particular system structure that is being followed for promoting the
performance management indicators. On the other hand, significant difference between the
public and private sector is visible in the reword and recognition structure. In terms of achieving
the sustainable business goals in the market, the companies develop trust, collaboration,
autonomy and teamwork in the workplace through the performance management system.
Evidence of local organizations
In case of understanding the transition of PMS system the process has been examined. It
has been identified that for promoting the accountability, the Local UAE government adds the
performance management system in the strategic planning process so that benchmark for
continuous improvement can be maintained. By continuing this, it can be said that in the UAE
performance management context, the UAE government has focused on giving the effort
towards national priorities for enabling the performance indicators for the customers. In both the
cases, learning and innovation have become the critical performance indicators that get promoted
by producing the advanced communication system. As an example, analyzing the performance
management system followed by emirates airlines, it has been identified that by obtaining the
goals, the company aims to develop the best work environment so that the employees can get
engaged towards the goal achieving process (Nataraja and Al‐Aali 2011). In the UAE public
sector, E-performance measuring tools are being used for measuring the employee growth. By
continuing this, it can be said that developing the standard payment structure, the incentives and
reward systems are being revised in the private companies.
Conclusion
In this study, it can be concluded that, performance management has become an
important contributor in the emerging business sector. In order to promote efficiency in the

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workplace, it has become the important measuring technique that can ensure betterment in the
workplace. The particular study has focused on the public and private organizational context by
focusing on the UAE trade sector. Analyzing the study, it can be said that, in both the public and
private organization, performance management system is not limited to the appraisals, reward
and recognition process, its implication can promote better performance as well as productivity
in the workplace. In case of private organization, the main priority of performance appraisal is to
promote high financial status and in case of public organization it is about the contribution
towards social satisfaction.

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Reference and bibliography
Behery, M., Jabeen, F. and Parakandi, M., 2014. Adopting a contemporary performance
management system. International Journal of Productivity and Performance Management.
Halachmi, A., 2005. Performance measurement is only one way of managing
performance. International journal of productivity and performance management.
Molleman, E. and Timmerman, H., 2003. Performance management when innovation and
learning become critical performance indicators. Personnel Review.
Nataraja, S. and Al‐Aali, A., 2011. The exceptional performance strategies of Emirate
Airlines. Competitiveness Review: An International Business Journal.
Oseifuah, E.K., 2014. Activity based costing (ABC) in the public sector: benefits and
challenges. Problems and Perspectives in Management, (12, Iss. 4 (contin. 2)), pp.581-588.
Paul, J., Mittal, A. and Srivastav, G., 2016. Impact of service quality on customer satisfaction in
private and public sector banks. International Journal of Bank Marketing.