Performance management system in developing countries: A case study in Jordan

• Published date: 01 November 2023
• Author: Mo'men Hani Mahmoud,Rosly Othman
• Date: 01 November 2023
• DOI: http://doi.org/10.1002/pa.2864

CASE STUDY

Performance management system in developing countries:

A case study in Jordan

Mo'men Hani Mahmoud | Rosly Othman

Graduate School of Business, Universiti Sains

Malaysia, Penang, Malaysia

Correspondence

Mo'men Hani Mahmoud, Graduate School of

Business, Universiti Sains Malaysia, Penang,

Malaysia.

Email: moumen.mahsere@yahoo.com

The performance management system (PMS) is critical to the success of any organi-

sation, and this article investigates the PMS of the Greater Amman Municipality

(GAM) in Jordan, which is one of the largest public entities in the country. The article

identifies various problems that are faced by GAM, such as HRM and staff, manage-

ment behaviour, and performance management, which significantly affect GAM's

performance. Additionally, the article discusses the process of goal and indicator set-

ting and development of the PMS of GAM. The article adopts a phenomenological

approach and a qualitative case study methodology to collect primary data from

15 purposeful semi-structured interviews with GAM's experts. Thematic analysis is

used as the data analysis technique to identify the PMS activities and address prob-

lems and difficulties in GAM's performance. The findings highlight eight major activi-

ties of GAM's PMS, which include performance sourcing, targeting, development,

setting and responsibility, gauging, information, results, and alignment. These activi-

ties need to be managed properly if GAM wanted to meet its performance targets.

Hence, the article presents a set of recommendations to improve GAM's PMS and

overcome the identified difficulties, such as improving HRM practices and staff role,

enhancing management behaviour, and establishing a performance management cul-

ture. Overall, the article provides valuable insights into the PMS of GAM and high-

lights the importance of an effective PMS to achieve organisational success.

KEYWORDS

developing countries, greater Amman municipality (GAM), Jordan, performance management

system (PMS), public organisations

1|INTRODUCTION

The Performance management system (PMS) is a significant reform

introduced to public organisations to improve the process of service

deliveryto the public (Mergel et al., 2019). Its primary focusis to control

several managerial purposes,such as communication, improvement and

learning, accountability and transparency, performance appraisal, and

evaluation (Jurnali & Siti-Nabiha, 2015; Spekle et al., 2019;Verbeeten,

2008). Additionally, the PMS encompasses several aspectsthat play an

essential role in achieving performance results, including performance

planning and setting, measurementsand indicators, evaluation, reward-

ing and punishment,and information.

The system is an essential component for public organisations, as

it helps improve service delivery and ensures that the public receives

the best possible service. By measuring and evaluating performance

of the system, organisations can identify areas for improvement and

establish key performance indicators (KPIs)thatalignwiththeirstrategic

goals. Additionally, the PMS ensures that the management team is

accountable and transparent in their decisions, leading to improved com-

munication and learning (Fryer et al., 2009;Gohetal.,2015;Roh,2018).

Overall, the PMS plays a vital role in enhancing the performance ofpublic

organisations and improving the services provided to the public.

In line with their intended purpose, public organisations prioritise

public service over profit as their primary aim is to provide public

Received: 9 November 2022 Revised: 28 February 2023 Accepted: 17 April 2023

DOI: 10.1002/pa.2864

J Public Affairs. 2023;23:e2864. wileyonlinelibrary.com/journal/pa © 2023 John Wiley & Sons Ltd. 1of14

https://doi.org/10.1002/pa.2864