Digital Transformation of Performance Evaluation System at Lembaga Zakat Negeri Kedah

Abstract

Listen

Translate article

Performance evaluation systems play a crucial role in human resource management, affecting work satisfaction, productivity, and organizational effectiveness. In the realm of zakat institutions like Lembaga Zakat Negeri Kedah (LZNK), a robust performance evaluation system is essential for fostering employee engagement and ensuring alignment with organizational objectives. This study utilizes a mixed methods approach to assess LZNK’s existing performance evaluation procedures, identify opportunities for enhancement, and investigate the prospective advantages of using digital technology to improve the review process. 237 respondents were involved, supplemented with semi-structured interviews and focus group discussions with a select sample of staff and managers. The findings indicate that although the current system offers a fundamental framework for performance assessment, it encounters considerable obstacles, such as perceived subjectivity, insufficient feedback systems, and restricted connection to career advancement. The research emphasizes that the incorporation of digital technologies, including real-time feedback platforms and data analytics tools, may improve the system’s transparency, efficiency, and effectiveness. Nonetheless, possible obstacles include opposition to technological adoption, organizational culture, and financial limitations must be mitigated for effective implementation. This initial research establishes a foundation for subsequent studies to explore the connections among digital transformation, job satisfaction, and performance evaluation results. Furthermore, it offers pragmatic solutions for LZNK, encompassing the incremental introduction of digital technologies, extensive training initiatives, and stringent data governance protocols. These tactics seek to enhance performance assessments, promote employee satisfaction, and augment organizational efficiency in mission-oriented entities such as LZNK. This study enhances the conversation on performance management within non-profit organizations, highlighting the significance of digital transformation in the modernization of HR practices. This study provides insights for practitioners and scholars aiming to enhance performance evaluation methods in non-profit and socially orientated organizations.