The Benefits of Having Key Performance Indicators (KPI) in Public Sector

Abstract

The government used a tool called Key Performance Indicators (KPIs) to measure how well employees did at work for a few years. In the present era, the majority of successful organizations have a performance evaluation system in place. The aims of this paper is to examine the benefits of having Key Performance Indicators (KPI) in the public sector that are being implemented in the Malaysian public sector, as a result of Government Circular 20. With the advancement of public sector reforms, the government has developed its own set of key performance indicators (KPIs) for evaluating agency performance. According to the findings, KPIs have been effective in measuring both organizational and individual performance. This article concludes that KPI implementation enables the public sector in optimizing the potential to enhance the public officials’ performance in providing efficient service.