The use of Key Performance Indicator in Malaysian Government-Linked Company

Government-linked companies (GLCs) play an important role in the development of the Malaysian economy. To enhance performance in GLCs, Malaysian government introduced GLC Transformation program. The first initiative in GLCT is to intensifying performance management systems. The GLC Blue-Book as a guidance in intensifying performance management and include suggested key performance indicator (KPI). However, the use of KPI always become an issues in the companies. The purpose of this article is to examine the use of KPI in one of Malaysian Government-Linked Companies. A qualitative case-study approach is applied using semi-structured interviews, participant observations and analysis of documents. This article illustrates the criteria of KPI linked with planning, information flow, linked with performance evaluation and control employees behavior at the organizational level based on the perceptions of the multi-level of employees from different departments. This article concludes the use of KPI linked with the planning, good information flow, linked with performance evaluation and influences the behavior and performance of employees.