SLDU Industries Sdn Bhd: The blame game in the performance measurement systems

• Main Authors: Basiruddin, Rohaida, Sanayan @ Abdul Salam, Zarina, Isa, Che Ruhana, Abdul Rasid, Siti Zaleha, Zainal Abidin, Zainurain
• Format: Article
• Published: Azman Hashim International Business School 2015
• Subjects: HB615-715 Entrepreneurship. Risk and uncertainty. Property
• Online Access: http://eprints.utm.my/id/eprint/60416/; https://business.utm.my/ijibs/issue/vol4-no2/61-sldu-palm-industries-sdn-bhd-the-blame-game-in-the-performance-measurement-systems
• Institution: Universiti Teknologi Malaysia

This case depicts the dilemma faced by SLDU Palm Industries Sdn. Bhd’s management on how to ensure managerial performance is aligned with the company’s goal. Mr Jalis, the head of human resource department was satisfied with the employees’ performance and gave them high marks in their annual performance assessment. Nonetheless, SLDU’s CEO was not happy with company’s current performance as there was no significant growth and profit increase from year 2012 to 2013. The requirement was to have 15% dividend from their investment to meet their key performance indicators (KPI) based on the financial perspective. The CEO was perplexed how this could happen when individual performance targets seemed to be satisfactorily achieved and yet was not reflected in the financial performance. He then directed the head of human resource manager to relook at the performance assessments and identify possible causes for the current predicament faced by the company. He instructed the head of the human resource to study the problems in the current PMS and propose a solution.