Goal Setting and Employee Performance in the Public Sectors of India and The Netherlands

Abstract

Public sector enterprises in India came into existence to achieve higher growth, stabilize the newlineeconomy with better, quality goods and services for lower prices. The need for public sector newlineemergence needs to be understood in the light of country s(India) economy. Postindependence, apart from social and economic insecurities, the social disparities have been newlinesignificant. Private investment on a large scale was impossible. Therefore, the political newlineleadership in India decided to set up large scale industries PSE s to stabilise the economic newlinecondition. However, performance of public sectors fell short of expectations for several newlinereasons. Heavy losses, under interference and influence of the political class, work delays, newlinepricing policy, over capitalization, use of human resources could be highlighted as some ( newlineDutt and Sundaram 2015) newlineFor a long time, the PSE s were criticized for not having a performance culture. Various newlineremedies were suggested such as, controlling the cost at every public sector enterprise, newlineincrease of production, better management of public sector enterprises through better newlinestandards to manage the domestic and foreign competition. The performance assessment of newlinepublic sectors began when many of the public sectors started performing very poorly and newlineperformance of PSE s came under the scrutiny. newlineIn order to bring in policy guidelines on performance and evaluation, the Public enterprises newlinedepartment was set up as a primary agency for all CPSE s in 1990. It was required to set newlinepolicy guidelines on the role of PSE s in the economy. It also outlines policies related to newlineperformance improvement and evaluation, and financial autonomy related policies. newlineThe initial measurement of performance was mainly on the fiscal aspects and that still newlinecontinues in many PSE s worldwide. The way Indian PSE s have been evolving from the newlineconcept of entities promoting economic stability, growth and employment to profit making newlineentities is mainly from the growing demand on the PSE s to be seen as profit making units. newlineToday it is imperative to have transparent performance measurement system to understand newlinethe role of PSE s in the ever changing market scenario. Since there is long history relating to newlinethe way how performance management has made its way, the study aims to understand how newlinePSE s in India have evolved over time in the light of continuous criticisms of nonperformance of PSE s. There were various mechanisms of performance which were newlineintroduced and it was a progressive evaluation. The problem layin implementation of the newlinegoals and the rationale was to understand how effective goal setting can increase employee newlineperformance. newlineThe study also covers PSE s of the Netherlands which have also faced similar criticism. The newlineproblem area lies in developing goal setting mechanisms and performance management newlinesystems which need to be stabilized along with proper implementation at the Netherlands in newlineall state owned enterprises. newline