1. 3.0 FINDING
It is found that, all decision relating to payment of salary, benefit, and evaluation process is
directly from headquarter situated at Ipoh, Perak. Since Lembaga Air Perak is part of
government and private organization, they tend to reflects more on the government side in order
to them able to enjoy the non-monetary benefit received from the government.
Previously, Lembaga Air Perak is located in Parit. According to the one of the management staff
in LAP, she said that the reason why LAP moved in the area of Seri Iskandar is due to the less
number of populations in Parit. Basically it affects the income received as they can’t fully utilize
in providing their services to the society. It became the threat to LAP. In June, 2011 they start
their operation at Seri Iskandar. LAP chooses Seri Iskandar as their place for investment
because they forecast that in the future, Seri Iskandar will be a developing town as many
building is build and the rising number of population. Besides that, the land officer opens the
opportunities to LAP by giving the land for their operation.
Headquarter of LAP in Ipoh is responsible in monitoring all the progress of their employees in
LAP Seri Iskandar. One of the representatives from HQ will frequently visit LAP Seri Iskandar to
ensure that the employees doing their work.
3.1 Performance Evaluation in LAP Seri Iskandar
Aguinis, 2007 define performance management as the continuous process of identifying,
measuring, and developing the performance of individuals and teams and aligning performance
with the strategic goals of the organization. In LAP Seri Iskandar, they tend to be evaluated from
both individual and teams. For individual, the entire employee both in management and
technical is evaluated. In LAP Seri Iskandar, there are 24 numbers of employees. From the
observation, it can be seen that, majority of the LAP Seri Iskandar workforce is aged. In order to
motivate the employee at LAP Seri Iskandar, the management at HQ tends to provide the
employees with two basic schemes that practice by the government which is Anugerah Khidmat
Cemerlang and salary increment.
Anugerah Khidmat Cemerlang and salary increment is given to the employee who gets the
evaluation mark above the 85. The mark is calculated based on the performance of the

2. employee throughout the year. The consistencies of working attitudes and in performing the job
make the employee eligible to receive the awards. For those who only get the average mark at
60 they not eligible to get any reward. Basically, the purpose of the reward scheme provided to
the employees in LAP is to increase their commitment toward their work and thus will motivate
them in doing their work. This will create a healthy competition between the employees in LAP
especially in Seri Iskandar.
The practice that related to performance is to enhance the employee job satisfaction, attraction
and retention. The employee who not perform their work in LAP basically there is no
punishment toward them. Organization that in government control like LAP is easy to hire
people but it is hard to firing them. If there is any disciplinary action taken toward the employee,
firstly a verbal warning will be given to remembering the employee about misbehave. If the
employee fails to correct their action, then the problem will be settled in the court. This is the
procedure that LAP need to follow as they should comply with the rules of the government and
the act.
3.1.1 Performance evaluation period and seminar
According to the Puan Zuraida Nawawi, who is the assistant of the technical team, she said that
evaluation of the employee performance in LAP Seri Iskandar is done in twice a year which is
semi-annually. This is once in 6 month. Performance evaluation in LAP Seri Iskandar is done
through a form that received from headquarter. In LAP, all the performance evaluation form
used is the same for all position and levels.
Before the performance evaluation is being done, the seminar on the how the evaluation is
being conducted is communicated to all of the employees in LAP Seri Iskandar. The seminar
will be conducted by the representative from the headquarters. The purpose of doing the
seminar on performance evaluation is to ensure that the employees know what the factor that
will be evaluate. Why performance evaluation should be communicated. Basically, it is a ways
to ensure that the mission and vision of the LAP is aligning with the performance of the
employees. Thus, it will increase their commitment in performing their work.

3. 3.1.2 Who provide the performance information?
In LAP Seri Iskandar, there are two evaluator who in charge for evaluating the employee
performance. The responsible person who evaluates the employee is basically their upper level
management and the manager of the central region 2. As for Puan Zuraida, she is evaluated by
the head of her technical team and the manager. There are a lot of sources in order for
collecting the information about the performance. In LAP Seri Iskandar, the information of
performance is measure and collected through the observation from the supervisor. The
immediate supervisor is the best providers of information who know what is the job perform by
his subordinates. As a result, the necessary information will be clearly defined and the most
suitable will be included in the evaluation.
Sometimes, in LAP, due to two number of evaluator who will evaluate the employees it will lead
to shortage of information. This is because the first evaluator may know the employee because
they work together in the same office. But for the second evaluator, the issues of knowing the
employee are not existed because he only monitors the employees from a distance. This
sometime will lead to the rater error. Somehow, the second evaluator will base on his discretion
in giving out the evaluation toward the employee. This discretion is the judgment decision made
by the upper level in own opinion and preferences.
It is not a problem to LAP Seri Iskandar employees of having two number of evaluator. This is
because the upper level perception toward the employee is in term of the product they produce.
Through meeting, the upper level who satisfies with the employee job will give a high mark for
the performance of the evaluation. Basically, the result of the employee is on the hand of the
employer that will be determined if they perform the job.
It is found that in LAP Seri Iskandar does not practice the evaluation done by the employee.
This is because their organization is more toward the government. Only the upper level act as a
bargaining body in evaluating the employee and it is consistent with all LAPS in Perak.
3.1.3 Characteristic of evaluation form
Aguinis, 2007 said that a core of performance management system is assessment of
performance. This can be done through filling out form in electronically or on a paper. LAP Seri
Iskandar performance evaluation form is basically on a paper. They did not use the electronic

4. method. The form of evaluation consists of basic employee information, major achievement and
contribution, accountability, stakeholder input and the provided space for comment. Basic
employee information such as job title, division, work group and other related information. It also
included the starting period of evaluation, date of hiring and current salary. The job description
of the job position is used as the major key point in evaluating the performance. some
organization may have a separate form for different types of job position, but for LAP Seri
Iskandar, although the evaluation form is similar but the items measure is based on the
performance of the individual.
The approach of evaluation used by LAP basically is behaviorally anchored rating scale which
known as BARS. This method is focusing on more specific behavior required for individual in
order to perform their job. It is easy to used BARS because it concern over the employees
behavior more than the other approach which is trait and result.
Next, graphic rating scale also being used in LAP Seri Iskandar evaluation form. It is the most
popular tool to measure performance. in fact, it is the easier to be understand by both of the
supervisor and employee. For example the awareness to completed the contract within the
budget and time. Another approach which is essay also being including in the evaluation form. It
is where the supervisor writes an essay describing each of the employee’s strength and
weaknesses and makes suggestion for improvement. The supervisors have the potential to
provide detailed feedback to employees regarding their performance.
According to Puan Zuraida, the employee in LAP Seri Iskandar depends on their knowledge and
experience in working there. There is no training provided to the employees as they only
provides their customer with the utilities services. It is made known that, there are also other
agencies such as like Tenaga Nasional Berhad (TNB) who also provide the utilities service in
the area of Seri Iskandar. Thus, it will create a tight competition with LAP Seri Iskandar. The
customer who made a payment of their utilities bill in LAP Seri Iskandar, there is no additional
charge as they is the solely provider of water resources in Perak. It is found that LAP Seri
Iskandar does outsource their contract to the expertise that has the expertise in doing and
completed the job. This is as a strategy to reduce the labor cost in the organization.
3.1.4 Employee perception toward the evaluation process
It is found that, according to the Puan Zuraida, she stressed that the current evaluation process
is okay but the reality is she unlikely to satisfy with the process. This is because of the existence

5. of the second evaluator from the upper level. According to her, unfamiliarity with the employee
from the lower level effect the mark received via the evaluation. Maybe she thinks that when the
employee has an outstanding performance, it is not included in the evaluation. Thus, it will
create the recency error. Besides that, favoritism error also effects the employee satisfaction.
When there is the error of favoritism, the supervisor tends to create a bias toward the
employees. Sometime, biases existed in the organization will harm the good relationship
between the employee and employee and then diminish the morale of the employee to perform
the work.
In LAP Seri Iskandar, it is shown that, there are some cases where the employee is quitting
their job because they receive better offer from the other organization. Another reason is that,
working in the organization that prefers the government control will harden the employee
attention to be promoted. This is because in government, it is rarely depend on the abilities,
knowledge and skill. It is depend on the seniority. Then, the opportunities to be promoted are
low and it leads the employee to transfer to the other competitor. Besides that, the weakness of
the current performance evaluation is that, the issues concern on the globalization is not
considered. This is because in LAP Seri Iskandar itself there is only few of them who in the
young ages. This will create a barrier to change their preferences in term of the electronically
evaluation.
Appraisal interview
After the process of evaluation, the supervisor of LAP will undergo the appraisal interview. This
is held in order to discuss the performance of the employees. Hereby, the supervisor will know
the reasons of the employee’s bad performance and why they cannot perform accordingly. So
that, the supervisor will detect the employee’s bad performance (if any) is correctable or not.
Not only has that, having this interview, the supervisor, will examine the rationale of the
evaluation toward the employees in LAP. The interview also being conducted in order to
determine and testify the increment of the employee’s total compensation as well as to clarify
which employee will be promoted.