How Prevalent is Dysfunctional PMS Behaviour among Malaysian Bankers

The importance of performance measurement system (PMS) in enhancing the firm profitability and sustainability has certainly been admitted by many, but findings on its effectiveness have been inconclusive. Many have reported unintended consequences leading to dysfunctional behaviours (DB) like budgetary slack, information or measures manipulation, or gaming. This descriptive paper attempts to explore the prevalence of dysfunctional PMS behaviour (DPMSB) in the banking industry in Malaysia. It also to examine if demographic factors affect the level of DPMSB. Using a sample of 217 bankers, the results suggest that though DMPSB is ethically questionable, but it is still moderately practiced by the bankers. In terms of demographic factors, there is a significant difference in the level of work tenure, annual income, branch performance and the level of DPMSB. While other factors like age, gender, race, religion, and academic qualification did not show any significant difference. Discussion, limitation of the research, as well as future research concluded the paper.