QUESTION 4 LGO, a pseudonym, was first established as a municipal council before it had upgraded its status as a city council. LGO was automatically given the status of the city council with the rapid growth of its economics and a population density of more than 450,000 people as a result of a nationwide migration of populace aside from the increasing number of births. LGO is headed by a mayor appointed by the state government and he is one of the members of the council. LGO is responsible for administering public health and sanitation, solid waste management, urban planning, environmental control and building, socio-economic development, and infrastructure maintenance. Before implementing Key Performance Indicators (KPIS) in the organization, LGO measured its performance using Annual Work Target (AWT); an individual performance appraisal where the impact was very significant for employees because of the direct linkage to the salaries that would be received by them. AWT was an individual performance assessment performed periodically on employees' achievement. The purpose was to give recognition and reward to the employees who made an outstanding contribution for the year. Employees who scored between 95% to 100% (significantly exceed target), 85% to 95% (exceed target), and 65% to 85% (on tar-get) could be considered for annual salary movement whilst employees who scored below 65% (below target) would not be considered for salary increment the AWT had been embedded within managerial routines of the LGO as it became shared values within the organization. This was reflected in the daily routines of making decisions and measuring performance. AWT became a primary mechanism to determine salary increment and promotion of the employees. However, the assessment was found to be not very objective in meeting the goals of the organization due to several reasons. First, different employees were being evaluated using diverse performance measurements. Second, there were too many requirements in the AWT, which could affect the core activities and core services of the organization. LGO started to have a plan to shift from AWT to new Performance Management Systems (PMS) way back in 2009. The introduction of KPIS was in conjunction with the Ninth Malaysian Plan; were introduced to reduce the loopholes in AWT. KPIS in LGO were developed to be outcome-based metrics. It started with the core business and core processes of departments were being specified with the performance targets and frequency measurements to be achieved. The champion of the PMS model has instructed that the indicators chosen should conform to the SMART (Specific, Measurable, Action- oriented, Realistic, Timely) principles. However, it was found that the performance targets in practice were the standard operating procedures (SOPS) adopted from AWT. Apart from that, some departments had simply converted the AWT to be developed as their KPIS. It was discovered that there were no new indicators or performance targets introduced for the KPIS initiative. Similarly, the time-based measurements for customer services were the practice of the departments in meeting the targets for AWT. Adapted from: Farhana Hasbolah, Norhayati Mohd Alwi, and Muslim Har Sani Mohamad (2018), Jurnal Akuntasi dan Keuangan Indonesia, 15 (2), pp 180 - 200 Required: Based on the above case study, discuss the problems encountered by LGO in measuring its performance. а.