Public Service Reform: Professionalisation from a PSC Perspective

1. PUBLIC SERVICE REFORM TOWARDS PROFESSIONALISATION: A PSC PERSPECTIVE PRESENTATION TO THE PORTFOLIO COMMITTEE ON TRANSPORT, PUBLIC SERVICE AND ADMINISTRATION, PUBLIC WORKS AND INFRASTRUCTURE 20 MARCH 2024 1

2. PRESENTATION OUTLINE Introduction Objectives of study Structure of the report Major reforms pre- and post 1994 Diagnosis of the state of the public service PSC Perspective and Recommendations Conclusion 2

3. INTRODUCTION  One compliance with all the regulations, policies, directives, guidelines and templates (rules for short) that shape personnel administration automatically compliance with the constitutional values and principles. cannot assume that  The mandate values and principles set out in section 195 of the Constitution [section 196(4)(a)]. PSC has a specific to promote the and public practices translates to  Its area of others, work includes, personnel administration amongst and practices and the organization of administration 196(4)(b-f)]. public  A key task for the PSC is therefore to test the prescribed practices against the values and principles. [section 3

4. INTRODUCTION The transition of the PSC’s mandate from an appointing Commission for Administration to an oversight body cut across various public administration reform phases •Several administration 1994 attempted to progressively move public administration and the public service better compliance constitutional principles. waves of public since •When public administration in South Africa was shaped by paradigms such as classical/traditional administration and the New Public Management, the PSC was there. •There is much to be learnt from the pre-1994 public administration, despite its underpinning policies. reforms public apartheid towards with the and values •It is necessary to reflect on the influence of these paradigms and other modern trends administration in South Africa today and in the future. •A lot can also be learnt from the successes failures of the post-1994 reforms to influence future reforms. and on public •The 2022 professionalization framework is the latest reform. Reform Paradigms Learning 4

5. OBJECTIVES OF THE STUDY 5

6. STRUCTURE OF THE REPORT Public PSC perspective and recommendations Successes of past reforms / highlights from commentators Pre- and post 1994 administration paradigms CITIZEN CENTERED/SERVICE DELIVERY FOCUSED 6

7. MAJOR REFORMS PRE AND POST 1994 7

8. PRE-1994 8

9. POST-1994 – FIRST WAVE OF REFORMS 1994-2000 Policy positions over the period: RDP / GEAR 1994-1996 • ORGANISATIONAL RATIONALISATION AND INTEGRATION 1994-2000 • THE CONSTITUTION AND INTRODUCTION OF BASIC LEGISLATION 1995-1997 • PRESIDENTIAL REVIEW COMMISSION (PRC) AND WHITE PAPERS 9

10. POST-1994 – FIRST WAVE OF REFORMS 1994-2000  A first task was the integrations and rationalization of the public service (a macro- reorganisation to align the public service with the new constitutional structure) and to put basic legislation in place.  A fundamental change to the Public Service Act was to remove the appointment powers of the PSC and assign those to Executive Authorities (ministers).  The impact of putting down governing values and principles for public administration in the Constitution (section 195) cannot be underestimated. They remain the overarching yardstick even though rules rather than values and principles remain the main governing instrument.  Both the Public Service Act and the Public Finance Management Act introduced the idea of management autonomy – this was not realized in practice because of lack of trust in the capability of departments.  The Promotion of Administrative Justice Act, Promotion of Access to Information Act, and constitutional provisions on progressively realising socio-economic rights: Court judgements were direction setting and became a big source of learning for administrators.  The White Papers on the Transformation of the Public Service and Human Resource Management were hugely ambitious but largely failures. Ideas like devolution of managerial responsibility and accountability, participative management, changing the organisational culture and becoming learning organisations are not implemented by decree. Organisational cultures are deeply embedded and even new entrants to the bureaucracy find safety in the rules and the hierarchical set-up.  White Paper on Public Service Delivery (i.e. Batho Pele), found to have potential to transform public service delivery, but effective implementation hampered by lack of skills and non- alignment with organisational strategy. 10

11. POST-1994 – SECOND WAVE OF REFORMS 2000 - 2011 Policy positions over the period: GEAR/ASGISA/NGP 2011 2000 - 2017 (2001) 2005- 2009 2007 • THE NATIONAL SKILLS DEVELOPMEN T STRATEGY III • THE DEVELOPMEN TAL STATE • INTRODUCTION OF M&E FRAMEWORKS (PSC and DPME- MPAT, GOVERNMENT WIDE M&E SYTEM) • MAJOR REFORMS HRM FRAMEWORKS/ AGENCIFICATION/ COORDINATION/ MTEF/ PROGRAMME BUDGETING 11

12. POST-1994 – SECOND WAVE OF REFORMS M&E and the outcomes framework shifted emphasis from activities and outputs to policy outcomes and the sheer number of evaluations had a huge positive impact.  However, many of the evaluation tools, like MPAT, auditing and much of PSC evaluations, are compliance based.  An unintended effect of frameworks like the National Treasury Framework for Managing Programme Performance Information was that performance was reduced to the achievement of 100s of measurable targets. Performance indicators are always an oversimplification of reality and tend to use dimensions for which data is readily available. Contrary to the idea of measurement, performance in the public service requires both judgement and using the available data.  The HR frameworks published by the DPSA between 2005 and 2009 introduced management by template. But a template does not guarantee substance or meaning – that requires analytical capability.  The introduction of the SMS created an esprit de corps. SMS positions are sought after but the SMS did not necessarily create a corps of skills that can be deployed everywhere.  The Occupational Specific Dispensations introduced competitive salaries but put a strain on the wage bill.  12

13. POST-1994 – THIRD WAVE OF REFORMS 2012 TO DATE Policy positions over the period: NDP 2012/13 • NATIONAL DEVELOPMENT PLAN VISION 2023 • DELEGATIONS PRINCIPLES/DIRECTIVES/GUIDELINES 2013/2014/2017 • PUBLIC ADMINISTRATION MANAGEMENT ACT (PAMA) 2014 • REVISED PLANNING FRAMEWORK 2020 • PROFESSIONALISATION FRAMEWORK/JUDICIAL INQUIRY INTO STATE CAPTURE 2022 • PUBLIC SERVICE AMENDMENT BILL/PUBLIC ADMINISTRATION MANAGEMENT AMENDMENT BILL 2023 13

14. POST-1994 – THIRD WAVE OF REFORMS The National Development Plan introduced the third wave of reforms in 2012.  Argued for need to stabilise the political-administrative interface and creation of Head of Public Service. Some NDP recommendations have not been implemented and others are at initial stages of implementation. (The Zondo Commission to declared political deployments unlawful.)  The DPME revised framework (2020) for strategic plans and Annual Performance Plans (APPs) seeks to address various challenges, recommendations made by the NPC in 2015.  but seems to have ignored the Developments supported by the PSC Public Service Amendment Bill, 2023, provides for:  Expanded functions of the DG in the Presidency;  Assignments of administrative powers to Heads of Departments  Limited progress was made profesionalisation of the Public Service, but professionalisation has now picked up renewed impetus through the approval by Cabinet, in October 2022, of the Framework towards the Professionalisation of the Public Sector. in implementing the NDP’s recommendations on the  14

15. DIAGNOSIS OF THE STATE OF THE PUBLIC SERVICE judge the success of reforms /identify priorities for future reforms  De-politicise top appointments Qualifications vs skills /Dilution of requirements for occupations Lack of balance between rules and values HR Frameworks breed management by template PMDS is managing appraisal instead of performance HRD Framework emphasized generic skills Erosion of accountability Lack of consequence management Lack of agency 15

16. PSC PERSPECTIVE From the overview of reforms from 1994 and the diagnosis of the state of the public service, the PSC selected few areas, mainly in the areas of HRM, and developed a problem statement and recommendations. (If some of the areas are prioritized, further research will be required). The recommendations made do not just to advance public administration reform as an end, they are considered with the spirit of Ubuntu in mind and the urgency for service delivery improvement for the citizens of the country. The citizen remains the center of the public service delivery. 16

17. PSC PERSPECTIVE: HR Planning Problems statement  It is doubtful whether the central purpose of an HR Plan, namely an analysis of the demand and supply of personnel, identifying the gap between the two and coming up with creative strategies to bridge the gap, has been achieved.  HR Plans contained very limited analysis of the actual data provided. So, the problem is not lack of a HR planning guideline but lack of analytical skills and good data management. Providing a guideline and template does not solve this fundamental problem. A template or a step-wise process does not guarantee a meaningful plan. The PSC recommended— 1. Create analytical capacity in departments. 2. Drop the requirement in the Ministerial Directive that EA’s shall follow a prescribed template. Regulation 26 already lays down the principle and this is as far as prescription should go. 17

18. PSC PERSPECTIVE: Human Resource Development Problems statement The DPSA’s HRD Framework takes management by template, or central department control, to the extreme.  The 2008 DPSA Strategic Framework and its 2020 successor (still only in draft form) are too detailed, with 29 strategic interventions and 147 activities.  Such a detailed plan violates all the principles of sound planning. A plan needs to prioritise and make trade-offs depending on the available resources. An extensive framework plans for departments and reduces their autonomy to determine their own strategies/priorities.  Two sets of laws (PSA and SDA) with their accompanying institutional arrangements and frameworks govern HRD in the public service. A department does not need a Human Resource Development Plan as well as a Workplace Skills Plan under the SDA.  The PSC recommended— 1. All departmental support effort should be placed behind the Skills Development Act and the associated institutional arrangements and frameworks. 2. Discontinue the DPSA HRD Strategic Framework in its entirety (or drastically reduce it to the bare minimum). 3. Consider a revival strategy for Human Resource Management and Development in consultation with the relevant SETAs. Specify training and development activities by occupation. Prioritise technical and professional skills. 18

19. PSC PERSPECTIVE: Performance Management and Development System Problems statement  The PMDS does not improve organisational performance – its is a reward system that fails to address employee performance in relation to organisational performance.  Individual performance appraisal or rating is beset by fundamental problems – it is not a question of poor implementation. The main problem is the idea that performance can be objectively measured against a standard.  Therefore, any scoring or rating in performance appraisals should be abolished. One can simply discuss with the employee whether an output has been achieved or not achieved and the quality of the output. The PSC recommended— 1. Discontinue individual assessment using rating scales or scoring systems. 2. Develop norms (not standards) for organisational/ unit performance management. 3. Incentives and rewards in the public service should be fundamentally rethought and dealt with in an incentive framework which should include unit/organisational performance and pay progression. 4. Cash bonuses, which were phased out in the 2021/22 financial year, should not be re- introduced. 19

20. PSC PERSPECTIVE: Professionalisation and the career system Problems statement The entry, promotion, continuing professional development and other requirements for occupations are not specific (exact) enough.  Selection, after minimum requirements have been met, is not based on rigorously defined objective criteria.  Recruitment system is ‘too’ open and staff manage their own careers by applying for posts.  The public service has neglected specialised and advanced skills.  The PSC recommended Specify and prescribe entry, promotion, continuing professional development requirements tightly.  Gradually move from an open system at all levels back to a career system in certain levels of employment and reinforcement on the Directive on Development programmes.  A career system implies that entry into the public service is normally at the entry level and that career public servants are then promoted through the ranks after training, exposure to specified experience and performance requirements have been met. A career system preferences internal candidates.  20

21. PSC PERSPECTIVE: Senior Management Service Problems statement The establishment of the SMS largely achieved some of its initial goals, which was to attract and retain high quality personnel at leadership levels. are— • Poor levels of performance and skills among some senior staff. • Insufficient attention to training and development and nurturing of a senior executive corps. • An emphasis on generic management competencies to the detriment of technical skills and the idea that a person with management qualifications can manage anything. • Little horizontal mobility due to rigidities in the employment framework. The PSC recommended However, some of the persistent problems 1. Specify requirements for SMS occupations. This specification should differentiate between the requirements for management in different functional areas, e.g, hospital manager, police manager or energy planning manager. A decision must be taken to continue with the competency assessment or discontinue it as the value add for recruitment is minimal. Since a prospective SMS manager must be immersed in the policy area of the department, each department must specify additional education and training in functional fields of the department that prospective candidates for SMS positions must complete, and to what extent this should substitute for compulsory generic management training of the public service. A more value-orientated SMS must be encouraged in the manner that training and development courses are configured. The SMS Handbook must be reviewed & re-issued within 12 months from the issuing of this report. 2. 3. 4. 5. 21

22. PSC PERSPECTIVE: Agency The DPSA Directive and Guide on delegations of authority was a step in the right direction.  Problems statement The Directive and Guide did not solve the fundamental problem of lack of agency, whether such lack of agency is the result of:  real or perceived lack of formal delegated authority,  whether procedures and requirements are too onerous despite delegations,  lack of resources or authority to shift resources or utilise resources differently, or  simply whether a timidity to act.  The PSC Recommended To promote agency at the service delivery level requires a much deeper analysis of the constraints that face local public servants than simply looking at the delegations framework. It will require a change in the management structure – i.e. alignment of responsibility, authority and accountability.  As a start, management structure in three service delivery areas be reviewed. (An analytical matrix is provided to aid such a review.).  22

23. PSC PERSPECTIVE: A values driven administration Problems statement  Public Service has become rules driven, but rules serve a purpose: they remove arbitrariness and create standardisation and certainty; they set the bounds of discretion but allow efficient administrative decision-making within those bounds.  Invariably, rules have the unintended effect of increasing complexity and reducing flexibility and responsiveness.  The public service has now erred on the side of rules. PSC recommended  The supreme goal of the public service is to promote human dignity, the achievement of equality and the advancement of human rights and freedoms [section 1(a) of the Constitution]. These can be summarised in the South African value of Ubuntu. Without values, the bureaucracy will be stilted.  A bureaucracy is largely managed through policies, processes and systems – a system of rules. However, these should be complemented by values. Values (and norms) are a much better governing instrument than rules.  Create balance between rules and values by creating a control environment on the one hand and allowing enough discretion for creativity and innovation on the other hand, or between standardisation and control and effectiveness or results that advances human rights and freedoms.  Start: institute a programme to review procurement, HR and programme design rules. 23

24. PSC PERSPECTIVE: Macro organisation Strong institutions are at the heart of the developmental state and sound macro-organisation is the starting point of institution building. On the principle of structure follows strategy, the macro-organisation of government is necessary to respond to substantial changes in the programme of government. The configuration of government is the prerogative of the President and Premiers in terms of Constitution. Problems statement  Frequent re-configurations of departments to constitute new departments and ministerial portfolios:  have destabilised departments and disrupted programme implementation in some instances; and  may set back institution building for many years because building/rebuilding takes time. The PSC recommended  The President or Premiers should exercise their authority to reconfigure government after consultation with an independent expert body. The expert body should be constituted of representatives from the public service, private sector, civil society, trade unions and other critical stakeholders. Coordination and Secretarial support for this body should be provided by the DPSA.    24

25. PSC PERSPECTIVE: The political-administrative interface A problem statement for this area is sufficiently covered by the National Development Plan. • The PSC supports the proposed amendments to the Public Service Amendment Bill, 2023, to change and clarify the powers of HoDs and Executive Authorities and to expand the functions of the DG in the Presidency, however the amendment bill should be clear on the designation of the Administrative Head for the Public Service, which it does not do. • The PSC report makes several recommendations about the process for top level appointments, including— • “The recommendations of the Professionalisation Framework were also considered and further strengthening of those recommendations to guide future reforms will be guided by further research and lessons from implementation of the Professionalisation framework” Roles of different bodies • Head of Public Service • Power to appoint HoDs • Involvement of Cabinet in the process • Composition of selection committees • 25

26. PSC PERSPECTIVE: Filling a DG Post Estimated total time to fill post: 15 to 26 months Current process to fill a DG post Cabinet •Cabinet Memo submitted •Assessed in terms of compliance •Non compliance referred back •Compliance – Proceed to Cabinet •Cabinet concurs or not •Outcome communicated by DPSA •Appointment effected Recruitment Process undertaken Process of recruitment begins •Post is advertised •Selection committee identified •Selection •Submission to DPSA Request for delegation sent to the Presidency •President Minute signed and DPSA communicates to relevant Minister DG post becomes vacant •The Presidency then involves the DPSA for the MPSA to develop and counter-sign the President Minute •Requires a Minister to act and request a delegation of authority to fill the post. 26

27. PSC PERSPECTIVE: Head of Public Service The envisaged role of the Head of Public Service with respect to the Management and Administration of Career Incidents for HoDs is recommended as follows: • PMDS SUPPORTED BY THE PSC Contracting and Training and Development Recruitment and Selection HoD Employment Contracts, secondments, transfers and Exits Discipline and Conduct 27

28. PSC PERSPECTIVE: Head of Public Service  Role of the Head of Public Service in recruitment The Head of Public Service participates in all career incidents of HoDs as is expected in his/her role of support to the President. • The Head of Public Service may seek advice from the Public Service Commission on any matter related to potential irregularities in any part of the recruitment process or any other aspect impacting a Head of Department at National Government. •  Role of the Public Service Commission in supporting the HOPS: A structure must be created in the Public Service Commission to assist the Chairperson of the Commission on matters related to the career incidents of Heads of Department, when required, to give advice to the President, the relevant minister or the Head of Public Service. Such matters include issues of recruitment, career management and performance management, specifically for Heads of Department at National level. Advice may also be rendered to Premiers accordingly. • The PSC also believes that part of the strengthened role of the Public Service Commission deeply involves the support function to the Head of Public Service and the President. The creation of the Head of Public Service will therefore compliment the strengthening of the PSC insofar as the career incidents of HoDs is concerned. • 28

29. PSC PERSPECTIVE: Head of Public Service and the Role of the PSC The constitutional role of the PSC, namely; an investigation, monitoring and evaluation role with no executive powers on personnel and public administration practices, is well- established. The PSC Bill in its current form does not depart from this model and reinforces, rather than expands, the powers of the PSC. 29

30. PSC PERSPECTIVE: By introducing the Head of Public Service Estimated total time to fill post: 8 to 12 months Improved process of filling a DG post Cabinet •Cabinet Memo submitted •Assessed in terms of compliance •Non compliance referred back •Compliance – Proceed to Cabinet. •Cabinet concurs or not •Outcome communicated by DPSA •Appointment effected Recruitment Process undertaken Process of recruitment begins •Selection committee convened for shortlisting and interviews and verification. •Submission to DPSA Request for delegation sent to the Presidency DG post becomes vacant •This step will cease as there is no waiting time for a President Minute Minister is responsible for appointment – Selection Committee can be approved with dates for shortlisting and interviewing. Post can be advertised in line with PSR and PSA. This step will cease 30

31. PSC PERSPECTIVE: How will this work? Changes to be considered : Selection Committees (to make a recommendation): Appointment: Legislation: • Option 1: Amend Section 12 of the PSA • Amendment to Regulation 67 to reconstitute a selection committee for a DG as follows: • Head of Public Service (Chair), 2 other DGs from the Public Service and 2 technical experts (same for Provincial Head) • The relevant Minister considers the recommendation from the duly appointed selection committee and makes a decision to appoint the DG in line with the PSR and PSA. (same for relevant MEC) or • Option 2: The President to consider a Delegation of Authority in respect to Section 12 to all Ministers only for the filling of a DG post. (same to be considered by the relevant Premier) Result: Politics and administration complement each other 31

32. PSC PERSPECTIVE: The political-administrative interface  Recruitment process for Head of the Public Service:  It is recommended that the Public Service Act be amended to— (i) create the office the of Head of the Public Service (HOPS); (ii) provide for the appointment requirements for the Head of the Public Service; (iii) provide that the appointment process into this office should be a public process (i.e. appointment requirements and the names of candidates who applied be published and that interviews be open to the public); (iv) assign to this office the power to “make recommendations on all career incidents of heads of department” of national departments; (v) provide for the possible combination of the role of Head of the Public Service with other roles like the Director-General of the Presidency; (vi) provide that in provincial administrations the role of HOPS should be fulfilled by the Director-General of the Office of the Premier and that a similar public appointment process should be followed for this office to align with processes followed for the HOPS at national level. 32

33. PSC PERSPECTIVE: The political-administrative interface  Safeguards: • The safeguards against poor appointments when the power of appointment are assigned to HoDs. These safeguards are to be found in regulated appointment processes in a professionalised public service, and include— • specification of the appointment requirements for the position; • how the requirements will be tested and verified; • compliance checking to ensure the integrity and rationality of the process; • composition of selection committees; • the procedure in selection committees; and • the separation of powers between recommendation for appointment and approval of the appointment. 33

34. CONCLUSION In spite of the restricted scope focusing mainly on selected HR practices, the project was ambitious. The hope is that the recommendations:  contribute in a concrete way towards implementation of the framework on professionalization of the Public Service, and  Equally influence the tone and direction of ongoing and future public administration reforms in the public service. The belief is that the public service is about people and if addressing the ‘people issues and processes’ lead to maximisation of human potential [section 195(1)(h) of the Constitution] then service delivery will also follow.  This requires—  A whole new approach to the rules governing the public service – a drastic cut in the rules but also an approach where values, principles and norms will be used as the main governing instrument.  An action-oriented management – therefore the recommendations around management ‘agency.’  Implementation of the changes to the Public Service Act that are now proposed in the Amendment Bill, and consideration of further amendments to clearly designate the creation of the office of Administrative Head of the Public Service.  Tight specification of occupations and career requirements, and a ‘partial’ return to a career system.  Sustained effort at implementing sound reforms and continuous reflection and innovation.   34