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Performance – oriented payment in Public Service

Performance – oriented payment in Public Service. Kerstin Georg, University of Applied Administrative Studies of North-Rhine- Westphalia. Would you try to work more faster , harder , better for more money ?. Regulatory framework. The TVÖD –

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Performance – oriented payment in Public Service

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  1. Performance – orientedpayment in Public Service Kerstin Georg, University of Applied Administrative Studies of North-Rhine-Westphalia

  2. Wouldyoutrytoworkmorefaster, harder, betterformoremoney?

  3. Regulatory framework The TVÖD – the collective bargaining law of civil service • Since 2007 governmentagencieshavetoimplementandusetheinstrumentofperfomance-basedpayment. • Itappliesto all publicemployees but not forpublic servants. • So farpublicemployeesandpublicservantswere payedonlyaccordingto • theirage • theirfamilystatus • numberoftheirchildren • Lengthofserviceandthefunction in theirjob But nowitseemslike a newagehas begun…

  4. Practical implementation Whatisperformance? What do weneedperformance-oriented paymentfor? Howcanyoumakeperformace measureable? Whatassetsanddrawbacks do wehavetoface?

  5. Concreteexample: Pilot projectwithinthe City councilofthe City of Cologne…

  6. The City Council of the City of Cologne • Cologne is the 4th biggest city of Germany • The City Council of Cologne engages 15.300 employees (4.300 public servants) • At least 1 Million customers (the inhabitants of Cologne) • 2007 Pilot Project to implement the performance-oriented payment with a budget of 2,8 Million €

  7. Performance-orientedpaymentwithinthe Cologne City Council • Expectations on performace-orientedpayment: • Improvementoftheofficialattendance • Enhancementofthemotivationofthe employees • Getting a newmanagementtool Performance istheachievementofobjectivesandthecomplianceofdefinedrequirementsandassignments.

  8. Management by objetives • Management tool - based on voluntary agreements between manager and their employees • SMART- Conditions for voluntary agreements • Specific • Measureable • Abitious • Realistic • Terminated

  9. Examples for Management by objectives Advancement of profitability -Increase of cost recovery by x % Advancement of effectiveness and efficiency -Decrease of non-conformity by x %, Shortening of the processing-time by x% Advancement of the service quality - Decrease of affliction by x %

  10. Systematicperformanceevaluation • Establishment agreementsdefineevaluationcriterias, whichhavetobe: • measurable • verifiable • transparent • understandableforeveryemployee • Differenceto Management byobjectives: Employeeshavenovoice

  11. Example for systematic performance evaluation criterias

  12. Chances of perfomance-oriented payment in public service • Equitableincentivepay • Advancementof a cooperativeleadership • Problems getearliertothefore • Positive effects on intrinsicandextrinsicmotivationfactors • Increased personal responsibilityoftheemployees • Consolidationofleadershipskills • Transparent assessmentcriteria • Performance improvementbytheemployees

  13. Risks of perfomance oriented payment in public service • Problems withthemeasurabilityofperformace • Increaseoftheexpenditureof time forplanningandmatchingtheworkcycle • Political decissionscanaffecttheagreementofobjectivesnegatively • Increaseofbureaucracyandadministrationeffort • Additional expenses for employee trainings and information

  14. Thank you for your attention…..

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