HR management in the public sector

1. HR management in the public sector Initial points for discussion with EPGG working group January 2009

2. 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 Overall trends in public sector management The public sector has grown as the role of the state has evolved in response to social, economic and political events State sector roll-back (Reagan-Thatcher ‘small government’): privatisation, outsourcing State sector expansion (big government ‘tax & spend’): nationalisation, education, health & social services Return to state ownership & “big govern-ment”? State sector as enabler, partner & regulator WWII expansion: state takes over industries ? WWI expansion Beginning of state social service provision Post-war contraction (world recession) Credit crunch Oil crisis; economic recession; ‘end of communism’ Globalisation; IT revolution; aging populations; climate change; Post-war economic expansion Size of the public sector (illustrative) 2nd World War 1st World War. World economic slump

3. The role of the state: how approaches have evolved State sector expands (socialist ‘big government’): nationalisation, unionisation, state provision (social welfare, health, education) State sector roll-back (Reagan-Thatcher ‘small government’): de-nationalisation; de-unionisation; ‘new public management’ State sector as enabler and regulator of market economy and diversified public service provision, citizen as ‘customer’. ? • Big government • “Government knows best” • State-planned economy • Public ownership of industries • Universal provision of public services to citizens • Small government • “The market knows best” • State industries privatised • Market-driven economy • Public sector reforms to cut costs and improve services • Different government • “Steering, not rowing” • Social-market economy • Public sector policies driven by results and value for money • Customer-oriented public service provision Public service principles Equity & accessibility Quality & performance Consultation & choice Responsiveness Accountability Value for money

4. Current trends in public sector management • Diversified service provision • Private & outsourced services • Government arms-length agencies • Public/private partnerships • Decentralisation • National  local • Central institutions  service delivery agencies • Performance based management • Results-based budgets • Performance contracts for top managers • Public service agreements between Ministry of Finance and line Ministries • Integrated term fiscal & expenditure planning & budgeting • Accruals accounting • KPI & Excellence programs • Customer orientation • Customer charters • Public service league tables • Redress and complaints mechanisms • eGov • Accountability & transparency • Published VFM audits • Independent regulatory bodies • Published annual reports

5. People management: a parallel evolution Different government Big government Small government ? • Output-based manpower planning • Diversity: contracts, pay & grading • Flexible, self-driven career development • Demand-led training • Performance related pay • Open, competitive appointments • Senior civil service • Representivity • Big numbers (state as employer) • Categorisation by level & professional group • Career advancement thro seniority & qualifications • Life-long tenure • Non-core functions eliminated (privatised; outsourced) • Employee reductions • De-centralisation • Business & managerial skills imported on contract • Career-based structure • Centralised personnel administration • Job-based structure • De-centralised professional HRM

6. HR management: key requirements • A coherent legal HRM framework: • A Law + Ethical Code • Employment Regulations • HR Management procedures • HRM institutional arrangements which: • Distinguish clearly between policy and operational responsibilities • Allow for diversity and decentralisation • Provide independent oversight • HRM procedures which deliver: “The right person with the right skills in the right job, performing well”

7. Legal Framework Contents Fundamental principles. Rarely change Civil Service Law & Ethical Code Primary legislation Policies give effect to the fundamental principles. Amended periodically but not frequently Civil Service Employment Regulations Secondary legislation Detailed procedures on application of the Regulations + standard forms Amended as required, Civil Service HR procedures Practical guidelines

8. Centre of Government • Legislative framework • Strategic HR planning & central HRMIS • Senior appointments & succession planning • Top management & generic training Ministries etc • Operational HR management Independent body Compliance, oversight & appeals Institutional arrangements

9. HRM policies & practices: key features

10. Public Administration “models” • Westminster (UK, CANZ, Anglophone Africa) • Separation between politicians and civil servants • Administrative: civil servants exercise authority on behalf of Ministers • Napoleonic (France & mainland Europe) • Juridical: ‘fonctionnaires’ exercise powers in their own right • ‘East India Co.’ (India, Pakistan, Bangladesh, Nepal, Sri Lanka) • Powerful civil service: outguns politicians 9/10 • Civil servants’ role based upon colonial role & functions (land administration, administration of justice, tax collection) • Others • Post-communist eastern Europe: no distinction between politicians and civil servants; the state is responsible for everything • Middle East/Gulf: public sector is a job provider; ‘wasta’ rules

11. Political appointments • US: top 3,000 positions, subject to Congressional approval • UK: ‘none’, but: • Political advisers have quasi civil servant status (non-executive) • Ministers involvement in certain appointments, e.g. Minister’s office, press office • India: ‘none’, but: • Ministers constantly and often successfully exert influence over top level appointments • Middle East: • All senior appointments are at Ministers’ behest (i.e. personal rather than party political) Issues: transparency & accountability, e.g. • The criteria and process for filling positions • Whether or not positions are designated as ‘civil service’ and, if so • Whether the occupant is subject to civil service rules and regulations

12. Identifying and managing the ‘elite’: fast-stream & SES Fast stream • Purpose: to ensure continuous supply of ‘the brightest and best’ • Govt wide process • Small annual intake (+/- 40) • Applicants already possess high-level qualifications • Assessment centre process (rigorous, 360° testing of competencies, temperament & potential) • ‘Gold dust’: tested and trained in job: can be ‘mainstreamed’ (‘mainstreamers’ can also be fats-streamed) Senior Civil Service • Purpose: to ensure quality, continuity, leadership & shared values at the highest levels • Position-based • Defined generic competencies act as entry barriers • Government-wide mobility • Events and training designed to build competencies and esprit de corps

13. Career vs. post-based: pros & cons

14. Political appointments: pros & cons

15. Centralised or decentralised? • ‘Decentralisation’ can mean • Uniform systems managed locally or • Unified principles but diverse systems tailored to local needs • The case for decentralisation • The Civil Service is too big and too diverse to manage through a uniform centrally-managed system • The case against decentralisation • Requires increased managerial capacity, and enhanced accountability mechanisms