Human Resource Management Actionable Governance Indicators Instrument Development

1. Human Resource Management Actionable Governance Indicators Instrument Development Presentation to Public Sector Governance Board Gary J. Reid May 8, 2008

2. IEG Review of Bank Support for CSR • Uneven success rates • Low in weak public sector management environments • Reasonable in strong public sector management environments • Factors contributing to these uneven success rates • Lack of standardized, systematic country analytic work on CSR issues • Lack of standardized, systematic monitoring of CSR impacts • Over-promising – Setting expectations too high • Lack of consistency in addressing key sequencing requirements of CSR • Inadequate attention paid to political economy challenges of CSR

3. HRM AGI Instrument Can Help Address Most IEG-identified Factors Limiting CSR Impacts • Direct contributions of HRM AGI instrument • Facilitate standardized, systematic country analytic work on CSR issues • Facilitate standardized, systematic monitoring of CSR impacts • Reduce over-promising • Indirect contributions • Facilitate learning on how to effectively address key sequencing requirements of CSR

4. Important Features of the HRM AGI Instrument Design • Modular • Permits users to prioritize across design, practice and performance dimensions • Includes Annex to facilitate gathering of important descriptive statistics on pay and employment practices, but employing a given country’s position classifications • Facilitates consistent, empirically grounded analysis of HRM policies, practices and impacts • Captures data required to empirically analyse what design and practice features actually do contribute to what impacts – i.e., facilitates learning over time.

5. What Are AGIs? • Actionable governance indicators (AGIs) provide evidence on the characteristics and functioning of particular elements and sub-elements of the various dimensions of governance.

6. HRM AGI Instrument • Governance systems features captured • Legal framework • Design and implementation features • Rules (formal and in practice) • Capacities • Performance evidence • By core HRM objectives • Attract and retain required human capital • Fiscally sustainable wage bill • Depoliticized, meritocratic human resource management (HRM) • Ethical behavior by civil servants • Performance-focusing HRM • Effective working relationships with other cadres

7. Legal Framework • Multiple, mutually exclusive public administration labor regimes • Political appointees • Civil servants • Contract personnel • Service delivery professionals • Sensible divisions of responsibility and authority within each labor regime • Policy setting • Management of cadre staff • Oversight • Redress

11. Design and Implementation Features: Rules • Attract and retain required staff • Remuneration policies and practices, including pension policies and practices • Non-remuneration policies and practices • Policies and practices for attracting and retaining staff in unattractive locations • Fiscally sustainable wage bill • Establishment control policies and practices • Wage bill control policies and practices

17. Design and Implementation Features: Rules (cont.) • Depoliticized, meritocratic HRM practices • Recruitment and selection policies and practices (entry vs. non-entry level) • Competition • Criteria • Screening procedures • Decision steps (long-listing, short-listing, final selection) • Equal opportunity policies and practices (if applicable) • Disciplinary procedures and practices • Redress mechanism • Ethical behavior • Conflict of interest requirements • Code of ethics • Asset declaration requirements

22. Design and Implementation Features: Rules (cont.) • Performance-focusing HRM practices • Performance accountability of organizational units • Personnel performance appraisal policies and practices • Promotion policies and practices • Competition • Criteria • Checks • Performance-related pay practices • Mobility options for certain types of positions

23. Design and Implementation Features: Rules (cont.) • Effective working relationships with other cadres • Policies and practices aimed at achieving clear differentiation in roles, responsibilities, authority and accontabilities • Policies and practices aimed at ensuring buy-in to those differentiations

24. Design and Implementation Features: Capacities • HRM policy-setting agents have adequate • Authority (organizational stature; legal authority) • Resources (staffing #s and quality, staff training, budget, management systems characteristics) • HR management agents have adequate • Authority • Resources • HRM oversight agents have adequate • Authority • Resources • HRM redress agents have adequate • Authority • Resources

25. Performance • Attract and retain required staff • Fiscally sustainable wage bill • Depoliticized, meritocratic HRM practices • Ethical behavior • Performance-focusing HRM practices • Effective working relationships with other cadres

26. Performance: Attract and Retain • Average number of qualified (long-listed) applicants per advertised position is approximately constant across types of positions • Annual turnover rates among recent recruits (e.g., over the first 3 years following recruitment) • Average • Variation across types of positions • Incidence of post-graduate degrees among managerial and professional staff

27. Performance: Fiscally Sustainable Wage Bill • Wage bill is affordable and within overall fiscal framework, and does not crowd out other necessary expenses • Wage bill/GDP • Non-wage recurrent budget/total recurrent budget

28. Performance: Depoliticized, Meritocratic HRM Practices • Quarterly turnover rates of civil servants (vs. political appointees) mapped against changes in political leadership • Quarterly transfer rates of civil servants (vs. political appointees) mapped against changes in political leadership

29. Performance: Performance-focusing HRM Practices • Absenteeism rates • Average • Variance across • Types of positions • Organizational units • Performance appraisal ratings concentration in the top (or top two) ratings

30. Performance: Ethical Behavior of Civil Servants • Incidence of disciplinary actions short of dismissals • Incidence of dismissals for disciplinary reasons

31. Next Steps • AGI HRM development and roll-out • Pilot civil service (CS) module in limited number of countries across most Regions (Moldova, Tajikistan, Tanzania, Ghana, [Yemen], Paraguay, Guatemala, Peru) (June 2008) • Complete construction of remaining modules of the HRM AGI instrument (Service delivery professionals (SDP), contract workers (CW), political appointees (Pol)) (July 2008) • Revise CS module based on lessons from pilots (July 2008) • Roll-out of revised CS module for use in policy, investment and TA operations, as well as in CASs (launch Fall 2008) • Pilot remaining modules (SDP, CW, Pol) (Fall 2008) • Roll-out remaining modules for use in policy, investment and TA operations, as well as in CASs (launch December 2008)

32. Next Steps (cont.) • Build broader constituency to endorse and support roll-out of HRM AGI instrument • Establish multi-donor working group on HRM AGI Instrument and its use (Fall 2008) • Establish international network of CSR leaders and gurus to endorse HRM AGI instrument and its use (Fall 2008) • Introduce new standard AAA product based on HRM AGI instrument: Personnel Management Review (PMR) (Winter 2009) • Develop HRM Peer Assisted Learning communities of practice in Regions, using the instrument as one tool for focusing the work in those HRM PALs (launch Fall 2009)

33. AGI and HRM AGI Websites • AGI work: agi • HRM AGI Instrument: Civil Service Module • Legal Framework https://www.surveymonkey.com/s.aspx?sm=YN8KzcIpK6Sz4ajS4sGY6Q_3d_3d • Design Features I: Attract & retain, Wage bill sustainability, Meritocratic/depoliticized CS management https://www.surveymonkey.com/s.aspx?sm=N998zag_2byCyFIxGlxfvahw_3d_3d • Design Features II: Meritocratic/depoliticized CS management, Performance-focusing CS management, Ethical behavior, Effective working relations across cadres https://www.surveymonkey.com/s.aspx?sm=H5h7MKwPXZJVIx7r0LA9HA_3d_3d

34. Thank you, and discussion