Human Resources Management in Public Administration

Human Resources Management in Public Administration Ustroń, 2.09.2008 mgr Martyna Julia Wronka Department of Entrepreneurship and Innovative Management University of Economics in Katowice

Meeting Agenda • Introduction • Trends in work environment • HRM principles • Tides of reforms • New Public Management • HRM Reform Trends • Emerging Approaches to Recruitment and Selection • Summary • Example from Polish Ground

When government has the right people, and the right system, and the right intentions, many good things are possible. The trick is knowing which ones they are. Alan Ehrenhalt

A dynamic environment and key principles Managers today need to be mindful of several trends in the government and public administration environment. These trends are important because they provide the context in which decisions are made. The items listed below highlight significant developments for human resources management in predictable future.

Trends in work environment (1) • Changing workforce. The workforce is smaller, greyer and composed more of women then in previous years. Paradoxically, there is a need for workers with high-level skills, knowledge, and ability to meet the call for „learning organizations”. • Declining confidence in government. Many opinion polls in different countries have shown a steady erosion in confidence and trust to government at all levels. Rebuilding trust is an important challenge facing the public sector. • Declining budgets. A combination of tax limitations measures, budget cuts, and political pressures to curb the future expenditures has occurred at all levels of government.

Trends in work environment (2) • Downsizing/upsizing.The size of state civilian workforce is gradually decreasing although early retirements were the preferred approach rather than disruptive layoffs. By contrast, the size of local and regional government has increased. • Emerging virtual workplace/virtual government. With the introduction of new information technologies, some tradition 9-5 (7-3) workplaces with fixed central office locations are being replaced by innovative organizations with more flexible arrangements.

Trends in work environment (3) • Reforming/reengineering activities. Alternative approaches to the delivery of goods and services are being proposed and implemented with increasing frequency. • Centralization/decentralization of human resources activities.At state, regional and local level there occurs relocation of responsibilities from centralized staff agencies to line agencies and managers. Administrators at the operational level now have greater flexibility and discretion in the acquisition, development, motivation, and maintenance of human resources.

HRM principles (1) • Many roles of public service. Stakeholders expect civil servants to do many different things (ensure effective government performance, implement controversial social policies, respond to political imperatives). • Performance. Human resources management seeks optimal contribution to an organization by acquiring, developing, motivating and retaining people. This requires an understanding of human relations and what motivates workers.

HRM principles (2) • Understanding the basis for a personnel system. The public workforce is subject to different personnel systems. Each has its unique basis and operating limitations. Effective manager understand their system’s basis and find ways to deal with its limitations. • Alternatives to civil service.Public services have been delivered by civil service employees; however, alternative mechanism have emerged (e.g., purchase of service agreements, privatization, subsidy arrangements and tax incentives).

HRM principles (3) • Rule of law. Personnel systems, processes and rules are often based on legal requirements. • Public accountability/access. Another distinguishing feature of human resources management is that government decisions are subject to intense public visibility and inspection. • Values matters. Neutral competence of the public service has been stressed since the beginning of the merit system in the late 1800s, but “neutrality” (noninvolvement of employees in political activities) should not suggest that values of the workers are unrelated.

Monopoly Regulation (organization fort control) Reduction vs. Growth Adding programs Competition Market incentives (organization around mission) Continuous improvement Changing programs A Comparison of Traditional Public Sector Values With Those Competing For Emphasis (1) Macrolevel values

Centralized Supervisor as controller Nondemocratic Individual work Hierarchical organization Simple jobs Single service Decentralized Supervisor as helper Participative Teamwork Flat organization Multidimensional jobs Multiple versions of service A Comparison of Traditional Public Sector Values With Those Competing For Emphasis (2) Values about structure

Expert focus (internally driven) Focus on tradition (status quo) Problem analysis Mesaurement is feared Protective Performance Inspection and control Customer focus (externally driven) Focus on innovation (change) Seeing possibilities Measurement is an opportunity Productive Ability Prevention A Comparison of Traditional Public Sector Values With Those Competing For Emphasis (3) Values about work

System indifference Employee as expense Manager focus Appraisal; sanction; ranking Employee needs Employee as asset Employee focus Development; learning; recognition A Comparison of Traditional Public Sector Values With Those Competing For Emphasis (4) Values about employees

Tides of reforms (1) • Scientific Management • Here the focus is on hierarchy, microdivision of labour, specialization and well-defined chains of command. • This philosophy, usually associated with Frederic Taylor, is manifest in the bureaucratic organizational form with its emphasis on structure, rules and search for “the one best way”. • Scientific management has implications for human resources. In emphasizes conformity and predictability of employees’ contributions to the organization (machine model) and it sees human relationships as subject to management control.

Tides of reforms (2) • War on Waste • The second tide emphasizes role of auditors, investigators and inspectors. • The implications of the war on waste for HRM are plentiful. It can result in increase of detailed rules, processes, procedures and multiple reviews that are so characteristic of government bureaucracy. • Management concerned with controlling waste try to minimize idle time, avoid bottlenecks, install time clocks, audit travel vouchers and monitor attendance and punctuality.

Tides of reforms (3) • Watchful Eye • The third reform emphasizes fairness and openness. Whistleblowers, the media, interest groups and the public need access to information to ensure that rights and the general interests are protected. • Human resources implications from this philosophy can be identified as well. Concern about ethical conduct of employees leads to greater scrutiny in the hiring process to ensure integrity, as well as job-related competence of new recruits. It also minimizes the unlawful use of hiring criteria such as sex, race, age and handicap status. • Creating an organizational culture of openness, transparency, careful record keeping is consistence with watchful eye philosophy.

Tides of reforms (4) • Liberation Management • The goal of the final tide is higher performance in government. Buzzwords like “evaluation”, “outcomes” and “results” are associated with this tide. • Liberation management also holds implications for managing people in public administration. • Employee empowerment, reengineering, work teams, continuous improvement, customer service, flattened hierarchies reflect breakdown of the bureaucratic machine model and the move towards liberation. • Belief in harmonious relation between employees and management increases the prospects for productive partnership.

NPM • The beginning of the reforms in public sector was the eight-decade of the XX century. When the quality improvement in the private sector was compared with the unchanging public sector the claims for the public sector occurred at that time and the total discontent with the state management increased.

NPM • New public management (NPM), management techniques and practices are drawn mainly from the private sector, is increasingly seen as a global phenomenon. • NPM reforms shift the emphasis from traditional public administration to public management. • Seeking for the effectiveness of public institution’s activity the importance of human resources becomes especially evident, because it is not only the most important resource of public organizations, but also the most sensitive field. Therefore when managing it, it is necessary to bring into play modern prime methods.

Expert focus (internally driven) Focus on tradition (status quo) Problem analysis Mesaurement is feared Protective Performance Inspection and control Customer focus (externally driven) Focus on innovation (change) Seeing possibilities Measurement is an opportunity Productive Ability Prevention Shifting from a Traditional Public Sector System to a System for 21st Century Traditional Public Sector System Public Service for 21st Century

Principal characteristics of NPM

HRM dilemmas (1) • The aging of the local civil service, posing the immediate threat of high turnover and a lack of qualified replacements • A growing vacuum among “the leadership bench” – the next generation of policymakers and top civil servants who will assume critical roles in directing their governments’ efforts to negotiate the troubled waters of the 21st Century • The changing definition of career, which means that employee loyalty to the organization is weak at best, and which discourages workers from joining government service for the long time

HRM dilemmas (2) • Rapid change (e.g., in technology and economic conditions) that requires a highly fluid skill mix in the workforce • Strong competition from the private sector for the best and the brightest • Budget limitations that reduce compensation and financial incentives, thereby placing government at a disadvantage vis-à-vis business and industry; and • A negative public image (“government bashing”), which translates into the widespread perception that government is no longer the employer of choice (if it ever was)

The aim of HR in the new economy is to enable the organisation to create value through people, practices and processes, bearing in mind that people are the competitive edge of any organisation. • Within this context the defined role of HR must be seen as providing Human Resources products, services and solutions that will enable the organisation to achieve its set strategic objectives. • Human Resources practitioners must operate as people Champions and prove their value to the organisation.

The application of HRM principles within the public sector displaced the traditional model of personnel administration. • The adoption of New Public Management (NPM) then may have opened the possibility of managers acquiring or developing sophisticated HRM techniques. Thus, NPM principles allow a more flexible and responsive approach to questions of recruitment, selection, retention, training and development of public sector employees.

HRM Reform Trends

NPM • Of course some experts believe that “New Public Management” (NPM) has done as much harm as good, because: • It converts citizens into customers • It shifts the focus from the collective interest to user satisfaction • It borrows from private sector management practices without adapting them to public sector values and principles

Emerging Approaches to Recruitment and Selection (1) • Procedural Changes Both simple and more complex procedural adjustments can improve and expedite recruitment of public servants. • Most procedural “innovations” are intended to simplifyand demystifythe application process to prospective workers. In other words, governments are attempting to make their entry procedures more user-friendly and transparent. • Other procedural changes are designed to enhance government’s attractiveness to applicants and its appeal to current employees. • Another restrictive practice is a residency requirementthat obligates workers to live in the jurisdiction where they are employed.

Emerging Approaches to Recruitment and Selection (2) • Adopting flexible and appealing hiring procedures Government has not always extended a welcoming and helpful hand to job applicants. Progressive governments have eliminated procedural barriers by making the application process more inviting (i.e., training interviewers to not only evaluate candidates, but also to market jobs); providing more hospitable physical settings; and offering flexibility in the dates, times, and locations of tests and interviews.

Emerging Approaches to Recruitment and Selection (3) • Screening applicants quickly Too often, governments has a well-earned reputation for asking applicants to carry on long and tortuous examination procedures. • Validating entry requirements and examinations One of the biggest problems in HRM is validating testing instruments and other pre-entry requirements. • Job interview • Group interview • Assessment centers

Emerging Approaches to Recruitment and Selection (4) • Instituting worker-friendly personnel policies These include the wide use of flexible work hours; flat hierarchies that offer workers more opportunities to participate in decision-making; telecommuting; family-friendly procedures; and good working conditions • Creating more flexible job descriptions Narrow job descriptions and restrictive career ladders discourage potential employees. • Job rotations • Clear and progressive career ladder

Emerging Approaches to Recruitment and Selection (5) • Improvements to the Recruitment and Selection Process • public sector recruitment has a notorious reputation for being slow, unresponsive, bureaucratic, and passive • giving operating agencies and managers the flexibility to handle most HR decision making accelerates the speed, flexibility, and responsiveness of recruitment • Job descriptions • Public announcement of openings • Terms of appointment

Emerging Approaches to Recruitment and Selection (6) • Aggressive outreach efforts Increasingly, public agencies are using strategies that have long been exploited by business and industry. • outreach strategies at job fairs, on college campuses, in local communities • aggressive advertising in print and electronic media; distribution of marketing and recruitment material (e.g., brochures) that promote public service careers • other aggressive efforts to stay in touch with job applicants during the screening process • using outside search agencies (“headhunters”) to recruit high-profile applicants for important vacancies

Emerging Approaches to Recruitment and Selection (7) • Current employees as recruiters Due to concerns about propriety and the supposed neutrality of the civil service, public agencies have only recently involved their own employees in the search for new talent. The tactic proven to be most effective is employee referralsin which current workers are asked to recommend qualified candidates. • temporary workers • internships • mentors

Emerging Approaches to Recruitment and Selection (8) • Use of Technology • a movement from traditional HRM to virtual HRM • on-line job posting • paperless application systems • résumé database

„People are assets whose value can be enhanced through investment” David Walker

Ten Human Resources Essentials • Pay attention to employee morale • Establish and communicate clear ethics standards and hold managers and employees accountable • Implement a recruitment process that will ensure hiring the right person • Establish and communicate a solid process for managing employee performance • Before hiring a new manager, assess their skills and abilities for the job. Follow up with orientation and training

Ten Human Resources Essentials • Ensure that every new employee has been sufficiently assimilated and trained • Develop and implement diversity and multicultural organizational development • Continue employee retention programs • Ensure that the departments structure is aligned with overall organization’s goals and strategies • Stay ready to manage change

Human Resources Management in Public Administration