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Integrating People Management Into Public Service Reform

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Integrating People Management Into Public Service Reform INTEGRATING PEOPLE MANAGEMENT INTO PUBLIC SERVICE REFORM ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960, and which came into force on 30th September 1961, the Organisation for Economic Co-operation and Development (OECD) shall promote policies designed: - to achieve the highest sustainable economic growth and employment and a rising standard of living in Member countries, while maintaining financial stability, and thus to contribute to the development of the world economy; - to contribute to sound economic expansion in Member as well as non-member countries in the process of economic development; and - to contribute to the expansion of world trade on a multilateral, non-discriminatory basis in accordance with international obligations. The original Member countries of the OECD are Austria, Belgium, Canada, Denmark, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Swjtzerland, Turkey, the United Kingdom and the United States. The following countries became Members subsequently through accession at the dates indicated hereafter: Japan (28th April 1964), Finland (28th January 1969), Australia (7th June 1971), New Zealand (29th May 1973), Mexico (18th May 1994), the Czech Republic (21st December 1995) and Hungary (7th May 1996). The Commission of the European Communities takes part in the work of the OECD (Article 13 of the OECD Convention). PubliB en franpis sous le titre : GESTION DU CAPITAL HUMAIN ET RfiFORME DE LA FONCTION PUBLIQUE 0 OCDE 1996 Applications for permission to reproduce or translate all or part of this publication should be made to: Head of Publications Service, OECD M. le Chef du Service des Publications, OCDE 2, rue Andre-Pascal, 75775 PARIS CEDEX 16, France. FOREWORD This report presents the results of a study of human resource management (HRM) reforms in the public service in OECD countries, undertaken between 1993 and 1995. The study was carried out under the direction and guidance of the Public Management Committee. The aim was to produce a concise analysis of trends and strategies in public service HRM over the past decade in OECD countries, to provide some assessment of reforms and to draw policy conclusions that may be of assistance in guiding further reform efforts. The report deaIs with HRM reforms in the national public service, focusing on the ministries and agencies responsible for carrying out the policies of central government. The analysis is based on a comprehensive survey sent to central management agencies responsible for public service HRM in all OECD countries, and on detailed case studies undertaken in eight countries. The study was prepared by Maria Maguire and Christine Lidbury of the OECD’s Public Management Service. The authors would like to thank the OECD countries that participated in this study, the individuals who authored the country case studies and others who contributed to the development of the report. The views expressed are those of the authors and do not commit or necessarily reflect those of national authorities in the countries concerned. The report is published on the responsibility of Ihe Secretary-General of the OECD. 3 TABLE OF CONTENTS FOREWORD ............................................................................................................................. 3 CONTRIBUTORS ..................................................................................................................... 7 SUMMARY OF KEY FINDINGS ............................................................................................. 9 Context of Public Sector Human Resource Management Reforms .......................................... 9 Major Human Resource Management Reform Trends ............................................................. 9 Summary Assessment of Country Experiences ...................................................................... 10 Chapter I WHY REFORM HUMAN RESOURCE MANAGEMENT? ................................... 13 The Study .............................................................................................................................. 13 Factors driving reforms .......................................................................................................... 14 Chapter 2 HUMAN RESOURCE MANAGEMENT REFORM TRENDS ............................... 17 General Observations............................................................................................................. 17 Decentralisation and Devolution of Human Resource Management ....................................... 19 Pay and Classification Systems.,............................................................................................ 20 Staffing Practices ................................................................................................................... 21 Ethics and Codes of Conduct .................................................................................................. 21 Other Reform Priorities ......................................................................................................... 21 Progress of Human Resource Management Reforms .............................................................. 22 Chapter 3 ASSESSMENT OF COUNTRY EXPERIENCES: REFORM STRATEGIES AND IMPACTS ......................................................... 23 General Observations............................................................................................................. 23 Downsizing ........................................................................................................................... 25 Decentralisation and Devolution ............................................................................................ 26 Devolution and the Position of Line Managers ...................................................................... 28 Key Role for Training and Development ............................................................................... 30 Rule of the Centre in a Decentralised Environment ................................................................ 30 Decentralisation and a Unified Public Service........................................................................ 31 Need for Comprehensive Reform Strategies........................................................................... 32 Core Business Planning and Human Resources Management................................................. 34 Performance Management ..................................................................................................... 35 Evaluation ............................................................................................................................. 36 Balancing Competing Reform Pressures ................................................................................ 37 The Need to Push Human Resource Management Reforms Further ........................................ 38 5 Chapter 4 POLICY RECOMMENDATIONS .......................................................................... 39 A . Develop a strategic approach to managing people ............................................................ 39 B . Articulate and promote key human resource management principles and values ...............40 C . Ensure performance oriented management that links individual staff performance with organisational goals ............................................................................. 40 D . Raise the profile of training and development as a key element of strategic human resource management ............................................................................. 41 E. Ensure conditions of employment and working arrangements support the staffing needs of the public service ....................................... :..................................... 41 F . Invest in monitoring and evaluation of human resource management practiccs or programme of reforms ................................................................................................. 41 NOTES ..................................................................................................................................... 42 GLOSSARY OF TERMS .......................................................................................................... 44 Annex I HRM DEVELOPMENTS (SURVEY RESPONSES) ............................................... 47 Annex 2 MAIN HUMAN RESOURCE MANAGEMENT REFORMS 1980-1994................. 53 Annex 3 SUMMARY TABLE ON HUMAN RESOURCE MANAGEMENT REFORMS IN THE PUBLIC SERVICE ................................................................... 67 Annex 4 COUNTRY CASE STUDIES ................................................................................... 95 6 CONTRIBUTORS Jams Adams is a management consultant and communications specialist based in Spain. He has consulted and published internationally on a variety of public policy issues. Otto Brodtrick is the President and founder of the Centre for Public Management in Canada. He has worked with public sector organisations since 1948, including a distinguished career in the Canadian public service spanning 35 years. He has consulted, written and lectured widely on public management. Christine Lidbury is an Administrator in the’ OECD’s Public Management Service, where she is responsible for work on human resource management policies and practices in the public
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