For Official Use GOV/PGC/PEM(2015)9 Organisation de Coopération et de Développement Économiques Organisation for Economic Co-operation and Development 31-Mar-2015 ___________________________________________________________________________________________ _____________ English - Or. English Public Governance and Territorial Development Directorate Public Governance Committee For Official Use Official For GOV/PGC/PEM(2015)9 Network on Public Employment and Management Annual Meeting of the Working Party on Public Employment and Management HRM for Public Sector Innovation 20-21 April 2015 OECD Conference Centre Paris, France This document is a draft chapter for the forthcoming OECD publication on the enablers of Public Sector Innovation – a project under the OECD’s Observatory for Public Sector Innovation. It benefits from a range of innovative HRM case studies submitted to the PEM secretariat over the summer of 2014. It is presented to the Working Party for Public Employment and Management for comments. It will be revised in light of the discussion and comments received during the PEM annual meeting on 20-21 April 2015. Written comments are welcome until 18 May 2015. Daniel Gerson (email: [email protected]; tel +33 (0) 1 45 24 81 97) English JT03373495 Complete document available on OLIS in its original format - This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of Or. English international frontiers and boundaries and to the name of any territory, city or area. GOV/PGC/PEM(2015)9 TABLE OF CONTENTS INTRODUCTION ........................................................................................................................................... 4 THE RESEARCH MODEL: HRM PRACTICES FOR INNOVATION ........................................................ 5 Ability to Innovate ....................................................................................................................................... 9 Motivation to Innovate ............................................................................................................................... 11 Opportunity to Innovate ............................................................................................................................. 15 HRM PRACTICES IN OECD COUNTRIES THAT SUPPORT INNOVATION ....................................... 17 Awards and Recognition ............................................................................................................................ 17 Learning in Networks ................................................................................................................................ 19 Mobility Programmes ................................................................................................................................ 21 Holistic and Integrated HRM Strategies .................................................................................................... 23 ANALYSIS AND DISCUSSION: MANAGING TENSIONS AND TRADEOFFS ................................... 26 Leadership and Management Tensions ...................................................................................................... 27 CONCLUSION: TOWARDS AN HRM FOR PUBLIC SECTOR INNOVATION .................................... 30 ANNEX: INNOVATION CASES ................................................................................................................ 33 Awards and Recognition: ........................................................................................................................... 33 The Australian Awards of Excellence in Public Sector Management.................................................... 33 Austria’s Ideas Management Scheme .................................................................................................... 33 Poland’s Contest for the Best Innovative Practices in Public Management ........................................... 34 Learning in Networks ................................................................................................................................ 35 Finland’s Government Change Agent Network ..................................................................................... 35 Spain’s Social and Knowledge Ecosystem ............................................................................................ 36 Belgium’s innovation learning network ................................................................................................. 36 Germany’s Junior Staff Orientation ....................................................................................................... 36 Israel’s Civil Service Cadet Program ..................................................................................................... 37 Austria’s Cross-Mentorship ................................................................................................................... 39 Austria’s Federal Academy of Public Administration ........................................................................... 39 Mobility Programmes: ............................................................................................................................... 40 Austria’s Mobility Management Programme ......................................................................................... 40 Interchange Canada ................................................................................................................................ 40 Korea’s Open Position System and Job Posting System ........................................................................ 41 Korea’s Personnel Exchange System ..................................................................................................... 41 Holistic People-Centred HRM ................................................................................................................... 41 Belgium’s New Ways of Working ......................................................................................................... 41 The German Employment Agency’s Lifecycle Approach ..................................................................... 42 Sweden’s Common Basic Values for Central Government Employees................................................. 43 Switzerland’s Career Guidance for Lawyers .......................................................................................... 44 The UK’s Movement to Work................................................................................................................ 44 Finland’s Towards Year 2020 Initiative ................................................................................................. 45 Canada’s Key Leadership Competencies Consultations ........................................................................ 46 2 GOV/PGC/PEM(2015)9 BIBLIOGRAPHY ......................................................................................................................................... 48 Figures Figure 1. HRM for innovation framework diagram ................................................................................ 5 Figure 2. Towards a model for HRM for Innovation? .......................................................................... 32 Boxes Box 1. High Performance Work Systems .................................................................................................... 7 Box 2. Ability to Innovation: How HRM can impact ................................................................................ 10 Box 3. Employee Engagement and Performance ....................................................................................... 12 Box 4. Amabile's Componential Theory of Creativity .............................................................................. 13 Box 5. Motivation to Innovate: How HRM can Impact ............................................................................ 15 Box 6. Opportunity to Innovate: How HRM can Impact ........................................................................... 16 Box 7. Organisational and job characteristics: framework for future analysis .......................................... 30 3 GOV/PGC/PEM(2015)9 INTRODUCTION 1. People are at the core of public sector innovation. Ideas for new services and business activities are sparked in the minds of civil servants, political leaders, service users and members of the broader community, and are developed and brought to scale through the dedication of many various professionals and stakeholders at different stages of the process. Civil servants and public employees are central at every stage, and therefore the management of government employees can be a fundamental enabler to build organisational capacity to innovate. 2. The OECD’s definition of public sector innovation positions the workforce as central not only to implementing reforms, but to bringing forward innovative ideas and working them through every stage of the process. Research on public sector innovations suggests innovative ideas are often initiated by middle managers or frontline staff (Borins, 2014), leading some experts to reflect that, “Increasingly, innovation is as much a ‘bottom-up’ and ‘sideways-in’ process as a ‘top-down’ process” (Hartley, 2006). 3. Eurofound (2012) suggests that employee-driven innovation “depends strongly on employees contributing their knowledge, expertise, creativity and commitment to the process”. The management challenge is to