This presentation by Inchul Shin of the OECD, was made at the Public Employment and Management Expert meeting on "Senior Civil Service: Performance, Accountability and Organisational Success" on 27 November 2015. For further information, please see http://www.oecd.org/gov/pem/.

1. Performance Management System
for Civil Servants in Korea
Nov. 2015
Ministry of Personnel Management

2. CONTENTS
Introduction1
2
Evaluation System3
4
5
Korean Performance Management Process
Current Issues
Performance–Related Pay

3. 2
1. Introduction
Total number
1,008,929
Total number
1,008,929
Local officials
362,023
National officials
622,108
Judicial
17,729
Judicial
17,729
Constitutional
Court
284
Legislative
3,993
Executive
984,131
National Election
Commission
2,792
National Election
Commission
2,792
* as of December 31, 2014

4. 3
1. Introduction
Grades 6-9
(General Staff)
Grades 1-3
(Deputy Minister,
Director-General)
Minister &
Vice Minister
Grades 3-4
(Division Director)
Grade 5
(Deputy Director)
Senior Civil Service

5. 4
1. Introduction
1940~
State Public Officials Act (’49)
Presidential decree on Public Official’s Remuneration(’49)
1960~
1999~
Presidential decree on Public Official’s Allowance(’62)
Regulations on Ratings for civil servants(’61)
Senior Civil Service(’06.7)
Regulations on Work Performance Appraisal(’05)
Performance related payment system(’99)

6. 5
2. Korean Performance Management Process
2. Implementation
1. Performance
Planning
직원
4. Feedback
• To set up goal, indicator, criteria
• To know method, capacity,
behavior for performance
• Periodic performance record
• Performance interview
• Motivation
• Problem solving
• Goal modification
• Giving development
opportunities
• Goal attainment
• Exchange of opinions
• Data collection
• Interview preparation
Supervisor staff
3. Performance
Evaluation
• To coach on strength, weakness, potential
• To decide appraisal grade
• Promotion
• Performance-related
pay

7. 6
2. Korean Performance Management Process
 A consent between an appraiser & the person to be appraised
 The plan regarding performance goal & indicator, the use of
appraisal result
 At the beginning of the year
• Desirable status that each individual's
work should reachGoals
Indicator
• Criterion for measuring whether or not
the performance goal is attained
Desirable conditions
of Goals
Desirable conditions
of Indicator
『SMART』 Principle
Specific, Measurable, Attainable, Result-oriented, Time-based
Recommend indicators on the outcome
 Linkage of group and individuals’ goal
 Ease of final effect understanding
 Concreteness of understanding to anyone easily

8. 7
2. Korean Performance Management Process
Objectives
ContentsPeriod
• Achievement
• Something to be desired
• Reasons of decision
- An appraiser conducts frequent
examinations on the work progress of
the person to be appraised.
• Every quarter
 Basically, record management is appraiser’s responsibility
 But, staff also needs to manage the record of his work process and result
 To record & check the goal achievement degree & process
 To coach on unsatisfactory aspects & resolve difficulties
 To make an objective & fair evaluation in reference to the records

9. 2. Korean Performance Management Process
Achievement Appraiser’s reviewGoal
Periodic Performance Record
Duties and responsibilities of office
Check on the goal achievement process (quarterly)
Quarter

10. 9
2. Korean Performance Management Process
Concept
• To exchange opinions between an appraiser & staff
regarding goal setting, progress & evaluation result
Need • To secure fairness in appraisal process
Time
• At the beginning of the year  Planning interview
• In progress  Mid-term review
• Before the final appraisal  Final interview
* Distribute various materials(video, brochure) to individual appraiser

11. 10
2. Korean Performance Management Process
G5 & BelowSCS, G4 & Above
Signing of Performance Agreement
Focus on Strategic Planning
Performance Pay accumulated
afterward
Setting Performance Objectives
Regularly manage performance record
One shot bonus
 Promotion  Performance-related pay
 Personnel management
Use of Performance evaluation result
- reassignment, training, low performer management

12. 11
3. Evaluation System
Period
Appraisal
standard
Method
1) Strategic Planning
2) Signing of performance agreement
3) Interim check
4) Final evaluation
1.1 ~ 12.31
Achievement degree
Division evaluation result
Job ability
Grade 1(excellent,20%), 2, 3, 4, 5(10%, along with 4)

13. 12
3. Evaluation System
Period
Twice a year (July, January)
Appraisal
standard
Method
1) Set Performance Objectives
2) Regularly manage performance record
3) Conduct performance interview and evaluation
1st : 1.1 ~ 6.30 / 2nd : 7.1 ~ 12.31
Work performance
Job ability
Selective item : Attitude, Division evaluation result

14. 4. Performance Related Pay
Annual
salary
system
Grade 4~9
職責給
Job based
yearly stipend
Fixed yearly stipend
Director level or higher,
Contractual service
Performance based
yearly stipend
Seniority-based Payment +
Performance bonus
Political Service
Senior Civil Service

15. 14
4. Performance Related Pay
Performance based yearly stipend according to relative
evaluation result
Annual salary Allowance
+
+Base
Annual Salary
Performance-Related
Annual Salary
Family support, meal,
unused leave compensation, etc.
1) Pay structure
2) Adjustment method of Annual Salary : Accumulated system
(1st year) (2nd year) (3rd year)
Performance-Related
Annual Salary (B)
Base Annual Salary(A)
Base Annual Salary
(A) + (B)*α
Performance-Related
Annual Salary (C)
Base Annual Salary(A)

16. 15
4. Performance Related Pay
< General Service >
(ex) Grade 5 : $ 3,289
Grade 7 : $ 2,404
Grade 9 : $ 1,698
< Teacher >
(ex) Teacher : $ 2,846
Vice principal : $ 3,223
Principal : $ 3,708
1) One shot bonus
2) Standard base salary
3) Performance bonus = Standard base salary  Bonus rate
(unit : USD, 1$=1,060 ₩)
Performance grade S A B C
Quota for grade 20% 40% 30% 10%
Bonus rate 172.5% 125% 85% 0%

17. 5. Current Issues
Capability and Performance-oriented
Personnel Management
Plan
(02.Oct.2015)
1
2
3
Strengthening Feedback
for Performance evaluation
Enhancing SCS’s
Accountability
Building Infrastructure
for Performance Management

18. 17
5. Current Issues
Lowest
Grade
Evaluation
• MPM provide a guideline for ministries
• Policy failure(e.g. Budget waste, social disarray)
• Attitude(e.g. passivity), Capacity, Corruption
Dismissal
from
Positions
• In case SCS’s performance is graded 4(low)-5(lowest)
• In case of issues in Capacity or Attitude, regardless
of result of performance evaluation
• MPM develop “Leniency Index” and publish the result
of each ministry.
Performance
Education
• Provide special education programme for low
performers

19. 18
5. Current Issues
< Diagnosis : 3 weeks >
(Scope) Leadership, Capability, Speciality, Attitude
(Process) In-depth interview(multi-dimensional), Psychological diagnosis
1) Target : Poor performers recommended by Ministries
2) Structure : 12 weeks, by COTI(MPM), Private Institutions, and Ministries
3) Application : Return, Transfer, or Dismissal(after due process)
< Education : 8 weeks >
(Stage 1) Attitude Change : Mentoring, Self-reflection programme
(Stage 2) Capacity rebuilding : Special programme on Leadership/Capability
(Stage 3) Reinforcing Speciality : OJT, Meetings with stakeholders, Self-research
< Evaluation : 1 week >
(Evaluation Board) Senior officer from Ministry/MPM, Programme manager,
Coach/Counsellor, and other experts
(Standard) A synthetic evaluation for all related procedures and results

20. 19
5. Current Issues
for
High-performers
• Introduce Fast-track until G5
* Special Promotion of two levels (e.g. G7  G5)
• Give Special bonus for top 2%
* S+ 9201 > S 6,134 > A 4,445 > B 3,023 > C 0 (KW)
for
Poor-performers
• Limit Annual salary increase for 6 months
* for the lowest graders
• Provide Capacity Building Programmes
• Increase Competency of Appraisers
* mandatory education on performance appraisal for director-to-be.
• Intensify Communication between Appraisers and Staffs
* Keep periodic performance record, utilize them on incentives/penalties

21. 20
Inchul.SHIN@oecd.org
Thank you