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Managing Expertise In Labour Offices


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Presentation on 28 April, 2009
University Vaasa

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Managing Expertise In Labour Offices

  1. 1. Managing Expertise in Public Employment Agencies From „Authority“ to „Service“ 28.04.2009 HALL2013 Expertise in Governance 1
  2. 2. Why? • Knowledge-intensive • Changing • Complex, hybrid organizations (think tank/web-service provider/consultant/trainer/ government agency/fund/statistics provider etc.) • Mr. Lumio is busy 28.04.2009 HALL2013 Expertise in Governance 2
  3. 3. Introduction • 4 Cases of Public Employment Administration (PEA): Austria, Lithuania, France, Germany – Shared histories? The emergence of KM & NPM • PEA: match candidates with job openings, disburse unemployment pay • Hypothesis: – Institutions as Mirrors – Ideology shaping Organizations 28.04.2009 HALL2013 Expertise in Governance 3
  4. 4. A pointed remark • Formerly: – Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment.” (Art. 23, The Universal Declaration of Human Rights, • Today: – Everyone has the right to improve one’s employability and to make use of job placement services 28.04.2009 HALL2013 Expertise in Governance 4
  5. 5. The issue behind: • Who is responsible for unemployment? – The unemployed? (supply-sided) • consulting, training, placement, employability, etc. – Or the „economy“? (demand-sided) • Business cycle stimulus, investment, anti- discrimination, etc. • Change of name plates: „Service“ vs. „Office“ – non-binding character, abdicating responsibility? 28.04.2009 HALL2013 Expertise in Governance 5
  6. 6. CASE I.: The Public Employment Service Austria (AMS) • Nokia again: „Wir verbinden Mensch und Arbeit“ („We connect people and work“) • An „HR service provider“ • Citizens = customers • Supporting the „own initiative“ of both job- seekers and enterprises • Core tasks: consultancy, information, qualification, financial assistance 28.04.2009 HALL2013 Expertise in Governance 6
  7. 7. AMS - The Organization • Enterprise (NPO) under public law in close cooperation with labour and employers’ organisations (“Sozialpartnerschaft” – Neo- Corporatism: corporate governance influenced by representatives of industry, trade unions, chambers of commerce & labour) • Commissioned by the Federal Ministry of Economic Affairs and Labour 28.04.2009 HALL2013 Expertise in Governance 7
  8. 8. AMS - The Organization • 1 federal, 9 regional and 99 local organisations • Staff: 4.853 (valid as of Annual Report 2007) • Training an average of 50.000 unemployed/month 28.04.2009 HALL2013 Expertise in Governance 8
  9. 9. AMS History • 1994: Labour market reform -> Public Employment Service Act 1994: Spin-off of Market Administration Authority (“Arbeitsmarktverwaltung”), a ministerial department -> outsourcing trend “The transition from a mere employment office to the Public Employment Service as a comprehensive service provider is marked by the introduction of new management strategies (management by objectives, managerial accounting, launch of a corporate identity project). The AMS also plays a crucial role in establishing the pan-European job portal EURES.” 28.04.2009 HALL2013 Expertise in Governance 9
  10. 10. AMS History • 1995: European partner institutions • 1996: management by objectives, service- oriented concept for staff and clients • 1997: IT revolution; „All workstations of the AMS are equipped with internet access, and the new electronic job bank eJob-Room allows for interactive job matching.” New training modules for AMS employees 28.04.2009 HALL2013 Expertise in Governance 10
  11. 11. AMS History • 1998: Expansion of IT systems – eJob-Room Austria’s biggest online employment marketplace, among the top ten of the Austria’s most visited websites – Data Warehouse project launched – More service (health insurance coverage for the unemployed) without additional staff • face-to-face counselling, one-stop-shops, call centres • Reorganisation of regional branch offices into three “Zones” (Info Zone, Service Zone and Counselling Zone) 28.04.2009 HALL2013 Expertise in Governance 11
  12. 12. AMS History • 2000 Best practice orientation • 2001 Information campaigns and career advice, video clips, gender mainstreaming • 2002 e-government service section enlarged • 2003 networking activities with companies, restructuring of website • 2007 International Benchmark Project, comparing the results of 13 Public Employment Services in Europe SOURCE: 28.04.2009 HALL2013 Expertise in Governance 12
  13. 13. Knowledge Management through „Business Intelligence“ • What is Business Intelligence (BI)? “Business intelligence (BI)refers to skills, technologies, applications and practices used to help a business acquire a better understanding of its commercial context. Business intelligence may also refer to the collected information itself. BI applications provide historical, current, and predictive views of business operations. Common functions of business intelligence applications are reporting, analytics, data mining, business performance management, benchmarks, text mining, and predictive analytics. Business intelligence often aims to support better business decision- making.” (Source: Wikipedia) 28.04.2009 HALL2013 Expertise in Governance 13
  14. 14. BI = Decision Support System • analyzing data and making decisions • Monitor DM (Management by Objectives) & Reporting • span different areas with large amounts of related operational data • (aggregated) data in a historical perspective – A form of disclosing tacit knowledge • Customer Relationship Management • Cost & Time Efficiency (Resource Optimization) • Formerly: Not in Public NPOs, but e. g. K-Market (customer DB, profiling, data mining), also SAP 28.04.2009 HALL2013 Expertise in Governance 14
  15. 15. BI in the AMS • Internet & Call Center • Data Warehousing (Siemens Ap) At present, approx. 1,000 users (all over Austria) – Labout Market Policy-controlling – Budget-controlling (labour market subsidies) – Employers Database – Labour Market Database Research Tool, own Research Plattform! • Answers to questions like : – Which AMS-office fills vacancies in optimal time? – How is the expenditure (of money) with respect to certain subsidies in detail? – Which employers are our best customers? SOURCE: 28.04.2009 HALL2013 Expertise in Governance 15
  16. 16. Broader Trend • The importance of corporatisations and government agencies: Of the 300,000 civil servants in the early 1990s, about 40 % now work for incorporated organisations. From 2000 to 2003, federal employment decreased from 167,000 to around 152,000, with a further 25,000 jobs being cut after that period. • Expectations: – More efficiency and less cost in the provision of public services: – Noticeable relieves to the federal budgets – Reduction in the number of state employees – Meeting the Maastricht criteria (public deficits and debt) – In other words: LESS COSTS 28.04.2009 HALL2013 Expertise in Governance 16
  17. 17. AMS 1 of many hived off agencies • Cultural institutions • Zoo of Schönbrunn (Schönbrunner Tiergarten GmbH) • Schönbrunn Castle (Schönbrunner Schloss) • Spanish horse-riding school • Federal theaters (Bundestheater) • Museums • Services of general commercial/ economic interest • Austrian railways (ÖBB) (1993) • Post and telecommunications (PTT Post und Telekom AG) (1996) • State press • Banking co-operation • River maintenance • Support and auxiliary • Part of the federal real estate management (Bundesimmobilienverwaltung) • Federal debt management (Österreichische Bundesfinanzierungs Agentur) • Federal Computer Centre (Bundesrechenzentrum) • Other services • Unemployment service (Arbeitsmarktservice) (1994) • Environment investigation (Umweltbundesamt) • Mint • Statistics Austria (Österreichisches Statistisches Zentralamt) • Institute for Testing and Research 28.04.2009 HALL2013 Expertise in Governance 17
  18. 18. What does the Federal Accunting Agency say? Hiving off has brought: • More flexible management of budgets • Faster decision taking • Faster modernisation • More cost and service transparency • More flexible personnel policy BUT • Limited parliamentary control • Deficits of spin-offs are not shown in the federal balance of accounts • No relief on budgets • Higher personnel and administrative costs • Continuing influence of the state 28.04.2009 HALL2013 Expertise in Governance 18
  19. 19. With regard to AMS: Media: • Benchmarking Criticism: „hiding“ the unemployed in training schemes Rechnungshof: • Overstaffed • Departmentalisation/weak communication • Weak leadership in middle management • Partial non-fulfillment of placement tasks • Handling of personal data 28.04.2009 HALL2013 Expertise in Governance 19
  20. 20. Lithuania 28.04.2009 HALL2013 Expertise in Governance 20
  21. 21. Knowledge management in Lithuanian Labour Exchange • EU pressure to improve public services; • Using IT technologies in the organization: new information system; labour supply and job search systems using modern IT solutions; new applications of IT provided by EU, Swedish National Labour Market Board; regular training of staff; • Problem: stock of well-qualified staff.
  22. 22. France 28.04.2009 HALL2013 Expertise in Governance 22
  23. 23. How do French authorities run the fight against the unemployment?
  24. 24. Lack of efficiency • The ANPE (national agency for employment) is not very effective Thus most people find their jobs by people they know, fee-paying agencies or internal promotions French government does not apply the model of flexicurity ,because their idea is unemployment is due economic circumstances, so help to companies to boost the economy is emphasized
  25. 25. • However, stress is put more and more on training scheme (how do youngsters coming out from public school and not fee-paying can be recognized by companies and find a job appropriate to their skills? How to increase efficiency of workers and so minimize number of employees?) Consequently the French scheme tends to be managed more and more in the way private companies run their organisation
  26. 26. • Welfare state, priority to well being of citizens, high purchasing power are still officially the aim but actually the aim is to reduce debts and public spendings • For example currently a lot of demostrations in France because of industrial layoffs without benefits for the workers, not enough measures to protect workers from relocations of their employers To the contrary, financial help is granted to car builders, to avoid bankruptcy and thus even more layoffs though high tax rates
  27. 27. • France missed the step of new public management and have started only for a decade (with right wing government) to do more with less • French labour market is highly dualist (see Doeringer and Piore 1971)that is there are two sectors, one weak, with temporary contracts, unskilled jobs; the other is stronger
  28. 28. • France knows an increasing unemployment rate (between 9 and 10%), many factors can explain it but experts of public powers are criticised for their passivities • Nevertheless new measures but not such big change in labour market
  29. 29. • Policy in favour of seniors • No charges scheme • Services to people • Employment pole • New contracts • new convention on unemployment insurance • bonus for temporary contracts • new indexes to measure crisis • surveys to compamies’owners about the no taxes measure …
  30. 30. references • • • •
  31. 31. Germany 28.04.2009 HALL2013 Expertise in Governance 31
  32. 32. Expertise in Public Sector  Managing Services in Public Administration Andre – Germany Lukas – Austria Pauline – France Elena - Lithuania
  33. 33. Knowledge management in Lithuanian Labour Exchange EU pressure to improve public services Using IT technologies in the organization: • new information system • labour supply and job search systems using modern IT solutions • new applications of IT provided by EU • Swedish National Labour Market Board • regular staff training Problem: stock of well-qualified staff.
  34. 34. Knowledge management in France Labour Exchange  ANP (National Agency for Employment)  Problems: lack of effectiveness  - most people find a job by people they know, chargeable private job exchanges or internal promotions  - no application of flexicurity model (flexibility and security on the labour market) →greater emphasis on private companies to help them boosting their activity in order to employ more people  KM? → stress is put more and more on:  - training for youngsters; retraining for eldery unnemployed; staff training  - use of modern IT-technologies to link people and jobs together  - new more significant labour market indices  - more exhaustive labour market research
  35. 35. NPM and KM  NPM  KM  Professional Management  People and Information  Performance Management  Output Control  Links People, Systems and  Disaggregation Information  Competition  Maximum Benefit  Private Sector Styles  Multi-disciplinary  Discipline and Parsimony
  36. 36. Federal Employment Office  Head Office in Nuremberg  About 100.000 employees  75% in administration  The largest government agency  Financed mainly through social security contributions  Chairman: F.J.Weise, first chairman who comes from business world and not politics  quot;I can improve the organization's effectiveness and efficiency, but I am not a consultant for the labour market policy in Berlin.quot;
  37. 37. Principal duties of the FEO employment service employment and career consultancy labour market monitoring and research employment research payment of unemployment benefits a.o. employment promotion vocational training
  38. 38. Challenges and Objectives Challenges  Objectives  Strong increase of  More flexibility on the unemployment rate labour market  - the elderly  Suppression of illegal  - East Germans employment  - permanently  Reduction of unemployed unemployment  Strain on the state budget  Reduction of social security costs  Increased efficiency→  400.000 jobs
  39. 39. Four Levels of NPM (Pollitt)  1. Discourse  2. Decisions  3. Practices  4. Results
  40. 40. Pollitt  Paradox: „To be successful NPM needs its „enemy – the traditional bureaucracy““
  41. 41. Hartz Commission (2002)  Hartz Commission → „Modern Services on the Labor Market“  Recommendations for internal and external (by law) reforms  The external reforms were then put into practice  as Hartz I- IV (2003-2005)  quot;The greatest labour market reform since the founding of the Federal Republicquot; (Schröder)  Motto: -more personal responsibility  New Emphasis: -finding jobs for the unemployed rather than managing unemployment
  42. 42. Internal Reform Projects  With the aid of McKinsey  better customer focus by eliminating the distinction between benefit and employment services (service from a single source)  acceleration of benefit payments through dezentralization  Efficiency increase through: Flattening of internal hierarchies Outsourcing/aggregation of individual departments Introduction of cost-performance accounting Modernization of IT infrastructure
  43. 43. Internal Reforms  Reduction of redundant data resources by centralizing data storage  Abolition of inconsequent vocational retraining  Introduction of quot;virtual job market“ -simplified access to job applicants for employers and and to job opportunities for job-seekers -better integration of private job exchanges -improving service quality through introduction of a customer-response management
  44. 44. Reforms By Law Hartz I-IV  Renaming of the FEO in Federal Employment Agency  Renaming of the departments in headquarters, regional job centers and agencies  Labor market release through support of private employment agencies and tightening of conditions under which unemployment benefits are paid  „Me-plc“  Temporary work  1-Euro-Jobs  Mini-Jobs  Job Floater
  45. 45. Reforms By Law Hartz I-IV   Governmental sanctions  Reduction of benefits  „Bedarfsgemeinschaften“  Case management
  46. 46. Case Management KM  Individual Level  Institutional level  Consultation  Proper analysis of demand  Planning and supply on the labour  Intervention market  Monitoring  Labour market analysis  Evaluation  Supplementation of services available  Development of collaborative networks
  47. 47. Bad Results • The ambition to halve unemployment within three years was unrealistic • Protests/demonstration by unemployed organized by trade unions, charities • Radicalization of population (benefits for right and left wing parties) • Lack of attractiveness of the mini-jobs for the unemployed • Splitting of regular job positions into several mini-jobs (are not subject to social insurance contribution) • Less unemployed but lower purchasing power due to the mini-jobs • No improvement for permanently unemployed (update survey)
  48. 48. Bad Results • Increased social security costs due to unclear legislation and abuse of social benefits • Me-first mentality • More injustice in the society • Fast-track training for the staff • The authorities issued false or contradictory official notifications (bug) • Flat rates are driving many people into courtrooms/individual justice • Largest process flood in German history • Hudreds of amendments in the law until 2007
  49. 49. Good Results • Positive signals for the Elderly and East Germans (update survey) • Me-plc was successful • Plaudit by economists „right steps“ → Employer-related foundations: quot;Social is what creates jobs“ • Decline in short-term unemployment until May 2006
  50. 50. Your free copy of this slideshow is here: (slide) THANK YOU! QUESTIONS? 28.04.2009 HALL2013 Expertise in Governance 50