Human resource management

1. Human Resource Management Chart Collection for the Course PM-M3 condensed version for the Coaching Exercises in New Delhi Prof Dr. Christoph Reichard Prof. Dr. John Siegel Prof. Dr. Dieter Wagner BPA-Program PCPM Project Strengthening Public Administration Education in Afghanistan 2014

2. Content 1. Key terms, concepts and functions of HRM 2. Personnel in the public sector 3. The public personnel system of Afghanistan 4. Concepts and tools of manpower planning, selection and recruitment of staff, job placement 5. Qualification of personnel 6. HR development, staff promotion 7. Motivation and leadership 8. Performance appraisal and compensation 9. Integrity management, ethical issues, codes of conduct, anti- corruption measures 10. Personnel administration, organisation and integration of the HRM-function Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 2

3. Course Objectives • Knowing the relevant functions of HRM • Explaining specifics of public personnel • Describing particularities of HRM in Afghan government/PA • Knowing and applying some basic tools of public HRM • Understanding the relevance and concepts of leadership and motivation Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 3

4. Basic literature Daly, John (2011): Human Resource Management in the Public Sector: Policies and Practices. New York: M.E. Sharpe Condrey, Strephen (Ed) (2010): Handbook of Human Resource Management in Government. 3rd ed. San Francisco: John Wiley and Sons. Valcik, Nicolas A., Teodoro J. Benavides (2011): Practical Human Resources for Public Managers: A Case Study Approach. CRC-Press. Hays, Steven, Richard C. Kearney, Jerrell D. Coggburn (2009): Public Human Resource Management: Problems and Prospects. 5th Ed. Prentice Hall. van Wart, Montgomery (2011): Dynamics of leadership in public service: Theory and practice. 2nd Ed. New York: M.E. Sharpe. Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 4

5. 1. Key terms, concepts and functions of HRM Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 5

6. Overview Chapter 1 • Key terms and definitions • Functions of HRM • HR activities in context • Challenges of public HRM Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 6

7. Definitions • Personnel: total of employees of an organisation • Personnel administration: maintaining and supporting staff from recruitment to retirement (more technical, clerical and operative functions) • Personnel management: planning, coordinating, controlling the human resources • Human resources: emphasizes the specific value of staff as an important resource besides physical and financial resources Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 7

8. Functions of human resource management • Manpower planning • Selection and recruitment • Education and training • Job positioning, working conditions • Performance appraisal, compensation, social benefits • Motivation and leadership • Personnel development and promotion • Integrity management, anti-corruption measures • Personnel administration (staff files, controlling) Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 8

9. HR Management ActivitiesGLOBAL CULTURAL/GEOGRAPHIC TECHNOLOGICAL SOCIAL Size External Environment Internal Environment HR Planning • HR Planning • HR Information and Assessment Systems Equal Employment Opportunity • Compliance • Diversity Staffing • Job Analysis • Recruitment • Selection HR Development • Training • Career Planning • Performance Mgmt. Compensation and Benefits • Administration • Incentives • Benefits Health, Safety and Security • Health & Wellness • Safety & Security Labor Relations • HR Policies • HR Rights and Privacy • Union/Mgmt. Relations HR Activities Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 9

10. Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner Key Challenges for public HRM Performance Assessment and Rewards Motivation Strategic HRM Management Development and Leadership Recruiting and Attractiveness Personnel and Pension Costs Downsizing Flexibility Changing Values PM-M3: Human Resource Management 10 Key challenges for Afghan government?

11. 2. Personnel in the public sector Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 11

12. Overview Chapter 2 • Key terms civil service • Civil service and the model of buraucracy • Civil service system: career vs position system • Employment trends Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 12

13. Public personnel: key terms • Civil service: body of employees in any government agency; legislative, judicial and military branches are excluded • “Public service”= almost identical term, sometimes only for those public employees not in the core government (or “blue collar”) • civil servant: person employed for a government department or agency (or more narrow: government servant with special privileges and duties) Civil service systems are based on general principles, e.g.: • merit: Hiring based on professional competence and ability • (political) neutrality • political accountability • adherence to legal norms • integrity, conduct, and concern for the public interest Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 13

14. Criteria of traditional bureaucracy (Max Weber) Main components Component items 1) Legal status 2) Career structure 3) Recruitment 4) Salary system 5) Tenure system public law status existence of career structure career development centrally regulated entrance from the bottom promotions to other positions at mid-career or top-level not possible special recruitment requirements recruitment centrally regulated private sector experience not relevant basic salary regulated by law wage system based on seniority wage system not based on performance lifetime tenure (high job security) termination rather difficult job security differs from private sector (Demmke 2012) Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 14

15. Civil service systems A. Focus at career development: • Career system: each civil servant starts at the bottom of a career level after competitive entry exams and continuously “climbs up” the career ladder • Position system: civil servants are recruited to work in a specific job position; career development is less or not relevant B. Employment status: • Statutory employment: recruitment based on legal act • Contractual employment Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 15

16. Position-based systems Career-based systems Statutory Contractual Traditional core functions in government Services and other production functions (Knut Rexed, 2007) Career vs position system and employment variants Civil servants Public Employees In various countries: employment of “civil servants” with specific privileges (e.g. pension, life-long tenure and specific duties (e.g. neutrality, loyalty, no right to strike) and of “public employees” (similar to private sector conditions)

17. Public Employment Trends: Size, Structure, Status, Working Conditions, Composition • Composition• Status, Working Conditions • Size• Structure From unified to fragmented, decentralisation of HR, different categories of staff, shared services, outsourcing etc. Leaner, smaller; shortages in some sectors Diversity (feminin, age, ethnic comp., disabled..) "Hollowing out" of status but different categories of staff (Demmke 2012)Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 17

18. 3. The public personnel system of Afghanistan Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 18 Need for improvement!!

19. Overview Chapter 3 • Total employment figures of civil service in Afghanistan • Career system and grades in Afghanistan • Educational requirements of civil service careers • ??? Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 19

20. Public Employment in Afghanistan Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 20

21. Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 21 Public Employment in Afghanistan

22. Grade Composition Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 22

23. Education level of staff: PA and private sector Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 23

24. Gender distribution Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 24

25. 4. Concepts and tools of manpower planning, selection and recruitment of staff, job placement Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 25

26. Overview Chapter 4 • Basics of manpower planning • Manpower planning process • Recruitment basics • Internal vs external recruitment • Selection methods Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 26

27. Manpower planning Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 27 Two basic issues of manpower planning: • Future job requirements: how many positions are needed in future? • Future requirements because of leaving staff: how many employees are needed to replace leaving staff, e.g. because of retirement etc? Job requirements Task development Financial situation Organisation, ICT developments Working time, Working conditions Influence factors on future job requirements:

28. Chart 28 HR Supply and HR Selection within the HR Planning System COMPARISON NET HR Supply Negative BalancePositive Balance • Quality • Quantity • Time • Quality • Quantity • Time GROSS HR Supply NET HR Stock (Need for) HR Release (Need for) HR Supply externally externallyinternally HR RecruitmentHR DevelopmentHR Layoffs + - Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management

29. Recruitment • Recruitment: advertising job openings and encouraging candidates for applying • Recruitment  P.R. function: convincing sufficient number of candidates to apply • External and internal recruitment (from regular labor market or from the government system) • Issue of equal employment opportunities (diversity etc) • Danger of nepotism Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 29

30. Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner Attractiveness of PA-jobs • Working in the public sector is still considered to be attractive, especially for people seeking for job security or family-friendliness and altruists. Furthermore, some jobs are only available in the public sector. • On the other hand, the public sector is not sufficiently attractive for – ‚high potentials‘ with outstanding qualification and performance – innovators – candidates who expect high salaries – people looking for flexibility. • Consequently, there is a selection bias that supports stability but not innovation and institutional responsiveness. • There are (and will be even more) severe problems in recruiting qualified candidates for positions where the job market is highly competitive (such as IT experts, natural scientists). PM-M3: Human Resource Management 30 How is situation in Afghan PA?

31. Chart 31 Advantages and Disadvantages of Internal and External Recruiting Sources Advantages Disadvantages • Morale of promotee • Better assessment of abilities • Lower cost for some jobs • Motivator for good performance • Causes a succession of promotions • Have to hire only at entry levels • Inbreeding • Possible morale problems of those not promoted • “Political” infighting for promotions • Need for managed development program Recruiting Source Internal External • New “blood” brings new perspectives • Cheaper and faster than training professionals • No group of political supporters in organizations already • May bring new industry insights • May not select someone who will “fit” the job or organization • May cause morale problems for internal candidates not selected • Longer “adjustment” or orientation time Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management

32. Personnel selection General principle: aligning qualification requirements of positions with competences of candidates Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 32 Requirement profile (job specifications) Competence profile of candidates

33. Chart 33 Selection Methods Interview Expression Analysis Performance Analysis Interaction Analysis TEST Performance Intelligence Personality Assessment Center “Laboratory” Work Simulation Predefinition of Application Dimensions Assessment Through Experienced Managers Biographical Questionnaires Determination of Selection Criteria Applicants Choose Among Alternatives of Answers Evaluation with Empirically-tested Point Methods Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management

34. 5. Qualification of personnel Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 34

35. Overview Chapter 5 • Variants of education and training • Training instruments • Training needs • Training processes Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 35

36. Education and training Different approaches of preparing staff for PA-work: Perspective A: before or during the job • Pre-service education: – At general educational institutions (universities etc) – At specific government schools and institutes – Dual systems: apprenticeship and regular education blocks • In-service education: – After beginning of job – Continuing training on/off-the-job Perspective B: in close connection or at distance to the job • Training on-the-job • Training off-the-job (e.g. seminars, workshops etc) Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 36

37. -7 administrative class executive class clerical class sub-clerical class Germany: New Pre-entry Education Requirements (after “Bologna”)  Master degree (+ preparatory phase)  Bachelor degree (+ preparatory phase)  secondary school (+ preparatory phase)  secondary school Educational requirements for public sector employment: case of Germany Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 37

38. Chart 38 Training Instruments (Training-on-the-job) (Training-off-the-job) 1. Scheduled Instruction 2. Job Rotation (Cross Exchange) 3. Job Enrichment 4. Coaching, Counseling, Supervision, (Guides Experience Method) 5. Transfer limited Responsibility 6. Transfer of Special Assignments 7. Working Abroad 8. Participating in Project Teams 9. Diverse Leadership 10. (international) Trainee Programs 1. Lecture 2. Dialogue Training Techniques 3. Case Studies 4. Simulations 5. Role Plays 6. Sensitivity-Training 7. Cultural-Awareness-Training 8. Studying Presentation Techniques 9. Studying Creativity Techniques 10. Best Practice Teams 11. Networks of Experience/Support 12. Programmed Teaching Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management

39. Chart 39 Training Needs Analysis METHODS Central Needs Analysis Decentral Needs Analysis Individual Needs Analysis Collective Needs Analysis General Needs Analysis • Departmental Experience • Executive Questioning • Expert Controlling • Computer-Based Modeling • (Functional) Area Experience • Executive / Employee Questioning • Group Discussions / Consultation • Project Work /Project Data • Performance Appraisal • Staff Appraisal • Leadership Feedback • Coaching • Peer-Appraisal • Job Description • Leadership Talent Assessment • Leadership Circles • Seminar Feedback • Strategy Workshops • Career Path Analysis • Project / Solution Teams • Employee Questioning • Climate Analysis • Attitude Analysis • Customer Questioning • Scientific Inquiries • Benchmarking Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management

40. Chart 40 Training Process (Functional Development Cycle) 1 2 3 4 Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management

41. 6. HR development and staff promotion Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 41

42. Overview Chapter 6 • Basics of HR development • Management development in public sector • HRD cycle • HRD needs analysis Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 42

43. HR Development: key terms Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 43 HRD: A set of systematic and planned activities designed by an organization to provide its members with the necessary skills to meet current and future job demands. HRD functions: • Training and development (T&D) • Promotion • Career development

44. Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner Management Development • Only few governments have implemented comprehensive management development schemes. • In the classical bureaucracy, managing positions are usually given to the most experienced professional that is not necessarily also a talented or sufficiently qualified manager. In developing countries, executive positions frequently are object of nepotism and patronage. • There are some approaches to professionalize executive education (e.g. midcareer Master programs at Kabul university) • Most of newly assigned managers are not prepared and qualified for the specific requirements of management positions. PM-M3: Human Resource Management 44 Situation in Afghan government?

45. The HRD cycle Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 45 analysis of employee’s potentials career planning and training planning training job rotation promotion needs analysis

46. Chart 46 Evaluating for HR Development Potential Candidate Promotable Candidate Key-Performer Under- Performer Outperforms job requirements Able to take over next-hierarchy-level-task in the short term Perfect match of job requirements Promotion to next-hierarchy-level likely in the long term Minimum match of job requirements Promotion rather unlikely No match of job requirements Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management

47. Context for HRD needs analysis Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 47

48. 7. Motivation and Leadership Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 48

49. Overview Chapter 7 • Key terms • Interrelations between motivation and performance • Incentives • Motivation theories • Public incentive system • Key terms of leadership • Influence factors on leadership • Leadership styles • Leadership theories Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 49

50. Motivation: key terms Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 50 Motivation: The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal Motive: internal aim and goal driving a person’s behavior into a certain direction Incentive: motivates an individual to perform an action Reward: return for performance of a desired behavior

51. Motivation and Performance Motivation Ability Effort Environment Performance Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 51

52. Types of incentives • Extrinsic incentives: promised rewards for showing a desired behavior, e.g. financial bonus, extra benefits etc • Intrinsic incentives: stems from a person's internal desire for self-satisfaction or pleasure in performing the task itself (related to the person’s achievement motive) – e.g. a challenging task, responsibility, autonomous work etc Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 52

53. Major Types of Motivation Theories • Content Theories of Motivation – WHAT motivates us? • Process Theories of Motivation – WHY and HOW motivation occurs? • Reinforcement Theory – HOW outcomes influence behavior? Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 53

54. Maslow’s Hierarchy of Needs Self- actualization Esteem Belongingness Security PhysiologyFood Achievement Status Friendship Stability Job Friends Pension Base NEEDS General Examples Organizational Examples jobChallenging title at work plan salary Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 54

55. elements of a public sector incentive system • job contents (job enrichment) - relevance of tasks, ownership - size and scope of tasks - difficulty of tasks - decision-making competencies and room for independent action - job variability • work conditions and environment: e.g. cooperative climate, team work, low hierarchical pressure, flexible working time • leadership behavior: e.g. recognition of work, social consideration, information, participation, delegation, career development etc. • attractive and promising career development perspectives with clear training arrangements and a visible, reliable career path • fair and performance-related compensation Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 55

56. Leadership: key terms Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 56 • Leadership: The process by which a person exerts influence over others and inspires, motivates and directs their activities to achieve group or organizational goals. • Leader: An individual who is able to exert influence over other people to help achieve group or organizational goals • Leadership style: leader's style of providing direction, implementing plans, and motivating people PM-M3: Human Resource Management

57. Leadership factors http://www.bized.co.uk (www.bized.co.uk; 2007) Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 57

58. Leadership styles Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 58

59. Early Theories: Great Man Theories • Leaders are exceptional people, born with innate qualities, destined to lead • Term 'man' was intentional - concept was primarily male, military and Western Trait Theories • Research on traits or qualities associated with leadership are numerous • Traits are hard to measure. For example, how do we measure honesty or integrity? Leadership Theories (University of Exeter) Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 59

60. Functional Theories (John Adair, Action Centred Leadership, 1970) Leader is concerned with the interaction of 3 areas: • Task – goal setting, methods and process • Team – effective interaction/communication, clarify roles, team morale • Individual – attention to behaviour, feelings, coaching Leadership Theories Behaviourist Theories (Blake and Mouton, Managerial grid, 1964): • Leaders’ behaviour and actions, rather than their traits and skills e.g. production orientated or people orientated • Different leadership behaviours categorised as ‘leadership styles’ e.g. autocratic, persuasive, consultative, democratic • Doesn’t provide guide to effective leadership in different situations (University of Exeter) Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 60

61. Transformational Leader develops and transforms followers and organizations to achieve their highest level of performance inspires through mission and purpose about importance of work stimulates new ways of thinking and solving problems encourages followers to do more than what is expected is able to activate higher order needs is proactive 61 Transformational Leadership Source: referring to Bass&Avolio 1990: p. 233f.; Keller 1992: p. 490, 498f. Leadership Theories Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management

62. 8. Performance appraisal and compensation Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 62

63. Overview Chapter 8 • Performance orientation of public servants • Performance appraisal • Reward/compensation systems • Experiences with performance pay in public sector Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 63

64. ability willingness transparency of performance (targets, inputs, costs, outputs, outcomes) qualification performance motivation (performance-related incentives) performance-related rewards and sanctions performance orientation main conditions of performance orientation of public servants Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 64

65. performance appraisal in public sector Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 65 • Assessment of individual employee’s performance (by using performance targets and indicators) by supervisor • (at least) once a year • appraisal closely linked with performance agreement • assessing individual achievement of agreed targets • feedback about necessary adjustments and improvements • consequences for training and/or task adjustments

66. Chart 66 Performance Appraisal Problems Problems Abstract & unrealistic targets Neglecting “daily business” Measurement problems Tendency of Leniency (most get good grades) Lack of “punishing” low performers Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management

67. Reward Systems – General overview from business perspective 67 REWARDS FINANCIAL NON-FINANCIAL Base Pay • Wages • Salaries Variable • Bonuses • Incentives • Stocks • Piece-Rate- Pay Environment/Job • Recognition • Autonomy • Opportunities • Networks • Challenge • Career security Benefits • Insurances • Pension • Services direct indirect Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management

68. Public sector compensation systems • Merit system: Salaries based on seniority / merit • Performance Pay: Salaries include pay elements for extraordinary individual performance • other compensation elements: – social factors: family, age, etc; – allowances: for positions in remote areas or with risky tasks – health insurance and pension payments Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 68

69. Chart 69 Case Study: Great Britain  Basic Salary Three performance “tranches” Based on relative contribution Position in pay range and tranche marking determine award  Bonuses In year to recognize performance as it happens End year to reward exceptional achievements or outcomes delivered over whole year Informal notice Staff appraisal  Basic Salary Target salary at the market median with premium rates for top performers Link progression into performance and development system Agreed distribution  Bonuses Incentives for top/high performers CabinetOffice Departmentfor WorkandPensions Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management

70. Example of allowances in Afghanistan Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 70

71. some negative side effects of PRP: • unfair measurement practices • intransparent regulations • unattractive/small bonuses • restriction to a small proportion of high-performers = majority of dissatisfied “loosers” • bonus distribution according to “equal share” principle • withholding of previously paid bonuses • neglecting of team performance • majority of OECD countries introduced PRP • sometimes extended PRP schemes for (senior) management staff • evidence: limited impact of PRP on motivation and performance (“pacifier” function, modest position in reward’s rankings) Experiences with performance-related pay (PRP): Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 71

72. 9. Integrity management, ethical issues, codes of conduct, anti- corruption measures Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 72

73. Overview Chapter 9 • Integrity management in public sector • Dimensions of corruption risks • Integrity violations in public service • Integrity management in the HRM-context • Ethics training • The corruption issue in Afghanistan Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 73

74. Integrity management in public sector • Integrity: Strict adherence to a moral code, reflected in transparent honesty and complete harmony in what one thinks, says, and does • Integrity Management: planning, operating, coordinating and controlling measures to maintain and improve integrity in organisations, e.g. in the public sector Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 74

75. Integrity Management framework of OECD Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 75 (OECD 2009)

76. -76 corruption-fostering situations dimension A: motivation and values (loss of integrative values, commercial culture, alienation) dimension B: empowerment to corruptive practices (enlarged discretion, contractor/provider-split) dimension C: lack of proper control and oversight (decentralized structures, unclear accountability) corruption of the financiers of services corruption of the buyers of services corruption of the producers and deliverers of services analytical dimensions of corruption risks in PA (Maravic 2006, 85) Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management

77. Frequent cases on bribery in public sector Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 77

78. Typology of Integrity Violations • Corruption, including bribing, “kickbacks”, nepotism, cronyism and patronage (with gain for oneself, family, friends, or party); • Fraud and theft of resources; • Conflict of private and public interest through gifts (services, promises) or the possession of assets; • Conflict of interest through jobs and activities outside the organisation (e.g. “moonlighting”); • Improper use of violence towards citizens and suspects; • Other improper methods, i.e. improper means for – often - noble causes; • Abuse and manipulation of information, i.e. unauthorised and improper use of files; leaking confidential information; • Discrimination and sexual harassment, i.e. indecent treatment of colleagues or citizens; • Waste and abuse of organisational resources; • Misconduct in private sphere, such as domestic violence, drunk driving and private crime. 78Source: Huberts (1999), Huberts/Kaptein/Lasthuizen, op cit. (2004) Integrity Violations

79.  Meritocratic system of recruitment  Committed and accountable leadership  Ethics training  Adequate salary  Motivational career development  Performance evaluation  Job security  Specific provisions for staff in vulnerable positions (job rotation, screening of staff, sharing responsibilities among staff members, etc.) (Demmke 2004) Main HRM instruments for integrity management

80. Measures to strengthen integrity in personnel management • Integrity emphasised in recruitment • Integrity as criterion for selection (e.g. background checks) • Ensuring sufficient diversity among staff • Providing employees with clear job descriptions • Integrity as criterion for evaluation and promotion • Integrity as competency in competency management Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 80 (OCED 2009, 76)

81. Ethics training Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 81 (from Public Service Commission Queensland) Some principles:

82. Data on corruption in Afghanistan Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 82

86. Purposes for bribery (case of Iraq) Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 86

87. 10. Personnel administration, organization and integration of the HRM function Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 87

88. Overview Chapter 10 • Functions of personnel administration • Organisation of personnel administration • Centralized or decentralized personnel administration? Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 88

89. Personnel administration • Personnel administration: technical aspects of maintaining a full complement of employees within an organization • typical technical/operative processes of personnel administration: • Operating the usual personnel administration functions like recruitment, selection, job placement, performance appraisal, training&development etc • Some more typical operative functions: – staff file maintenance – protecting health and physical condition of employees – controlling labour costs Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 89

90. The personnel department Core functions: • Provide support to operating managers on all human resource matters • Fulfills a traditional staff role and acts in an advisory capacity • Depending upon the organization, functions may be split between operating managers and human resource department Additional functions: • Customarily organizes and coordinates hiring and training • Maintains personnel records • Acts as a liaison between management, labor, and government Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 90

91. HR-functions: centralized or decentralized? • Centralized HRM: some functions are concentrated in a central HR-department of a ministry or agency – Pro: more professionalisation and specialisation – Contra: distance to daily work, sometimes detached, inflexible • Decentralized HRM: HR-functions are devolved to the various line departments of a public organisation – pro: more flexible, focus on specific focus of department – Contra: less professional Prof. Dr. Christoph Reichard/ Prof. Dr. John Siegel/ Prof. Dr. Dieter Wagner PM-M3: Human Resource Management 91

Human resource management

Human resource management

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