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The (new) policy agenda for public administration reform in the actual crisis

  • 1. The (new) policy agenda for public administration reform in the actual crisis ─ Enhancing civil service leadership and work capacity to overcome the impact of fiscal restraints context Nuno Miguel Cunha Rolo Context In the aftermath of the current economic crisis, various countries has embarked on a series of structural and administrative reforms to improve the efficiency of the public service, and facilitate consolidation to get back on the path and sustain economic growth. One of the key challenges to this endeavour is to restore public finances. Governments knows that the experience of OECD member countries suggests that fiscal consolidation plans should place particular emphasis on cutting expenditure over raising revenues in order to have the most durable impact on stabilising finances and achieving deficit goals. In this context, public sector employment has come under scrutiny, in terms of numbers of public servants and their pay levels. Cause the public sector workforce represents a significant share of public expenditure. It is common say that civil service is characterised for its rigidity, low productivity, and has a reputation of being unresponsive to the needs and specialised skill demands of contemporary society. The total cost of government employment is increasing. The public sector is also facing competition for skilled labour when trying to scoop up the best candidates to join the public workforce. An ageing population is creating new demands for public services, and is increasing the fiscal burden while decreasing the immediate capacity to respond to new challenges.
  • 2. Double Meeting The Real Priority On Civil Service Policy Strategy – Nuno Cunha Rolo This adds to the loss of experienced employees due to redundancies caused by spending restraints, creating a looming talent shortage. There are also demands to enhance equality between men and women and promote the inclusion of all groups of society into the public workforce; progresses made in previous decades in this respect have been slow. However, the crisis has also revealed broader governance issues, as government strategies competence, its ability to fully cope with the new challenges, and really policies good governance have come into question. Challenges The public policy and management of civil service is a highly sensitive issue and face many challenges in most countries, especially OECD countries, and the policies must consider the pressures from economic and societal contexts and changes, cultural values, and history. Moreover, in the aftermath of the current financial and economic crisis, governments have to deal with governance environments and management frameworks restraints that affect the result or the perception of success, such as, globalisation of labour markets, the spreading of information technologies, ageing societies, and the advent of knowledge economies. The civil service and structural reforms, as part of a full national public policy strategy – this view is more than a requirement, it’s a responsibility - , must address fundamental actions and values regarding political confidence in the government system as a whole, equity and fairness will, and ensuring a focus on efficiency, productivity and effectiveness to restore public finance and sustain national economic growth. National authorities (could) know that efficiency and effectiveness in government’s performance depend on the talent of public employees, the quality of their knowledge and skills, and top and middle public managers, probably the best critical manager level to value public efficacy. But governments has to meet a double challenge: on the one hand, government has to restructure the management of the public workforce to make it more inclusive, transparent, flexible, cost-effective, efficient, and effective for service delivery; but, on the 2/4
  • 3. Double Meeting The Real Priority On Civil Service Policy Strategy – Nuno Cunha Rolo other, reforms should also outgrow fiscal consolidation plans by reducing operational expenditure. Moreover, to governments it is also critical to maintain commitment and trust in public institutions and ensure the public actions legitimacy. Strategies Therefore, in our view, any strategy on this matter must deal with a comprehensive modern human resources management in order to manage good governance and civil service. People are crucial to a strategy that meets two main principles or dimensions of the state, public servants and their organisations reform plan (which of them are linked): 1. Enhancing the state and societal holders - political and civil service commitment 2. Investing in people - real and strategic HRM in personnel policy practices We must say that all these two policy macro principles have to be linked to governmental cuts, modernisation projects and excellence of leadership, political and administrative. Enhancing the state and societal holders - political and civil service commitment In quasi all occidental countries reforms and the current main modernisation practices on them present some considerations, such as the marginality and the partiality of HRM issues in public administration reforms and projects of modernisation. So governments should try an ambitious and new policy strategy, based on the main principles of good governance: government and public sector relationship, legitimation, participation, rule of law, communication, which means on state and societal holders. The environment of organisations has changed, but it is not necessary that their internal structure has to change too, especially regarding high performance organisations. In fact, it is more turbulent, but bad reengineering could grasped performance and commitment. Competition has increased, customers have growing demands, and all leads to continuous change in organisations. Traditional tayloristic and bureaucratic organisation does not respond to more complex and flexible organisations. So, should b given more responsibility and job autonomy, based on 3/4
  • 4. Double Meeting The Real Priority On Civil Service Policy Strategy – Nuno Cunha Rolo the idea of more individual worker autonomy and focus on the creation of a committed work force, as an important intermediate variable between personnel policy practices and outcomes. Is known that a not committed knowledge worker to his work or organization, fade away is motivation, talent and competencies, not delivering the best services to the public and not gain their goals. Investing in people - real and strategic HRM in personnel policy practices Consequently, it is important to scrap the lack of investment in people, in order to get more committed workers: try to stimulate self-control of employees (instead of relaying in control by management, being based on truth, being based on an organic organisational structure, integrating in the line, looking for an optimal use of employee capabilities are important HRM policies to implement. On the other hand, dissatisfaction with politics and management has something to do with the leadership-style and the organisational form. Management by commitment should prevails on management by control. So tenure must be kept, senior management is important to the stability and institutional memory, to motivate staff and promote cultural change. With the senior people oj the side of the reform, positive consequences on leadership, morale and healthy effects on performance and effectiveness reforms. The organisation's leadership in people management contributes to individual and organisational achievements. It has also necessary to increase the attractiveness of public organisations as employers which is to important to service delivery and the (negative) image of working in the public sector. In this, taking strategic HRM seriously has to be stressed, especially if we want long- term results and short-term political gains. Now What? Integrating countermeasures with measures to cope with the present economic stagnation, to keep morale and a satisfactory level of “public services”, “civil service” and make public 4/4
  • 5. Double Meeting The Real Priority On Civil Service Policy Strategy – Nuno Cunha Rolo sector (as employer) attractive to the “best”, considering the long-run demographic changes and effects on labour market and economic growth, its important to invest in real and widely commitment, HRM programs, management by commitment, delegating to a lower levels, i.e., to the people. Therefore, any policy strategy to enhancing the capacity of the civil service in the context of fiscal restraints has to address the nation and people beliefs, values, management style, norms (i.e., culture); the development human capital, management capabilities, skill levels of the employees (i.e., the people); the structure, accountability mechanism, reporting lines, job roles (i.e., organisation); human resources systems, where people-focused mechanisms delivers the strategy to face all the current challenges and problems that governments are dealing with on a daily basis, especially, in casu, the general need of a “people” public management that is able to pursue performance, flexible and cohesion oriented governance and management. In a word, enhancing the capacity of the civil service in the context of fiscal restraints, not reducing or outsourcing (good) public governance. …and How? Well, we’ll discuss it alive at the Lisbon Group on Leadership and Culture Studies meeting! Lisbon, February, 2013 Nuno Cunha Rolo (Invited Researcher, CAPP-ISCSP) 5/4
  • 6. Double Meeting The Real Priority On Civil Service Policy Strategy – Nuno Cunha Rolo sector (as employer) attractive to the “best”, considering the long-run demographic changes and effects on labour market and economic growth, its important to invest in real and widely commitment, HRM programs, management by commitment, delegating to a lower levels, i.e., to the people. Therefore, any policy strategy to enhancing the capacity of the civil service in the context of fiscal restraints has to address the nation and people beliefs, values, management style, norms (i.e., culture); the development human capital, management capabilities, skill levels of the employees (i.e., the people); the structure, accountability mechanism, reporting lines, job roles (i.e., organisation); human resources systems, where people-focused mechanisms delivers the strategy to face all the current challenges and problems that governments are dealing with on a daily basis, especially, in casu, the general need of a “people” public management that is able to pursue performance, flexible and cohesion oriented governance and management. In a word, enhancing the capacity of the civil service in the context of fiscal restraints, not reducing or outsourcing (good) public governance. …and How? Well, we’ll discuss it alive at the Lisbon Group on Leadership and Culture Studies meeting! Lisbon, February, 2013 Nuno Cunha Rolo (Invited Researcher, CAPP-ISCSP) 5/4