Ready for Europe? Applying a Public Administration Assessment Tool - - PowerPoint PPT Presentation

Ready for Europe?

Applying a Public Administration Assessment Tool (PAAT)

Development and Application of PAAT

The context and the problem The approach and basic principles The tool

Methodology Content

Country findings Lessons and Applications

Acceding to the EU: The Civil Service Challenge in Central & Eastern Europe

Countries wishing to join EU needed public

administrations that worked at advanced country levels

Acquis Communautaire requirement Member Countries wanted to look across the

table at “equals”

More broadly, CEE countries needed

modern administrations to compete in global economy

So CEE chasing 2 Rabbits: EU and OECD

EU-Bound Country Administrative Performance: 3 Critical Areas

Establish center-of-government

institutions for cohesive policy making

Create dedicated management structures

to move EU accession process forward

Develop Politically Neutral, merit-based,

professional civil service (today’s focus)

Top Ten Civil Service Problems in Post- Communist CEE

1.

Politicization (fusion of Party cadres and govt. bureaucracy)

2.

Lack of civil service legal framework and oversight institutions (cs statute, redress mechanisms, cs commission or merit protection board)

3.

Fused pay and benefits; low and compressed basic pay

4.

Overstaffing in “budget sphere; ” in deconcentrated local govt.

5.

Lack of modern HRM systems (HRMIS, payroll; job evaluation system)

6.

Lack of performance and or merit-based HR practice (appraisal, pay, promotion)

7.

Lack of competitive recruitment mechanisms

8.

Lack of horizontal mobility across agencies

9.

Highly centralized authority; little delegation

• 10. Narrow technical skills; limited policy or management skills

The Problem

Public administration requirements for EU

accession: crucial for entry but vague

How to define concrete targets and standards for

assessment?

How to determine the starting point and measure

progress?

How to design targeted reform/ assistance programs?

Need a diagnostic tool to set bar and monitor

actions

Overarching question: What constitutes a modern

civil service?

The Approach

Develop analytic framework to assess administrative

capacity and performance for 3 pre-accession countries:

Estonia Hungary Czech Republic

Identify essential – the minimal – characteristics of

advanced administrations

Highlight criteria by which presence or absence of these

“desirable” characteristics determined

Specify range of performance indicators for characteristics Apply indicators across country cases as objective tracking

• f countries’ relative progress on admin. development

Framework shows gaps between desired state of

administrative performance and current reality

Framework generates more precise prescription for steps

needed to reach desired status

The Approach (2)

Standards distilled from EU members and

• ther advanced countries from OECD

No particular model offered; systematic

but flexible definition of international good practice includes basic levels of:

Probity Political neutrality Professionalism and transparency Competitiveness accountability

Approach (3)

More precise prescription for steps (and

technical assistance) needed to reach desired status

Assessment performed by experts in

consultation with self-analysis by country

• fficials (PAAT resembles PEFA)

Methodology remains “work in progress”

The Tool: Performance Matrix Template

• Desirable characteristics

Score:

• X. Objective

Technical Assistance Action Required Evaluation Summary Performance Indicators and Benchmark Information Score Good Practice Criteria Ref

The Tool

Objective Desirable Characteristics Good Practice Criteria Performance Indicators and Benchmark

Info.

Score Evaluation Summary Action Required Technical Assistance

Conceptual Basis of Performance Matrix

Objective = specific dimensions or goals

associated with well-performing, advanced country public administrations

E.G., All modern civil services governed by legal and

ethical framework.

E.G., Modern civil services have fair and effective HRM

policies and practices

Desirable Characteristics= those attributes that

define reasonably advanced state of development

• n particular objective

E.G., advanced govt. legal frameworks ensure impartial

treatment of citizens

E.G., staff selection and promotion is open and

transparent and merit-based

Conceptual Basis of Performance Matrix (2)

Good Practice Criteria= basis by which to assess

whether govt. possesses desirable characteristic

E.G., Existence of public redress mechanism to air

citizens’ grievance against cs ruling

E.G., Promotion through open, merit based procedures

Performance Indicator/ Benchmark Info= evidence

that govt. meets criteria (and some measure of quality/ extent)

E.G., Statute providing for establishment of ombudsman

with powers independent of civil service

E.g., Promotion process overseen by third party

(measured by percent of promotion decisions reviewed by assessors unconnected with the decision)

Conceptual Basis of Performance Matrix (3)

Nature of indicators varies

Numerical quotient suggests better or worse

performance (i.e. % of staff recruited through advertisement)

Affirmative or negative assessment (i.e. legal provision

for ombudsman)

Some indicators un-usable due to lack of data but

worth incorporating for robust, longer term assessment and future data collection

Some indicators precisely linked to EU norms

Scoring

• Scores between 0 and 5 for each criterion
• Scores averaged for each larger

dimension/ characteristic

• No total country PAAT score
• Collective judgment of Bank staff, experts,

country officials reached consensus

• Scores based on actions already taken and,

informally, on 3 underlying variables:

1.

Country understanding of issues & types of reforms needed

2.

Level of govt. commitment to serious reform

3.

Country capacity to undertake reforms

Scoring Matrix for Public Administration Development

Beyond the numbers

Numerical ratings understandably contentious

(Bank staff blood on floor)

Additional, important matrix columns:

Evaluation summary (qualitative discussion of

assessment basis for each criteria)

Action required (recommendations for specific actions to

reach good practice on each criteria)

Technical assistance (aggregated into programmatic

framework for future international aid)

Findings based on extensive applied research --

not back-of-envelope

In-country, in-depth analysis and interviews over

several missions distilled in 3 country case studies

Extensive research on advanced country practice and

norms to develop applicable metrics/ standards

E.g. US 1: 394, Sweden 1: 2051, UK no political appointees Is the ratio of political appointees to civil servants similar to good practice? Is there a clear distinction between political appointees and career civil servants? Enforcement measured by absence

• f observable political activity /

electioneering while on duty or on governmental premises Is explicit political activity prohibited by law? The civil service is politically neutral A4 Resemble OECD published civil service codes of conduct Is there an adequate code of conduct or equivalent framework for civil servants? There is a code of conduct

• r equivalent framework

that governs the behaviour

• f civil servants

A3 Does the law define which categories and types of staff are civil servants? The scope of the civil service is clearly defined A2 Are there subsidiary regulations describing procedures? Is there a civil service law? The civil service is governed by specific legislation A1

• A. Legal and Ethical Fram ew ork

Desirable characteristics

• Specific legislation governing the civil service, w ith subsidiary legislation and/ or regulation that elaborate

rules/ procedures/ system s for personnel m anagem ent

• The behaviour of civil servants and political appointees, including probity considerations, is governed by a Code of

Conduct

• Merit-based rules and procedures for civil service personnel m anagem ent
• The scope of the civil service is clearly defined
• I m partial treatm ent of citizens, transparent civil service operations and policies

Other Optim al I ndicators Perform ance I ndicators Used & Benchm ark I nform ation Good Practice Criteria Ref

Evaluation of Civil Service Human Resource Management

Disclosure policies widely promulgated within ministries Is civil service policy and performance widely published? Do civil servants have access to their personnel files? Open access to information A8 Is there a data protection act? Data protection A9 Establishment of citizens’ grievance process provided in law Is there an ombudsman provided for in law? Citizens have access to fair and transparent means of redressing grievances with the civil service A7 Observation / sample percent posts complying with provisions (view personnel files) Is there an overall statement on the civil service operating on the basis of an individual’s merit? All EU countries recognise the principle of a civil service

• perating on the basis of merit

The notion of merit-based procedures established in law A6 Are conflicts of interest inspected formally? Resemble OECD published civil service legal provisions; observation / sample percent disclosure Are there statements on the need to disclose conflicts of interest, which are in accordance with good practice? There are legal provisions to ensure probity, e.g. requirements to disclose conflicts of interest, and which agencies should enforce these provisions A5 Other Optimal Indicators Performance Indicators Used & Benchmark Information Good Practice Criteria Ref

Is there a body with the mandate to undertake independent decisions on the fairness of civil service policies? Key government and civil society actors agree on policy and management organs for CS Does the single institution have sufficient authority to ensure policies are adopted and complied with? Does the single institution have sufficient resources to ensure policies are developed and complied with? Do line ministries’ Human Resources Departments have appropriate capacity in terms of numbers of staff skills? Diverse high-prestige government and non-government composition of oversight body/ies Is the body governed independently from civil service management and political institutions? Does the oversight body have sufficient authority to enforce decisions? There is/are oversight body/ies to ensure fairness of civil service policies B2 Single central institution formulates policy and establishes framework for CS management Is there a single institution to formulate civil service human resources policy? Explicit institutional stipulation in CS law with direct reference to assignments of functions and reporting relationships; no significant debate on legal basis or nature

• f CS institutional framework

Does the civil service law define all of the relevant institutions required to manage the civil service? There are clearly defined institutions to develop and coordinate civil service policy B1

• B. Institutional Framework

Desirable characteristics

• There are effective, dedicated institutions for civil service policy, management and oversight, with officially recognised legal status and

clearly defined role and responsibilities

• Independent oversight bodies ensure fair play in the civil service
• Existence of accountability and recourse mechanisms for citizens, employees, the legislature, and the executive

Other Optimal Indicators Performance Indicators Used & Benchmark Information Good Practice Criteria Ref

Is there any evidence of overstaffing in the private sector? Are goods and services as a proportion of government expenditure in line with EU member states? EU wage bill expenditures, as % of (range; median; mean) Goods & services: 24.6% (DE) to 82.2% (EL); 67.4%; 58.9% Total expenditure: 5.6% (SE) to 29.7% (PT); 11.2%; 13.2 Total revenue: 5.7% (SE) to 36.2% (EL); 11.5%; 14.9% Goods & services expenditure as % of total expenditure: 14.2% (SE) to 96% (CH); 19.1%; 22.5% Is the wage bill as a proportion of government expenditure in line with EU member states? EU: 2.7% (EL) to 17.4% (SE); median 7.1%; mean 7.7% Is the ratio of all public sector employees per head of population in line with EU member states? Numbers of civil and public servants are in line with international practice C1 Does the oversight body report on its activities and

• utcomes?

Does the mandate of the oversight body cover all relevant policies? Oversight body/ies (cont.) B2 Evidence of active operations, such as public hearing, audit reviews, published reports There is evidence of effective institutions (such as Legislative Committees, Judicial Reviews, National Audit Office) and published reports Resources allocated to oversight tasks match scope of required activities, and capacity to monitor CS behaviour installed Does the oversight body have monitoring and evaluation capacities to monitor civil service management performance? Other Optimal Indicators / Notes Performance Indicators Used & Benchmark Information Good Practice Criteria Ref Is there any evidence of shortages of goods and materials, which are affecting administrative performance or service delivery?

• C. Employment and Pay Policy and Management

Desirable characteristics

• Civil service wage bill is affordable and within overall fiscal framework, and does not crowd our other necessary expenses
• Remuneration is sufficiently competitive to recruit, retain, and motivate qualified staff at all levels
• The compensation system is simple, monetised and transparent, with rule- and/or market-based determinants of compensation
• The establishment control system is in place and linked to well-functioning computerised payroll and personnel information system to

provide adequate budget control of personnel expenditure

• Pensions system is sound and affordable

Are there well-defined lines of technology and systemic lines

• f communication between the personnel department and

budget department in the Ministry of Finance? Is a computerised system operating to support establishment control? Robust, standardised pay and grading system operating throughout CS; no evidence of significant pay discrepancies across agencies or by non-job-related characteristics Is there a system of post-based establishment control? Are regular reports produced to confirm accurate employment information, and credible patterns of intake and attrition? Are % of non-wage allowances and supplements in line with OECD ranges? The compensation system is simple, monetised, transparent and fair C4 Is the grade structure sufficient to provide incentives to advancement without introducing undue complexity/non- transparency? There is a uniform and effective grading structure that optimises decision-making C3 Is there evidence of grade creep to circumvent salary constraints? Levels of pay are sufficiently competitive to recruit, retain and motivate qualified staff at all levels C2 Is remuneration at senior levels appropriate to skills, as indicated by compression ratios? Are turnover rates comparable to EU norms? Private-CS comparator pay surveys show basic competitiveness EU annual gross average earnings public relative to private sector: range 1.02 (UK) to 1.64 (PT) EU turnover rates: range 0.9-1.2% (UK) to 10% (SE) EU compression ratios: range 4.6 (FR) to 9.8 (UK) Is the ratio of civil service to private sector pay in line with EU

• r OECD norms?

Other Optimal Indicators / Notes Performance Indicators Used & Benchmark Information Good Practice Criteria Ref Is there predictability and containment of personnel costs in the budget?

Personnel staff available with training in staff inspection and forecasting methods? Are human resource practitioners trained in the use of personnel management information systems? Personnel information available on skills, age, experience, placement, and attrition rates? Can a system be demonstrated that registers basic personnel information for the entire civil service, containing personal characteristics such as education and skills, personnel actions, appraisal results, training and career history? Effective personnel information systems are in place D2 Evidence of forward staffing plan prepared? Is there a national planning strategy and procedure for deployment of civil servants throughout the structure? There are effective planning arrangements for deployment of civil servants D1 Is the personnel management information system used effectively in decision making?

• D. Human Resources Management Policies and Practices

Desirable characteristics

• Capacity exists to review current and projected staff resource requirements
• An appropriate personnel information system is in place
• Staff selection is conducted on the basis of merit, and promotion is based on open and transparent merit-based procedures and collective

management decisions

• A performance appraisal system is in operation with uniform objective criteria across the service, review at different management levels,

and feedback to individuals

• Disciplinary procedures based on transparent principles, and institutional procedures for judgment and appeal exist

There is a pensions system that is affordable, effective and fair C5 Is there independent audit of the pension fund and system? Is the pensions system based upon sound actuarial practice? Desirable characteristics include: “stable, reliable, sufficiently flexible to adjust to economic, demographic and other changes … easy to understand and administer … perceived as fair and there is a clear relationship between performance – as measured by earnings – and pensions. Benefits and costs are reasonable and predictable” (SIGMA Policy Brief No. 2, Civil Service Pension Schemes) Is the construction of the pensions system in line with best practice? Other Optimal Indicators Performance Indicators Used & Benchmark Information Good Practice Criteria Ref

Numbers of disciplinary cases where action taken; percent appealed; and change since transition Are statistics held on the number of disciplinary hearings and their outcomes? Are there common objective criteria for disciplinary action? There are disciplinary procedures based upon transparent and fair principles D6 Spot survey of staff views on fairness of promotion process Is there recourse to appeal for promotion grievances? Results of promotions published? Are the procedures open and transparent? Is the process used consistently across the civil service? Percent of promotion decisions reviewed by independent assessors Is the process overseen by a third party? Is there a written process of conducting hearings? Are categories of appraisal similar to best practice? Is the appraisal linked to other human resources procedures? Evidence of written appraisals for last two years available for review? Percent of posts currently being evaluated equivalent to EU member country administrations Is there a formal unified performance appraisal system? Are performance appraisals undertaken on a regular basis for all staff? Performance evaluation is

• bjective, uniform, and focused
• n performance improvement

and career development D4 Is recruitment process checked by multiple reviewers? Are job descriptions prepared and utilised? Public exam with selective success for recruitment? Is there a competitive process including objective assessment for recruitment? Are all posts advertised publicly to ensure equal competition for posts? Recruitment is based upon merit D3 Are there consistent practices across the civil service? Is there a uniform process, with legal basis, for making promotion decisions? Promotion is open and transparent, and based upon merit D5 Other Optimal Indicators Performance Indicators Used & Benchmark Information Good Practice Criteria Ref

Are there defined procedures for evaluation training courses? Is there a sufficient range of public and private sector providers to compete for training provision? Training provision is sufficient to meet the requirements of the civil service E3 Have options been considered for contracting out training provision? Are there specific training budgets identified in the state budget? Training budgets are sufficient to implement the training policies, within fiscal constraints E2 Is the level of training expenditure consistent with international practice? Does training evaluation examine relevant of training, and cost effectiveness? Training evaluation is undertaken to identify the relevance and cost effectiveness of training E4 Evaluation criteria for trainees, based on benchmarks devised from wider EU experience Are trainees utilised well-placed in the civil service upon completion of training? Is there institutional capacity for developing training policies at different levels? Completed training needs analysis? Documented strategy? Is there a national training policy based upon training needs analysis? Is there clear responsibility for civil service training policy? There is an appropriate training system to re-skill staff to prepare new recruits and develop existing staff E1

• E. Training and Career Development

Desirable characteristics

• Appropriate training system to re-skill staff and to prepare new recruits for ongoing work, with a budget and clear institutional

responsibility assigned for training policy formulation and implementation Other Optimal Indicators Performance Indicators Used & Benchmark Information Good Practice Criteria Ref

Are service standards as published, e.g. in a citizens’ charter? Are standards published for public services? Service delivery is based upon public consultation regarding priorities and standards of service F2 Are standards based upon public consultation? Are there clear mechanisms for delegating decisions and holding individuals to account for their performance (in terms

• f outputs and outcomes)?

Are budgets devolved decision-makers? Decision-making is placed at the lowest possible level to ensure effective management and service delivery F1

• F. Management Practices and Culture

Desirable characteristics

• Decision-making structures ensure effective citizen-oriented service management and delivery, with delegation schemes that are similar to
• ther EU civil services

Other Optimal Indicators Performance Indicators Used & Benchmark Information Good Practice Criteria Ref

Country Findings

Highlights of PAAT Findings

Going in, CEE had large “institutional overhang”

from previous era; govts. had redefined state functions from “rowing” to “steering” but in early transition, public administration reforms moved more slowly than expected.

Still, administrative reform progress on several

fronts:

Credible efforts to delineate legal and institutional basics

for professional, depoliticized cs

Formal restrictions on political appointments and

activities in place, helping to constrain partiality

Affordable govt. employment levels for general govt. (in

some cases, achieved through downsizing)

Effective policy making structures being established Effective EU integration institutional apparatus created

PAAT Findings (2): Continuing HRM Challenges for CR, Hungary, Estonia

• Legal frameworks for cs in place but overly detailed, locking in non-

performance incentives

• Institutional arrangements for csm fragmented and under-resourced
• Sound aggregate wage policies, but individual pay inadequate

(compressed, non-competitive) to attract and retain needed skills; mitigated by proliferation of opaque non-salary benefits/ allowances

• Performance-oriented promotion rare; most career advancement still

automatic, seniority-based

• Open, competitive recruitment exists but not uniformly required
• Modern performance appraisal mechanisms not in place
• Performance management linked to service standards introduced to

“europeanize” selected functions: drivers licenses, passports, auto inspections

• Limited delegation of authority

A Decade Later: Lessons & Applications

Rabbit power – EU (regional) model provides

useful model towards which country civil service can strive

Possible and helpful to break down soft and hard

aspects of HRM into concrete features and actions (a la PEFA)

Most useful when tied to monitoring,

programming, and resourcing of reform initiatives

Transition is a relative (but universal) construct;

even countries at more rudimentary starting points and some advanced countries and

• rganizations can still progress along these PAAT

dimensions