Flexicurity and Strategic Management in. HRWG, Malmö, 17 November Public Administration Herma Kuperus EIPA

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1 Flexicurity and Strategic Management in HRWG, Malmö, 17 November 2009 Public Administration Herma Kuperus EIPA learning and development - consultancy - research EIPA 2009

2 Why on the agenda of EUPAN? Trends Modernisation of Public Administration: - Statute and Status of civil servants - Employment conditions - Working conditions - Working times, life long learning - Pension systems and retirement age Labour market development: - Impact of demographic change and mobility - Social security systems and unemployment services - Short term crises and long term scarcity of labour Lisbon Strategy, EES and guidelines - Communication on Flexicurity principles and pathways - National plans: general implementation of flexicurity

3 Why on the agenda of EUPAN? Impact on PA in MS Internal changes: - Increase of flexibility - Increase of diversity - Decrease of standard solutions or conditions - Decrease of traditional life-long tenures On internal and external labour market: - More transitions: - Job-job, job-unemployment-job, job-not working-job - Within and between organisations and sectors - Different contractual arrangements - Short term, fixed term, permanent - for fixed position or not, projects or programmes, pools

4 Why on the agenda of EUPAN? For EUPAN Flexicurity concept offers interesting framework: - To integrate several elements of HR and employment policy - To balance flexibility and security in new ways - To make package-deals that benefits employers and employees - To link labour market organisation HRM Strategic management & Leadership should be developed: - To combine short-term (re)actions (e.g. on crises) with long-term policy - To assure sustainable and fundamental reform for permanent change - To implement Liosbon Strategy and flexicurity pathways in PA - To move from re-active to pro-active labour market & personnel policy

5 Paper for EGPA Aim and Methodology Restructuring in Public Administrations Flexicurity Approach in Public Administrations Top public managers: Qualified for Strategic Management? Conclusions and future activities

6 Methodology 1 Theory on strategic management: Boxall & Purcell (2003) Strategy is a set of strategic choices Strategic Management is a process Different roles of Top managers in PA Policy-maker (+ role model for society) Long-term interest society <-> short-term interest politicians Public Employer (+ role model for own policies) Long-term availability of employees <-> short-term attractiveness on labour market + costs Daily Manager (+ role model for own employees) Short-term availability of right people to competitive prices <-> investment in employability and motivation

7 Methodology 2 Main sources: two recent studies 1. Restructuring in Public Sector: A Flexicurity Approach - Laws and regulations, implemented or not - Flexicurity elements: short- or long-term reform 2. Top Public Managers in Europe - Fact-sheets based on case studies + additional information of PA - Management, selection & development of Senior Civil Servants Preliminary indication of Flexicurity in PA (?) Preliminary indicator of strategic thinking in PA (?)

8 Civil service employment systems Career-based Hybrid Position-based Member States Austria Belgium Cyprus France Germany Greece Ireland Luxembourg Portugal Romania Spain Bulgaria Hungary Italy Latvia Lithuania Malta Poland Slovakia Slovenia Czech Republic Denmark Estonia Finland Netherlands Sweden United Kingdom Employment conditions Change Political influence high Lifelong civil service Specific entry criteria Recruitment at lowest level by central exam Career development by seniority Big difference public and private employment Low mobility between public and private sector Implementation of change takes generation of civil servants No incentive for change Political influence low Permanent or fixed term Selection for specific job Recruitment on each level Career development by performance & selection Less difference public and private employment Low mobility within PA Mobility between public and private sector Implementation of change can be done faster Incentive for change

9 Reform of employment conditions: A Flexicurity Approach The Wilthagen matrix, containing elements of combined Flexibility & Security

10 Reform of employment conditions: A Flexicurity Approach The Wilthagen matrix, containing elements of combined Flexibility & Security Short-run responsiveness Long-run agility

11 Flexicurity components 1. Flexible and reliable contractual arrangements Career-based systems: only on lowest & highest level 2. Comprehensive lifelong learning Career-based systems: no need occurs by job security Position-based systems: no need occurs by external mobility 3. Effective active labour market policies Career-based systems: more internal mobility & fixed term contracts for external employees Position-based systems: more support by internal & external mobility 4. Modern social security systems Career-based systems: high job security, low transition security Position-based systems: transition security higher, more balanced

12 Flexicurity pathways for types of PA Conform European Commission/DG Employ: Tackling contractual segmentation Developing flexicurity within the enterprise and offering transition security Tackling skills and opportunity gaps among the workforce Improving opportunities for benefit recipients and informally employed workers (mainly private sector) Flexicurity options for PA in MS Type 1 Type 2 Type 3 Internal and external transfers x Introduce fixed-term contracts (for special groups, like SCS) x Introduce lifelong learning progr. to accommodate internal/external transfers x x Special institutions for facilitating transfers Develop part-time work & flexible working arrangements (+work-life balance) Make investments in lifelong learning & ALMP x x x Type 1 = AT, BE, CY,FR, DE, EL, IE, IT, LU, MT, ES (mainly career-based) Source: Kuperus & Rode Type 2 = DK, FI, NL, PT, SE, UK (mainly position-based) Type 3 = BG, CZ, EE, HU, LV, LT, PL, RO, SK, SI (mainly hybri)

13 Who is making the choices and leads the process? Top managers in PA as policy makers: Lisbon strategy, EES and National Reform Plans Top managers in PA as employer and manager: Employment conditions, organisational development and HRM How are they managed, selected and developed? What competences do they need?

14 Formal status and special conditions of Top managers in PA Special conditions for SCS No special conditions for SCS Formal SCS status No.1 With central SCS office: NL, UK BE, IT, MT, PL, PT, RO No.2 BG, CY, EC No formal SCS status AT, DE, EL,ES, FR, LU,IE DK, FI, SE, SI EE, LV, SK CZ, HU, LT No.4 No.3 No.5 Source: Kuperus & Rode

15 Central Competence profiles for Top managers In order to recruit the right people and to develop them, it s important to develop a profile for necessary competences (skills, knowledge & behaviour) for particular position(s) Career-based Hybrid Position-based Central Competence Profile + management training* BE, PT CY, IE, RO, EC BG, IT, LV HU, SI - EE, NL, UK, SE No central Competence Profile, but management training* EL, LU AT, FR, DE, LT, ES SK MT, PL CZ DK, FI * without entrance training Source: Kuperus & Rode

16 Elements of Competence profiles for Top managers Competences EE, BG, IE, UK, EC RO, FI, NL, ES BE, CY, IT, PT, SI Leadership Yes Yes (except RO) No (except BE, SI) Strategic vision Yes No No Achieving results Yes Yes (except NL) No Communication Yes No (except RO) No (except SI) Managing relations, people, HRM General management Yes Yes No (except BE) Yes Yes Yes Knowledge No No Yes Awareness/sensitivity BG, IE, NL BE Integrity/ethics EE, IE, UK NL - Judgement/decisional EE, IE, EC RO, NL - Innovation EE FI - Self reflection/learning UK NL - EU-orientation CY - SI Diversity/multicultural Source: Kuperus & Rode

17 Main Competences for Top managers Leadership - Establishing a vision - Can steer a group towards realisation - Leads on the management of change - Continue (own) learning and improvement - Builds and encourages team - Develops network of cooperation - Staff development & Motivation - Integrity & ethics Achieving results Communication Managing relations General management ± Knowledge (e.g. legal) ± Sensitivity, awareness ± Judgment ± Innovation ± European orientation - Diversity, multicultural

18 Preliminary Conclusions 1. Flexicurity approach, launched by EC, is mainly implemented on policy level (nationals plans Lisbon/EES) but not within PA in role of employer and manager 2. More long-term flexicurity elements are (going to be) implemented in position-based systems with Anglo-Saxon or Nordic (inc. NL) traditions with leaders 3. Most hybrid and career-based systems with continental tradition focus less on strategic competences of Top managers in PA and mostly implement short-term flexicurity elements 4. Recent crises challenges top managers to still think and act strategic (to anticipate on future demographic chance and migration) or to manage only short-term (budgetary) problems: slowdown of implementation, cutting numbers and salaries Note/Question: Will NPM, high mobility and performance related pay really support strategic thinking of top managers in PA?? Under which conditions?

19 Recommendations To increase the long-term responsiveness of PA to change and to avoid short-term reaction on crises, PA should show more strategic vision and management by developing: Anti-cyclic Labour market and Personnel policy (Investment) Further research: To develop better indicators to monitor the implementation of flexicurity elements in PA: project proposal with ES, LV& PL More systematic analysis of the relation between strategic choices of top managers, their competences and behaviour, and long-term strategy for reform of employment conditions Knowledge exchange: PA-reform Network: Current reform processes ESF-Age Network: Employability over working life-time

20 On the EUPAN agenda? Discussion: 1. Should this topic be put on the agenda of EUPAN? 2. In the new MTP under sustainable PA? But in which WG? 3. In HRWG related to: - Interface between policy and senior civil service - Survey on remuneration, career development and entry requirements in PA 4. In IPSG related to: - PA s contributions to growth and competitiveness - Different frameworks for measuring sustainability of PA 5. Or in other way: - Cross-cutting issue, relating several elements to each other: specific study - In Learning Team or follow up SD or...?

21 How can managers become leaders?

22 Thank you for your attention! Tel: +31-(0) (0) HKU/EIPA June 2009