HUMAN RESOURCES MANAGEMENT

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1 Distribution: Restricted REPL.VII/3/INF.2 15 June 2005 Originl: English English IFAD Consulttion on the Seventh Replenishment of IFAD s Resources Third Session Rome, 5-7 July 2005 HUMAN RESOURCES MANAGEMENT 1. At the Second Session of the Consulttion on the Seventh Replenishment of IFAD s Resources held on April 2005, the issue of humn resources mngement ws recognized s importnt in the context of the replenishment negotitions. This pper provides informtion on the ongoing humn resources mngement reforms. Bckground 2. On 27 September 2001, the President estblished n internl Review Committee for modernizing humn resources (HR) policy nd procedures. The objective of the review ws to propose modern, cler nd trnsprent set of rules, policies nd procedures tht supported the Fund s overll objectives. The committee hd the mndte to review four distinct res of HR policy nd procedures: recruitment; creer development; performnce evlution; nd recourse nd ppels. The committee concluded tht modernizing HR prctices should be supported by three pillrs: (i) dynmic nd strtegic HR function; (ii) modern policies nd procedures; nd (iii) qulity nd ledership cpcity of mngers. In 2003, the Office of Humn Resources (FH) submitted n ction pln to senior mngement on the pproch to nd the timing of the work on the three pillrs. Given the chnges tht stff hve experienced in the lst decde, n incrementl pproch ws tken to implementing the reforms recommended by the Review Committee. In order to ddress the three bove-mentioned pillrs, the following ctions hve been tken: Due to resource constrints nd environmentl concerns, IFAD documents re produced in limited quntities. Delegtes re kindly requested to bring their documents to meetings nd to limit requests for dditionl copies.

2 (i) Develop dynmic nd strtegic humn resources function The development of dynmic nd, most of ll, strtegic HR function requires progressive shift in the rnge of services nd in the pproch tht the HR function needs to provide to IFAD by moving towrds new services tht do not hve primry dministrtive focus, but support strtegy implementtion. Some progress hs been chieved in shifting to strtegic focus nd improving HR function credibility in this role through such inititives s: HR officers hve enrolled in trining courses to improve their skills, complemented by coching sessions nd involvement in new inititives; nd competencies hve been introduced in the selection process nd/or in trining. To enble the shift towrds dynmic nd strtegic HR function, the following vribles re being monitored continuously nd ddressed: building strtegic competencies of HR professionls; ensuring tht the HR mngement system hs strtegiclly ligned policy nd procedures; supporting behviours ligned nd focused to strtegy; nd reducing the burdensome trnsctions tht the division processes, creting time for it to focus on its strtegic role. (ii) Modernize humn resources policies nd procedures In its new strtegic role, the HR function will mximize the contribution tht humn resources mke to development effectiveness. It is the bility to embed HR mngement within the Fund s lrger strtegy implementtion process tht will hve the gretest influence on development effectiveness. IFAD is ddressing this requirement by, mong other ctions, providing the competencies demnded by strtegy implementtion; linking selection nd promotion decisions to competency development; designing nd implementing compenstion nd rewrd policies tht ttrct, retin nd motivte highperforming stff; nd ensuring tht the work environment is supportive nd enbling. Since presenting the HR ction pln to senior mngement, HR policy nd procedures hve been ligned. The HR policy ws reviewed nd simplified to direct HR mngement t IFAD towrds high performnce nd crete coherent whole. A consulttive process led to the formultion of the HR policy: drft policy nd procedures were circulted to ll stff for comments; comments were reviewed nd chnges were incorported, where pplicble. Policy nd procedures re prt of the HR system tht, when implemented consistently, will guide stff behviour, thereby leding to culturl trnsformtion over time. The Executive Bord pproved the HR policy on 9 September Procedures to support the policy hve been developed nd will be issued in HR policy, procedures nd prctices hve gret leverge on the moulding of corporte work culture. Workshops re therefore being orgnized to crete wreness nd 2

3 understnding of the new policy nd procedures, nd to foster corporte culture. IFAD hs, in prticulr, focused on nd delivered mjor stremlining ctivities, which hve been integrted with the introduction of new methodologies on the following processes: () Mnging sound recruitment process HR procedures provide for plnning nd needs ssessment mechnism bsed on strtegic nd opertionl needs; opening of ll vcncies to ll stff; nd necessry checks nd blnces to ensure timely, fir nd trnsprent recruitment. IFAD mngement hs developed n IFAD mngement competency frmework for recruitment nd development purposes. To improve the recruitment process, IFAD is using Trgeted Selection methodology, which is competency-bsed technique tht helps interviewers mke objective nd sound selection recommendtions. (b) Creting, mnging nd monitoring creer development system for ll stff The HR function hs ddressed this re by creting specific creer development focus within the HR policy, putting competencies nd the mens to ssess competencies in plce, identifying strengths nd weknesses, nd enbling stff mobility nd secondments. IFAD hs enbled secondments nd llowed stff to tke specil leve without py to work t other United Ntions gencies, the World Bnk, the Europen Commission nd Consulttive Group on Interntionl Agriculturl Reserch centres. (c) Introducing performnce-bsed evlution for ll stff To implement the HR mngement strtegy successfully, IFAD needs to ensure tht n effective performnce mngement system is in plce to: devise fir nd consistent methods of mesuring performnce ginst greed mesures, trgets nd stndrds; integrte performnce mngement from corporte to deprtmentl to divisionl to individul plnning nd objective setting, nd finlly to monitoring nd evlution; develop cler guidelines on py progression nd cost control; mesure nd rte performnce; hve joint ssessments, greements of performnce nd individul development needs; nd rewrd good performnce while deling with poor performers. 3

4 An improved performnce mngement system, developed s prt of the HR policy, ws introduced in The new system mesures results chieved, competencies developed nd client feedbck. Client feedbck will lternte with competency development nd be ssessed every other yer. Modlities for client feedbck hve not yet been greed upon nd will be developed in the second hlf of Eighty-five percent of stff ttended workshops for skill enhncement in performnce mngement, which were orgnized in Mrch nd April FH will review impct nd evlute whether further enhncements in performnce mngement re required, especilly in the re of competency evlution. (d) Mnging sound recourse nd ppels procedure IFAD hs developed HR policy nd procedures for mnging recourse nd ppels process tht hs been greed upon with stff. (iii) Qulity nd ledership cpcity of mngers Work is in progress to: identify individul development needs in the Mngement Development Centre, which will then be collted nd ddressed by end-2005; continue to use IFAD mngement retrets s forums to discuss mngement nd ledership issues nd to gree upon solutions; focus ll job interviews for mngeril positions on mngeril competencies using Trgeted Selection methodology; nd pln, fter completing the ssessments for development needs, to strt mngement nd ledership development progrmme for stff with high potentil. IFAD is seeking to improve the qulity of its mngement style by hving mngers who believe in nd prctice corporte vlues, re firmly convinced tht mnging people is the essence of their job, ccept nd dpt to chnge, nd demonstrte ledership qulities. Other Mjor Inititives (i) Mngement Development Centre 3. An dditionl mjor inititive in this direction is the decision mde by the three Romebsed United Ntions gencies to set up common Mngement Development Centre to improve mngeril competencies mong their stff. The centre s objectives re to: ssess stff competency levels; determine stff development needs; pln nd implement the relevnt development; nd fcilitte the building of more effective mngement style. 4

5 4. The IFAD mngement competency frmework, linking to the Interntionl Civil Service Commission (ICSC) Senior Mngement Service, hs been used to develop ssessments. To dte, 13 director-level nd 3 mnger-level ssessments hve been crried out, nd the remining ssessments re expected to be completed by end Following ssessments, personl development plns will be put in plce so tht directors nd mngers develop in identified res. 5. Feedbck from prticipnts hs been excellent prticulrly with reference to: customiztion of the Mngement Development Centre to the United Ntions context; the opportunity to interct with prticipnts from other gencies; nd the provision of individul feedbck to prticipnts. 6. This project ws supported by the Deprtment for Interntionl Development, United Kingdom, from its design nd pilot testing phse to the scheduling of the fourth session. The three gencies will shre future mintennce costs. (ii) Pilot Study 7. IFAD prticiptes in the United Ntions common system of slries nd benefits. The ICSC is reviewing the py nd benefits system, nd IFAD is prticipting, together with the Joint United Ntions Progrmme on HIV/AIDS, the United Ntions Development Progrmme (Copenhgen) nd the World Food Progrmme, s piloting orgniztion (see nnex for detils of the study). If testing of this model is successful, IFAD will be ble to continully develop competencies nd py vrible increses to performers, thereby recognizing nd motivting good performers. IFAD is plesed to tke prt in the pilot study nd welcomes the opportunity to implement HR mngement strtegy tht would not hve been possible under the current py nd benefits system. 8. As consequence of the pilot study, in 2005 FH will test the py-for-performnce system nd introduce the brod-bnded py system to enble the flexible progression of stff through bnds, minimize hierrchies nd encourge self-mnged lerning through the use of personl development plns s prt of the performnce mngement process. Being prt of this pilot study is further evidence tht IFAD s HR pproch is proctive not only internlly but lso within the entire United Ntions context. 5

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7 ANNEX Pilot Study for the Review of Py nd Benefits Reforming Job Evlution 1. The objectives of reforming the job evlution methodology were to correct the deficiencies in the previous system nd support more holistic pproch to HR mngement. Substntively, the previous system () did not dequtely evlute some highly technicl jobs; (b) ws too hierrchicl nd control-oriented, not recognizing temwork or other forms of orgnizing work; (c) impeded deployment of stff resources nd stff mobility; nd (d) did not support competency development. With regrd to form, it ws: () too dministrtively cumbersome; (b) lbour-intensive nd time-consuming to use; (c) rigid nd inflexible; (d) not sufficiently trnsprent; (e) slow nd unresponsive; nd (f) too complex nd difficult to explin. It lso required too much expertise to run properly (technicl experts in job clssifiction were needed t cost of USD 300 per job) nd ws too contentious. 2. The new design of the points rting job evlution system is utomted nd ddresses these problems by: () retining the seven-grde structure while simplifying the process by moving from 6 grde-determining fctors to 4 nd from 15 evlution elements to 7; (b) providing direct linkge to orgniztionl structures; (c) simplifying job descriptions, focusing on key deliverbles rther thn on n extensive list of process-oriented tsks, nd including competency profiles; (d) supporting holistic pproch to HR mngement by integrting performnce nd competency objectives; nd (e) cpturing the texture of new work environment with less emphsis on hierrchy nd more vlue plced on innovtion nd prtnership-building. 3. The new methodology ws tested, vlidted nd promulgted effective 1 Jnury The stndrd, which is pssword-protected, is ccessible from the ICSC website. 4. IFAD HR officers were trined in this methodology in 2003 nd hve now chnged over to it. This hs resulted in svings of USD 300 per job clssified, nd lso greter efficiency nd effectiveness. Brod-Bnding/Performnce Py 5. The new system groups current grdes into brod slry bnds. Generlly there re no steps between the minimum nd mximum py for the bnd. The system provides for creer development strems nd enbles orgniztions to use jobs nd deploy stff in mnner tht is more ligned with progrmme demnds. Accordingly, the brod-bnding pproch is more responsive to the mngement of work, including temwork. It permits mngers to shift the duties nd responsibilities of their stff to meet new requirements nd priorities. It ccommodtes the simplifiction nd stremlining of the job clssifiction system, requiring more generic description of work t ech level. Accordingly, it reduces the focus on job clssifiction nd the need for numerous job clssifiction specilists. Lterl job chnges re mde without the need to reclssify jobs. Verticl job chnges re fewer, since the chnge in job duties nd responsibilities must be significnt before chnge from one bnd to nother is wrrnted. Brod-bnding involves less centrl stff control nd delegtes more in the res of mngement development nd trining. It lso plces less emphsis on job-to-job comprisons nd permits redefinition of py equity to include mesure of how well job is performed rther thn just ensuring tht duties nd responsibilities re equivlent. 6. A key reson to dopt brod-bnding is to recognize the world of work s it currently exists. The bility to deploy stff in non-hierrchicl structure permits rrngements tht 7

8 ANNEX fcilitte the chievement of results. The bility to move stff through bnds bsed on mesurements other thn time-bsed ones permits link to py-for-performnce. Brodbnded systems, where they exist, generlly operte in the context of py-for-performnce. 7. At its Fifty-Sixth Session, ICSC decided tht only one brod bnd should be pplied to the entire common system. This ws necessry to preserve the integrity nd cohesion of the common system. 8. The ICSC selected three models to be tested, which were designed to ddress the individul circumstnces of the pilot gencies s shown below. Slry structure Evlution for determining py Evlution nd py decisions *IFAD will pilot Model 1. Model 1* Model 2 Model 3 Brod Bnd Bnd 1 P1, P2 Bnd 2 P3, P4, P5 Bnd 3 D1 nd D2 Brod Bnd Bnd 1 P1, P2 Bnd 2 P3, P4, P5 Bnd 3 D1 nd D2 - Performnce - Competency development - Client feedbck Performnce evlution will be crried out nnully nd py decisions mde every yer, with fixed nd vrible percentge increse pplying to relevnt rting ctegories - Competencies - Client feedbck Performnce evlution will be in ccordnce with the orgniztion s current evlution cycle, with fixed nd vrible percentge increse pplying to relevnt rting ctegories Retin the current 7 grde structure with no step increments - Competencies - Client feedbck Performnce evlution will be done with fixed nd vrible percentge increse pplying to relevnt rting nnully in ccordnce with the orgniztion s current ctegories 9. If testing of this model is successful, IFAD will be ble to continully develop competencies nd py vrible increses to performers, thereby recognizing nd motivting good performers. Attitude survey 10. Since the inititives in the pilot study represent significnt chnges in HR sub-systems, implementtion needs to be monitored closely nd mesured to determine success in chieving the plnned outcomes nd to mke necessry improvements where required. To monitor nd mesure the study s success, IFAD relies on informtion provided in performnce evlutions, increments pid, grievnces filed, development progrmmes nd responses received from the ttitude survey nd client feedbck. 11. The ICSC hs commissioned third-prty evlutors, Attitude Resources, to conduct the ttitude survey, nd nlyse nd report on its results. 12. Most dt will be collected from FH records. However, stff prticipted in n ttitude survey in lte 2004-erly The survey will be conducted nnully to monitor progress. 13. The sme ttitude survey will be dministered t ll prticipting pilot orgniztions; results will be compred, discussions will tke plce on res for improvement nd lessons will be shred on necessry improvements nd pproches. 8

9 ANNEX 14. The success criteri for the pilot study hve been discussed nd greed on s follows: ese of use of the new system; stisfction of stff with the system/perceived flexibility; reduction in the number of grievnces/disputes; use of competencies for ll HR pplictions; perceived relevnce of competencies to positions; perceived ccountbility of supervisors; perceived firness of clssifiction uthority; employee perceptions of qulity supervision; py-performnce correltions; perceived py-performnce link; turnover by performnce rting ctegory; performnce rting distribution; py progression by performnce rting; perceived firness of performnce rtings; employee trust in supervisors; dequcy of performnce feedbck, nd communiction of expecttions; nd linkge of individul performnce plns to strtegic plns/gols. 9