Human Resource Management in Government: The Case of the Republic of Korea

Transcription

1 Human Resource Management in Government: The Case of the Republic of Korea International Roundtable on Civil Service Legislation, Systems and Reforms Hotel Bumikarsa in Bidakara Jakarta on March 17, 2009 Pan Suk Kim, Ph.D. Director & Professor of Public Administration Institute for Regional Studies and Development College of Government and Business YONSEI UNIVERSITY, South Korea or

2 Contents 1. Korea at a Glance 2. HRM Agency, Civil Service Law, and Civil Service Systems 3. Civil Service Reform 4. Other Related Reforms 5. Lessons Learned 1

3 1. Korea at a Glance 2

4 Republic of Korea: provincial-level governments 3

5 Structural Layers of Government Top (Central) Middle (Provincial- Level) Central Government (Ministry of Public Administration and Security) (MoPAS) 1 Special Metropolitan City 6 Metropolitan Cities 9 Provinces (Do) Bottom (Municipal Level) 77 Cities (Si) 86 Counties (Kun) 69 Autonomous Districts (Jachi Ku) 26 Districts (Ilban Ku) 3,588 Town/Village (Eup, Myon, Dong) 4

6 National Assembly and Political Parties National Assembly; unicameral system: 299 seats (245+54); 4-year term (women: ( 41 ( 60% ) Party: 180 Grand National ( 129 (increased from ( 27% ) Party: 81 Democratic ( reduced (significantly Liberal Forward Party: 18 Democratic Labor Party: 5 Creative Korea Party: 3 Independent: 12 5

7 President The President: Lee, Myung-Bak The Head of the State Office of the President Office of Prime Minister Prime Minister Ministries Administrations State Council Organs assisting President Organs assisting P.M The Head of the Executive Branch The Commander in Chief of the Armed Forces The Leader of the Ruling Party 5-Year Single Term ( ): Presidential Election: December 2007, 2012 Office of the President Presidential Secretariat Presidential Security Service 6

8 Reorganized in March

9 2. HRM Agency, Civil Service Law and HR Systems 8

10 Ministry of Public Administration and Security (MoPAS) 9

11 Legal Frameworks: Comparison Country Related Laws Korea National Civil Service Act (1949) Local Civil Service Act (1963) Japan National Civil Service Act (1947) Local Civil Service Act (1950) China Vietnam Ordinance of the Civil Service: 1993 Promulgated the Civil Servant Law: 2005 (effective in 2006) Ordinance of the Civil Servants and State Employees (1998) Promulgated the Civil Service Law in 2008 (Effective in 2010)

12 China Japan Korea Vietnam Civil Servant Law National Civil National Civil Civil Service Law Service Act Service Act 1. General Provisions 1. General Provisions 1. General Provisions 1 General Provisions 2. Qualifications, Obligation & Rights of Civil Servants 3. Positions and Ranks 4. Recruitment 5. Appraisal 6. Appointment and Removal 7. Promotion and Demotion 8. Awards 9. Disciplinary Action 10. Training 11. Transfer and Avoidance 12. Salary, Benefits and Insurance 13. Resignation and Dismissal 14. Retirement 15. Appeals and Complaints 16. Employment by Contract 17. Legal Liabilities 18. Supplementary Provisions 2. Central Personnel Management Agencies 3. Standards for Government Positions 3-1. General Rules 3-2. Position Classification 3-3. Examination, Appointment and Dismissal 3-4. Remuneration 3-5. Efficiency (appraisal and improving training programs) 3-6. Change in Employment Status, Disciplinary Action and Guarantee 3-7. Service Discipline (obligations and restrictions) 3-8. Retirement Pension System 3-9. Employee Organization 4. Penal Provisions 2. Central Personnel Management Agencies 3. Classification System of Position 4. Appointment and Examination 5. Remuneration 6. Efficiency (appraisal, training, reward) 7. Service (obligations and restrictions) 8. Guarantee of Status 9. Guarantee of Rights and Interests 10. Discipline 11. Penal Provisions 12. Supplementary Provisions 2. Rights, Obligations and Responsibilities of Civil Servants 3. State Management of Civil Servants 4. Election, Recruitment, Utilization and Management of Civil Servants 4-1. Election 4-2. Recruitment 4-3. Classification of Civil Servants and Regulations on Grades of Civil Servants 4-4. Training and Upgrading 4-5. Transference, Rotation, Secondment, Appointment, Removal from Position, Resignation 4-6. Civil Servant Appraisal 4-7. Termination, Retirement and Extension of Working Time beyond Retirement Age 5. Conditions for the Civil Service Operation 6. Civil Service Inspection 7. Rewards and Disciplinary Actions 8. Enforcement Provisions

13 Approach: Balanced or Skewed? Positive vs. Negative Dos vs. Don ts Reward vs. Penalty Assistance vs. Discipline Rights vs. Obligations (Duties)

14 Career vs. Position-Based System Career-Based System Belgium Germany Ireland Japan Korea Luxembourg Mexico Portugal Spain * Recruited at lower levels and move up in their career. Position-Based System Australia Finland Netherlands Ne w Zealand Sweden Switzerland UK USA * Open to external recruitment and direct applications to the specific post.

15 Grading of the Korean Civil Service Vertical Classification Grade 1 Assistant Secretary Grade 2 Director General Grade 3 (DG) Grade 4 Division Director Grade 5 Deputy Director Grade 6 Grade 7 Supporting Grade 8 Officer Grade 9 SCS Political Appointees: Ministers and Deputy Ministers Japan 14

16 The Scope of the Civil Service Law? The Ruling Party The Executive Body The Legislative Body Who are Civil Servants? The Judiciary Body Local Governments State-Owned Enterprises & Public Bodies

17 Workforce in the Executive Branch as of June Total Employees in the Executive Branch: 947,552 persons Number of Central Government Employees: 600,502 (63.4 %) including education (346,133), law enforcement (126,698), general service (94,429), and others (33,242) Number of Local Government Employees: 347,050 (36.6 %) Total Population: 48 million (estimated 2008) Ratio of Population/Gov t Employees = 51 : 1 Large or Small? 16

18 Compensation: Annual Salary of Government Executives (Unit: Korean 1000 Won) President 168,671 Prime Minister 130,761 Chair of the Board of Audit and Inspection (BAI) 98,927 Minister or Minister-Level 96,155 Deputy Minister or Deputy Minister Level 93,382 (MPs) 17 US President = $400,000 per year (it was $200,000 in ), US Vice President (2005) = 208,100, Speaker of the House = 208,100, US Senate/House = 162,100

19 Pension for Civil Servants Contribution from Civil Servants (8.5% of monthly pay) Payment from National or Local Governments (8.5% of monthly pay) 17 % of monthly salary is accumulated Pension Fund Management: Investment and Service Delivery Promulgated the Law on Civil Servants Pension in 1960 * This rate was increased several times over the years

20 3. Civil Service Reform 19

21 Civil Service Reform Vision Low expertise due to frequent rotation Expertise Openness Fairness Old System New Civil Service System High Competitiveedge Lack of Accountability & Responsiveness Closed System & Rigidity Autonomy Accountability 20

22 Major Civil Service Reform Tasks Management System Recruitment Method High Quality Workforce Centralized Decentralized Autonomy and choice Closed Open Right person in right position (FIT) Generalist Specialized generalist Competency with good leadership Performance Management Government Culture Seniority-based Performancebased Hierarchical, one-way communication innovative & proactive, two-ways 21

23 Improvement of Recruitment Methods Open/Competitive Recruitment Examination Exam for Grade 5 ( Fast Track): 3 rounds (1) Public Service Aptitude Test (PSAT) + (2) Essay Test + (3) Interview (intensive interview including structured blind interview): what did you do? The PSAT consists of 3 parts: the Linguistic and Logical Ability Test the Data Interpretation Ability Test, and the Circumstantial Judgment Ability Test Exam for Grade 7 technical level Exam for Grade 9 entry level 22 * Transformation from KSA Model to KSAV Model

24 Open Position System: External Competitive Recruitment - Past: Closed personnel system Vacancies were filled mostly through internal promotion - Now : More open system to the private sector Many senior positions are now occupied by outside experts. External experts are encouraged to be employed. 10/19/08 23

25 Job Posting System: Government-wide Recruitment - Vacant positions are posted for recruitment from entire civil service, not just from the relevant Ministry. - All eligible civil servant is encouraged to apply for the posted position. - Applicants are interviewed by the selection committee Participating Ministries Number of Jobs Posted ,139 24

26 Staffing Senior Civil Service (Effective on July 1, 2006) Expanded System by open competitions - (e.g.) Open Position System + Job Posting System + Agency Flexibility Core Qualification Prospective senior managers : Successful completion of SCS Candidate Development Programs and Certification of Competence Past Today Grade1 Grade2 Grade3 Grade4 Screen Screen Screen Screen Candidates From private sector Screen Senior Civil Service Screen Division Directors 25

27 SCS s Pay Scheme Job and Performance related Pay Differentiated pay scheme based on difficulty and importance of the job and position Continuous extension of performance-related pay - increased portion of performance-related pay (PRP) Annual Salary Maximum Accrues to the next year s base pay SCS Minimum Base Pay + Job Pay + Performance Pay 26

28 Performance Appraisal for Higher-Levels: Performance Agreement 27

29 Performance Appraisal for Mid- and Low-level Officials Job performance: - job difficulties - completeness - timeliness, etc... Job-fulfilling abilities: - planning - communication - cooperation - customer-orientation, etc...

30 PRP Schemes Performance-Related Pay (PRP) Schemes Annual Merit Increment Program (AMIP) Performance Bonus Program (PBP) Contents Yearly stipend system; applied to director-general and above; and increased variable proportion of pay is added to the fixed portion of the following year Lump sum bonus; and applied to division director and below

31 SCS s Performance-Related Pay Frame: Annual Merit Incremental Program Appraisal Grade Excellent ( S (Grade Outstan -ding ( A (Grade Normal ( B (Grade Unsatis- Factory ( C (Grade Payment Scope Performance Pay Rate Top 20% 30% 40% Bottom 10% 15% 10% 5% 0% Ideal vs. Reality ( Field (Textbook vs. 30

32 Utilization of Performance Records: Toward more performance-based employment practice? Performance Information Annual Performance Appraisal Policy Appraisal Competency Appraisal Audit Result Press Coverage Co-worker interview Accumulation of record Individual Performance Record File Personnel Policy Support System HR Database for Public Service Application of record Recommendation & Nomination Data for promotion Data for Careerdevelopment and training

33 Establishment of HR Database 32 One-stop Portal for Civil Service Entrance Examinations:

34 Competency Assessment and Leadership Development Horizontal Dimension: Communication Customer Orientation Vertical Dimension: Vision Coordination & Integration Working: Result Orientation Professionalism Innovation Thinking: Cognitive Comprehension Strategic Thinking Comparison American SES: Core ( ECQs ) Qualifications - ECQ 1: Leading Change - ECQ 2: Leading People - ECQ 3: Results Driven - ECQ 4: Business Acumen - ECQ 5: Building Coalitions British SCS: Leadership Qualities for the SCS 33

35 HRD Innovation Better Training and Development * The performance of the training institutes has been improving Central Officials Training Institute (COTI) 34

36 Personal Capacity Building: Leadership Development Executive Development Course (EDC) Business Management Course (BMC) How many hours per year? Up to 100 hrs? In what ways? Manager Development Course (MDC) Advanced Manager Course (AMC) Who: Experienced managers currently with or new to GE, and with direct reports New Manager Development Course (NMDC) Who: Newly appointed managers with direct reports Foundations of Leadership (FoL) Who: High potential individual contributors with peer leadership responsibilities New Competencies: coordination/collaboration, integration, conflict resolution, tolerance 35 for diversity and ambiguity, persuasive leadership, external awareness, political savvy..

37 4. Other Related Reforms 36

38 Innovation of Presidential Personnel for Political Appointees The office in charge of political appointments should SELECT the best candidates for vacant executive positions need institutionalization of presidential personnel The President/the Prime Minister must GUIDE them to get policies implemented Political appointees need to develop their competency in taking HRD or orientation programs Provide HRD (training/workshop/seminar, references, guidebooks) otherwise, they may fail Furthermore, a performance EVALUATION system for political appointees should be developed for their selfdiscovery and professional development

39 Political Appointment Innovation Established the Office of Secretary to the President for Personnel Affairs i n the Office of the President ( Vacancy Identify candidates Candidates don t apply Candidates apply: Systemization Screen candidates against criteria Candidates drop out Select/Nominate appointee Candidates decline ( members Execute Hearing process for cabinet Candidates drop out Screening: Expertise, Financial Disclosure, Morality, Integrity, Conflict of Interest... Position filled Appoint appointee 38

40 Personnel Screening for Political Appointees: Ethical Leadership (1) Process-based Personnel Screening: start from financial disclosure Recommendation Screening Hearing ( Members (Cabinet Appoint Expertise Competency Morality, Integrity, Conflict of Interest Expertise, Morality Conflict of Interest Real Estate Speculation? Plagiarism? (2) Content-based Personnel Screening Personnel Screening Competency Morality Conflict of Interest Political Screening Task capability: positive factors Morality, Integrity: negative factors Conflict of Interest Political career, orientation, etc

41 Anti-Corruption & Civil Rights Commission (ACRC) 1981: Promulgated the Public Service Ethics Act 2001: Promulgated the Anti-Corruption Act 2002: Established the Korea Independent Commission Against Corruption (KICAC) 2008: Consolidated 3 agencies: KICAC with the Ombudsman and the Administrative Appeals Commission Corruption = Monopoly + Discretion Accountability Transparency Compensation 40

42 5. Lessons Learned 41

43 The State of the Civil Service Past: HR systems have been different in the public and private sectors Present and Future: Move towards Normalization Normalization means a process where employment procedures and conditions gradually become more like those existing in the private sector HRM in government and business becomes similar! This process is sometime called flexbilization.

44 What Does Normalization Mean? A shift from statutory to contractual or managerial governance of the employment conditions A career-orientation can be gradually replaced by a position-orientation Positions above the entry level can be opened up for external recruitment Pay differentials between different skills, tasks and workplaces tend to increase

45 Question: How to get there? (1) Jumping to the top? or (2) Climbing up the ladder?