UNLOCKING THE HUMAN

POTENTIAL FOR PUBLIC SECTOR

PERFORMANCE

WORLD PUBLIC SECTOR REPORT 2005

PRESENTERS

 Ailiya Rizvi Roll # 9

 Shabnam Ameen Roll # 11
 MAIN TOPICS TO BE COVERED IN THIS
PRESENTATION
 Introduction & Purpose of the report
 Structure of the report
 Methodology
 Main findings/ Results
 Analysis of the findings
 Evaluation of the process in terms of the SHRM approach.
 Application of the concept to Pakistani Context.
 INTRODUCTION OF THE REPORT

 There is an urgent need for the development of HRM to cope with external and
internal pressures .
 To increase the efficiency and performance , numerous policies and practices have
been initiated in public sector organizations.
 However, a strong relationship has been seen between HRM quality in public
sectors and performance of government .
 In government sector, HRM has wide importance, it contributes to positive impact
on government budgets, and further it leads to how employees can improve the
efficiency of an organization.
 CONTD

 Governments always try to figure out some modern reforms of public

administration, however without competent, and dedicated public servants, it is not
possible to perform this role effectively.
 Currently many governments are putting their efforts to search for new reforms in
HRM, public sector and management.
 United Nations report in this regard supports that there needs to be a balance
between three wider school of thoughts or models in public administration, named
as traditional public administration, public management including new public
management (NPM) and a model of governance.
 CONTD

 Traditional public administration was started with the emergence of civil system
that was rule and procedure based.
 Public management focuses on efficiency and results. The globalization of public sector
reform is an example of NPM (New Public Management). It focuses on
performance of staff and status of employees.
 Governance models heavily consider citizens as stakeholders. Responsive
governance can be found in the United States. While traditional public administration
is yet to be institutionalized in many countries.
 PURPOSE OF THE REPORT

 The report focuses on the roles and functions played by HRM in organizations to
improve the performance and effectiveness. of public sector.
 The purpose of this report is to find out some important trends, models and related
perceptions that have created an impact on HRM practices around the world in
recent decades.
 Furthermore, it points out the variety of principles and values that have played a role
in strengthening the HRM systems
 CONTD

The subject of the report “Unlocking the Human Potential for Public Sector
Performance” is most relevant and applicable when managers and leader of the
public sector organizations in both developing and developed countries realize that
there is a strong connection between HRM professional management and
effectiveness of government.
 RECOMMENDATIONS

 HRM has to be professionalized,.

 Government should make appointments on merit basis to increase the effectiveness.
 To improve the performance of public servants, adequate pay should be given to
government employees.
 If the managers monitor the performance of their workforce (performance
Management) it can increase the efficiency of public sector.
 Outsourcing could lead to effectiveness as well only if proper regulations have been
adopted in the process.
 STRUCTURE OF THE REPORT

Composition of ideas and practices are organized in the form of chapter structure
and writing style. The report has elaborated the approaches based on Public
management, New public management (NPM) and responsive governance that
enable the human potential to be unlocked within organizations
STRUCTURE OF THE REPORT

Ch 1: The globalization
of public sector reforms
Ch 2: Human
Ch 6: Promoting resource
organizational learning in management and
the public service government
performance

Ch 5: Managing Ch 3: Socio-
people as a strategic economic challenges
choice facing HRM
Ch 4: The
mixed results
of HRM
reforms
 CONTD

Chapter: 1
 It provides the attributes of three models: traditional public administration, public
management, new public management and responsive governance.
 HRM reforms are based on these three models. The model highlights the essential
values to overcome the challenges of HRM. Hence HRM should be evolved
according to the attributes of these three models.
 The report depicts that the new evolved HRM can contribute in the
professionalism of public services.
 CONTD

Chapter: 2
 It is about the quality of human resource management and its impact on government
performance.
 HRM reforms should be developed according to the current needs and requirements
of the nation rather than adopting the best practices.
 HRM reforms vary from country to country.
 Some countries develop the legal framework and make the HRM policies accordingly
and ensure that if the policies are being followed.
 CONTD

Chapter: 3
 It explains the socio economic pressures on the evolvement of HRM in the public
sector.
 The report highlights three important challenges which have an impact on HRM.
 First is demographic shifts and ageing population second is labour migration and
last but not the least the report looks at the effects of HIV/AIDS on public sector
management especially in sub-Saharan Africa.
 CONTD

Chapter: 4
 It explains the structural arrangements of public sector in many developing
countries for example downsizing or outsourcing.
 The chapter also focuses on devolution of HRM for the developing countries
when the responsibility transfers to line managers.
 The consequences of issues related to labour relations and diversity
management are also briefly discussed in the chapter.
 CONTD

Chapter: 5
 It discusses some fundamental strategies and core principles for effective HRM in
the public sector.
 Other section of this chapter is on legal reform and the need for merit based
appointments and rightsizing are exposed in sufficient detail to comprehend the
options available to policy makers.
 HRM and decentralization issues, however, remain under exposed.
 CONTD

Chapter : 6
 It is on promoting organizational learning in the public sector.
 It points out that many researchers believe that governments don’t have the
ability to cope with the rapid changes of the environment.
 They find it difficult to spot the problems at an earliest stage and making an
effective policy and programs to rectify the problems, this whole phenomenon
eventually leads to failure of public sector.
METHODOLOGY

Research Onion
 CONTD

 The report is based on quantitative study and surveys have been conducted for collecting
the enriched data.
 Expert’s opinions are taken by using survey as a source of data from different countries.
 The data consists of the International Country Risk Guide that includes between 97 to
140 countries and the State Capacity Survey that includes between 97 and 129 countries.
 Initially, James E. Rauch and Peter Evans carried out a survey for 35 countries.
 Later on, to cover a wider area, 16 African countries were added by United Nations
University.
 CONTD

 Out of 51 countries 45 are developing countries.

 Quantitative analysis is carried out on the basis of data sets gathered from surveys.
 The tool of linear multiple regressions are chosen to apply on cross-country data.
 Other sources for example International Monetary Fund, OECD and the World Bank
reports were also consulted for the purpose of analysis.
 The analysis measures the impact of selected variables on the quality and integrity of
the public service and on the prestige of public sector employment.
 MAIN FINDINGS

 Professionalism of civil servants was observed as the researchers consider it an

excellent predictor for the quality and integrity in the public service sector and the
effects are observed positive constantly.
 Legal remuneration was analyzed in both public and private senior officials and it
is more positive for public officials on bureaucracy and integrity.
 CONTD

 Extra legal remuneration is negatively correlated of public officials. The

reason is that, there is absence of significant impact of extra legal remuneration
on the bureaucracy quality in the public sector.
 Entrance examinations provide a weak evidence for positive effect on
bureaucratic quality. The reason is that there is no relationship seen between
examinations and integrity.
 CONTD

 New Public Management (NPM) measures the high level personnel mobility
between both sectors. NPM puts positive impact on equal pay which encourages
officials’ mobility between two sectors.
 A strong relationship between public sector wages and public sector
employment is seen which controls the development levels and purchasing power
parity. We have observed a negative association for public sector employment, control
variables, and per capita income
 SUMMARY OF THE STATISTICAL FINDINGS

 Professionalism has positive effect on quality and the integrity.

 Salaries pose relatively low effect on integrity; however, its impact on integrity is much stronger.

 Extra legal remuneration (bribes) has no significant correlation with public service quality.

 NPM is not a significant determinant for the quality and integrity in case of civil services.

 There is a strong trade-off between wages level and number of employees.

 There is a weak underlying data.

 RESEARCH LIMITATIONS

 Firstly, it has excluded the non-wage remunerations like pensions and automobiles;
however, there are pretty much chances that their value is more than the basic salary.
 Secondly, the public sector definition varies country wise and duration wise.
However, the author has analyzed and interprets the information accordingly to get
detailed information on remuneration to public servants.
 EVALUATION OF THE PROCESS IN TERM OF THE
SHRM APPROACH

 Vision realization in report is made based on the series of

recommendations in developing countries. The recommendations were
professionalizing HRM toward strategic specialization, merit appointment,
balancing motivation, equity and ability to pay, performance management,
outsourcing, NPM, and the leadership management.
 CONTD

 Mission is not clearly mentioned in the report; however, after reading the
report; however, the reports focuses on improving the SHRM and
recruitment and selection practices particularly in developing countries.
 In term of strategic objectives, the report focuses on the critical role of
people and HRM for effective public administration.
 CONTD

 In term of long-term focus, we can say that the report was built in 2005
and its determinants are still applicable.
 Collaboration aspect has also been highlighted in detail and even the
report was prepared after the collaboration with different teams to improve
the research findings.
 CONTD

 The inclusion criterion is also very clear; the report focuses on the
traditional public administration, public management and new public
management.
 The report does not highlight the integration aspect in detail; however, it
focuses on the global integration of labour market which is modest.
EVALUATION OF THE PROCESS IN TERM OF SHRM
PERSPECTIVE
Strategies Evaluation

Vision Very well explained and clearly defined vision

Mission Not clearly mentioned; drawn from reading

Objectives Very well defined

Long-Term Focus The report has long term focus in positive direction

Collaboration Collaboration aspect is mentioned in detail

Inclusion Inclusion criteria are quite understandable.

Integration The report lacks in detail integration analysis

 APPLICATION OF THE CONCEPT IN
PAKISTANI CONTEXT
 The report focuses on the SHRM perspective in public and private context in African
and non-African countries.
 This concept is applicable in Pakistani context.
 Considering SHRM aspects, Sui Northern Gas Pipeline Limited (SNGPL)
focused on hiring, training, appraisal and compensation.
 SNGPL operates in bureaucracies and is habitual to work with rules, regulations and
long procedures in order to manage the hierarchical relationships.
 CONTD

 Being public company, there are huge references and influences in selection and recruitment
decision which shows an inconsistency between hiring policies and practices.
 In term of training, the analysis of improvement in employee productivity is not measured.
 Reward system in SNGPL is also faulty, because, the system is not well applied and
employees are not given reward based on their performance. Salaries are fixed at different
levels.
 The promotion concept is applicable in case of all employees. Promotion is based on merit;
however, use of references and close relations are also reported.
 GAP ANALYSIS IN FORMALIZED AND
OPERATIONALIZED HR PRACTICES IN SNGPL
HR Practices Formalized HR Practices Operationalized HR Practices

Recruitment Merit based Use of references and contacts

Training Analysis, schedules, career development Weak need analysis, non-measurable productivity, no formal policy

PE KPIs, MBOs, open discussion Not well-defined KPIs, PMS is applicable in executive carde

Compensation Variable pay based on performance Pay on executive carde only

Promotion Seniority and rating Reference and influence

 CONCLUSION

 It can be concluded that the results of World Bank (2005) report are applicable in the Pakistani cultural
context; as, the report also states that developing countries are still struggling in improving the SHRM
practices.
 The reason is that, the concept of bribery, influence, and references refrain the companies to implement
SHRM practices effectively.
 There is a need to re-evaluate this concept in order to improve the performance level in public sector and
make them a competing organizations in international context.
 The report also reveals the presence of minic isomorphism presented in the public enterprises. In such
cases, HR practices are not effective in improving performance of public organizations, until these reforms
are implemented practically.
THANKYOU.