Prepared for delivery at the International Conference on Civil Servants’ Performance Appraisal in Issyk-Kul, Kyrgyz Republic on August 25, 2015 Pan Suk.

Prepared for delivery at the International Conference on Civil Servants’ Performance Appraisal in Issyk-Kul, Kyrgyz Republic on August 25, 2015

Prepared for delivery at the International Conference on Civil Servants’ Performance Appraisal in Issyk-Kul, Kyrgyz Republic on August 25, 2015

Pan Suk KIM

Professor of Public Administration

President, Asian Association for Public Administration (AAPA)

Fellow, National Academy of Public Administration (NAPA), USA

Yonsei University, Wonju Campus, South Korea

[email protected]

Pan Suk KIM

Professor of Public Administration

President, Asian Association for Public Administration (AAPA)

Fellow, National Academy of Public Administration (NAPA), USA

Yonsei University, Wonju Campus, South Korea

[email protected]

Performance Management: Need High Performers

2

If we can not see success, we can not reward it.

If we can not reward success, we are probably rewarding failure.

Necessity of Performance ManagementNecessity of Performance Management

Improvement of administrative performance

Improvement of administrative performance

Strengthening of the government’s competitiveness

Strengthening of the government’s competitiveness

Effective allocation of national resources

Effective allocation of national resources

Administration focused on

input and process

Output- and outcome-oriented

administration

Paradigm ShiftParadigm Shift

CountryCountry Related LawsRelated Laws

South South KoreaKorea

National Civil Service Act (1949)Local Civil Service Act (1963)

JapanJapanNational Civil Service Act (1947)Local Civil Service Act (1950)

ChinaChinaOrdinance of the Civil Service: 1993 Promulgated the Civil Servant Law in 2005 (effective in 2006)

VietnamVietnamOrdinance of the Civil Servants and State Employees (1998) Promulgated the Civil Service Law in 2008 (Effective in 2010)

* * HRM & HRD HRM & HRD OrganizationsOrganizations should be professionalized should be professionalized

Legal Foundations: Asian examplesLegal Foundations: Asian examples

Organizational Foundation• Need a ‘Central Personnel

Agency”(separate ministry or commission for public personnel administration)

• South Korea: Ministry of Personnel Management (MPM: www.mpm.go.kr)

• Japan: National Personnel Authority (NPA; commission-type: www.jinji.go.jp)

• China: Ministry of Human Resources and Social Security (MOHRSS: www.mohrss.gov.cn)

5

Core Laws and Decrees

• Civil Service Law and Its Follow-up Decrees:

• Performance Appraisal

• Compensation (pay, allowances, and benefits)

• Others6

Two Levels of PM SystemTwo Levels of PM System

It could be evaluated in terms of - major policy execution, - financial performance, and - other key areas:

personnelorganizatione-governmentquality of public serviceinnovation, etc.

Organization-Level PMOrganization-Level PM

Individual-level Performance Appraisal (or evaluation) Systems in South Korea:

- Performance agreement: manager or higher-level officials

- Graphic rating scale method: middle and lower-level officials

- Supplementary methods: 360-degree (multi-rater) feedback, etc.

Individual Level PMIndividual Level PM

Performance Appraisal based on Performance Agreement

10

Performance Goals

Appraisal Indicators

Major Performance

Indicators

(measuring

methods)

Tasks Results

Rater's Comments※ Job execution, organizational management, etc.

This kind of performance appraisal system is based on the following two areas:

(1) One’s job performance (50 points)

(2) Job-fulfilling abilities (50 points) in terms of planning, communication, execution, cooperation, timeliness, teamwork, innovation, citizen-orientation, etc.

Graphic Rating Scale Method Graphic Rating Scale Method for Middle and Lower-Level Officialsfor Middle and Lower-Level Officials

Application of Appraisal Results Meritocracy: Promotion and Pay

• Promotion Formula (Y) = A + B

• A: Performance Appraisal (70%)

• B: Work Experience (30 %)

• Note: The proportion of “A” can be used from 70% to 95 % upon the head of agency’s discretion.

12

Appraisal Appraisal GradeGrade

Appraisal Appraisal GradeGrade

Excell-ent

(Grade S)

Excell-ent

(Grade S)

Outstan-ding

(Grade A)

Outstan-ding

(Grade A)

Normal

(Grade B)

Normal

(Grade B)

Unsatis-

factory(Grade

C)

Unsatis-

factory(Grade

C)

Payment Payment ScopeScope

Payment Payment ScopeScope

Top 20%Top 20% 30%30% 40%40% Bottom

10%Bottom

10%PerformanPerforman

ce Pay ce Pay RateRate

(of annual (of annual salary)salary)

PerformanPerformance Pay ce Pay RateRate

(of annual (of annual salary)salary)

15%15% 10%10% 6%6% 0%0%

Champion Mediocre

PRP Scheme for Senior OfficialsPRP Scheme for Senior Officials

Appraisal Appraisal GradeGrade

Appraisal Appraisal GradeGrade

Excell-ent

(Grade S)

Excell-ent

(Grade S)

Outstan-ding

(Grade A)

Outstan-ding

(Grade A)

Normal

(Grade B)

Normal

(Grade B)

Unsatis-

factory(Grade

C)

Unsatis-

factory(Grade

C)

Payment Payment ScopeScope

Payment Payment ScopeScope

Top 20%Top 20% 30%30% 40%40% Bottom

10%Bottom

10%PerformanPerforman

ce Pay ce Pay Rate Rate (of (of monthly monthly salary)salary)

PerformanPerformance Pay ce Pay Rate Rate (of (of monthly monthly salary)salary)

185%185% 130%130% 85%85% 0%0%

Champion Mediocre

PRP Scheme (Bonus) PRP Scheme (Bonus) for Middle and Lower-Level Officialsfor Middle and Lower-Level Officials

AppraisalAppraisal

MeasurabilityMeasurability

ParticipationParticipation RewardsRewards

High

Low

Meaningful

Not Meaningful

Unfair Fair

Low High

Type Type AA

Type Type DD

Type Type BB Type IType I

Type Type CC

Strategies to Utilize PRP Schemes: Strategies to Utilize PRP Schemes: Develop a Model CaseDevelop a Model Case

Selection of Appraisal Methods

16

Common Appraisal Errors

• Tendency of leniency (or tendency of strictness)

• Central tendency

• Halo effect (or horn effect)

• Personal bias or prejudice

17

Forced Distribution

18

1. People dislike to evaluate as well as to be evaluated in general.

2. The seniority-based system might be still prevalent in many organizations so that it is hard to change perception and behavior in the short term.

3. It is difficult to develop performance objectives and measurable performance indicators because the nature of public affairs is often hard to quantify.

Criticism from Government EmployeesCriticism from Government Employees

Improve Pay System for Government Employees

Establish Effective Appraisals and Analyze Jobs

Differentiate among Performers

Communicate with Employees

Avoid Distorting Behavior

Strategies to Utilize PRP SchemesStrategies to Utilize PRP Schemes

Key Lessons: Success Factors of PMKey Lessons: Success Factors of PM

President’s strong will

President’s strong will

Establishment as organizational culture

Establishment as organizational culture

Members’ active participation

Members’ active participation

Feedback on results (rewards, budget, personnel)

Feedback on results (rewards, budget, personnel)

Linking of missions, strategies and tasks

Linking of missions, strategies and tasks

Setting of reasonable Indicators

(measurability)

Setting of reasonable Indicators

(measurability)

Implications and SuggestionsImplications and Suggestions

The strong will and support of the head of organization is important for the success of PM

Consensus-building among organization members regarding PM

Linkage between organization’s mission, goal with individual’s mission

Development and implementation of various financial and non-financial reward methods

Efforts to develop scientific and objective performance indicators

· Performance management (PM) is a tool, not an objective. ·The objective of PM is to improve organizational and/or individual performance and enhance global competitiveness of the whole organization.

Books in EnglishBooks in English: he has published many books

Korean Public Administration (1997, 1999, Hollym)

Building e-Governance: Challenges and Opportunities for Democracy, Administration and Law (2005, IIAS & NCA)

Public Administration and Public Governance in ASEAN Member Countries and Korea (2009, Daeyoung)

Civil Service System and Civil Service Reform in ASEAN Member Countries and Korea (2010, Daeyoung)

Public Sector Reform in ASEAN Member Countries and Korea (2011, Daeyoung) http://www.seoulselection.com/bookstore/default/product_search.php?search=asean

Value and Virtue in Public Administration (2011, 2014, Palgrave Macmillan)http://www.palgrave.com/page/detail/value-and-virtue-in-public-administration-

michiel-s-de-vries/?K=9781137387981 Articles in English and Korean: he has published more than 200 refereed articles in Korea and overseas

Professor Pan Suk Kim’s E-mail: [email protected] or [email protected]

References: Professor Kim’s References: Professor Kim’s PublicationsPublications