Customs Management and Leadership. 4th Edition MODULE 3: H.R. Management in customs administrations
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Customs Management and Leadership. 4th Edition.
Module. 3
Course author: Interamerican Development Bank (IDB) (www.iadb.org), through his Integration and Trade Sector (INT). Course coordinator: Interamerican Development Bank (IDB) (www.iadb.org), through his Integration and Trade Sector (INT), the Institute for the Integration of Latin America and the Caribbean (INTAL), the Inter-American Institute for Economic and Social Development (INDES) (www.indes.org), the World Customs Organization (WCO) (www.wcoomd.org) and the General Secretariat of Central American Integration (SG-SICA) (http://www.sica.int/) Module author: Mercedes Cano Martínez. Chief in the Province Section of Customs and special taxes in Valencia, Spain. Pedagogical and edition coordination: The Inter-American Institute for Economic and Social Development (INDES) (www.indes.org) in collaboration with Fundación Centro de Educación a Distancia para el Desarrollo Económico y Tecnológico (CEDDET) (www.ceddet.org) and Caribbean Customs Law Enforcement Council (CCLEC) (www.cclec.net) This document cannot be reproduced, in whole or in part, by any electronic or mechanical means, including photocopy or any recording process. Its information cannot be stored or recovered by any systems whatsoever without the due written authorization from the IDB. Any request for partial or total reproduction must be informed to: BIDINDES@iadb.org 4th Edition 2016
These materials have been revised in light of the ministerial decisions taken in the framework of the 9th World Trade Organization Ministerial Conference held in Bali, Indonesia, in December 2013. The adjustments were made in order to reflect a higher alignment between the course topics and the priorities identified in Bali’s Ministerial Declaration and decisions, where all IDB members participated. Bali Ministerial Declaration and decisions
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Customs Management and Leadership. 4th Edition.
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Table of contents
Table of contents ........................................................................ 2 Index of figures .......................................................................... 5 Index of tables ........................................................................... 5 Presentation .............................................................................. 6 Aim of the Module ...................................................................... 9 Learning oriented questions ......................................................... 9 Unit I. H.R. Management: focus of the analysis and the difference in public administration................................................................. 10 Learning objectives ................................................................ 10 I.1. Approaching the subject in customs .................................... 10 I.2. Effectiveness in public management ................................... 14 Unit Summary .......................................................................... 19 Unit II. H.R. Management systems in customs ............................. 20 Learning objectives ................................................................ 20 II.1. The importance of the management of human resources ..... 21 II.2. Management by competencies model................................. 22 II.3. Integrated human resource management systems .............. 28 II.4. Recommendations for the management of human resources in the public sector .................................................................... 33 II.5. The management of human resources in customs ............... 38 Unit summary .......................................................................... 41 Unit III. Performance evaluation in public administration ............... 42 Learning objectives ................................................................ 42 III.1. Performance evaluation programs .................................... 44 3
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III.2. Phases of performance evaluation programs ...................... 45 III.2.1. First phase: Design ................................................... 46 III.2.2. Second phase: Implementation .................................. 51 III.2.3. Third phase: Follow up .............................................. 51 III.2.4. Fourth phase: Evaluation ........................................... 54 III.3. Systems of evaluation .................................................... 55 III.4. Frequent problems in performance evaluation ................... 60 III.5. Performance evaluation in Spain ...................................... 62 III.6. Performance Appraisal Systems in the Public Services of the Commonwealth Caribbean ....................................................... 70 Unit summary .......................................................................... 71 Bibliography ............................................................................ 73
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Index of figures
Figure No. 0.1. Human Resource Wheel Figure
No.
1.1.
Strategic
Priorities
of
Modern
Customs
Administrations Figure No.1.2: Strategic Responses to 21st Century Challenges Figure No. 1.3. Key Characteristics in the Management of Quality Figure No. 2.1. Competencies Figure No. 2.2. Competency Modelling Figure No. 2.3. Components of an Integrated HRM System Figure No. 3.1. The role and function of a performance evaluation system Figure No. 3.2. AEAT’s Conceptual Framework for Managing and Evaluating Performance Figure No. 3.3. Characteristics of the Evaluation Process Figure No. 3.4. Psycho-professional criteria used in Performance Evaluation Figure No. 3.5. Categories for Defining Merit to Evaluate Performance
Index of tables
Table No. 2. 1. Example groups of competencies
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Presentation
“The basic rationale for such organizations is that in situations of rapid change only those that are flexible, adaptive and productive will excel. “For this to happen, it is argued, organizations need to ‘discover how to tap people’s commitment and capacity to learn at all levels.’” Peter Senge (The Fifth Discipline)
Human Resources management constitutes a strategic, fundamental competitive advantage factor at the present time. To have trained, motivated and loyal personnel available is essential to achieving the organization’s goals. The most generally applied tendency in successful organizations is to treat Human Resources in an integrated manner; when they are centred on the person plans and actions interact coherently with each other and with the rest of the systems existing in the organization. The
modern
concept
of
Human
Resources
Management
is
characterized by a series of features: •
Human Resources constitute the most important competitive resource at the beginning of the 21st Century.
•
Human
Resources,
and
their
education
and
training
in
particular, are an investment and not a cost.
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Customs Management and Leadership. 4th Edition.
•
Module. 3
Human Resources Management is not accomplished from any department, area or part of the organization, but seen as an integral function it is implemented proactively.
•
Efficient
Human
Resources
Management
has
superseded
Taylorism and demands work enrichment (flexibility), as well as the participation or involvement of the employees in all its activities. •
Computer support of Human Resources Management is an imperative for its effective development.
•
Increasing work productivity and employee satisfaction with working conditions are immediate and fundamental objectives of Human Resources Management.
•
New Human Resources Management strategies contribute to economic growth and affect the sustainability of human development.
•
The primary and fundamental objective of Human Resources Management is to achieve organizational efficiency and efficacy.
Motivation to work is of great practical importance. It is a part of the human contribution to job productivity. Absenteeism, waste, refusal to cooperate and similar behaviors cause harmful effects to the proper function of the organization and may all be based on motivation. Satisfaction of needs in the labor field, secondary as well as primary, mentioned by Abraham Maslow, is of great importance, because where conditions are not created to satisfy needs, at least the more highly-prized ones, there are difficulties in accomplishing the work. Maslow’s study of performance evaluation in Public Administration is conducted in this context.
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Customs Management and Leadership. 4th Edition.
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The following diagram provides further insight into the world of human resources management, highlighting the primary focus of international, regional and domestic trends and practices. Figure No. 0.1. Human Resource Wheel
Source: American Society for Training & Development
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Aim of the Module
The objective of the module is to develop an understanding of the critical role of human resources management in the public sector in general, and within the Customs environment in particular. The module aims to create an understanding of the importance of efficient and effective management and the achievement of such objective through the leveraging of human capital. Processes and techniques such as competency modelling, and the use of incentive and performance evaluation systems are all explained.
Learning oriented questions
1. What are some of the key drivers for change in Customs administration? 2. What role does human resources management play in the creation and operation of a modern, response 21st Century Customs administration? 3. How can an integrated human resources management system be applied within the Customs environment? 4. What are the key criteria for the design of an effective performance evaluation system and how can the organisation and evaluators ensure its proper implementation?
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Unit I. H.R. Management: focus of the analysis and the difference in public administration
Learning objectives
•
State the differing characteristics of public management as relates to the management of personnel
•
Explain the changing role of Customs in the 21st Century and the need for efficient and effective management
•
-Explain the importance of processes and tools such as job analysis and job descriptions for effective and efficient HRM
I.1. Approaching the subject in customs
“I am interested in the future because that is the place where I am going to spend the rest of my life.” Woody Allen
In the course of these first years of the 21st Century Customs has faced important and often contradictory requirements that derive from the globalization of trade:
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Customs Management and Leadership. 4th Edition.
•
Module. 3
On the one hand, it has been necessary to secure and control the international logistics chain.
•
On
the
other,
exigencies
have
increased
for
greater
facilitation of legitimate trade. Customs must meet its commitments, interfering as little as possible with foreign commerce. The objective is to attain a more competitive and dynamic economy, capable of sustainable growth, with more and better jobs and greater social cohesion. The role of customs today is moving away from its traditional assignment,
collecting
fees
and
duties
on
merchandise
in
international commerce to support public treasuries; customs has been
reoriented
toward
applying
non-tariff
measures.
Without
neglecting their historic function, customs organizations now assume competence in such environments as: •
The security and protection of citizens. Attacks in New York and Madrid have led to the implementation of security measures in the foreign trade logistics chain.
•
The war against fraud, counterfeiting, money laundering, drugs and international organized crime.
•
Investigation, submissions
prevention like
the
and
entry
of
sanction
of
explosives
illicit and
customs dangerous
merchandise. •
The
application
of
measures
related
to
environmental
protection, and •
Respect for trade policies.
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In order to be able to meet all these commitments, customs must establish and utilize integrated Human Resources Management systems oriented toward involving its workers in the organization’s objectives. Customs must be considered as multi-organizational systems guided by previously established and announced priorities. Faced with the increase of customs competence, economic operators suggest and demand bigger and better services. These exigencies can be summarized in the following diagram: Figure No. 1.1. Strategic Priorities of the Modern Customs Administration
Source: Prepared by the author
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The attainment of more operating levels needs the application of various instruments that act jointly, among which the following can be highlighted: Figure No. 1.2. Strategic Responses to 21st Century Challenges
Source: Prepared by the author
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I.2. Effectiveness in public management
“I took a course in speed reading and was able to read “War and Peace” in twenty minutes. I think that said something about Russia.” Woody Allen
The
progressive
reduction of Human Resources available, the
increased number of foreign trade operations and the necessity of guaranteeing smooth foreign trade operations open customs to a detailed analysis of Human Resources Management systems in an attempt to obtain higher levels of efficacy and efficiency by means of public management of quality. Public management of quality is management that provides for: •
A rendering of accounts to the citizens by public authorities, managers and personnel in the performance of their functions, and
•
Social and opportunity control in regard to public management itself.
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Figure No. 1.3. Key Characteristics in the Management of Quality
Exigency of worker responsibility for the jobs they have been given, freeing access to information that facilitates obtaining the rendering of accounts
Ongoing evaluation oriented to the identification of opportunities to improve procedures and provisions focused on service to the citizens and obtaining better results, providing information for the adequate rendering of accounts Source: Carta Iberoamericana de Calidad en la GestiĂłn PĂşblica [Ibero-American Letter of Quality in Public Management] 1
What is the meaning of efficacious management? Efficacy refers to the attainment of objectives, goals and standards oriented to satisfying citizen necessities and expectations.
1
Approved by the Tenth Ibero-American Conference of Ministers of Public Administration and
State Reform (San Salvador, El Salvador, June 26 and 27, 2008) and adopted by the Eighteenth Ibero-American Summit Meetings of Heads of State and Government (San Salvador, El Salvador, from October 29 to 31, 2008).
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Customs Management and Leadership. 4th Edition.
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How does this differ from efficient management? Efficiency supposes the optimization of results reached in relation to the resources available and invested in their attainment.
To achieve these objectives, it is necessary to have a planning tool that details the organization’s strategy in relation to the set of policies and practices for managing employees. This tool should: •
Identify personnel needs, quantitative as well as qualitative, with a time horizon extending from the short term to the long.
•
Contrast the needs detected with existing capacities.
•
Determine the actions that must be carried out to cover deficiencies.
In order to be able to identify the real needs of personnel as well as the organization’s needs for personnel training, it is necessary to implement a detailed study of the functions customs are called on to perform. This study should not be limited to the present situation but take new functionalities into account as well.
The document “Customs in the 21st Century” adopted during the June 2008 Council of Customs Cooperation, provides a detailed explanation of new functions and action guidelines for Customs organizations to develop.
In order to determine the differences between the personnel available and the capacities required, it will be necessary to establish a management system that provides precise information in regard to human resources available.
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Customs Management and Leadership. 4th Edition.
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Human resources management systems must facilitate: •
Optimal management of available resources.
•
The adaptation of personnel policies and practices to changes in the organization. Evolution of the functions assumed, the technologies employed and the work processes utilized oblige frequent re-evaluations of tasks and, in consequence, oblige requiring a redistribution of available resources as well.
•
Following up on and updating forecasts.
•
Participation of the managers in the planning processes.
For all that, a prior study is indispensable to establish detailed job descriptions of work posts and the training necessary for the people who should hold those positions, listing essential characteristics for the candidates to each of those posts. To guarantee the reliability and validity of such studies, it is necessary for them to be carried out by people with the precise qualifications who are acquainted with the matter and have adequate instruments available. In order to be able to determine what the essential characteristics for each job are, it is necessary to bear in mind that the characteristics required must be coherent with the tasks required to meet the objectives assigned to each job. Moreover,
modern
theories
of
human
resources
management
consider it fundamental to successful personnel selection that a job description not be limited to describing technical knowledge or experience in performing analogous tasks; each candidate must also be evaluated for teamwork abilities, social abilities, emotional intelligence, etc.
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Customs Management and Leadership. 4th Edition.
Good
personnel
management
Module. 3
is
fundamental
to
attaining
the
objectives any organization seeks; however that need is greater in Public Administration, as these agencies are personnel intensive organizations. Human resources are the principal asset of Public Administration in general and Customs in particular. Attaining optimal results will depend upon efficient and efficacious human resources management.
Public Administrations structure their organization through job listings or other similar organizational instruments in accordance with specific standards that regulate selection, professional promotions, mobility and the distribution of functions. Job listings should include the denomination of the positions, the professional classification, the hiring systems and fringe benefits. For better management of human resources, the denomination of the job should be accompanied by its functions, professional profiles and the aptitudes necessary to perform it.
c
For more detailed information on job analysis, job description, job specification and job evaluation you can view the following video: http://www.youtube.com/watch?v=7C6DJ6oCwLY
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Customs Management and Leadership. 4th Edition.
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Unit Summary
When problems are detected in resource management that could generate inefficiency it is fundamental to adopt solutions to allow obtaining the expected results. Inefficiency in managing human resources can arise from such situations as a failure to integrate the worker into the organization, a lack of motivation, failure of the worker to utilize his full potential, a lack of training to perform his tasks, etc. Attaining the objectives expected is important to any enterprise or organization.
This
importance
becomes
particularly
notable
in
customs, to the extent that, as we have seen before, its role is fundamental not only to economic development but to ensure the security of the frontiers.
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Unit II. H.R. Management systems in customs
Learning objectives
•
Explain the management by competence model and identify at least three broad categories of competencies.
•
State and explain the sub-systems that constitute an integrated HRM system.
•
Demonstrate how an integrated HRM system can be applied within the Customs context.
A fundamental objective of all organizations, public or private, is the attainment of maximum levels of efficiency. In the case of private enterprises
that
translates
into
obtaining
benefits.
In
public
organizations it becomes the provision of the services they have been commissioned to provide. The management of human resources must reconcile the functions established in job descriptions with the organization’s strategies. Present business management tends to focus on considering human resources as the fundamental basis for making an organization competitive, resources,
more financial
than
other
resources,
considerations energy
such
resources,
as
natural etc.
In
consequence, the level of personnel preparation and motivation becomes the keystone of modern business management.
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Customs Management and Leadership. 4th Edition.
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II.1. The importance of the management of human resources
“The creators of the quality are men, not machines.â€? Humberto Quiroga LaviĂŠ
The quality of public management is determined by its workers. The success of Public Administration depends on the knowledge, ability, creativity, motivation and commitment of the public functionaries who provide their services, whatever position they hold. To value public functionaries means that the upper management is committed
to
their
satisfaction,
development
and
well
being,
establishing labor practices of high performance and flexibility to obtain results in a good working climate. One of the possible causes of inefficiency in the public sector may be rooted in a lack of knowledge about the abilities and profile of public workers that impedes knowing the potential available. On the other hand, personal satisfaction obtained on the job is a strategic factor in guaranteeing the citizen the best service possible. For all of these reasons, establishing a model human resources management
is
indispensable
for
obtaining
an
efficient
administration.
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II.2. Management by competencies model
“The general expert must evaluate advantages and disadvantages at the same time. Benefiting from the advantages, he will carry out his plans. Taking the disadvantages into account, he can anticipate the difficulties.� Sun Tzu
Management by competencies is a system based on identification of the competencies necessary for efficient performance of a specific job and analysis of the personal characteristics required for that job This management model is an attempt to obtain the objectives established by the organization by selecting competent personnel having for example, the aptitude, attitudes, skills and knowledge, in accordance with the necessities of each position in the organization. The diagram below illustrates:
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Figure No. 2.1. Competencies
Competencies Aptitudes
Natural ability that prepares the person to fulfill the responsibilities
Attitudes
Way of thinking or behaving needed to fulfill the responsibilities
Skills
Acquired ability or experience needed to fulfill the responsibilities
Knowledge
Information and understanding needed to fulfill the responsibilities
Source: Prepared by the author
The objectives sought by this model are: •
To guide the management of human resources to attain the competencies required according to the organization’s strategic objectives.
•
To inform the workers of the criteria fixed for the performance of a particular job in such a way that everyone knows what competencies are required, as well as what behaviors are expected.
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Customs Management and Leadership. 4th Edition.
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How does this information benefit workers? This information permits, on the one hand, workers to become acquainted with the organization’s objectives and the actions that must be carried out to meet those objectives, and on the other, it makes it possible for the workers to plan their own professional development.
What should be understood by competency? Although there are various meanings that can be attributed to the term “competency,� for the human resources management model its acceptance should be limited to observable and habitual worker behaviors that are fundamental to the performance of a specific position.
Competency modeling therefore entails making use of different techniques and strategies to bring to the surface, through observable behaviours, various competencies identified as highly relevant to the functioning of the organisation. The concept is illustrated below:
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Customs Management and Leadership. 4th Edition.
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Figure No. 2.2. Competency Modelling
Competency Modelling
Observable Behavior
Competencies
Aptitudes Attitudes / Traits Skills Knowledge
Source: Prepared by the author
For an example of the 9 competencies identified as highly critical in the performance of the task of strategic human resources management, you can view the following video:
https://www.youtube.com/watch?v=985lM_Nzjgg (3.24 mins)
Likewise, for an example of the 7 core competencies identified as essential to the policing function, you can view the following video. Such competencies are used during competency-based interviewing in the police recruitment process:
https://www.youtube.com/watch?v=Gb98TWtUFOU
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Customs Management and Leadership. 4th Edition.
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In order to make the distinction between technical and cognitive skills, you can view the following video:
https://www.youtube.com/watch?v=Msc49u2fH0Q (1.32 mins)
There are many criteria for the classification and categorization of competencies; criteria vary from one author to another and there are multiple options, including the following: Levy-Loboyer (1990) and Hooghiemstra (1997) distinguish two large groups of competencies: •
Essential or umbrella competencies, which apply to workers of high and midlevel performance.
•
Differential
or
differentiating
competencies,
which
exclusively apply to workers with more elevated working competency. Spencer and Spencer (1993) relate competencies to motivation, character, aptitudes, etc. and establish six differentiated groups:
Table No. 2.1. Example groups of competencies
COMPETENCY
ATTRIBUTES
Achievement and Action
Behaviors focused on a goal
Help and Service
Empathy sensibility
Influence
Transmission of decisions and ideas
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Customs Management and Leadership. 4th Edition.
The
Module. 3
Managerial
Agility in decision making
Cognitive
Assimilation of knowledge
Personal efficacy
Abilities for task performance
Occupational
Competency
Standardization
and
Certification
Council (CONOCER) of Mexico, distinguishes: •
Basic Competency: Elemental behaviors associated with formative knowledge.
•
Generic Competency: Associated with variables common to various occupations.
•
Specific Competency: Associated with the technical variables of specific occupations.
In recent years such authors as Aubur and Orifamma have classified competencies in: •
Competencies
referred
to
professional
and
social
behaviors take day-to-day performance on the job into account. •
Competencies referred to attitudes refer to relationships with colleagues and superiors.
•
Competencies referred to creative capacities refer to the attitude toward work.
•
Competencies attitudes
referred
include
the
to
existential
capacity
for
and
self-criticism,
ethical social
commitment, etc.
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Customs Management and Leadership. 4th Edition.
In
any
case,
competencies
Module. 3
have
objective
and
subjective
components. They are objective to the extent that they are shown by observable behaviors. They are subjective because establishing and evaluating competencies depends on an observer. In contrast with the personality traits model that utilizes a person’s characteristics as a job suitability variable, the competency model is based on observable behaviors, which allows more objective criteria to be established. Whatever the competency classification adopted, it is important to emphasize that designing a human resources management system based on competency is complex and supposes a high cost in terms of resources and time.
II.3. Integrated human resource management systems
“If first we could know where we are and whither we are tending, we could better judge what to do and how to do it.� Abraham Lincoln.
Present human resources management tendencies are on a path towards implementing integrated systems that consider different aspects of the function of human resources and relate them to each other. The following diagram illustrates the inter-related subsystems that must be taken into account as identified by Longo, 2002 and 2004:
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Customs Management and Leadership. 4th Edition.
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Figure No. 2.3. Components of an Integrated HRM System
Source: Prepared by the author
•
Human resources planning Human resources management should commence by comparing the human resources available and the resources needed to achieve the objectives fixed, planning the actions that must be taken to be able to deal with the necessities detected. Determining the supply on hand and the demand for employees needed allows organizations to provide the type of personnel necessary in adequate numbers at the appropriate time.
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Customs Management and Leadership. 4th Edition.
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In the Public Sector, the management of this subsystem presents
certain
difficulties
because
personnel
selection
systems are not generally connected to the competency of the workers to perform a specific job and human resources planning is conditioned by budgetary restrictions. •
Organization of the work This subsystem refers to the necessity of correctly designing not only organizational structures but defining the job, where the tasks to be performed on the job must be clearly identified as well as the competencies of those who must perform them.
•
Employment management This subsystem includes actions devoted to the selection, transfer and dismissal of workers. The difficulty that this subsystem presents in the Public Sector is that there is generally a great deal of rigidity in the system, not only in the selection processes but in transferring or dismissing personnel. Studies carried out in various Latin American countries have demonstrated the difficulties presented by the establishment of merit principles in employment management.
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Customs Management and Leadership. 4th Edition.
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The conclusions of studies carried out in 2004 in Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, the Dominican Republic, Uruguay and Venezuela may be consulted in the article “Desarrollo e integración de la gestión de recursos humanos en los Estados Latinoamericanos [Development and Integration of the Management of Human Resources in the Latin American States” carried out by Mercedes Iacoviello (University of San Andrés) and Laura Zuvanic (Instituto de Coaching Profesional –ICP-).
•
Performance management This
employment
management
subsystem
refers
to
performance planning and evaluation in relation to individuals and work groups. Human resource management requires appraisal of the results obtained and comparing them with expected results, which makes it possible to detect system deficiencies and facilitates feedback, which is fundamental to improving results.
Public sector reforms and attempts at the implementation of an integrated performance management system in the public service of Trinidad and Tobago is detailed in the paper entitled “Public Sector Reform Programmes and Performance management in Trinidad and Tobago” by Riley and Nunes (2004).
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Customs Management and Leadership. 4th Edition.
•
Module. 3
Compensation management The motivation of personnel and the impact of motivation on the organization’s objectives are essential to improving results. In order for the workers to be properly motivated it is necessary for them to perceive the system as fair and just on the basis of objective criteria connected to responsibilities assigned, effort, responsibilities, performance or quality of work, leaving aside cultural considerations, gender, race, origin and other subjective considerations. A competitive salary plays an important role at this point as incentive systems may be monetary or nonmonetary.
•
Development management The management of development is related to the stimulation of professional growth, taking into account the workers’ capabilities and abilities and the competencies necessary to perform the jobs to satisfy the organization’s needs.
•
Human and social relations management This subsystem includes the management of the organizational climate,
the
management
of
labor
relations
and
the
management of social policies.
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Customs Management and Leadership. 4th Edition.
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The massive incorporation of women into the labor market in recent years must lead to reflection on the female population’s situation in terms of job access, remuneration, professional development and making the family and work situations more compatible. This requires taking into consideration the traditional role of women in our societies as being responsible for taking care of the home and family, which often impedes or makes more difficult the full participation of female workers and professionals in the world of work. A human resources system that includes criteria of gender equity will produce a better and more equitable utilization of the human resources available, taking advantage of existing talent and capacity with an eye to more efficient organizational performance. As a voluntary exercise, watch the video contained in the following link, go to “Forum to Kow +” of Module 3 and in the discussion opened reflect on the existence and the impact of discriminatory practices based on gender in customs management in your country. http://www.youtube.com/watch?v=CGc0KoudrEA (Overcoming Gender Biases in the Workplace)
II.4.
Recommendations
for
the
management
of
human
resources in the public sector
“The only management practice that is constant now is the practice of constantly accommodating to change.” William G. McGowan
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Customs Management and Leadership. 4th Edition.
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The Ibero-American Civil Administration Charter 2 contains some principles that must be taken into account in the management of human resources in the Public Sector. In the first place, with respect to planning, the Charter provides that planning must be implemented using procedures that make possible: •
Optimizing the quantitative and qualitative effects available.
•
Adapting personnel policies and practices flexibly to changes that occur in the organization and in its environment.
•
Correctly
distributing
the
resources
available,
flexibly
reallocating persons in function of organizational needs and adequately distributing the work load among different units and organizational environments. •
Following up and updating projections.
•
Managers actively participating in the planning process.
Human resources planning needs personnel information systems that allow real and current knowledge of the quantitative and qualitative availabilities of human resources, as well as establishment of the working groups necessary to adequately manage human resources (by organizational environment, qualifications, sectors, etc.).
2
Approved by the 5th Ibero-American Conference Santa Cruz de la Sierra, Bolivia, June 26-
27, 2003, Supported by the 13th Ibero-American Summit of Chiefs of State and Government (Resolution No. 11 of the “Declaration of Santa Cruz de la Sierra”) Bolivia, November 14-15, 2003.
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Customs Management and Leadership. 4th Edition.
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In the second place, in relation to the organization of work the Charter counsels that work be organized utilizing management instruments that describe the jobs and the profiles of competencies, i.e., define the characteristics and conditions of performing the tasks involved in each job and the ideal characteristics of the persons who have to perform them. •
Job descriptions This description must detail not only the characteristics of the job but also the conditions of exercising each one the tasks involved. That is, each job’s mission must be specified, its location in the organization, its principal dimensions, its functions, the responsibilities the job holder assumes and the purposes or areas expecting to obtain the results. The rapid evolution of social necessities, technologies and work processes make flexibility and frequent revision of the task descriptions advisable. That implies that, to avoid excessive system rigidity, it is advisable for the job description to be implemented
conjugating
the
principles
of
precision
and
flexibility. o Precision to the extent that the description must contain all the special requirements necessary to efficaciously perform the work, as well as the responsibilities that must be assumed. o Flexibility that allows the adaptation of the tasks assigned, providing for any readjustments necessitated by a change of circumstances. •
Profiles of competencies. Profiles
of
competencies
must
include
the
qualities
or
characteristics considered essential to job performance. 35
Customs Management and Leadership. 4th Edition.
The
description
of
the
Module. 3
profiles
must
be
given
utilizing
instruments that guarantee system reliability and validity. It will be necessary for them to be prepared by properly qualified persons, taking the following into account: o There must be coherence between the tasks assigned and the elements that configure the ideal job holder profile. o The profiles include characteristics traditionally valued for job performance plus the focuses that contemporary human resource management systems consider relevant to success on the job. This implies that the job profile must take into account not only specialized technical knowledge
and
experience
in
the
performance
of
analogous tasks but also the abilities, aptitudes, motives and personality traits that are considered ideal for success in the job considered. These criteria for the management of the human resources are complemented with the provisions of the Ibero-American Charter of Quality in Public Management, 3 according to which, orientation to quality in public management supposes maximizing the creation of public value, so that it must respond to the principle of management for results. The adoption of process management allows the improvement of Public Administration activities oriented to public service and to results. 3
Approved by the 10th Ibero-American Conference Ministers of Public Administration and
State Reform. San Salvador, El Salvador, June 26 and 27, 2008. Adopted by the 18th Ibero-American Summit of Chiefs of State and Government, San Salvador, El Salvador, from October 29 to 31, 2008 (Resolution No. 25 of the "Plan de Acción de San Salvador [San Salvador Action Plan�]).
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Public management processes must be oriented to the creation of public value shown in quantifiable results that allow performance evaluation. The determination of results must be accomplished objectively, by means of information systems that allow monitoring, evaluation and control of the evolution of performance and the attainment of goals, and allow correct decision making in order to obtain the results deseed. On the other hand, public management quality requires development of the employees’ capacities. To that end the Charter recommends taking the following actions: •
Preparation of ethical standards oriented to public service that provide guidelines for the behavior of public functionaries.
•
Incorporation of quality management training programs and the use of continuing quality education tools.
•
Sensitivity training involving personnel in the quality of public service.
•
Promotion of the conditions necessary for collaborative and participative personnel work.
•
Consideration of the personnel’s perception of the organization and the quality of public management.
•
Utilization of incentives linked to performance evaluation to promote quality.
•
Establishment of a merit-based system to professionalize the Public Administration.
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A detailed analysis of merit-based systems in Latin America and the struggle for the implementation of such a system in the Dominican Republic, despite the establishment of a career civil service law, is provided in the article entitled “Spoils in the Caribbean: The Struggle for Merit-Based Civil Service in the Dominican Republic” by Richard C. Kearney, 1986 A more recent and detailed analysis of the degree of success of implementation of merit-based systems is provided by Germán Peréz (2001) in her article ‘Public Personnel Management in the Caribbean: A Comparative Analysis of Trends in the Dominican Republic, Cuba, Puerto Rico, Jamaica, and St. Vincent and the Grenadines’
II.5. The management of human resources in customs
“If you are looking for different results, don’t always do the same thing.” Einstein
In order for Customs to be able comply with its assigned functions of facilitating and controlling trade it needs to establish a human resources
management
system
that
allows
it
to
perform
its
assignment efficaciously. To reach this objective it is necessary align the interests of the employees with the interests of Customs. Integrated
human
resources
management
allows
efficient
management of human resources in the customs environment. The objectives of these management systems can be summarized in the following points: 38
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Professionalizing human resources by means of the selection and maintenance of ideal personnel to perform the tasks assigned to Customs.
•
Adjusting the organization to the new realities, learning from mistakes and successes of diverse recent experiences and adopting a new public management model geared to the attainment of institutional objectives and serving the general interest.
•
Observing ethical values as the vocation of public service, integrity, good faith, transparency or extreme care in the management of public resources and the preeminence of the public interest over private.
•
Implementing monitoring, measuring and control systems that permit adequate control, decision making and adaptation to the changes required by foreign activities or the application of standards international organs and treaties impose.
•
Training public employees to allow them to adapt to the evolution
of
the
tasks,
confronting
performance
deficits,
supporting professional growth and facing changes in the organization. The declaration of the Customs Cooperation Council concerning good governance and integrity in customs (Arusha Declaration of July 7, 1993, revised in June 2003) provides that the human resources management practices that have proven to be useful in controlling eliminating corruption in Customs include: •
Providing customs personnel with salary, other remuneration and sufficient conditions to ensure the maintenance of a decent standard of living.
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Recruiting and keeping personnel that have and appear to keep high ethical standards.
•
Ensure that personnel selection and promotion procedures are based on the principle of merit, free of influence and favoritism.
•
Ensure that decisions in matters of personnel deployment, rotation and relocation take into account the necessity of eliminating opportunities for Customs personnel to occupy vulnerable positions for long periods of time.
•
Offer Customs personnel, after recruitment and throughout their career, adequate training and professional development for promotion, and continually reinforce the importance of maintaining high ethical and professional standards.
•
Implement adequate performance evaluation and management systems that reinforce good practices and promote high quality personnel and professional ethics.
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Unit summary
The leveraging of human capital provides a source of competitive advantage for all organisations, whether in the private or public sector. Efficient and effective management of human resources entails the development of an ongoing process that allows personnel to be placed in the most appropriate job, considering the tasks that must be performed and the employee’s abilities. Current best practices in the management of human resources advocate the need to ensure the integration of the different components of the broader human resource system and their ongoing inter-linkages and interfacing with each other. The Customs environment stands to benefit enormously from the internal application of an integrated human resources management system.
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Unit III. Performance evaluation in public administration
Learning objectives
•
Explain
the
purpose
and
benefits
of
evaluating
performance. •
Identify and explain at least two of the methods used in the design of performance evaluation systems.
•
Identify at least three of the common pitfalls in the evaluation of performance.
“If I should order a general to change into a seagull and the general does not obey me, the blame will not be his, but mine.” The Little Prince
The performance evaluation is a human resources administration technique that, through a systematic and periodic process, allows the steering of the actuation of businesses and public administrations toward the attainment of the objectives fixed, through: •
The quantification of the degree to which people contribute to achieving the previously established objectives.
•
The fixing of the standards required for the position occupied.
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The instauration of the actions necessary to promote the workers’ professional and personal development.
The evaluation of performance is a highly useful tool in the different human
resource
management
environments
of
any
public
administration.
Figure No. 3.1. The role and function of a performance evaluation system
As a tool of organization
The establishment and transmission of the organization’s general objectives and the requirements necessary in individual performance facilitate the attainment of more and better results.
As a tool of communication
Fluid communications between the chiefs and employees facilitate comprehension of the results expected and favor worker involvement in the organization’s activity.
As a tool for the training of personnel
Identification of the workers’ strengths and weaknesses facilitates the establishment of the needs for training, which allows more efficacious management of human resources.
As a tool of organization
Continual and permanent evaluation of the workers facilitates the distribution of incentives connected to performance and appraisal in the provision of assignments.
As a tool of analysis
Data obtained from the evaluation are a vital source of information for reorganizing resources and motivating personnel through feedback. Source: Prepared by the author
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Performance evaluation presents benefits to the worker as well as to the organization. The worker is informed of the results expected, the capabilities required and the view held of him, allowing him to be recognized for his work. The organization is permitted to assign the human resources necessary to establish an optimal organizational structure to attain its objectives.
The evaluation of performance is a tool to aid the Public Administration in decision making focused on attaining objectives by efficient and efficacious management of human resources.
III.1. Performance evaluation programs
“We asked for workers. We got people instead.” Max Frisch
Performance
evaluation
programs
must
meet
the
following
requirements: •
Establish clear objectives.
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Fix objective evaluation elements that allow quantification of the results attained.
•
Supply management with common performance measures and objectives.
•
Identify actions of improvement and recognition.
•
Promote greater commitment and involve employees in the organization’s objectives.
•
Emphasize support and feedback.
•
Include training and communication methods appropriate to the organization’s needs.
•
Involve the upper management in designing and implementing the programs.
The evaluation of performance to achieve efficacious human resources management must favor individual and group improvement plans for employee development.
III.2. Phases of performance evaluation programs
“Is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts.” Sherlock Holmes
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In the implementation of a performance evaluation program four stages may be distinguished: 1.
Design
2.
Implementation
3.
Follow up
4.
Evaluation
III.2.1. First phase: Design
A correct program design is fundamental to obtaining optimal results. The application process must be objective, transparent and inspire confidence in its results. Objectivity means a person is not evaluated on himself alone. The analysis is focused on work actually accomplished. Transparency implies that all the workers must be acquainted with the criteria and methods of appraisal that are to be employed so that, if he considers it opportune, the worker can respond to the rating given. Finally, confidence alludes to the necessity that the results obtained demonstrate
a
real
appraisal
of
performance.
In
this
sense,
importance must be given to the fact that credibility in the system is determined in large part by the evaluators’ impartiality and technical responsibility. In order to attain the desired results it is necessary to establish clearly and precisely the following three variables:
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1.
Objectives sought
2.
Subjective element: Who is going to make the evaluation?
3.
Methods that are going to be employed
1. Objectives sought “Would you tell me, please, which way I ought to go from here?" Alice asked the Cheshire Cat. "That depends a good deal on where you want to get to," said the Cat. "I don't much care where –" said Alice. "Then it doesn't matter which way you go," said the Cat. “...So long as I get somewhere,” Alice added as an explanation. “Oh, you're sure to do that,” the Cat assured her, “if only you walk long enough.” IF WE DON’T KNOW WHERE WE WANT TO GO, ANY ROAD WE TAKE WE WILL ALWAYS GO SOMEWHERE BUT MOST OF THE TIME IT WILL NOT BE WHERE WE WANT TO ARRIVE. The objectives of a performance evaluation system must be directed to: •
Facilitate the organization’s development and improve the results.
•
Establish
individual
objectives
in
accordance
with
the
organization’s general objectives.
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Validate human resources management policies and practices, contrasting and evaluating their impact on human behavior on the job.
•
Detect employee training needs.
•
Identify the abilities of the personnel evaluated.
•
Apply to other areas of human resources management such as job assignments and the distribution of incentives.
•
Encourage communication between chiefs and subordinates.
Involvement of the worker by communicating the organization’s objectives and how the work he does affects the attainment of those objectives increases his motivation and helps attain the best results.
The objectives established must be specific, flexible, congruent, quantifiable and acceptable.
2. Subjective element: Who is going to make the evaluation? In principle, choosing the immediate supervisor appears to be the more habitual and preferred option. However, this choice raises some difficulties. In the first place, not all chiefs who act as evaluators have the abilities required to do the job they supervise and the results will depend on their capacity as observers or on their prior experience. In the second place, occasionally the special relationship existing between the two of them may be an added inconvenience such that it is not always possible for the evaluator to separate his evaluation of the person from the evaluation of his capabilities.
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Finally, supposing there are several evaluators, there may be dysfunctions in the results owing to differing interpretations of the parameters that may arise between them. How can such challenges be resolved? Such difficulties favor systems in which evaluation is performed by collegiate
systems. In such cases
evaluation
effected by the
immediate supervisor is complemented with an evaluation from analytic checkers and witnesses, and then complemented with the participation of the person being evaluated, who can contribute what he considers appropriate to his own evaluation. While evaluation by committee may make up for some of the deficiencies cited above, it does suffer from some defects since it does not take into account all the points of view to which worker performance is submitted. In an attempt to overcome these deficiencies, systems known as 360ยบ feedback methodology have emerged. These methods take their name from analogy with the way the evaluation is carried out, from extent to which the evaluation is effected, taking into account the work from its results and the agents that have to do with the results. The data from which the evaluation will be extracted therefore comes from multiple actors, beginning with the immediate supervisor and continuing with the person being evaluated, his colleagues, his subordinates and even the beneficiaries of the results of the work the person being evaluated has done. In spite of its theoretical interest level, this method is difficult to apply in practice in the public administration.
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In order for the evaluation to be complete, not only must the opinions of everyone involved be taken into account but the degree of compliance with the objectives and the fulfillment of his formal responsibilities.
3. Methods that are going to be employed In order for the personnel evaluator to be able to carry out his work correctly it is necessary for him to have the necessary elements. A detailed study of this point is covered in the following paragraph:
Job performance must be evaluated and qualified on the basis of previously established parameters and must be correlated with objectives sought. The parameters to consider must be: specific, measurable and realizable: The reliability of an evaluation system is rooted in identification of the objective and quantifiable performance factors of each position. Essential aspects must be evaluated, leaving accessory aspects aside.
The manual of procedures of the City Council of San Juan de los Lagos establishes: “The evaluation of employees will take the following aspects into consideration: attendance, performance, availability, responsibility, courtesy, presentation and teamwork.�
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III.2.2. Second phase: Implementation
This phase informs the person to be evaluated of the competencies, abilities, attitudes and conduct that will be evaluated. In this way workers can be acquainted ahead of time with the type of evaluation to which they will be submitted, the conduct the organization values, and know is expected of them. In order to avoid excessive subjectivity in the evaluations, it is necessary that the competencies, the conduct and their indicators be fixed in as much detail as possible. Finally, in order to obtain the best results, it will be necessary to prepare future evaluators, training them to perform this task.
III.2.3. Third phase: Follow up
For the results obtained in the evaluation process to be optimal it is necessary to follow up, observing the work performed. In this manner, constructive feedback on their performance is encouraged. Feedback
is
an
excellent
source
of
information
that
serves
management to fix lines of attack. From the workers’ point of view, feedback provides them with details about their performance, the behavior that has had positive results as well as those aspects they must improve or change.
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Worker motivation is a fundamental element of improved performance. A worker will feel more motivated if: •
He is informed of the objectives of the organization and of his role in attaining those objectives. Motivation will be greater if the worker understands the purpose of the tasks entrusted to him and can relate them to his results.
•
He is acquainted with evaluation methods and criteria.
•
He knows what it is the organization expects of him.
•
He participates in the fixing of tasks.
•
He maintains superiors.
•
He is provided necessary training for the efficient development of his work.
•
He is duly valued, not only by means of the incentive systems and career planning but also by recognition of work well done.
easy
and
fluid
communications
with
his
The performance interview is the principal tool for communicating the results of the evaluation to the person evaluated, encouraging feedback in regard to his performance. From another point of view, an interview guarantees that the mutual relationship between the supervisor and the subordinator favors confidence and motivation. During the interview, the interviewer must limit himself to evaluating behavior. He is evaluating the work performed not the person. The evaluation interview can be broken down into the following stages: •
Preparation and planning.
•
Development.
•
Closure.
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In the preparation and planning phase, the collection of all the information necessary for it to develop correctly is important. When planning the interview it is necessary: •
To be sure that there is sufficient time for the interview to be conducted without hurrying or interruptions.
•
To find an appropriate place to conduct the interview. It is advisable
not
to
have
physical
obstacles
between
the
interviewer and the interviewee, so that each can see the other clearly. During the development phase: •
The interview must begin with preliminaries that help “break the ice,” but without wasting too much time.
•
The interviewer must adopt a listening attitude.
•
Interruptions during the interview must be avoided.
•
It is advisable to take notes of what is discussed. That may be useful at the time of making the evaluation report that must be delivered later to the person evaluated.
•
It is advisable for the interviewer to ask the employee to analyze his own performance and compare it with his job requirements, to discuss his qualities and deficiencies and, in regard to this, to jointly negotiate the individual objectives in relation to the organization’s general objectives.
In the closure phase: Before proceeding to the closing of the interview is necessary to be sure that you have all the data necessary to write the report in a complete and detailed manner. The interview must be concluded with plans for action.
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For a summary of key points to be considered or actions to be taken in the follow-up phase III, you can view the following video ‘’Running Appraisal Meetings’:
https://www.youtube.com/watch?v=6k5U8TietxM (3.33 mins)
III.2.4. Fourth phase: Evaluation
In this phase the results obtained are analyzed and contrasted with the objectives sought. The evaluation must be objective. It is not a case of judging the worker but of studying whether the results meet expectations and what measures can be taken to improve the management of human resources.
For more detailed information on the effective conduct of performance evaluations you can view the following videos on performance review interviews (which include tips on establishing the right atmosphere, constructive feedback and ensuring clear outcomes of the review). http://www.youtube.com/watch?v=dzT4U0KpJfw&list=TLAfJjQowgS8Y http://www.youtube.com/watch?v=E34Zt1cEpFA&list=TLkG9yhKe7bX4
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III.3. Systems of evaluation
“When the winds of change blow, some construct refuges and are safe … others construct windmills and become rich.” Claus Möller
Performance evaluation systems can be classified as: a) Evaluation
methods
based
on
accomplishments
or
past
performance. b) Evaluation methods based on future performance. a) Evaluation methods based on accomplishments or past performance •
Point scale systems This system is based on the preparation of a form that contains a list of characteristics and a scale of performance grades for each characteristic. The characteristics can be collected at the simple enumeration level or by means of a detailed description of the characteristics in function of traits or functional behavior requirements. The performance grade scale can be graduated utilizing numerical points, or by means of qualifiers (excellent, good, average, unacceptable, bad).
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Evaluation depends exclusively on the evaluator’s opinion, but the evaluator may be requested to cite examples to justify the appraisal. The advantages of this system center on the facility with which it is developed, the fact that evaluators need little training to be able carry it out and the possibility of applying it to large groups. The
disadvantages
are
much
greater:
it
is
excessively
subjective, not very specific and makes feedback very difficult as it does not clearly identify deficient behaviors or areas that need to be strengthened. •
List verification systems In this system, evaluators are limited to choosing the most appropriate option or response among various statements. The value of each one of the selection groups is made by the department of human resources, which grants a different point value to each one of the points on the list in function of its specific weight. The advantages to this system are its facility, rapidity and the little training need by the evaluators. The disadvantages are its lack of specificity to the job performed, its subjectivity, possible correct interpretations on the part of the evaluators that can generate distortions if there are more than one evaluator, and the impossibility of assigning relative values.
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Module. 3
Forced selection method This system presents the evaluator with a pair of affirmations one of which should best reflect the most descriptive phrasing of the employee’s performance. The points on the list are subsequently grouped in function of previously determined categories. As advantages, the facility of this system’s application stands out. It is applicable to large groups, adaptable to different jobs and decreases the distortions that occur in other systems. Disadvantages can be occasioned by a poor relationship between the affirmations and the performance of certain jobs, which limits the feedback and can cause a lack of motivation.
•
Record of critical events system This system consists of the observation and recording of events,
not
only
positive
(especially
good
or
efficacious
behaviors) but negative as well (really bad or inefficacious behaviors). One disadvantage of this system is that it encourages the evaluator to focus attention on unfavorable facts rather than on the correct continual performance of tasks. This is because it is much easier to inform the employee of critical incidents when they take place than to continuously monitor behaviour and provide feedback based on complete assessments. Without prejudice to constituting an evaluation system in itself, it can also be utilized to obtain supporting information that triggers more complex evaluations.
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Module. 3
Behavioral qualifications scale system This system is based on the comparison of worker performance with certain exemplary behaviors. The qualifications reduce the subjectivity and elements of distortion affecting previous systems. The evaluator is no longer a judge but an observer of employee behaviors.
•
Field verification method The peculiarity of this system is rooted in the incorporation of a qualified
department
of
personnel
representative
who
participates in the points the evaluators award. The evaluator must provide information on the employee to the representative
so
that the
representative
can make
the
evaluation, which is then sent to the evaluator for him to verify and discuss, first with the human resources expert, and later with the employee. The final results of these actions are recorded in the form of points and conclusions on previously established forms. •
Written or narrative evaluation systems In an evaluation report or essay, the superior issues a wideranging
commentary
on
the
work
the
employee
has
accomplished at the end of the evaluation period. This system presents the disadvantages of a heavy time and work load and, on the other hand, it depends on the evaluator’s abilities at report writing time. The extension and clarity of the report will depend to a great extent on the evaluator’s communications skills.
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Module. 3
Group or comparative evaluation systems These systems attempt to compare the performance of the worker being evaluated with the performance of his coworkers. This category includes: o Categorization method: The worst employees are ranked. The fundamental inconvenience of this system is its great subjectivity and the scarce information that it offers since it is not known how much better or worse one employee is than another. o Forced distribution method: The evaluator must place the employees in different grade scales, establishing the percentage of the total that can be included in each one of the groups. o Paired comparisons method: Each employee is compared with those in the same group in such a way that the final evaluation will be determined by the number of times that the worker has been considered superior to the rest of those evaluated.
b) Evaluation methods based on future performance The characteristic of these systems is that they are based on performance to be accomplished by evaluating employee potential or fixing concrete objectives. Within these systems we can highlight: •
Self-evaluations:
This
system
empowers
the
evaluated
person’s thinking about his present capacities and his future development possibilities.
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•
Administration
by
objectives:
Module. 3
The
evaluated
person
participates in the fixing of the performance objectives he considers desirable. The individual objectives desired are set by the evaluator and the evaluated person in conjunction. The principal advantage is that it favors motivation and involves the worker. On the other hand, it is difficult to develop and requires a great deal of time. •
Psychological evaluations: In these systems the evaluation is produced by psychological experts for the purpose of establishing the employee’s potential.
•
Evaluation centers method: The employees form a group submitted to different tests that show the abilities of the candidates.
III.4. Frequent problems in performance evaluation
“If you know the enemy and know yourself you need not fear the result of a hundred battles. If you know yourself, but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.” Sun Tzu
What might be some of the common pitfalls in performance evaluation? Some errors may be observed that evaluators commit at the time of making performance evaluations, among which we can highlight:
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Unclear criteria This problem arises when evaluation scales are too vague, leaving themselves open to interpretation.
•
Halo and Horns Effect The existence of an especially outstanding characteristic, whether positive (Halo Effect) or negative (Horns Effect), it interferes in qualifying the rest of the characteristics. The evaluator may be influenced by the more notable characteristic.
•
Central Tendency This is the tendency to qualify with the average grade, keeping grades in the middle of the scale to avoid making a positive or negative decision on the worker’s qualification.
•
Systematic partiality: Indulgence/severity This is the tendency to qualify with very high or very low values without the worker really meriting them.
•
Preference This is the tendency of individual preferences to influence evaluation. In this case, the error is consciously committed by the evaluator.
•
Influence of recent events Evaluations are affected by recent events in such a way that an especially relevant event (positive or negative) close to the time of evaluation unduly influences the evaluation.
How can some of these problems be avoided? These problems may be avoided or, at least, decreased, if:
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•
The problems that can affect the evaluation are well known.
•
Adequate evaluation technique or techniques are chosen.
•
Evaluators are correctly trained.
III.5. Performance evaluation in Spain
“I am not completely useless ... at least I serve as a bad example.” Les Luthiers
This last paragraph, by way of example, analyses the present situation in effect in the State Tax Administration Agency 4 (AEAT). AEAT, like any other Public Administration must orient its internal activities toward such elements as service to the citizen, control of results, efficacy, efficiency, participation and the quality of the services;
it
is
oriented
toward
a
modern
administration
and
answerable to citizen satisfaction. The Agency’s Strategic Plan to deal with activities in the realm of human resources emphasizes the important role played by modern personnel evaluation systems as instruments with a great capacity to improve the Organization by acting directly on the behavior of persons.
4
The AEAT is an entity of public law entrusted with the effective application of the state tax
and customs system, as well the resources of other national or European Union Public Administrations the management of which is commended to it by law or convention.
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In order to achieve the objective, a commitment to increase the Organization’s efficiency, efficacy and quality by means of the people who work in it, the Organization has committed itself to develop new personnel evaluation systems. Figure No. 3.2. AEAT’s Conceptual Framework for Managing and Evaluating Performance STRATEGIC PURPOSES PLAN FIXING OF THE PRODUCTIVITY COMPLEMENT REWARD FOR EXTRAORDINARY SERVICES
PROVISION OF JOB ASSIGNMENTS Source: Prepared by the author
The basic requirements established for this performance evaluation system are to: •
Be stable over time.
•
Be supported by a single procedure that allows a single evaluation with identical criteria and methods.
•
Be based on general criteria, objective in nature, evaluable in a homogeneous manner, established on the basis of parameters of certainty and juridical security, as well as sufficiently marked profiles.
•
Apply to all employees, independent of working position held.
•
Reflect differences of training and functions attributed to each Group.
•
Evaluate
personal
competencies
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and
technical
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Introduce functional shadings in type of work post occupied by the personnel evaluated. It is necessary for equal jobs worked to be evaluated by equal criteria and different jobs by different criteria.
•
Produce effects on the productivity complement amount due and on the professional career.
The establishment of a permanent evaluation model for all the personnel of the Agency supported by a single procedure avoids subjectivity and inequity in the process. Figure No. 3.3. Characteristics of the Evaluation Process CHARACTERISTICS OF THE PROCEDURE
definition of the personnel evaluator
enumeration of evaluative criteria
communication of the evaluation to the personnel evaluated Source: Prepared by the author
Elements to consider in fixing the criteria of evaluation:
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Figure No. 3.4. Psycho-professional criteria used in Performance Evaluation Psycho-professional factors
dedication to the work
efforts to update knowledge and quality capacity for initiative, guidance and collaboration
efficacy and performance on the job
effective presence on that job Source: Prepared by the author
It must be emphasized that AEAT has not established unitary performance evaluation to determine the awarding of productivity payments and the provision of personnel job assignments. So the two procedures are totally separate, the single common nexus is the staff member affected. Productivity Complement The productivity incentive can be defined as a complementary payment designed to reward special performance, extraordinary activity and the interest and initiative with which personnel perform their work. The
productivity
appraisal
must
be
in
function
of
objective
circumstances directly related to job performance and the attainment of results or objectives assigned to that position in the corresponding program. 65
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The purpose is to offer an incentive and to motivate personnel in tasks to develop more efficacious tax system management. Characteristics of the Productivity Complement •
Rewards
special
production,
extraordinary
activity
and
dedication, and the interest or initiative with which jobs are performed. •
Requires accreditation of an improvement in results.
•
The overall amount cannot exceed a percentage of total agency and program personnel costs and is determined by the annual budget law.
•
The amounts received by each individual staff member will be public
knowledge
to
other
agency
personnel
and
union
representatives. The productivity incentive may be classified as: •
Overtime.
Remunerates
functions
performed
outside
the
regular working day. •
Improved Performance. Remunerates the “contribution of the
person
to
the
attainment
and
compliance
with
the
objectives.” It is a distribution tied to a performance evaluation. •
For objectives. Compensates participation in the degree to which
the
organization’s
objectives
were
attained.
The
individual amount is tied to the degree of participation. Provision of job appointments With the object of obtaining a more complete and balanced evaluation of the aptitudes and production of available job candidates and to optimize the potential represented by such an appraisal, job announcements contain a more detailed definition of the position. 66
Customs Management and Leadership. 4th Edition.
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The evaluation questionnaire groups merits in four blocks: Figure No.3.5. Categories for defining Merit to Evaluate Performance A. A PT IT UD E , S UI T AB I LI T Y A N D DED I C AT IO N B. I N IT I AT I VE, G U ID A N CE A ND CO L L A BO R AT IO N C. E FF I C AC Y A ND O UT P UT D. Q U AL IT Y O F T H E W O R K PR O D U CE D Source: Prepared by the author
Each one of these blocks is broken down into three areas of evaluation.
A. APTITUDE, SUITABILITY AND DEDICATION A1. Capacity to analyze, suggest and adopt solutions: Capacity to adequately
identify
the
most
relevant
aspects
and
foresee
problems. A2. Adequacy of practical education: Adequate or inadequate preparation for job requirements,
efficiency in the
practical
application of knowledge, habitual resolution of technical or operating incidents of the post, celerity with which new procedures or standards are assumed and applied. A3. Availability for service: Regularity in work habits, degree of adaptation to the job, degree of acceptance of tasks given within the scope of job functions, readiness to undertake new tasks. 67
Customs Management and Leadership. 4th Edition.
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B. INITIATIVE, GUIDANCE AND COLLABORATION B1. Initiative in assuming job commitments: Autonomy in absence of specific instructions, initiative in taking action. B2. Capacity to organize and plan work: Adequate up and down transmission of information, task definition for accomplishment by subordinates, assignment of human and/or material resources, work planning, evaluation and control of the attainment of objectives. B3.
Guidance/Collaboration:
Adequate
management
of
team
guidance, capacity to organize the functions of work groups and teams, drive and energize work groups, collaboration with the other members of his unit, collaboration with other units, capacity to make up work teams, predisposition to cooperate in unit tasks, absence of work conflicts. C. EFFICACY AND OUTPUT C1. Degree of participation in fulfilling unit objectives. This appraisal is in relation to other unit members. C2. Amount of work the candidate regularly assumes in performing his job and his relative position in relation to other employees with similar work. C3. Accomplishment of singularly complex work. Actions taken with relevant impact on the framework of strategic plans or quality programs that contribute in an especially significant manner to the common objectives of the central management that provides services to the Tax Agency as a whole.
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Customs Management and Leadership. 4th Edition.
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D. QUALITY OF WORK PRODUCED D1. Use and utilization of technical means: Degree of utilization of computer tools and applications in his work, drive to use in unit activities for which he is responsible, utilizing the potential of new technologies. D2. Basis for acts, correction steps, compliance with deadlines, Correction and amiability in treatment. D3. Creativity: procedural improvements, simplification of tasks. Generation of useful ideas at work, development of good practices, improvement of procedures, simplification of tasks. Each of these variables is evaluated with the qualification of: •
Exceptional:
the
candidate
clearly
exceeds
all
the
requirements of his job, demonstrating aptitudes and/or output very superior to his position and to the other employees of his area or environment. •
Notable: the candidate slightly exceeds job requirements, at least in its more important aspects, demonstrating notable capacities, aptitudes and output.
•
Satisfactory:
the
candidate
complies
with
minimum
requirements in the more relevant contents of his job, possessing
adequate
capacities
and
attitudes,
in
the
environment of the average in his area or the unit in which he works. •
Regular:
the
candidate
does
not
adequately
meet
requirements of his position in at least one or several of its more
important
contents;
possessing
only
some
of
the
capacities and minimal aptitudes and has an output less than what is generally required for this type of work. 69
Customs Management and Leadership. 4th Edition.
•
Insufficient:
the
candidate
Module. 3
does
not
comply
with
the
requirements of his position, or at least not to the majority of its important contents, he lacks the minimal capacities and aptitudes required. What will determine the points for each item is that they are also weighed differently in calculating the final grade; each one of these blocks has the following weight in the final appraisal: A)
Aptitude, suitability and dedication: 20%.
B)
Initiative, guidance and collaboration: 20 %
C)
Efficacies and output: 40%
D)
Quality of work produced: 20%
Finally, when the evaluating entity considers it opportune, the evaluation contained in the formula will be complemented with comments in regard to concrete circumstances that justify the appraisal assigned to the candidate.
III.6. Performance Appraisal Systems in the Public Services of the Commonwealth Caribbean An indepth analysis of performance appraisal systems in the public services
of
three
selected
Commonwealth
Caribbean
countries
(Trinidad and Tobago, Guyana, and Jamaica) is provided in the 2000 study conducted by Ann Marie Bissessar. The article entitled “The Introduction of New Appraisal Systems of the Public Services of the Commonwealth of the Caribbean” which focuses on new systems of appraisal in the Caribbean and the challenges encountered in linking performance to pay can be accessed through the following link: http://www.zigonperf.com/resources/pmnews/carrib_pas.html 70
Customs Management and Leadership. 4th Edition.
Module. 3
Unit summary
The organization for which you work has decided to undertake a process of performance evaluation and your boss tells you that you are going to be subjected to appraisal. What is your reaction? Normally, not pleased. Normally workers associate evaluation with a test or judgment and they therefore adopt reticent postures and show a certain passive reticence. In order to avoid these negative postures and encourage worker participation it is fundamental to correctly design activities of the evaluation process: •
The worker must be acquainted with the criteria and evaluation
methods, the organization’s general objectives and what is expected of him. •
The objectives fixed must be clear, measurable and attainable.
•
The system must be transparent.
•
The person must not be judged, but his performance.
Feedback must be encouraged.
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Why do we need to evaluate performance? The objective of Performance Evaluation is to obtain better results for the organization. To get to that goal it is necessary to identify aspects that need to be changed, which will require training plans that provide employees with the preparation they need to perform their work more efficiently. The establishment of a relationship between the objectives of the organization and those of worker allows a relationship to be established between the objectives of the organization and the individual objectives of each one of the workers. Participation of the employees in the process facilitates obtaining greater output from the employees, worker involvement and satisfaction of the personnel with the organization’s objectives. Participation increases motivation and involves the employees in attaining the results desired, which will undoubtedly be reflected in the organization’s results.
If you know what you have to do and you don’t do it, then you are worse than before. Confucius
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Bibliography
•
BISSESSAR, A. M. (June 2002). “The Introduction of New Appraisal
Systems
in
the
Public
Services
of
the
Commonwealth of the Caribbean”. http://www.zigonperf.com/resources/pmnews/carrib_pas.html •
GERMÁN PERÉZ, D. (2001). “Public Personnel Management in the Caribbean: A Comparative Analysis of Trends in the Dominican Republic, Cuba, Puerto Rico, Jamaica, and St.
Vincent
and
the
Grenadines”.
Public
Personnel
Management, Vol. 30, No. 1. •
KEARNEY, R. (March/April 1986). “Spoils in the Caribbean: The
Struggle
for
Merit-Based
Civil
Service
in
the
Dominican Republic”. Public Administration Review. •
RILEY, B. and NUNES, M. (June 2004). Public Sector Reform Programmes and Performance Management in Trinidad and
Tobago.
Commonwealth
A
Country Regional
Paper
submitted
Seminar
on
for
the
Integrated
Performance management Systems in the Public Sector for the Caribbean Region.
73