1. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Appraisal of individual performance in the civil service Dr. Hans-Achim Roll (rollconsult@gmx.de) Podgorica 22-23 November 2010

2. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Performance Management l The two purposes of civil service management: effectiveness, efficiency and civil service values l Organisational and individual performance management l The role of appraisal in a performance management system

3. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Elements of a performance management system l Setting objectives and planning work l Continually monitoring and providing feedback l Developing the capacity to perform l Assessing/appraising individual performance periodically l Rewarding good performance and sanctioning poor performance

4. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Appraisal schemes (trends) l Variety of appraisal schemes and “best” practice l Reform efforts and administrative culture (more hierarchic/more communicative and cooperative) l General trends: decentralization of the design and implementation changing relations between superiors and staff linkages to performance related pay and promotion simplification of appraisal procedures

5. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU The two major types of appraisal schemes l Traditional/standardized schemes: performance measured against a set of mandatory/optional criteria (competencies, skills, conduct); advantage:comparability, disadvantage: subjectivity and unclear terms l Target agreements/individualized schemes: performance measured by the degree of target achievement; advantage: transparency and motivation, disadvantage: reduced comparability, negotiating targets difficult

6. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Elements of appraisal schemes l Appraisal frequency: annually, every two years, other intervals l Rating system: grades (three, four, five grades scales), verbal evaluation, no explicit rating l Evaluator: immediate superior, head of department/administrative body, commission, self-assessment, others l Appraisee: every civil servant, some positions excluded

7. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Problems and challenges (1) l Appraisal interview: expectations with regard to an open and cooperative feedback often differ from reality l Objectivity/subjectivity: need for checks and balances (second evaluator, role of HRM unit, appeals) l Ratings: inflation of the best grades; remedies: verbal evaluation instead of grades (?), introduction of binding/non binding rating distributions (?)

8. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Problems and challenges (2) l Managerial shortcomings: inadequate flow of information and insufficient commmunication of targets, decisions without involving employees, difficulties in solving group conflicts, deficiencies in superior´s management behaviour (dedicating time and resources, openness and honesty), behaviour too formalistic and „bureaucratic“ l Additional workload for middle management; remedies: design of assessment forms, number of procedural steps, electronic staff assessment ; areas for further development: policies for out-performers and under-performers

9. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Recommendations (1) l Appraisal schemes are an important instrument to ensure the development of a professional, accountable and merit based civil service. l Staff appraisal is a continuous process throughout the whole appraisal period, and not just a once year event; l The appraisal scheme needs to be monitored and adapted if necessary.

10. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Recommendations (2) l To make appraisal schemes successful and credible the legal provisions must be implemented properly; this requires managers with the necessary willingness and abilities. l Important preconditions for the introduction of new appraisal schemes: Transparency of the process Involvement of the employees/trade unions Thorough training of managers Conformity with the respective administrative culture