1. MEASURING AND REWARDING PERFORMANCE IN PUBLIC ADMINISTRATIONS Zsuzsanna Lonti Head of Unit Statistics and Indicators Reform of the Public Sector Division (RPS) Directorate of Public Governance and Territorial Development

2. The broad picture: Who are we measuring? Understanding Performance: what matters? Evidence on HRM performance across public administrations Main challenges Overview

3. Performance of whom? Individuals – employees – senior civil servants Organizations – whole of government – sectors – ministries – functions How to link the two? – strategic HRM

4. Government alignment: cascading objectives in Canada Source: Treasury Board of Canada Secretariat

5. What drives individual performance? Skills (hard and soft) Knowledge Ability Intrinsic Extrinsic Motivation Work design Organisation Opportunity

6. PA can address Skills Gaps Learning Capacity for development TrustSelf aware The importance of ability

7. and enhancing motivation… Stable self-perception and self-confidence are therefore the most important motivators for individual success. Pay mainly demotivates (in the event of bad payment) or not (if payment is appropriate). Rarely adds motivation. Targets that take the individual's abilities into account, feedback and rewards Improve the employee's confidence Higher success expectancy, higher self-set targets and improved performance. Source: Demmke, Christoph 2007

8. While adapting the context Performance and target achievement in public service almost always depends on a multitude of factors beyond the individual: – Organisational culture and structure, – Work conditions, – Workplace technology, – Management, – Job profile

9. Advancing the evidence Performance management Performance pay Special HRM system for senior managers

10. Evaluating employees, but how? Source: 2010 Survey on Strategic HRM in Central/Federal Governments Performance criteria most commonly used across organizations (2010)

11. and for what Criteria for being promoted (2010) Number of countries Source: 2010 Survey on Strategic HRM in Central/Federal Governments

12. Performance as an assessment tool Extent of the use of performance assessments in HR decisions in central government (2010) Source: 2010 Survey on Strategic HRM in Central/Federal Governments

13. Remuneration based on performance Extent of the use of performance-related pay in central government (2010) Source: 2010 Survey on Strategic HRM in Central/Federal Governments

14. What about the senior civil service? Use of special HRM practices for senior civil servants in central government (2010) Source: 2010 Survey on Strategic HRM in Central/Federal Governments

15. Strategic Human Resources Management Utilisation of strategic HRM practices in central government (2010) Source: 2010 Survey on Strategic HRM in Central/Federal Governments

16. Challenges common in Europe Assessing effectiveness and acceptance – Which staff? How do you know? Workload and simplicity Managers’ capacity Cooperation vs. Hierarchy (and austerity) Inadequate poor performers policy Ratings inflation Discrimination Source: Demmke, Christoph 2007

17. Greatest Challenges to Success: Management The role of the managers in the performance appraisal process Mastering the increased workload, complexity and bureaucracy Managing target agreements and improving the appraisal Connecting the performance appraisal with consequences (feedback, payment, promotion, training, sanctions) as quickly as possible. Source: Demmke, Christoph 2007

18. Success factors: Organisational Attributes and Leadership Time, resources, trust, fairness, comprehensibility and leadership are important success factors Changing values and the leadership culture require a long-term time frame. Introducing new systems and instruments (statistics and monitoring systems, advanced training, relationship between superior and subordinates) are very resource-intensive and cannot be implemented quickly. Source: Demmke, Christoph 2007

19. Organisational performance depends on employee performance (ability, motivation, opportunity) Employee performance management requires a range of institutional supports OECD continues to build knowledge, share experience and support governments to maximize performance of organisations and employees. To Recap:

20. Thank you Zsuzsanna.lonti@oecd.org