69312 HUMAN RESOURCES MANAGEMENT MAPPING OF SELECTED MINISTRIES Preparatory Work for a World Bank Programming Mission on Civil Service Reform in Indonesia Report I of IV SUMMARY REPORT Ingrid Holfelt 2008-12-24 2 Page TABLE OF CONTENT ABBREVIATIONS 3 ACKNOWLEDGEMENTS 4 1. BACKGROUND 5 2. INTRODUCTION 3. HRM REGULATIONS 5 4. HUMAN RESOURCES STRATEGY 6 4.1. HR Strategies in the Selected Ministries 6 4.2. Assessment of the HR Strategies 7 5 JOB-CLASSIFICATION 7 5.1. Classification of Positions 7 5.2. Distribution of structural, functional and general 9 staff in two of the ministries 5.3. Job-analysis and job-classification 9 5.4. Job-descriptions 9 6. RECRUITMENT 10 6.1. Assessment of recruitment needs 10 6.2. Recruitment Procedures 11 6.3. Selection Process 12 6.4. Recruitment Plan 12 6.5. Induction Program 13 7. CAREER MANAGEMENT 13 7.1. Rotation 13 7.1.1 Rotation Policy and Requirements 13 7.1.2. Comparison between the Selected Ministries 13 7.2. Promotion 15 7.3. Career paths 16 7.4. Succession Planning for Key Positions 17 7.5. Assessment Centres 17 8. PERFORMANCE MANAGEMENT 17 8.1. Performance Management Systems in the Selected Ministries 17 8.2. Assessment of the Performance Assessment Systems 18 8.3. Performance assessment and links to career progression and salary increase 18 9. ETHICS MANAGEMENT 19 10. TRAINING AND DEVELOPMENT 20 11. REMUNERATION 22 12. THE ORGANISATION AND STAFFING OF THE HR BUREAUS 23 13. COMMENTS 24 Attachment 1 Terms of Reference 28 Attachment 2: Key Regulations Covering HRM Cycle 33 Attachment 3: Basic Salary Structure of PNS 34 Attachment 4: Questionnaire 36 Attachment 5: Implementation of the Assignment 37 Attachment 6: DP3 39 3 ABBREVIATIONS BAPERJAKAT Committee on Rank and Position BKN National Civil Service Agency BPKRT Treasurer and Internal Affair Officers CPNS Civil Servant Candidate DG Directorate General DP3 Performance Assessment Tool required by the civil service regulations GOI Government of Indonesia HR Human Resources HRM Human Resources Management KPI Key Performance Indicators LAN National Institute of Public Administration MenPAN State Minister for the Empowerment of the State Apparatus MoFA Ministry of Foreign Affairs MoF Ministry of Finance MoHA Ministry of Home Affairs PA Administration Officials PDK Consular Diplomatic Officials PNS Civil Servant SKI Individual Performance Indicators 4 ACKNOWLEDGEMENTS A special thank to the following people for their contribution to the report Ariadharma, Erwin, Senior Public Sector Management Specialist, World Bank, Indonesia Cumberford, John, Governance Support Project, Institutional Development Advisor, Ministry of Home Affairs Ghofar, Head of Personnel Bureau, Ministry of Finance Head of Organisation, Bureau Ministry of Finance Harjowiryono, Marwanto, Senior Advisor to the Minister of Finance Iswanto, Priyo, Head of HR Bureau, Ministry of Foreign Affairs and his staff Karyanto, Head of sub-section Training, Ministry of Home Affairs Kiswanto, SH. Head of HR Bureau, Ministry of Home Affairs Nur, Muhammad. Head Sub-unit, Structural and Functional Job Positions, Ministry of Home Affairs Scott, Anne, Consultant World Bank, Ministry of Trade Simanjuntak, Nelson, Head Discipline and Awards, Ministry of Home Affairs Synnerstrom, Staffan, Lead Public Sector Specialist, World Bank, Indonesia Utama, Rozie, HR Bureau, Head Career Development Unit, Ministry of Home Affairs Qodir, Abdul, Head of Planning, Ministry of Finance 5 SUMMARY REPORT 1. BACKGROUND The purpose of the assignment was to map Human Resources Management Practices in three selected ministries (Terms of Reference Attachment 1), The Ministry of Finance (MoF), the Ministry of Foreign Affairs (MoFA) and the Ministry of Home Affairs (MoHA). The mappings within these ministries are intended to provide an input to a World Bank Programming Mission on Civil Service Reform scheduled for 2-13 February 2009 to determine what kind of support the World Bank may provide in helping the Government of Indonesia (GOI) to further develop its ongoing civil service reform program. Working methods used for this assignment were studies of documentation such as previous reports, presentations at conferences and seminars, regulations and interviews with Government officials in the selected ministries. Based on the guiding framework for the assignment attached to the Terms of Reference, a questionnaire was developed (Attachment 4) and discussed and agreed upon in meetings with the World Bank Lead Public Sector Specialist, Mr. Staffan Synnerstrom and Mr. Erwin Ariadharma, Senior Public Sector Management Specialist and Ms. Anne Scott Consultant at the Ministry of Trade. Introduction meetings were held at the three ministries involved. In some cases it was difficult to organise follow up meetings as the officials concerned were very busy given it was the end of the fiscal year. More details related to the implementation of the assignment are to be found in Attachment 5. 2. INTRODUCTION This report, Report I, is a summary of the information gathered and includes a comparison between the Ministry of Home Affairs, Ministry of Finance and Ministry of Foreign Affairs. The summary is organised in accordance with the HRM core areas of study (i) human resources strategy, (ii) job-classification, (iii) recruitment, (iv) career management, (v) performance management, (vi) ethics management (vii) training and development, (viii) remuneration and; (ix) the organisation of the HR divisions. In accordance with the ToR, and whenever feasible, a comparison with international best practice has been made In order to facilitate for the reader, a summary table is provided at the end of the report. The detailed findings within each Ministry are presented in separate reports. Report II covers a description of HRM practices in the Ministry of Home Affairs, report number III covers Ministry of Finance and report IV the Ministry of Foreign Affairs. It is important to stress that the data provided by the ministries differ and therefore comparisons are not possible to make in some of the aspects as intended. 6 3. MINISTERIAL HRM REGULATIONS The State Minister of the Empowerment of the State Apparatus (MenPAN) is the organisation that forms the policy within the civil service and makes decisions with regard to structure and staffing of all government institutions after having consulted another government body the Civil Service Agency (BKN) and if the issues has financial implications also the Ministry of Finance. BKN issues a number of implementing regulations within the civil service based on policies in the form of higher level regulations issued by MenPAN. In addition to the policy directions from MenPAN and regulations from BKN, each ministry may issue ministerial regulations. These regulations are in principle based on the requirements from the central government, at least not contradicting them, and may be the same or more detailed than the ones from the central level. In some cases they may cover subjects not covered by the central regulations. One such example is the assessment centre at the Ministry of Finance. The main central HRM regulations are displayed in Attachment 2. The separate reports on the selected ministries do not include comprehensive information on ministerial regulations. The information may not be comprehensive except for MoFA, which provided a list in writing. Likely the majority of the additional HRM regulations issued by the Ministry of Finance are included. In cases when it has not been clear whether the regulation is a ministerial or governmental it has been left out. This is especially the case with some regulations from MoHA. 4. HUMAN RESOURCES STRATEGY 4.1. Human Resources Strategies in the Selected Ministries The Ministry of Foreign Affairs has developed a human resources strategy linked to its operations strategic plan. The HR strategy is linked to other ministerial plans such as annual plan and budget. The overall goal with the strategy is to create a meritocracy. The strategies to achieve the overall goal are (i) improvement of recruitment and selection, (ii) increased emphasis on education and training, (iii) provide career development (iv), improved performance assessment, (v) encourage self development (vi) improvement of the working morale and (vii) compensation based on performance. The strategy was decided upon by the Minister. Ministry of Finance does not have any specific HR strategy. However, strengthening of the HRM is a part of its administrative reform program and the work undertaken with job analysis, job descriptions, job grading and work load analysis is based on operational needs and revised working processes. The training provided is to meet the gap between the reformed job- requirements and current competencies for a special job. The Ministry of Finance is therefore well positioned to develop a strategy as there already are some alignments between operational needs and HRM. However, as the Ministry is very big in structures, it is preferably to just have a simple umbrella strategy and let each of the directorates general and main offices develop their own HR strategies. This is in line with the approach already used by MoF when issuing guidelines on HRM to its 12 DGs and main offices. The Ministry of Home Affairs (MoHA) does not have any HR strategy. 7 4.2. Assessment of the HR strategies Best practice criteria for an HR strategy are: (i) aligned to operational needs, (ii) linked to other ministerial plans, (iii) to have long-term perspective (iv) to cover essential HRM areas. HR Strategy MoFA MoF MoHA aligned to Yes - - operational needs linked to other plans Yes - - long-term Yes - - perspective cover relevant HR Yes - - areas Comment: MoFA HR strategy has a five year perspective which is relatively short. On the other hand a longer time-perspective would not be feasible as the operational strategic planning in the GOI has a five year cycle. 5. JOB-CLASSIFICATION AND JOB-DESCRIPTIONS 5.1. Definition of Categories of Staff The Government distinguishes between (i) structural staff (ii) functional staff and (iii) general staff. Structural positions are managerial positions. All positions are placed into ranks in accordance with a military inspired HR system. The managerial positions are grouped in four echelons, I being the highest. To move from one echelon to another requires that staff have successfully completed required education for that level, passed required tests and examinations, in addition to have good performance for two consecutive years and be in the last position for four years. General staff is a mixed group consisting of civil servants at lower levels (non- echelon), civil servant candidates, drivers, secretaries and other support staff. Functional staff are basically specialists. Functional staff are grouped in families e.g. health staff comprises among others doctors, nurses and dentists. The biggest group of functional staff is teachers. Other examples of functional staff are auditors, accountants, IT specialists, engineers, and architects. MenPAN has defined about 100 different functional professions within the civil service. Common for these are that they all need some certification authorising incumbents to execute their specific profession. Both structural staff and functional staff are placed in a rank from IV to I, IV being the highest. Within each rank there are different levels or grades from a-d, except for rank IV. Managerial positions grouped in four echelons I-IV with echelon I being the highest. The relationship between ranks and positions are as follows: 8 rank and grade in those positions positions structural functional educational position titles (illustrative requirement rank echelon echelon echelon echelon echelon level III titles for IV II V I research positions) senior senior IV university IA administrator expert e degree (S1 and IB researcher higher) middle expert d administrator researcher IIA junior junior administrator expert c IIB researcher first class researcher b administrator IIIA administrator junior a researcher IIIB first class adjunct III d superintendent researcher IVA superintendent junior adjunct c IVB researcher first class junior assistant b superintendent researcher VA junior junior superintendent assistant a VB researcher first class II senior high d supervisor school supervisor c first class junior b junior a supervisor first class clerk I d junior high clerk c school first class junior b clerk junior clerk a primary school Source: a WB working paper on HRM Directorate General of Tax, WB 2007 9 5. 2. Distribution of Structural, Functional and General Staff in two of the Selected Ministries The distribution of structural, functional and general staff in MoHA and MoF is Staff Category Structural Staff Functional staff General Staff Total MoHA 966 (20%) 351 (7%) 3433 (72%) 4750 MoF 8619 (14%) 5759 (9%) 46 864 (77%) 61 241 Source: MoHA and MoF As can be seen from the above table, the bulk of the staff of the Ministries so called general staff, is more than 70%. Notably, functional staff form a very small portion of the employees. 5.3. Job-Analysis and Job-Classification All three ministries use the general 17 ranks as the basis for the classification of positions as outlined above. However, the MoF is, as a part of its bureaucratic reform program undertaking an extensive effort to analyse its work-processes with the aim of simplifying and improving them to provide better public service delivery. As a result jobs have been re-classified based on (i) education requirements, (ii) responsibility and (iii) complexity of the job. An additional grading system has been developed comprising 27 grades as compared to the 17 ranks applied generally in Government. This new grading system is linked to the new job descriptions and is used to determine the additional allowance provided by the MoF. Details about this new grading system and comparison with the central government system are in the report on MoF. MoFA has also developed a structure in parallel to the general government structure with four echelons and ranks: (i) diplomats, merging PDK and administrative officers and (ii) non- diplomatic officers (merging of BPKRT/Treasurer and Internal Affair Officers. Assessment: For very obvious reasons, it is not very efficient to apply two parallel systems. Not only is it time consuming from an administrative point of view, but also most of all it is confusing for the employees. 5.4. Job-Descriptions Although the job-descriptions may differ somewhat in structure depending on operational needs as well as the level of the position, there are in good HRM practices some elements which are considered essential to include in any job description. These elements are (i) title of the position, (ii) position level, (iii) competence requirements for the position, (iv) organizational location of the position, (v) whom to report to, (vii) responsibilities, (viii) authority, (ix) expected outputs, (x) activities to be undertaken and; (xi) special conditions. 10 Job Descriptions MoFA MoF MoHA Title of the position N/A Yes N/A Position level N/A Yes N/A Competence requirements N/A Yes N/A Org. location N/A Yes N/A Whom to report to N/A Yes N/A Responsibilities N/A Yes N/A Authority N/A Yes N/A Expected outputs N/A Yes N/A Activities to be undertaken N/A Yes N/A Special conditions/requirements N/A Yes N/A The MoF job descriptions meet the requirements indicated above. In fact, they are even more detailed (for further details see the report on Ministry of Finance). MoF intends also to include more specific competence requirements in the job-descriptions such as behaviour criteria and detailed technical requirements for the positions. It can be argued that the job-descriptions of MoF are too detailed. However, this may be to prefer in a transition period. By time and experience simplifications can be made. MoFA does have job-descriptions and have referred to a regulation Peraturan Menlu No. 02 and 06. As the Mission has not been able to get that document, it is not possible to assess the structure of the MoFA job descriptions. According to second hand information; however, the structure is basically the same as the job descriptions developed by MoF. If this is the case, then the same comments will go for MoFA as for MoF. MoHA has job descriptions for organizational entities but it has no formalised procedures for determining individual job-description. It is up to the concerned manager to determine the distribution of work based on the unit’s need and the competence of the staff working in the unit. 6. RECRUITMENT 6.1. Assessment of Recruitments Needs Assessment of the recruitment needs is based on expected retirements. MoFA and MoF have reduced the number of staff by using attrition and halting the recruitment. As both MoF and MoFA recently has been reorganised, there is at this point in time no need for them to more thoroughly assess the need of filling a vacancy and of what competence and skills the vacancy requires. When a vacancy occurs, it is a matter of finding a replacement. Such replacements are to be found internally as there is no external recruitment except at the entrance level. The assessment of recruitment needs is in all three ministries coordinated and discussed in the Management Committee, BAPERJAKAT. The BAPERJAKAT may have different composition and different number of members (up to six members) in the three ministries, but it consists basically of the ministry’s Echelon I and II staff. The BAPERJAKAT are chaired by the 11 Secretary General, the Head of the Personnel Bureau is the Secretary, and the Inspector General is always a member. Other members may be all other Echelon I and II staff or a selection of them. The BAPERJAKAT is an advisory committee. Final decisions are made by the Minister. The BAPERJAKAT is not only advising on recruitment but also on rotation, promotion and training. Depending on the level of the staff, the Secretary General is making the final decision. For higher Echelon staff, the Minister makes the decision. Each DG in the Ministries has its own BAPERJAKAT being advisory concerning HRM issues for staff at lower levels. This is regulated within each Ministry. The Ministry of Finance has a large number of BAPERJAKAT due to its size. Assessment: In modern HRM practice it is possible to abolish positions and create new ones depending on operational needs. Also, the budget rests with a Ministry which enables it to make a decision with regard to whether the priority is to hire additional staff or invest funds in e.g. IT equipment. This flexibility, making funds fungible, does not exist within GOI where the organisation and staffing is fixed and decided on by MenPAN according to predetermined requirements on number of units and staff. 6.2. Recruitment Procedures Each Ministry decides on the frequency of recruitment being it annually or every second year. Normally there is at least one intake of staff every third year. The recruitment takes place at the entrance level only and the selection is based on educational level in combination with exam results: Individuals with PhD, Masters, BSc, senior high school, junior high school, secondary school and elementary school are thus eligible for different kind of entrance positions. Recently, MoHA has recruited about 120 individuals a year, MoFA about 100 and MoF around 1500 individuals. Staff are thus recruited into the service and not to any designated positions. MoFA is now only recruiting civil service candidates having a minimum of a Bachelor degree unless the person is not to be employed in function which clearly does not require that level of education. MoFA is also recruiting specialists e.g. special legal or financial experts through a network established with selected universities. MoHA contacts potential candidates for functional positions informally and if the person meets the criteria he/she may be recruited. Applicants to MoF will have to meet the basic education requirements obtained at the School for Accounting (STAN). STAN is a pre-entry education institution managed by the Ministry of Finance. STAN provides staff also to other institutions. However, the Ministry of Finance has the prerogative to choose the best ones. The Indonesian civil service applies a career system in which staff are recruited at an entrance level. Promotion is then possible for those who pass tests and take exams for higher positions. There has been no open competition for higher positions. However, this pattern is now changing within the MoF, which has recently introduced internal advertisement of three senior positions. Also, according to information received, the Minister of Finance has recently delegated to the 12 Echelon I directorates to decide whether to internally advertise vacant positions at Echelon II and III levels through intranet. Assessment: There are a number of countries, e.g. France, which is maintaining a career system with recruitment of staff at the entrance level only, as is the case in Indonesia. However, the most common practice today is the position based system, where positions are advertised to allow for competition among a wider range of candidates. The positions may be advertised externally, internally or both. Many countries use a combination of both systems. As for the diplomatic corps the international practice is to recruit potential diplomats in an annual intake in line what the MoFA does. Only very specialised positions may be externally advertised. 6.3. Selection Process The process to select new employees is in MoHA undertaken in three steps (i) administrative test, (ii) psychological tests and (iii) test measuring the understanding of the role as a civil servant. For the psychological tests, either a university or a consultant firm is used depending on the level of the staff. MoFA has added additional selection steps and has a selection process consisting of six steps (i) administrative test (ii) written test to assess general knowledge, (iii) language proficiency test (iv) interview by a panel, (v) IT test and (vi) psychological test. For each steps in the recruitment process there are minimum requirements and those who pass the first level may continue to the next one. At the end the final candidates are ranked and the best ones are selected. The recruitment process is coordinated by each Ministry’s Central Personnel Bureau under the supervision of the Secretary General. Recommendations on the selection of staff are made by BAPERJAKAT. Assessment: The MoFA selection process is at par with international best practice within the diplomatic core, although test in IT may be a selection criterion only in countries where such skills may not yet be common. The MoHA selection procedure is thorough on paper but only based on written tests. No assessment of the actual content and the relevance of the tests provided have been possible to do during the assignment. 6.4. Recruitment Plans Recruitment plan MoFA MoF MoHA Time Frame 6 years N/A Five years Link to ministerial No N/A No budget 13 It is highly likely that the MoF has a five year recruitment plan as five years is the planning horizon in the Government. Recruitment plans are approved by the Minister and sent to MenPAN which consults BKN and MoF before final approval. There is no link to the operational budget and the staffing allocation is determined separately. Assessment: The time frame for the recruitment plan follows the time frame for the operational strategic plans, which is reasonable. MoFA has a different pattern due to its special rotation scheme. The biggest concern is though that the plans are not a part of the budgets but are determined separately, which means that a huge portion of the yearly expenditure is committed to outside the budget process through a separate administrative procedure. 6.5. Induction Program All ministries have a probation period for the civil servant candidates. After having passed the required exam during pre-entry service training at the end of the probation period, the CS candidate becomes a civil servant. Placement in the structure depends on the educational background of the staff. 7. CAREER MANAGEMENT 7.1. Rotation 7.1.1. Rotation Policy and Requirements The general principle in GOI is that staff are to be rotated every 2-5 years. It is of obvious reasons primarily structural staff who are rotated as these staff are generalists and it is members of this group who are expected to increasingly take on more responsible managerial positions. Functional staff may be rotated but to a less extent mainly because there are limited rotation possibilities. E.g. the bulk of the functional staff in the ministries mapped are lecturers and teachers at the training institutes. It is, however, possible for a structural staff to rotate to a functional position and vice versa. Rotation may be (i) vertical, (ii) horizontal or (iii) diagonal. Vertical, which is basically the same as promotion, is movement from one level or rank to another. Horizontal movement is within one echelon but with a change within the rank (normally one step e.g. from II c to II d). Diagonal is movement from structural to functional positions or vice versa. In order to be rotated, staff must have had (i) a good performance during two consecutive years, (ii) have the educational background and technical and other competencies (as outlined in ministerial competence profiles) required for the job to which he/she is considered to be rotated, and (iii) having passed the grace period of any given sanctions in case he/she has violated the code of ethics. To be considered for rotation, staff have to have a minimum of 2 years in the same position. The more rotations the better it is for the career. In some cases the BAPERJAKAT may require a special evaluation to be undertaken. If there are two staff having received the same 14 score priority, the position is given to the one having served for the longest in her/his current position. Staff may not be rotated for several reasons. They may not have passed required training or tests, their skills are rare and they are needed in the positions they are in or they are simply not interested in rotating. It also happens that managers want to keep a staff member and thus is reluctant to let her/him leave. 7.1.2. Rotation in the Selected Ministries It has not been possible to get statistics on the actual frequency of rotation in the selected ministries. MoF has issued a ministerial decree requesting its directorates general to develop rotation schemes based on the general rotation policy conveyed by the decree. For further details see the report on Ministry of Finance. The decree on rotation was issued in 2007 but information whether such policies and plans are finalised is not available. MoHa does not have any rotation plan as rotation is influenced by a number of factors. Instead rotation is considered when a vacancy occurs. One reason for not developing a plan is that MoHA does not have any computer based human resources information system which means that everything will have to be done manually. This restriction is an obstacle to efficient HRM and particularly to more sophisticated manpower planning. MoFA rotation pattern is different from the other ministries as the policy is that a staff shall work two years at the HQ, four years at a mission abroad, two years at the HQ and so on. Subsequently its rotation plan has a time frame of six years. Comparison MoFA, MoF and MoHA Rotation MoFA MoF MoHA Policy Yes Delegated to each No ministerial DG to develop a policy. Applies rotation policy and central regulations scheme for structural staff. Rotation Plan Yes 6 years time Rotation plans are Has no plan frame under development Rotation pattern Cycle 2+4+2 years 2-5 years 2-5 years but in reality not so frequent Assessment: Based on information received rotation seems to have been mechanistic in MoF, but is now in the process of being reviewed and revived based on new policies. In MoHA, rotation is 15 being acted upon on a case to case basis when there is a vacancy while, rotation seems to be effectively executed in MoFA. Comments: Rotation in organizations is normally undertaken due to three reasons (i) developmental, (ii) development of leaders, (iii) avoidance of too close contacts between the civil servant and the client to ensure objectivity and integrity in the work and to minimise corruption. These reasons are also the advantages with rotation, if planned properly. But rotation has costs of (i) reduction of organizational memory (ii) learning curve and (iii) effectiveness and efficiency. With active and well-designed rotation schemes, such costs can be heavily, if not totally, reduced. Rotation is needed for the foreign service in order to develop the skills of the diplomats and to some extent to avoid that staff become too attached to the country they are working in and thus loose their objectivity. Likewise it is important for members of the diplomatic corps to spend time in the home country not to loose touch with policy developments and to be able to represent their country abroad. MoFA brought up that a rotation period of three plus three years may be to prefer. Also, from a planning point of view it is easier. On the other hand, other factors will also have to be taken into account such as costs. It is expensive to move a family overseas. The outcome of the rotation policies developed by each of the DGs within MoF has not been available. But it is clear that within MoF there are certain positions which should be included in a rotation scheme to maintain objectivity, especially in tax and customs. However, it is questionable if all staff should be covered in a rotation scheme, it should rather be focused on certain groups, such as tax auditors and tax collectors, or on promotion of management skills. It should, however, be emphasized that not all staff are in fact rotated. As indicated above there are requirements for being eligible for rotation. As rotation normally entail placement in a higher layer within a rank it is mostly a move up the ladder. 7.2. Promotion There are three kind of promotions (i) regular promotion, (ii) promotion due to having performed outstanding (done something valuable for the country) and (iii) promotion in case of death or incapacitation in service. Promotions may take place from one rank to another and/or from one echelon to another. In the case of the former, the staff may maintain the job in the latter case there is subsequent change of the job. In order to be promoted a civil servant must have (i) required education and training for the position, (ii) passed the exam required for the position (ii) worked in her/his position for four years (iii) received a performance evaluation scored as good (91-100%) for two consecutive years and (iv) passed a test and (vii) met other requirements for the position such as the required competencies outlined at ministerial level. A weight is given to each of the criteria used and the results of the evaluation are provided in a final score. The three with the highest score are discussed in BAPERJAKAT and for managerial levels, i.e. echelon I and II, in a meeting led by the Minister. The details of the criteria used for promotion of staff to Secretary and Echelon II in the provincial level are outlined in an attachment to the MoHA report. Although the weights applied and the competencies measured may be different, the evaluation procedures of the staff are according to 16 information received, similar at the MoHA central level. An observation made is that performance as measured by DP3 does not play a significant part in promotion. Instead, factors such as educational level, participation in training and other factors are determinants. The factor provided the highest weight in the administrative requirements is the number of rotations. MoFA has developed a fast track for quicker promotion for high performing staff. According to this system fast track staff stay two years in each position as compared with the regular promotion system under which the minimum requirement is 4 years in the same position. For further details see the report on MoFA. The tool used by MoFA to identify the talents to be fast tracked is capacity assessment. Functional staff are promoted in accordance with requirements issued for each category of functional staff by MenPAN. For auditors the promotion is linked to e.g. number of audits, complexity of audits. Decision on promotion of functional staff such as trainers and lecturers is proposed by the Head of the Training institution. MenPAN is the decision making authority but relying on inputs from BKN. 7.3. Career Paths All three ministries have a defined career path for the structural echelon staff. Career progression is based on results of DP3, previous training, formal education, rotation history (the more areas worked in and the shorter time in each position the better it is). In addition, the person is assessed based on ministerial requirements for competencies and strategic planning (goes for managerial level). Psychological test are used. The results are put together and a score computed and the potential candidates are ranked accordingly (see section on promotion). Functional staff have their own career path within their specialty as outlined by MenPAN for each speciality. Promotion evaluation criteria for a lecturer may be number of papers produced and published, for an auditor the number and complexity of audits completed. MoFA has developed career paths for essentially its entire staff. To identify potential candidates for fast track career the results on the performance evaluation is used. Especially the results of the capacity assessments are considered. Based on the capacity assessment staff are divided into four groups:  those being high performers and having high capacity as measured by test,  those having high capacity but comparatively lower work output,  average capacity but very ambitious at work,  low capacity and low work output. Needless to say it is the first group which is considered for the fast track career path. Assessment: MoFA has implemented a sophisticated system which includes identification of talents to be nurtured. 17 7.4. Succession Planning for Key Positions MoFA is the only one of the Ministries which has introduced succession planning for key positions. MoF has expressed the wish to do the same. It would be quite easy for MoF to do as it already is developing assessment centres. 7.5. Assessment Centres MoF is the in the process of establishing assessment centres within each Echelon I unit, i.e. within. DG Tax, DG Treasury, etc.. The purpose of these assessment centers is to assess the skills and competencies of the staff in relation to the requirements of the job. Based on a gap analysis, training and development programs will be provided to staff. A part of this undertaking is to define competencies required for each job both technical and behaviour. The assessments undertaken are also intended to be the basis for career planning. MoHA does not have any assessment centre but is interested in establishing one. MoFA uses capacity assessment to identify talents to nurture. 8. PERFORMANCE ASSESSMENT 8.1. Performance Assessment System Used by the Selected Ministries The table show the performance assessment tools used by the three Ministries Ministry Performance Assessment System MoHA -DP3 MoF -DP3 -Planning to introduce additional individual assessments based on KPIs MoFA -DP3 -SKI -Capacity assessment -Attendance record -Supervisor Assessment As can be seen from the table all three Ministries are using the performance assessment system as stipulated by the Government, DP3 (attachment 6). This performance assessment is undertaken every year. The assessor is the immediate supervisor. Criteria used for performance assessment of staff are (i) loyalty, (ii) performance, (iii) responsibility, (iv) obedience (v) honesty (vi) teamwork, (vii) initiative and; (viii) leadership (when applicable). 18 MoF is planning to develop an additional individual performance assessment system based on the KPIs they are currently developing. MoFA has expanded the performance assessment to also include (i) performance assessment based on so called SKI (individual performance indicators determined together with the supervisor based on the work program), (ii) capacity assessment, (iv) attendance record and (v) assessment by the supervisor. The MoFA requirements, when determining the SKIs, are that they shall be (i) based on the vision/mission/objective of the work unit the staff is working, (ii) measurable, (iii) based on a priority scale, (iv) fulfilled cycle time, (v) fulfilled quality standard; and (vi) budget allocation. The capacity assessment is undertaken by an external consultant firm. In MoFA the performance is linked to career progression. MoFA also uses placement in attractive countries/cities as a way to reward high performing staff. In summary MoFA has a well thought through and coherent performance/career/promotion system. There is a movement to modernise the performance assessment system to make it more output oriented. DP3 is obsolete in its current form as it mainly takes into consideration evaluation of irrelevant behaviour criteria. 8.2. Assessment of the Relevance of the Systems A modern individual performance assessment system is (i) output focused, (ii) participative and (iii) developmental. Participative refers to that there is a discussion between the manager and the employee regarding (i) the weaknesses and the strengths with the staff’s performance during the period which has passed (ii) discuss the work program and determine the targets for the next year. Developmental refers to that the discussion shall be constructive and also lead to that training and other development needs are discussed. Performance MoFA MoF MoHA -task oriented Yes In the process of No doing so -participative Yes N/A No -developmental N/A N/A No Comments: The DP3 used by all the Ministries as per government regulations is obsolete. It covers almost only behaviour criteria (seven out of eight). And some of these behaviour criteria are not in consistency with behaviour criteria required in a democracy. It should be emphasized that modern performance assessment systems also do include assessment of behaviour. The issue is what kind of behaviour criteria to use and also how much weight they should carry in relation to work output. 19 Due to that application of the DP3-tool is a mandatory requirement, ministries are adding other systems which are then used in parallel. This is not very efficient and may cause confusion especially since the outcome of the appraisals may lead to different actions. Results on DP3 are used as one of the evaluation criteria, although not a very important one, for promotion and rotation. As MoFA is using a number of methods to evaluate their staff it would have been interesting to see what weights they allocate the different performance assessment systems. Such information has unfortunately not been available. 8.3. Performance Assessment Systems links to career progression and remuneration. A relevant performance system shall be linked to career progression and pay increases Performance MoFA MoF MoHA linked to -career progression Yes DP3 plays a role DP3 plays a role -remuneration To some extent To some extent No Score on DP3 plays a role in career progression. However, as indicated previously, it is obsolete. The basic salaries provided to government officials is increased every year with about 10 – 15 %, subject to affordability of the government and so are the basic allowances. MoFA seems to be able to use funds from other allowances to provide extra for high performing staff. However, the main carrot for promotion of performance within MoFA is that high performing staff is provided more attractive postings abroad, as well as a quicker career path. A special feature in MoF and MoHA is that attendance at work is a factor in performance assessment. MoFA has it as one of the criteria for assessment of staff. MoF reduces the additional allowance due to absenteeism or if the person is coming late to work. 9. ETHICS MANAGEMENT All three ministries express the same problems (i) limited commitment to work and (ii) absenteeism from work and are actively trying to find ways to address these issues. Subsequently all three have “improved discipline� as one of the most important issues to address. All three ministries apply the Code of Ethics as issued by MenPAN. MoFA has developed an additional Code applying to their staff. MoF has encouraged each Echelon I unit to develop their own Codes of Ethics. All three ministries apply the sanction schemes included in the basic Civil Service Law (for further details see the ministerial reports). The sanction scheme also includes a grace period required for a staff to be considered for rotation and promotion after a violation of the Code of Ethics has been confirmed. 20 In addition to the governmental sanction scheme MoFA has added: (i) shorter period of placement on missions abroad and (ii) postponements of placement to missions abroad. MoF reduces the additional allowance in case staff are absent or comes too late to work. MoFA has finger prints checking to ensure staff are coming to work. Attendance is a part of the performance assessment in MoFA. When there is a suspected violation against the Code of Ethics a special Committee is established in each Ministry to investigate the case. For Echelon I and II officials, the Minister is the chairperson of the Committee. Comparison between the three ministries Ethics Management MoFA MoF MoHA Code of Ethics GOI Code of Ethics plus GOI Code of Ethics plus GOI Code of Ethics own developing. own in each Echelon I entity Ethics Committee Yes, works with Yes, each Echelon I unit Yes, work with Investigations; no shall have a committee to investigations; not prevention work with investigations prevention Impact of violations Affect the career, Affects promotion as per Affect promotion as per against the Code of promotion, work government rules. government rules. Ethics assignments and Non-attendance leads to allowance. reduction of additional allowance Number of violations N/A N/A 2006-16 during the last years 2007-19 2008 Dec-12 Assessment: In order to get Code of Ethics to be adhered to there is a need to work more with preventive measures than seem to be the case in the selected ministries. The carrot and stick method applied has its limitations. Rewards such as medals as well as sanctions are important but not sufficient to change human behaviour. Ethical behaviour is based on values. Changing the values takes time and requires substantial training and discussions. The representatives of the Ministry of Finance expressed something along that line when saying that one of the most important issues for MoF to address is to “change the mindset of the people�. 10. TRAINING AND DEVELOPMENT All three ministries referred to their training institutes to get information about training offered and details with regard content and coverage of training plans and policies. However, within the given time frame no meeting could be organised with any of the training institutes as they were in the process of planning for the next year. The information below is the one received from the Ministries themselves. Comparison between the Selected Ministries based on the Information Available 21 Training MoFA MoF MoHA Training policy Yes Yes Yes Training plan Yes Yes Yes Time coverage training N/A N/A One year plan Responsibility for the Training Institute/ Training Training development of the plan BAPERJAKAT/discussion Institute/BAPERJAKAT Institute/BAPERJAKAT within MoFA and the missions. Training offered Predetermined training Preparatory training Pre-determined training required for progression to Predetermined training required for promotion. higher levels (attache´, for promotion. No other No further details first secretary and Echelon details available except available II) Other training is that MoF intends to available but no info about organise training based the details. on needs identified in the assessment centres. Self-development encouraged. Training institutes used Own training institute. Own training institute. Own training institute, LAN. Scholarships LAN LAN different universities No more details available. Financing of training The training institute The training institute gets The training institute gets gets funds from central funds from central GOI funds from central GOI GOI budget budget. budget Started to provide small . Scholarships financed by training budgets to the different donors Echelon I org. entities for in-house seminars. Number of staff trained N/A N/A 863 in 2007 Evaluation of Training Training Institute and -content discussion within the HQ N/A N/A and missions - participants N/A N/A Special Committee In both MoHA and MoFA, the BAPERJAKAT has an essential role in the training planning and nominations for participation in training. In MoHA, the Head of the Training Institutes is every year leading a 3-4 days seminar to discuss the training plan for the forthcoming year. MoFA has similar exercises involving their missions abroad as wells the directorates at the HQ using a bottom-up approach. These training planning seminars in MoHA are to be attended by Echelon I or II but in reality the participants may come from lower levels e.g. Echelon III and even IV. A special feature of evaluation is that the participants in training are evaluated and each one gets a score. The results or at least the attendance at the course have an impact on career progress as participation in training is one evaluation criteria used for promotion. The lowest acceptable score 22 on a course is 60%. After completed training, a ranking list with the scores is sent to the Ministries. In MoHA, there is a Committee consisting of the Secretary General, Director Inspectorate and the Head of the HR Bureau who review the ranking with special focus on those who did not come up to the required 60%. The Committee makes the decision on who has passed or not. According to information from MoHA, everyone who attends a course 100% will pass. Comments In modern HRM, training has the following functions: (i) inform and provide understanding of new regulations and policies, (ii) learn new working procedures, (iii) update of technical skills and (iv) provision of new skills needed in the future and; (vii) management training. In order to be relevant, the training provided shall be based on a needs assessment often done during the performance appraisal. The ownership of the training to be provided should rest with the institution as well as the budget for the training. Assessment: Although no details have been possible to get of the training delivered by the training institutions, there is a focus on provision of training programs required for promotion, so called structural training. None of the selected ministries has the control of the training budget. Although there is a formalised dialogue between the Ministries and the training institutions through the annual conference for discussion of the training plan for the coming year, training is mainly supply driven not demand driven. However, there are positive signs; the MoF is starting to allocate small training budgets for the DGs. Although these budgets will be very small and mainly be used for internal conferences, it is a step in the right direction. 11. REMUNERATION All three ministries are applying the Government basic salary structure which is based on ranks and layers within the rank. The salary structure as of 2008 is in Attachment 3. In addition, basic allowances are paid. The basic allowances normally include spouse allowance and child allowance up to maximum 2 children. Estimated averages of these allowances within each Echelon and rank are to be found in Attachment 3. There is general annual salary increase as determined by the Government. During the last years the salary increase has been 10% a year. The allowances are adjusted accordingly. The salary increase is equally distributed and there is no link to e.g. performance. MoHA applies the Government system with basic salary and allowance. MoF has by adding 27 new grades to the existing 17 ranks, created a second remuneration structure in addition to the basic salary and the basic allowance. This second structure is aimed at providing more pay for positions carrying higher complexity and responsibility. For some positions, the additional allowance may be up to three times as big as the basic salary. MoFA applies the following allowances: (i) allowance for foreign service, (ii) allowance for family, (iii) allowance for accommodation for rent, (iv) allowance for health, (v) allowance for representation, (vi) allowance for high living costs. Proposed is also to include allowances for (i) education, (ii) for special skills and (iii) allowance for the Head of the Missions abroad. Most of these allowances only apply when staff are working overseas. The use of additional allowances has become a means within a rigid system to provide more in salary and a means to promote responsibility and performance. 23 Assessment: Good international practice is that a civil servant gets one single salary. Additional allowances allow for hidden agendas and do not contribute to transparency. Also, the basic allowances and the additional allowances paid by the MoF is not a basis for pension. Most of the additional allowances provided by the MoFA are though temporarily e.g allowances when working overseas to compensate for additional living cost. Such allowances which are temporary in nature would not be considered as a basis for pension. 12. THE ORGANISATION AND STAFFING OF THE HR BUREAUS The centrally located Human Resources Bureau forms in all ministries a bureau in the Secretary General´s Office. The position as Head of HR is placed in Echelon II. The number of staff may vary somewhat depending on the size of the organization. The functions of these bureaus are in principle to work with (i) HR policy issues at ministerial level, (ii) coordinate the HRM work at a ministerial level. Each DG has a personnel division of its own reporting to the Secretary of the DG. The function of these HR divisions is to implement the guidelines as provided by the central HR Bureau and administer personnel issues. Although the role and function of the HR Bureau in principle are the same in all three ministries as expressed in the job-descriptions for the Bureaus, the actual structure of the HR bureau may vary depending on the function of the Ministry. E.g. the Ministry of Foreign Affairs has a different structure taking into consideration its special HRM needs. The structures of the HR Bureaus of the three ministries are to be found in the ministerial reports. Comparison between the HR Bureaus in MoFA, MoF and MoHA HR Units MoFA MoF MoHA Role of HR Bureau HR Strategy/Policy/ Policy/Coordination/ Policy/Coordination/ Coordination/Admin. Administration Administration Number of staff 80 N/A 96 Reporting to Secretary General Secretary General Secretary General Separate training Yes Yes Yes unit? Special competence Special requirements Requirements for No specific requirements for by Head of HR promotion to Head of requirements than the working with HR Bureau. Details see HR Bureau is one for the level. No the MoFA report. included in the MoF details provided. report Assessment: The organizational positioning of the HR Bureau is in line with international practice. In modern HRM practice the HR Units work strategically together with the senior Management Team. The only HR Bureau which seems to have such a role is the HR Bureau of MoFA. 24 Payroll, organisation development and training are normally parts of an HR Bureau’s tasks. However, only Ministry of Finance has “implementation of payroll� in its job-description. Organisation structuring rests with another Bureau in all three ministries and training with the training institutes. The role of the HR Bureaus with regard to training is mainly to supply participants and contribute in the assessment of those who have not passed. 13. CONCLUDING COMMENTS MoFA, as presented, has as far as possible developed a modern HRM system within the limitations of the central government regulations. It has in a very creative way utilised its opportunities based on psychological knowledge of human behaviour. Most people interested in joining the department of foreign affairs are not only in politics and economics but also in other cultures and countries. This interest has been maximised within the MoFA when designing its reward, career and sanction system. MoFA´s system for performance management/rotation/promotion/career progression is coherent. MoFA has done this without any additional funds from the Government. The Ministry of Finance is moving towards a position based system linking job-descriptions, qualifications requirements and job-classification. Also, it has introduced internal competition for vacant positions. MoF has so far addressed HRM in bits and pieces e.g. job-classification, rotation, ethics work without a coherent framework. However, MOF is well positioned to develop such a framework and delegate to the DGs to develop their own HR strategies, as MOF is already doing with rotation, assessment centres, ethics work,. MoHA has not embarked on the reform program as of yet, but there is an interest in doing so among officials met. Although intended to move forward but still within the government regulations, the development of a parallel job-classification structure linked to different pay as is the case in MoF, is a way to reform without violating existing central policies To have to add another system to the existing one, instead of being able to change it, may not, however, be optimal as additional allowances are not eligible as basis for pension and it generally seems somewhat complicated to apply two systems in parallel. Improved performance management is implemented in MoFA and is under implementation in MoF. These improvements are adding performance assessment techniques to the already existing DP3. DP3 is obsolete in its present form, as it is mainly based on behaviour criteria (one of them “obedience� is questionable to keep in a democracy). DP3 would need to be abolished in its present form and be replaced with a system which takes into consideration not only behaviour criteria but also performance output criteria e.g. in line with the SKI developed by MoFA. The abolishment of DP3 or revision of it would, however, require a decision by central government. The HR planning and training planning seems to be done separated from other planning with the exception of MoFA, which claims that their HR plans are linked to operational and budget plans. 25 The next pages provide a table with a summary of the comparison between the ministries selected. Table Comparison between MoHA, MoF and MoFA with regard to HRM HRM Activity MoHA MoF MoFA HR Strategy No strategy No, but is in the process of Yes aligning business processes and HRM Time frame - - 5 years Developed how - - Parallel with strategic plan Links to operations - - Linked to operations and other plans Decision maker Minister Job-Classification. Central Government Have added 27 grades to the Have merged PKD and PA classification and grading as exisiting 17 ranks. staff. Now 3 categories of issued by MenPAN. staff: diplomatic and non- diplomatic and stafft. Echelon structure is maintained. Job-descriptions Individual job-descriptions Developed comprehensive N/A not formalised. Each individual job-descriptions. manager decides on work division. . Recruitment In principle annual intake of In principle annual intake In principle annual intake. structural staff. Selection (no info about exactly how Uses an elaborated selection process: administrative, they are selected). All process. For recruitment of check, test general applicants shall meet the specialists, knowledge. basic educational cooperation with Functional staff informal requirements as provided by universities. recruitment when needed. STAN. -Recruitment plan Yes, five year plan based on expected retirements. N/A Yes, 6 years based on needs- assessment and discussion within the Ministry. Depends on needs but about About 1500 -Number of annual 120 annually. Depends on needs but about recruitments 100 annually -Induction Program Pre-training and support of colleagues and manager. One year probation then First year on the job-training One year probation exam at HQ and 3months abroad. Career Management Has developed career path 26 HRM Activity MoHA MoF MoFA -Established career paths Structural staff in N/A for diplomats and non accordance with central diplomats. Has a fast track government regulations. for high performing staff. Functional staff career according to central government regulations No career paths “There are possibilities for “Career paths basically for all� all.� A system based on thorough -Promotion Follows central Government performance, capacity and regulations. behaviour assessment. Specified requirements to attain a higher level. Linked to performance and -Link to performance Follows central reg. attainment of required Follow central gov. reg Is a link to performance but education. Is about to link to also other factors are performance included. . 2 years at the HQ and 4 -Rotation Follows central government years abroad. Selection of Has requested all guidelines: rotation 2-5 postings depends on directorates to develop years. Many staff does not performance. rotation policy and plan rotate. Yes, a 6 year plan -Rotation Plan-time-frame No rotation plan see above The BAPERJAKAT -Decision maker of rotation The BAPERJAKAT (advisory) The BAPERJAKAT (advisory) Minister for Echelon I and II (advisory) Minister for Echelon I and II Secretary General for other Minister for Echelon I and II Secretary General for other staff. Secretary General for other staff staff No Yes -Succession planning No for key positions No, but very thorough -Assessment Centre No Yes assessment. Performance Management -performance system Central Government reg. Central Gov. System DP3 Has an extended system: DP3 Is in the process developing GP3, SKI, capacity KPIs which are to be used as assessment, evaluation by a second performance supervisor measure system. -KPI Has not yet developed Has based on five themes Yes Has been cascaded down to Echelon III level -Link to operations Weak link Link under development Yes 27 HRM Activity MoHA MoF MoFA -Link to career progression One aspect among others Working on improvements. Strong link -Link to training Training related to Strong link through N/A promotion competence assessment -Performance-salary Negative link in the sense Reward high performing increases No that allowance will be staff extra allowance reduced based absenteeism. Ethics Management -Code of Ethics Apply the central Central Government Both central government government guidelines guidelines, each directorate and their own to develop their own Code. -How is the work organised Temporary Committee for Temporary Committee for Temporary Committee for investigations investigations investigations -Sanction Scheme applied Central Government Central Government Central Government regulation regulations and own rules regulations and own rules. -Non-compliance impact on Has an impact as stipulated Has an impact as stipulated Has an impact as stipulated career in central regulations by government. Reduces by central regulations. In allowances for not adhering addition its own scheme. to working hours. 8. Training and Development N/A Yes Training policy Yes -Training Plan Yes, annual basis Yes, on an annual basis -What training is offered No details available except No details available but No details available. training to move from one training to move from one Training mandatory to move level to another level to another from one level to another -What institutions do you use? Own training institute and Own training institute and LAN LAN. -Evaluation of training Training institution and Training institution and BAPERJAKAT BAPERJAKAT. 9. Remuneration Salary and allowances as Salary and (i) basic Salary and allowances as prescribed by the allowance and (ii) additional prescribed by the Government. allowance based on an Government. Additional extended grading system. allowance. 10. HR Unit -Role and function of HR Policy, coordination and adm. Policy, coordination, adm. Strategic, coordinating, adm. -Head of HR reports to Secretary General Secretary General Secretary General 96 N/A 80 -.Number of Staff Five sections: Four sections: Details not available but -Organisation of the HR -administration and -planning payroll included. appointments 28 HRM Activity MoHA MoF MoFA Division -career development - - - pension, promotion - -discipline and welfare - personnel abroad - job rotation. - local staff -career development 29 Attachment 1 Terms of Reference Team of Individual Consultants Mapping of HRM Practices in Selected Institutions - Preparatory Work for a World Bank Programming Mission on Civil Service Reform in Indonesia Introduction End of January 2009, the World Bank will undertake a mission to Indonesia to define what kind of support the World Bank should provide at this critical junction in public sector modernization in Indonesia to help the Government of Indonesia (GOI) develop, implement, accelerate and monitor ongoing reform efforts. The Mission will have three objectives: 1) to map, describe and assess current approach and status of ongoing civil service reform initiatives in selected central government institutions; 2) to make recommendations related to scope, focus and approach of continued reforms; and 3) to propose to GOI a World Bank program of assistance in support of the authorities’ reform agenda including a subsequent (subject to availability of funding) formal stakeholder analysis of civil service reform in Indonesia As the Mission will be on the ground for a limited period of time, it is necessary to prepare its work to the extent possible, especially by mapping out current practices of civil service management. These TOR defines the scope, focus and approach as well as the implementation of such preparatory work. Objectives for the Consultancy The objective is to provide an input to the Civil Service Reform efforts of GOI in relation to HRM policies and practices in selected institutions. As such, the consultancy will provide the World Bank Mission with a basis for its analytical work and conclusions related to ongoing and future civil service reforms as well as for the Mission’s conclusions related to World Bank support in this regard. Scope and Focus of the Consultancy The Consultants will limit their work to the central government level. The scope of the Consultancy is core HRM practices. Focus for the Consultants’ work is set out in Annex 1, Guiding Framework for the Preparatory Mapping and Analytical Study, where issues for the Consultants’ consideration are detailed. 30 Government Counterparts The Consultants will work with selected institutions currently implementing civil service reform, whether within the framework of the Bureaucracy Reform Initiative or independently namely:  The Ministry of Finance,  The Ministry of Foreign Affairs  The Ministry of Home Affairs  The Ministry of Trade Approach and Activities of the Consultants The consultants will map, describe and assess current practices related to the areas and issues defined in Annex 1. In doing so, the consultants need to point to differences in current practices between agencies. The consultants may also compare current practices with good international practice, when warranted. To obtain the required information, the consultants will conduct interviews with management and relevant staff in the selected central government institutions. As required, the consultants will also hold workshops with management and concerned staff in relevant agencies as a means to speed up the information collection. A one-day workshop to review and give feedback on the Consultants’ Draft Final Report will be held early in the third week of their assignments. The Mission Leader and Members of the upcoming World Bank Mission are expected to participate in this workshop together with PREM colleagues from WBOJ. Implementation arrangements and timing The consultancy will be implemented during three weeks in Indonesia starting 10 November 2008 and with two additional days at home to finalize the report. Deliverables of the Consultants The Consultants are expected to deliver the following reports related to their assigned respective focus areas:  First Draft Final Report after two weeks of their assignment  Second Draft Final Report at the end of their three weeks in Indonesia  Final Report after two working days at home within a one week period. Reporting Arrangements The Consultants will report to the Sector Manager of EAP PREM in the World Bank through the World Bank Task Team Leader for the Public Financial Management Multi Donor Trust Fund. Both will be part of the upcoming Mission 31 The diversified tasks of the Consultants and the at same time strong need for coordination of outputs, meetings and logistical support will require daily coordination of the Consultant Team. This will be the responsibility of the Consultants Team Leader with the support of the Lead Public Sector Specialist at WBOJ and the Senior Public Sector Specialist at WBOJ Consultant’s Qualification A senior consultant (International experience) with expertise in civil service reform and HRM meeting the following requirements will be hired for a period of three weeks and two days.  A post graduate degree in the political or another related social science area  Strong analytical skills  Deep comparative knowledge of civil service schemes in different countries and of processes for HRM  Considerable experience of civil service reform in one or several national contexts.  Well documented experience as Team Leader  Sufficient knowledge of the Indonesian civil service scheme including policies, regulations and practices  Having proven track record making excellent written and oral presentations  Fluent in English. Knowledge of Bahasa Indonesia would be an asset. Preparatory and logistical support The support would include  Preparation of the Consultants’ meeting schedules with request letters and follow up.  A full-time certified interpreter to accompanying the consultant to provide translation and other services related to meetings and documentation, as required. Attachment to TOR Guiding Framework for the Preparatory Mapping and Analytical Study Area Sub-areas Focus Issues Core HRM 01 Job  Existing classification system classification  Relations to responsibility, complexity and workload  Form, focus and design of job descriptions  Job requirement specifications 02 Recruitment  Recruitment procedures incl. decision-making  Volumes and frequency  Qualification requirements  Matches between skills needed and skills recruited in recruitment 32 03 Career  Promotion procedures incl. decision-making management  Promotion requirements  Careers and career paths  Capacity building within careers  Rotation policy and implementation 04 Performance  System for PBM based  Kind of KPIs management  Implementation status (PBM)  Relation to career management  Relation to operations 05 Accountability  Disciplinary scheme  Sanctions  Code of Conduct/Ethics  Disciplinary procedures  Bodies for decision-making  Frequency of sanctions cases  Records and use of records 06 Training  Kinds of training offered  Training institutions used  Distribution of roles and responsibilities for training  Financing of training  Training needs assessments  Relation between training and organizational reform goals  Relation between training and career management  Training evaluation mechanisms  Frequency of training  Distribution of training among staff categories 07 Remuneration  Grading scheme(s)  Basic pay and allowances – relation and levels  Fringe benefits  Procedures for salary increases incl. decision- making  Relation to performance 33 Attachment 2 Key Regulations Covering Lifecycle of PNS Employment – taken from Book of Collections of Regulations for PNS – Legal Division, Department of Trade Law No.8/1974 regarding Principles on PNS Employment as already amended by Law No.43/1999 (the legal umbrella) Planning Development Duty-Related Termination PNS Formation Career Management: Job Competence: Rights & Obligations: - PP No.54/2003 1. PNS Promotion 1. Education and Training for 1. Business Travel - PP No.97/2000 - PP No.12/2002 PNS - Decision by Minister of - Decision of BKN - PP No.99/2000 - PP No.101/2000 Finance No.7/KM.02/2003 Head No.25/2004 - Decision of BKN Head - Letter by Minister of Finance No.12/2002. 2. PNS Study Assignment No.S-72/MK.02/2002. PNS Provision - PerPres No.12/1981 - PP No.11/2002 2. PNS Placement into - Decision of RI Prime Minister 2. Job Leave - PP No.98/2000 Structural Positions No.224/1961. - PP No.24/1976 - Decision of BKN - PP No.13/2002 - Circular letter by BKN Head Head No.11/2002 - PP No.100/2000 No.01/SE/1977. - Decision of BKN Head No.13/2002. 3. Permit to Marry and Divorce PNS Placement - Law No.1/1974 - PP No.11/2002 3. Authority to Promote, - PP No.45/1990 - PP No.98/2000 Relocate and Terminate PNS - PP No.10/1983 - Decision of BKN - PP No.9/2003 - Circular letter by BKN Head Head No.11/2002 - Decision of BKN Head No.08/SE/1983. - No.13/2003. 4.Salary / Remuneration Performance Assessment DP3 - PP No.9/2007 - PP No.10/1979 - PP No.7/1977 (Addition by Erwin Ariadharma) - Presidential Regulation No.4/2007 - Circular letter by BKN Head No.23/SE/2007. Discipline - PP No.30/1990 - Circular by BKN Head No.25/SE/1980 Termination With Honor - PP No.1/1994 - PP No.32/1979 Termination With Dishonor - PP No.1/1994 - PP No.32/1979 Source: Table from Ministry of Trade (MoT) collection of regulations. Provided by Ms Anne Scott, Advisor to Moot 34 Attachment 3 BASIC SALARY STRUCTURE GOVERNMENT 2008 Years Rank I Rank II of A b c d A b c d service 0 910.000 1.151.700 1 1.165.200 2 931.400 3 982.200 1.023.700 1.067.000 1.192.600 1.243.000 1.295.600 1.350.400 4 953.200 5 1.005.200 1.047.800 1.092.100 1.220.600 1.272.200 1.326.000 1.382.100 6 975.600 7 1.028.900 1.072.400 1.117.800 1.249.300 1.302.100 1.357.200 1.414.600 8 998.600 9 1.053.000 1.097.600 1.144.000 1.278.600 1.332.700 1.389.100 1.447.900 10 1.022.000 11 1.077.800 1.123.400 1.170.900 1.308.700 1.364.000 1.421.700 1.481.900 12 1.046.100 13 1.103.100 1.149.800 1.198.400 1.339.400 1.396.100 1.455.200 1.516.700 14 1.070.600 15 1.129.000 1.176.800 1.226.600 1.370.900 1.428.900 1.489.300 1.552.300 16 1.095.800 17 1.155.600 1.204.500 1.255.400 1.403.100 1.462.500 1.524.300 1.588.800 18 1.121.600 19 1.182.700 1.232.800 1.284.900 1.436.100 1.496.900 1.560.200 1.626.200 20 1.147.900 21 1.210.500 1.261.700 1.315.100 1.469.900 1.532.000 1.596.800 1.664.400 22 1.147.900 23 1.239.000 1.291.400 1.346.000 1.504.400 1.568.000 1.634.400 1.703.500 24 1.202.500 25 1.268.100 1.268.100 1.377.600 1.539.800 1.604.900 1.672.800 1.743.500 26 1.230.800 27 1.297.900 1.297.900 1.410.000 1.575.900 1.642.600 1.712.100 1.784.500 28 29 1.613.000 1.681.200 1.752.300 1.826.400 30 31 1.650.900 1.720.700 1.793.500 1.869.400 32 33 1.689.700 1.761.100 1.835.600 1.913.300 35 Attachment 3 continuation BASIC SALARY STRUCTURE GOVERNMENT MKG Rank III Rank IV A b c d A b c d e 0 1.440.600 1.501.500 1.565.100 1.631.300 1.700.300 1.772.200 1.847.100 1.925.300 2.006.700 1 2 1.474.500 1.536.800 1.601.800 1.669.600 1.740.200 1.813.800 1.890.500 1.970.500 2.053.900 3 4 1.509.100 1.572.900 1.639.500 1.708.800 1.781.100 1.856.400 1.935.000 2.016.800 2.102.100 5 6 1.544.600 1.609.900 1.678.000 1.749.000 1.823.000 1.900.100 1.980.400 2.064.200 2.151.500 7 8 1.580.900 1.647.700 1.717.400 1.790.100 1.865.800 1.944.700 2.027.000 2.112.700 2.202.100 9 10 1.618.000 1.686.500 1.757.800 1.832.100 1.909.600 1.990.400 2.074.600 2.162.400 2.253.800 11 12 1.656.000 1.726.100 1.799.100 1.875.200 1.954.500 2.037.200 2.123.400 2.213.200 2.306.800 13 14 1.695.000 1.766.700 1.841.400 1.919.300 2.000.500 2.085.100 2.173.300 2.265.200 2.361.000 15 16 1.734.800 1.808.200 1.884.700 1.964.400 2.047.500 2.134.100 2.224.300 2.318.400 2.416.500 17 18 1.775.600 1.850.700 1.928.900 2.010.500 2.095.600 2.184.200 2.276.600 2.372.900 2.473.300 19 20 1.817.300 1.894.100 1.974.300 2.057.800 2.144.800 2.235.600 2.330.100 2.428.700 2.531.400 21 22 1.860.000 1.938.700 2.020.700 2.106.100 2.195.200 2.288.100 2.384.900 2.485.800 2.590.900 23 24 1.903.700 1.984.200 2.068.200 2.155.600 2.246.800 2.341.900 2.440.900 2.544.200 2.651.800 25 26 1.948.400 2.030.800 2.116.800 2.206.300 2.299.600 2.396.900 2.498.300 2.604.000 2.714.100 27 28 1.994.200 2.078.600 2.166.500 2.258.100 2.353.700 2.453.200 2.557.000 2.665.200 2.777.900 29 30 2.041.100 2.127.400 2.217.400 2.311.200 2.409.000 2.510.900 2.617.100 2.727.800 2.843.200 31 32 2.089.000 2.177.400 2.268.500 2.365.500 2.465.600 2.569.900 2.678.600 2.791.900 2.910.000 Source: Attachment to the Government Regulation No. 10 Year 2008 dated February 4, 2008 Allowance for Structural Position Echelon/Rank Average Allowance (rupiah) I A (4e) 5.500.000 IB (4d-4e) 4.375.000 IIA (4c-4d) 3.250.000 IIB(4b-4c) 2.025.000 IIIA (4a-4b) 1.260.000 IIIB (3d-4a) 980.000 IVA (3c-3d) 540.000 IV B (3b-3c) 490.000 VA (3 a-3b) 360.000 Source: Government Regulation No. 26 Year 2007 dated June 19, 2007 36  Attachment 4 QUESTIONNAIRE 1. Ministerial Regulations  What internal regulations do you have covering personnel issues? 2. HR Strategy (HR Strategic Plan)  Content and time coverage of the HR strategic plan  How is the strategy developed? Who makes the final decision?  Links between the HR strategic plan and to the operational strategic plan and other ministerial plans including the budget. 3. Job-Classification  Exicting job-classification system. Relationship to responsibilities. Potential problems  Steps in assessing the need to fill a vacancy alternatively to establish a new position  Elaboration of qualification requirements and job-description, how is this work conducted and by whom?  Current format and content of job-descriptions. 4. Human Resources (Manpower) Planning and Recruitment  How do you determine recruitment needs?  Content and time frame of the recruitment plan. Link to the budget.  Steps in the recruitment and selection process. Who is responsible for what?  How many staff of each category, have been recruited for the last five years? Annual breakdown for each category of staff (structural, functional) is appreciated.  Is an induction program offered newly recruited staff? 5. Career Management  What are the established career paths within the Ministry?  For which categories of staff (if any) are there no career paths? How is career progression of these staff addressed?  How is the promotion system designed? Requirements. Linkage to performance.  Is the rotation policy applicable to all staff or are there exceptions? What are the criteria for rotation? On what basis are exceptions made, if any. How many were the exceptions annually for the last five years?  What is the time frame for the staff rotation plan? How is it decided upon? Links to promotion.  Do you have succession planning for key positions? 6. Performance Based Management  What system do you have for performance based management? 37  What kind of KPIs do you have?  Is the performance management related to operations?  What is the relation between performance and (i) career progression, (ii) training and development, (iii) salary increments, (iv) suspension. 7. Ethics Management  Do you have a Code of Ethics? When was it adopted? Are there any essential issues which are not addressed in the Code of Ethics?  How is the work with ethics management organized? Who decides on what?  Disciplinary and sanction scheme applied.  How many disciplinary actions/sanctions have been implemented annually during the last five years?  How does non-compliance with the Code of Ethics affect an employee’s career? 8. Training and Development  Do you have a training policy? Content?  Content and time coverage of the ministerial training plan. How is it developed? Linkages to other ministerial plans? Who makes the final decision?  What kind of training is offered staff? What is offered as in-house training/external training?  What training institutions do you use?  How is training financed?  A table showing the distribution of training provided different staff categories (structural, functional, managerial) annually for the last five years would be appreciated. Number /duration.  What are the methods applied to evaluate training. Who, (if any) receives these reports. 9. Remuneration  Do you have a compensation and benefit policy? Content?  What is the grading scheme(s)/salary structure applied?  The structure of the actual remuneration: basic pay/allowances and other benefits.  Fringe benefits used.  What procedures do you apply for salary increases? 10. Staffing and Organisational Positioning of the HR Unit  What is the role and mandate of the HR unit in your ministry?  To what function does the HR unit report to?  Do you have a separate training unit or is this a part of the HR unit?  How many staff are working within the HR/training unit?  What are the qualification requirements for HR staff? 38 Attachment 5 IMPLEMENTATION OF THE ASSIGNMENT Comments on the Terms of Reference The initial intention was to map the Ministry of Foreign Affairs, the Ministry of Finance and the Attorney General’s Office. The latter office was during the course of the assignment changed to Ministry of Home Affairs. At the same time a study was to be undertaken at the Ministry of Trade by another consultant. Consultant Input The duration of the assignment was initially three weeks in the field and was later on extended to five weeks due to the difficulty to arrange appointments. The period from 10 November to 12 December 2008 was allocated to field work in Jakarta and 2 additional days in the home office to finalise the reports. A domestic consultant was to be recruited to work together with the international consultant. But none had been found by the WB. Mr Erwin Ariadharma, Senior Public Sector Management Specialist, WB has provided excellent support. However, his time was limited due to other assignments. It would have been invaluable to have access to a local consultant full time especially for the collection of regulations. Translator has been provided part time except for the last week when no translation of documents was provided as he was to take up another assignment. Working Methods Based on the guiding framework a questionnaire was prepared and discussed with the WB Lead Public Reform Specialist, Mr Staffan Synnerstrom and Mr Erwin Ariadharma, Senior Public Sector Management Specialist. The questionnaire was provided the participating ministries. To introduce the project initial meetings were held in each of the three selected Ministries. In MoHA the consultant and the WB staff were received by the Head of the Personnel Bureau and some of his staff. In the Ministry of Finance the group met the ministerial bureaucratic reform team, MoFA the Head of the Personnel Bureau and some of his staff and in MoHA the Head of the Personnel Bureau and some of his staff. During the meetings the Consultant presented what kind of information would be required and provided a translated version of the questionnaire. Only MoFA returned the questionnaire. The responses are attached to the MoFA report. Two meetings were held with the MoFA staff under the chairmanship of the Head of HR. Additional information had been requested but as of the time of the writing of this report the information has yet to be received as the Head of the Personnel is on a business trip. 39 As for MoHA different meetings were held. In spite of attempts from the WB office it has been difficult to organise follow-up meetings with the Ministry of Finance mainly due to the work with the annual budget and international trips undertaken by relevant officials. The WB office has done its utmost to provide logistical support but due to the work load of staff in the ministries at the end of the year, it has been difficult to organise meetings with concerned staff as would have been desirable e.g. no meetings could be organised with relevant staff at the training institutions. This means it was not possible to get information about the actual courses provided. The information provided in the report are based on (i) discussions held with officials, (ii) reading regulations and reports and (iii) participation in parts of a seminar organised by the World Bank on Effective and Efficient Bureaucracy Reform in Indonesia 3-4 December 2008. 40 Attachment 6 Daftar Penilaian Pelaksanaan Pekerjaan (DP3) 1. Result of assessment of work performance for civil servants should be reported in the List of Assessment of work performance. 2. In this List of Assessment of work performance, the following components will be measured: o Loyalty - Kesetiaan o Work Achievement - Prestasi Kerja o Responsibility - Tanggung Jawab o Obedience - Ketaatan o Honesty - Kejujuran o Teamwork - Kerjasama o Initiative - Prakarsa, and o Leadership - Kepemimpinan 3. Leadership component will only be assessed for civilian civil servants in the grade of Pengatur Muda golongan ruang II/a or above, who hold a position. 4. Assessment score for work achievement shall be stated in number, following these formula: o Very Good ................. = 91 - 100 o Good........................... = 76 - 90 o Adequate .................... = 61 - 75 o Average ...................... = 51 - 60 o Below Average ............ = 50 and lower 5. This list of assessment of work performance is confidential by nature. 6. An officer should be entitled to do this assessment of work performance only when he has been in a superior position to the person he assesses, for a minimum period of 6 months 7. If a civil servant being assessed have objection to the assessment result, in terms of his score in this list of assessment of work performance, he may then submit an objection to his superior along with his arguments, and to an officer higher than his assessing superior, within the period of 14 days from the date he received result of the said assessment of work performance. 8. List of assessment of work performance for civil servants assigned for a study shall be done by an assessment officer based on input and material received from chairman of the school, academy/university, or courses where the civil servants are doing the study. 9. Particularly for civil servants studying abroad, input or material for assessment of their work performance shall be provided by head of mission of the representative office of Republic Indonesia in that country. 10. Particularly for civil servants being elected as member of parliaments (DPR RI and DPRD), input or material for assessment of their work performance shall be provided by chairman of the fraction where the parliament member work. 41 11. Assessment of work performance for civil servants assigned or employed in/by a state- owned company, professional organization, certain private agencies, or in other partnering countries, or international organization, shall be done by an assessment officer based on input or material from head of the company, organization, or agency where the civil servants work. 12. Particularly for civil servants assigned or employed by/in a partnering country or international organization, the input or material as basis for their assessment of work performance shall be provided by the head of mission of the representative office of Republic Indonesia in that country.