HUMAN RESOURCE

MANAGEMENT IN PUBLIC SECTOR

Chapter 4
 CONTENT
1. The functions of people management in the public
sector

2. Human resource management methods

3. Key governance issue in HRM today

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 1. HUMAN RESOURCE MANAGEMENT

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 1. HUMAN RESOURCE MANAGEMENT
Factors impact personnel management

- the ownership, sector, size, tradition and stage of development of an

organization;
- the political, economic, social, technological, international and legal
contexts;
- the degree of stability or turbulence of the environment;
- the philosophy of people management held by senior executives;
- the competence and capacity of the organization to resource people
effectively

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 1. HUMAN RESOURCE MANAGEMENT
Changes in world of work
- End of “career for life” – job mobility and new career patterns
- Perception of job insecurity
- Flexible modes of employment
- Feminisation of the labor market
- Globalisation and internationalization of goods, services, finance, information
and workers
- Continuing demographic and labor market changes, ageing workforce
- New skills profile, educated labor force and rising expectation
- ICT revolution including e-commerce and e-government
- The emerging knowledge economy

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 1. HUMAN RESOURCE MANAGEMENT
HRM: a business – oriented approach to managing people.

Core ideas:
- People are an organization’s most important resource and the key to its
success
- People are an organization’s most important resource and the key to its
success
- Human resources strategy must be integrated with business strategy to ensure
the achievement of organizational goals and objectives.
- Employees must be committed to the organization’s mission, goals and
objectives and to its values to ensure ‘business’ success.
- The right to manage is legitimized by the need for the organization to survive
in competitive environments and to achieve its goals and objectives
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 2. HUMAN RESOURCE MANAGEMENT METHOD

“Hard” HRM: strategy

and utilization. Focus
on head counts, cost
and performance

HRM

“Soft” HRM: people –

centered policies

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 2. HUMAN RESOURCE MANAGEMENT METHOD
PERFORMANCE – RELATED PAY (PRP – SINCE 1986)

Require criteria to evaluate the efficiency and effectiveness of department

Individual appraisal by period

Tight financial and performance targets

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 2. HUMAN RESOURCE MANAGEMENT METHOD
STRUCTURE RE-ENGINEERING

Divide into smaller departments with managerial authority

Full control of all personnel matters

Differences in structure, policies and procedures

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 2. HUMAN RESOURCE MANAGEMENT METHOD
TOTAL QUALITY MANAGEMENT - TQM

Quality standards for all parts of public sector

Private sector becomes the benchmark for development

“Customer-first” practice

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 2. HUMAN RESOURCE MANAGEMENT METHOD
TRENDS ON THE DEVELOPMENT OF PUBLIC SECTOR HRM

Flexible
Privatization
working pattern
• Same employment • Flexible pay
conditions with • Short-term
private sector contracts

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 2. HUMAN RESOURCE MANAGEMENT METHOD
CAREER – BASED VS POSITION BASED SYSTEM

Career - based Position based

Lifetime job Short term

Internal selection for promotion
based on performance and
achievement
Less power for line managers
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External candidates
Flexible power for line managers
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 3. KEY GOVERNANCE ISSUES IN HRM TODAY

Ageing of Diversity Leadership

population

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