General Trends and

A joint initiative of the OECD and the European

Challenges regarding
performance evaluation of staff
: the UK experience

Dr Sylvia Horton
University of Portsmouth,
England

OECD
 Emergence of performance
management
Performance management has preoccupied
OECD since 1980s reasons are:
Need to control public expenditure
ensure efficient and effective use of
resources
Rising expectations of public
Increasing competition from private sector
Results culture
 New management systems
Results based budgeting
Human resource management
Competency management
Performance indicators
Staff evaluation
Continuing professional development
Performance Management in the
British Civil Service- recent
developments
 What is performance
management?
A system for managing organisational
performance
A system for managing employee
performance
A system for integrating the management of
organisational and employee performance
 A system for managing
organisational performance
A rational approach involving:
Mission statements which set out the aims and
values of the organisation
Corporate plans which set out the goals and
objectives of the organisation
Business plans which set out specific plans,
budgets , targets and standards of performance for
each part of the organisation
All 3 are regularly and systematically reviewed
A system for managing employee
performance
Planning and setting key results areas, including
performance targets, behaviour outputs and
criteria for measurement
Monitoring behaviour and objectives reinforcing
desired behaviour and redirecting inappropriate
behaviour
Appraising
Training and development, rewards
Re-planning
 Rewards

Selection Performance Appraisal

Development
The human resource management cycle
A system for integrating the management
of organisational and employee
performance
This rests upon the assumption that the interests of
the organisation and employees are
complementary and compatible
It also assumes an integrated approach to strategic
management in which strategic HRM is integrated
both horizontally and vertically as part of business
planning and in turn all aspects of human
resourcing are linked i.e. recruitment, rewards,
training and development
Performance management system
Planning Managing Appraising
Performance Monitoring Formal appraisal
objectives and behaviour & Performance
targets objectives Training &
Identifying Reinforcing Developing
behaviour through rewards Determine
Providing Providing control
direction rewards
 Types of appraisal
Top-down appraisal
Self-appraisal
Peer appraisal
Upward appraisal
360 degree appraisal
See handout for problems associated with
appraisal
 Rewarding performance
Multiple functions of reward systems
Types of reward systems intrinsic,
extrinsic, unconditional, conditional
Old pay- new pay
Throughout OECD move to New Pay
PRP, market led.
Performance Management in the
British Civil Service 1
Staff appraisal is not new to the civil service.
Staff appraisal is an integral element of
managing staff and deciding on promotion and
development. But traditionally top down
reporting by managers until 1970s
Current systems of staff appraisal date from
the introduction of NPM post 1979 with its
results oriented approach to managing public
services rationalistic, economistic and
generic.
 remains central to New Labour policies for
reforming public services since 1997. Set out
clearly in the Modernizing Government White
Paper 1999, Reform of the Civil Service Wilson
Report 1999, Vision of the Civil service for the
21st Century Turnbull 2004. ODonnells Vision
4 Ps pride, pace, passion, professionalism
Performance management is critical it is
argued to creating a high performance culture,
continuous improvement and total quality
 The Civil Service in general
All departments and agencies have their own systems
of performance management and staff appraisal
There are around 100 departments and agencies with
devolved responsibilities for HRM including pay
Pay is determined by collective bargaining and there
are some 90 bargaining units
Variations are limited by overall guidance and
coordination by the Cabinet Office( central department
for HRM and overall management of the service). Also
the Management Code sets down procedures and rights
etc of civil servants.
 Performance Management In the
SCS
The SCS consists of the top 3,700 civil servants found in
all departments and large agencies. Managed by
cabinet office. The system enables leaders to :
focus individual performance & development on the
delivery of strategic business priorities
Motivate people to give of their best
support and inform succession planning, career and
personal development
Provide capability - knowledge, expertise, experience
a basis for continuous improvement, sustaining
contribution and setting examples for all employees
 Performance Management
system in the SCS
All SCS have a job description which is normally
linked to a 4 year contract
performance year runs April to March
Performance agreement contains up to 4 business
objectives or targets (SMART)
It also defines how the job is to be performed. It
identifies key competencies, standards and
behaviours
In year performance reviews evaluate progress
 End year performance review
Records achievements against objectives, overall
contribution, growth in skills and leadership
competence based on evidence from jobholder and
360% appraisal (line manager gathers this
feedback)
Indicates whether there is need for a personal
performance improvement plan (PPIP)
Separately makes recommendations on pay and
bonus and information for succession planning
 Further action
Within a month of the review individual and manager
should meet to discuss and prepare a personal
development plan
Regular development reviews cover both short-term
and longer-term development including specific
feedback against SCS competencies and 360%
feedback
Line managers can draw up performance improvement
plans which indicate actions, measures, timescales and
consequences. PPIPs apply to lowest 20% of
performers who are normally in the bottom tranche of
the pay recommendation group
 SCS Rewards
The SCS Pay system is a simple broad band structure
underpinned by a tailored JESP scheme/ senior posts
Most departments use 3 pay bands but some use 4 .
The SSRB (Senior Salaries Review Body) recommends
the level of uplift to the bands and progression targets
and also base pay and minimum bonus payments
Bonuses are non-consolidates payments rewarding
delivery of personal objectives.
Managers make recommendations on eligibility and
level of bonus
 Base Pay
Increases in Base salary recognises how the job has
been done as well as what has been achieved
End year managers make recommendations allocating
staff to one of 3 tranches
Top tranche top 25%
Middle tranche 65-70% contributed well and delivered
effectively
Bottom tranche 5-10% contributed least compared to
their peers
Departmental moderation committees endorse and
authorise pay rises and ensure consistency across the
departments
 Issues
The system was introduced 2001 early problems
Difficulty for line managers in clarifying objectives and
behavioural outcomes
The appraisal forms were complicated
Staff did not understand the new pay system
Lack of transparency
Concern about bias by line managers and the
impartiality of departmental pay committees
What to do with poor performers
Unfairness
 5 years on
Improvement in recording systems now
simplified and more dialogue, less forms
Research into causes of poor performance and
now guidelines for line managers to follow
Latest staff surveys and evidence to SSRB
indicates higher levels of satisfaction
Latest report of Cabinet Office to SSRB indicates
evaluation generally positive
 SCS Competency Framework
Leadership for Results
Giving purpose and direction- creating and
communication a vision of the future
Making a personal impact- leading by example
Thinking strategically- harnessing ideas and
opportunities to achieve goals
Getting the best from people motivating and
developing to achieve high performance
Learning and improving drawing on experience and
ideas to improve results
Focusing on delivery achieving value for money and
results
 Latest developments in the SCS
Revision of the competency framework
Introduction of professional skills for government
By June 2006 95% of SCS members will have
development plans in place linked to PSG
September 2007 75% of SCS will demonstrate
competence in all 6 key skill areas, which are (i)people
management (ii) financial management, (iii) analysis
and use of evidence, (iv) project and programme
management (v) strategic thinking (vi)
communication and marketing
 New School of Government
The school will provide specialist courses in all areas of
the new PSG structure and in particular courses in
leadership training to achieve :
Visible leaders who inspire trust
Focus on strategic outcomes
Take personal responsibility for delivering results
Work across traditional boundaries
Match resources to business priorities
Honest, courageous and realistic with staff and
Ministers
Life long learner