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(c) Steven Windmill February 2012
INTRODUCTION TO BRITISH ECONOMICS & POLITICS
Steven M Windmill
Sinobridge Croydon February 2012
Steven Windmill TD PhD MBA
Colonel in British Army
Air Assault – 9 years Whitehall / Government level – 7 years
Judge – since 2004 Professor of Economics & Management Doctorate in Business Administration MBA in marketing, finance and strategy Chairman of several businesses [consulting, recruitment and event management] 7 years heading strategic planning and enterprise support for Training & Enterprise Council and Business Link
(c) Steven Windmill February 2012
000 pa) 700.000 homes visited (16.2 Billion in enterprise support based on above research 4 .000 firms analyzed Result – investment of £7.(c) Steven Windmill February 2012 RESEARCH Political & Enterprise strategy and research 1994-2003 Over nine years 72.000 chief executives consulted in SE England 96.
performance monitoring 5 . Civil Service: Selection. bodies involved in city administration and their responsibilities.(c) Steven Windmill February 2012 OVERVIEW Britain – The Economic Position British National Government EU Government EU IT & New Media Policy Local City & District Government City administration system. development.
800 6 .4% industry: 18.4% GDP: $2.6% GDP Forecast 2011-12: 0.52 million agriculture: 1.(c) Steven Windmill February 2012 ECONOMICS: DATA Population: 62.256 trillion GDP Growth Q2 2011 0.2% GDP Per Capita: $34.69 million Labour Force: 31.7-2.2% services: 80.
979.301.500.401/female 20.5% (male 4.) 7 .913) 65 years and over: 16.119/female 5.375/female 5.67% female: 15.2% (male 20.253) (2011 est.86% male: 21.564.3% (male 5.301) 15-64 years: 66. youth ages 15-24: total: 18.575.98% Unemployment.63% (2009) Population below poverty line: 14% (2006 est.(c) Steven Windmill February 2012 ECONOMICS: DATA Age Structure 0-14 years: 17.777.) Unemployment –all: 7.
Economics: GDP Trend (c) Steven Windmill February 2012 8 .
Economics: Unemployment Trend (c) Steven Windmill February 2012 9 .
Economics: Unemployment Trend (c) Steven Windmill February 2012 10 .
STRUCTURE OF THE CENTRAL GOVERNMENT OF THE UK .
who is both Head of State and Head of the Government no „written constitution‟(rely on statute law.(c) Steven Windmill February 2012 OVERVIEW OF UK GOVERNMENT parliamentary democracy based on universal suffrage(普选权) also a constitutional monarchy ministers of the Crown govern in the name of the Sovereign. common law and conventions) 12 .
(c) Steven Windmill February 2012 BASIC STRUCTURE OF GOVERNMENT Monarch (Sovereign) Legislature Executive Judiciary Parliament House of Lords House of Commons Prime Minister MPs Civil Service House of Lords 13 .
(c) Steven Windmill February 2012 MONARCH The Sovereign: the constitutional head of State No longer exercises political power. giving Royal Assent of agreement to any new law etc. but performs symbolically: presiding over the State Opening of Parliament. Keeping in touch with the Prime Minister by a weekly meeting 14 .
15 .(c) Steven Windmill February 2012 LEGISLATURE: Legislative body: Parliament of Britain Located in Westminster Parliament consists of the House of Lords & the House of Commons Government‟s policies can become laws only if approved by both Houses.
to scrutinise Government policy and administration. 16 . including proposals for expenditure.the means of carrying out the work of government.(c) Steven Windmill February 2012 MAIN FUNCTION OF PARLIAMENT to pass laws to provide .by voting for taxation . to debate the major issues of the day.
More members will be elected through the society. senior judges and church figures.(c) Steven Windmill February 2012 HOUSE OF LORDS Members Before the reform: Composed of hereditary peers. and some life peers appointed by the Queen. After the reform: Members can no longer inherit their titles. 17 .
18 .(c) Steven Windmill February 2012 HOUSE OF LORDS Function legislative: taking part in the laws making Judiciary: the highest court of UK. playing important role in judicial part.
The chief officer of the House of Commons is the Speaker. elected by the people from the 659 constituencies Re-elected when a new government is formed. elected by MPs to preside over the House.(c) Steven Windmill February 2012 HOUSE OF COMMONS Members 659 Members of Parliament (MPs). 19 .
20 .(c) Steven Windmill February 2012 HOUSE OF COMMONS Power Most legislative power rests with it. The leader of the party which has the most MPs becomes the Prime Minister and selects his Cabinet among MPs.
(c) Steven Windmill February 2012 HOUSE OF COMMONS Function Debating issues of national and international importance. Supervising Government by questioning. Controlling Government income and spending Able to alter or oppose proposed new laws. 21 .
(c) Steven Windmill February 2012 EXECUTIVE Executive body: the Sovereign. Prime Minister & Cabinet Dealing with regular national and international affairs Making decisions of new policies Supervising departments of the government 22 .
Selecting the cabinet from their own party in the House of Commons Responsible for the conduct of national affairs directly His authority comes from support in the House of Commons. 23 .(c) Steven Windmill February 2012 PRIME MINISTER PM: the leader of the political party which wins the majority of seats in Parliament.
(c) Steven Windmill February 2012 PARLIAMENT Historical Legacy The Composition of Parliament Today Managing the British Parliament The Legislative Process Parliament and Finance Scrutiny and Select Committees Other Instruments of Parliamentary Scrutiny Parliament's Role in the Wider Political System 24 .
(c) Steven Windmill February 2012 CABINET Members consists of about 20 ministers chosen by the Prime Minister Selected by the Prime Minister Members of Commons Sit on the “front benches” in the House of Commons 25 .
26 .(c) Steven Windmill February 2012 CABINET Function It balances ministers' individual duties with their collective responsibility as members of the Government and takes the final decisions on all government policy. economic policy. the environment. home and social affairs. and local government. Cabinet Committees include those dealing with defence and overseas policy.
(c) Steven Windmill February 2012 THE CIVIL SERVICE A Constitutional Framework of Executive Power Cabinet Government Institutional Support for the Cabinet and Prime Minister Ministers and Departments 27 .
(c) Steven Windmill February 2012 CIVIL SERVICE Servants of the Crown Non-political group Career officials who remain in office despite changes in government Offering advice about the possible consequences of policy Responsible for implementing the policies of Government 28 .
as a senior Cabinet minister.(c) Steven Windmill February 2012 JUDICIARY The House of Lords is the ultimate appeal court in the UK The Secretary of State for Constitutional Affairs and Lord Chancellor heads the judiciary and sits on the judicial committee of the House of Lords. heads the Department of Constitutional Affairs. He also presides over the upper House in its law-making role and. 29 .
(c) Steven Windmill February 2012 THE COURTS AND CIVIL LIBERTIES The Court Structure The Police The Military 30 .
ACCOUNTABILITY AND CONTROL OF GOVERNMENT (c) Steven Windmill February 2012 Changing Expectations and Values Parliament Tribunals Inquiries The Role of Ombudsmen Administrative Law and Judicial Review 31 .
(c) Steven Windmill February 2012 THE CHANGING STRUCTURE OF BRITISH GOVERNMENT A Changing Society The „New Labour‟ Ascendancy Constitutional Reform The Impact of Europe 32 .
(c) Steven Windmill February 2012 THE CHARACTER OF THE MODERN BRITISH STATE The Growth of the State The Multiple Dimensions of Governmental Activity Explaining Governmental Growth An Overview of the Modern British State European? 33 .
(c) Steven Windmill February 2012 THE DIVERSITY OF THE UK: GOVERNING THE UK Scotland Wales Northern Ireland SE & SW London East & West Midlands Yorks & Humberside NE & NW East of England 34 .
GOVERNMENT ON THE GROUND: THE LOCAL DIMENSION (c) Steven Windmill February 2012 35 .
(c) Steven Windmill February 2012 UK local government 36 .
Especially in England and Wales. UK local government has evolved. 37 . local government system is quite similar.(c) Steven Windmill February 2012 UK local government Since the Local Government Act（1972） was enacted. But there are still a little difference in Scotland and Northern Ireland.
UK local government Type of UK local governments Type County Councils Traditional type District Councils English Unitary Governments Walsh Unitary Governments Unitary Local Authority Scottish Unitary Governments Northern Ireland Councils Metropolitan Councils London Borough Councils London Corporation Council Total Quantity Remarks 34 two-tier 238 46 22 32 26 36 32 1 467 Belong to county council Some of local governments single-tier Such as Liverpool (c) Steven Windmill February 2012 38 .
UK local government Area Quantity Remarks 47 333 County Councils District Councils Parish Councils and Town Councils Metropolitan Councils London Borough Councils London Corporation Council Regional Councils District Councils Town Councils and England & Wales 〉11000 36 32 1 9 53 Scotland 1350 3 Islands Councils District Councils 39 Northern Ireland 26 (c) Steven Windmill February 2012 .
County Councils or District Councils are called principal local authorities.(c) Steven Windmill February 2012 Survey of UK local government Survey of UK local government The core of UK local government is local elected council. 40 .
(c) Steven Windmill February 2012 UK local government Structure local elected council 41 .
(c) Steven Windmill February 2012 Finance of local government various fee Local government revenue sources council tax National non-domestic rates rate support grant（RSG） 42 .
providing support to carry out the duty of local government. 43 . It can be used for any fields of local government operation.(c) Steven Windmill February 2012 Finance of local government rate support grant UK central government every year distributes rate support grant.
44 . Central government determines the standard rate and levy in whole country and then distribute to local governments according to their number of people.(c) Steven Windmill February 2012 Finance of local government National non-domestic rate National non-domestic rate is based on value of commerce and industry.
the upper limit of council tax was decided by Parliament. But before 1998. 45 .(c) Steven Windmill February 2012 Finance of local government Council tax Council tax is the only tax levied by local government. and local government has no rights to excess it. Recently the situation become flexible and local government still struggle for more rights on council tax.
but it must be approved by the responsible minister or is limited in the credit line that decided by central government.(c) Steven Windmill February 2012 Finance of local government various fee Local government can also raise money in money market. charges for some refuse collection services or leisure services. Councils can also raise income through charges – for instance. 46 .
47 .9% of GDP. police. law and order. According to the law local government is not allowed to have budget deficit. housing. culture and entertainment. road. environment. All of expenditure cannot be over 7.(c) Steven Windmill February 2012 Most of the money of local government is used for education. social services.
CIVIL SERVICE HR Building the Civil Service HR Talent Pipeline .
Will be: business focused. that has a well-deserved reputation for performance and for professional development. vibrant HR Community.(c) Steven Windmill February 2012 VISION… To build a strong. and that attracts people with talent and ambition. delivering the business plan for our customers smaller.“the best HR function in Britain” Innovative. professional and more flexible In demand . enabling change self sufficient – with succession plans and an internal talent pipeline in place for senior and key HR roles Will work with customers to ensure: they have the skills they need to deliver strong organisational performance 49 .
and Civil Service HR. Action will be on a prioritised basis and self-management of career will still apply with opportunities for development An increasing number of critical HR roles will be filled by internally grown talent. and we will prepare and position our internal people to be the best candidates on merit. and HR directors will work together to assess HR talent The process will be transparent with line managers holding open and honest conversations with individuals at all levels of the organisation We will actively manage people within the HR talent pipeline as a partnership between the individual.HR TALENT MANAGEMENT PRINCIPLES (c) Steven Windmill February 2012 Attract • • • • By 2012 we will fill an increasing number of critical HR roles with internally developed talent When we recruit into G7 and above. Civil Service HR Operations and HR Directors will more actively manage. to refresh the profession. to address “short supply” capability areas. We will use and adapt the systems and processes from the HR Talent Reviews and align with departmental and Cabinet Office systems such as those for succession planning and talent Civil Service HR Operations. develop and broker moves for those who are in the talent pipeline HR talent “belongs” to Civil Service HR rather than individual managers or departments We will recruit using the Civil Service HR Professional Standards. In determining assignments we will focus on our most talented people to stretch them. the department. we will join up across the Civil Service through a strategic resourcing plan and ensure we identify talent together. We will recognise expert talent in “short supply” HR capability areas as well as current and future HR leadership talent. Departments. and actively encourage individuals to work across government. the Professional Skills for Government Core Skills. Together. and to increase supply at entry level We will continue to provide talent development programmes for graduates who have the potential to become HR future leaders Potential is not just about those who can reach the very top. rather than solely recruit for individual roles We will continue to bring in external talent to bring new ideas and experiences and to benchmark internal talent. and the Leadership Framework Identify • • • • Develop • • Deploy • • • • 50 .
has the courage to try something different and adapt style and approach if that doesn’t work Looks for opportunities to develop. is aware of knowledge gaps. also seeks out mentors and champions that can help Sets self ambitious targets for growth and development. and is prepared to ask questions and listen Pushes self to develop and grow Acts on insights gained and has an outward focus. rather than concentrating on lengthy selffocussed introspection Is receptive to new ideas and feedback. thrives on challenges even if they are outside comfort zones Proactively take up opportunities to develop performance. is career focussed and is comfortable with the life choices this may involve Is aware of own strengths and weaknesses.(c) Steven Windmill February 2012 THE INDIVIDUAL’S RESPONSIBILITY Finds opportunities to learn and knows and manages own limitations Knows how to make the most effective use of the available support and learning opportunities. aspires to more senior positions Identifies and helps develop potential successors to own post before moving on Is ambitious to advance and develop own career. skills and experience in line with career goals Learns how to best deploy strengths and manage weaknesses 51 . knowledge.
(c) Steven Windmill February 2012 THE CIVIL SERVICE HR SENIOR TALENT FORUM Purpose To develop and prioritise actions for our most talented people To have oversight of the critical HRSCS roles and agree a resourcing approach for any critical HRSCS role vacancies To have control over HRSCS appointments in all departments across government To succession plan for the critical HRSCS roles To partner with individuals and departments to manage moves where appropriate. To partner with individuals and departments to develop people in the HR talent pipeline and prepare them for future roles 52 .
TRAINING & DEVELOPING CIVIL SERVANTS .
(c) Steven Windmill February 2012 EMERGENCE OF PERFORMANCE MANAGEMENT Performance management has preoccupied OECD since 1980s – reasons are: Need to control public expenditure Esure efficient and effective use of resources Rising expectations of public Increasing competition from private sector Results culture 54 .
(c) Steven Windmill February 2012 NEW MANAGEMENT SYSTEMS Results based budgeting Human resource management Competency management Performance indicators Staff evaluation Continuing professional development 55 .
(c) Steven Windmill February 2012 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 56 .
(c) Steven Windmill February 2012 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. targets and standards of performance for each part of the organisation All 3 are regularly and systematically reviewed 57 . budgets .
including performance targets. rewards Re-planning 58 . behaviour outputs and criteria for measurement Monitoring behaviour and objectives – reinforcing desired behaviour and redirecting inappropriate behaviour Appraising Training and development.(c) Steven Windmill February 2012 A SYSTEM FOR MANAGING EMPLOYEE PERFORMANCE Planning and setting key results areas.
(c) Steven Windmill February 2012 Rewards Selection Performance Appraisal The human resource management cycle Development 59 .
training and development 60 .A SYSTEM FOR INTEGRATING THE MANAGEMENT OF ORGANISATIONAL AND EMPLOYEE PERFORMANCE (c) Steven Windmill February 2012 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. rewards. recruitment.e.
(c) Steven Windmill February 2012 PERFORMANCE MANAGEMENT SYSTEM Planning •Performanc e objectives and targets •Identifying behaviour •Providing direction Managing •Monitoring behaviour & objectives •Reinforcing through rewards •Providing control Appraising •Formal appraisal •Performance •Training & •Developing •Determine rewards 61 .
(c) Steven Windmill February 2012 TYPES OF APPRAISAL Top-down appraisal Self-appraisal Peer appraisal Upward appraisal 360 degree appraisal See handout for problems associated with appraisal 62 .
market led. 63 .(c) Steven Windmill February 2012 REWARDING PERFORMANCE Multiple functions of reward systems Types of reward systems – intrinsic. extrinsic.new pay Throughout OECD move to New Pay PRP. unconditional. conditional Old pay.
Staff appraisal is an integral element of managing staff and deciding on promotion and development.(c) Steven Windmill February 2012 PERFORMANCE MANAGEMENT IN THE BRITISH CIVIL SERVICE 1 Staff appraisal is not new to the civil service. 64 . economistic and generic. 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.
Set out clearly in the Modernizing Government White Paper 1999. pace.(c) Steven Windmill February 2012 PERFORMANCE MANAGEMENT IN THE BRITISH CIVIL SERVICE 1 remains central to New Labour policies for reforming public services since 1997. continuous improvement and total quality 65 . Vision of the Civil service for the 21st Century Turnbull 2004. Reform of the Civil Service Wilson Report 1999. professionalism Performance management is critical it is argued to creating a high performance culture. O’Donnell’s Vision – 4 Ps pride. passion.
(c) Steven Windmill February 2012 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. 66 .
experience A basis for continuous improvement. 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 . sustaining contribution and setting examples for all employees 67 .(c) Steven Windmill February 2012 PERFORMANCE MANAGEMENT IN THE SCS The SCS consists of the top 3.700 civil servants found in all departments and large agencies.knowledge. expertise.
It identifies key competencies.(c) Steven Windmill February 2012 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. standards and behaviours In year performance reviews evaluate progress 68 .
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 69 . overall contribution.(c) Steven Windmill February 2012 END YEAR PERFORMANCE REVIEW Records achievements against objectives.
(c) Steven Windmill February 2012 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 70 .
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.(c) Steven Windmill February 2012 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 . Managers make recommendations on eligibility and level of bonus 71 .
(c) Steven Windmill February 2012 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 72 .
(c) Steven Windmill February 2012
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
(c) Steven Windmill February 2012
10 YEARS ON - 2011
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
(c) Steven Windmill February 2012
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
(c) Steven Windmill February 2012 DEVELOPMENTS IN THE SCS Revision of the competency framework Introduction of professional skills for government By June 2006 95% of SCS members had development plans in place linked to PSG September 2012 95% of SCS will demonstrate competence in 6 key skill areas. (iii) analysis and use of evidence. (iv) project and programme management (v) strategic thinking (vi) communication and marketing 76 . which are (i)people management (ii) financial management.
courageous and realistic with staff and Ministers Life long learner 77 .(c) Steven Windmill February 2012 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.
(c) Steven Windmill February 2012 QUESTIONS 78 .
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