Developments in the Performance Assessment in Latvia

How HR system is structured? 1. Job classification system (job families and levels) – Job Catalogue Wages in labour market 2. Competency models (knowledge, skills, behaviour) – competency-based HRM 8. Wage groups (pay system) 6. Education standarts for job families 3. Methods of personnel selection 4. Performance appraisal – detection of missing or underdeveloped competencies 7. Universities’ programmes 5. Latvian School of Public Administration - curriculum

Existing Performance Appraisal Since 2001 performance of civil servants in Latvian public administration is evaluated, BUT: system is outdated doesn’t fully describe performance quality evaluation is a formal process evaluation criteria are too general

New Performance Appraisal (1) Expected from 2008 Applies to whole public sector (not only civil servants) Related with flexible part of salary Electronic rating system Competency approach

New Performance Appraisal (2) Divided in 3 main parts: analysis of target achievement and task accomplishment measurement of competencies (behaviour and attitude) determination of developments needs (training, coaching, mentoring, literature, conferences, experience exchange)

flexible part of salary Job content, responsibility, complexity basic salary PERSON – flexible part of salary Job content, responsibility, complexity Performance 70% Seniority 30% Job family and level 23% 10% Reg. Nr.995. 67% 33% 100%

Performance Appraisal Form: Part I Targets and tasks Weight of task (1-3) Rating (A-E) 1. 2. 3. Average rating: Comments:

Performance Appraisal Form: Part II Competence Rating (A-E) Core competencies 1. 2. Functional competencies Specific competencies Average rating:

Performance Appraisal Form: Part III Competencies to be developed to promote achievement of targets Development activities Term Communication skills Coaching Analytical thinking Regular case analysis Project management skills Seminar

Performance Appraisal Form: Summary Rating (A-E) Job family and level Potential career development Qualification grade Rating of the targets achieved Rating of the competencies

Rating Scale Managers assessment against tasks/behaviour defined for particular employee A – excellent (employee acts exceptionally in all aspects, he/she is a good example for others to follow) B – very good (employee acts exceptionally in a number of aspects) C – good (employee in general acts in compliance with set requirements) D – almost good (employees’ behaviour partly comply with set requirements) E – mismatch (employee does not act in accordance with the set requirements)

Potential implementation risks Disinterest of managers Employees feel threatened and resist changes Not always good specialists are good managers – do not pay attention to HR issues Lack of explanation activities Time consuming