Brief presentation of the Portuguese reforms First HRWG Meeting – 17th -18th September 2007 Noble Room of the Ministry of Finance and Public Administration-Lisbon

Main measures restructuring program of state central administration (PRACE) HR mobility system (SME) new system of careers, legal status of employees and managers, remuneration (VCR) integrated system of performance assessment in Public Administration (SIADAP)

PRACE guidelines To rationalize structures in order to promote economies of expenses and gains of efficiency To improve management and coordination To reduce consultative and coordination committees To reinforce the Governments’ technical support, specially in areas like legislative process, juridical information and new technologies (ICT’s) GPEARI – strategic planning, evaluation and international relations To concentrate resources management: Organization of partnership services for functions and common activities Certain types of common procedures are concentrated and managed on an entrepreneurial basis (public corporations)

Comparative data - number of structures

Comparative data - number of top managers

Redefinition of structures New mobility framework New mobility instruments Flexible mobility procedures Abolishing, merging or restructuring processes HR measurement Top managers are given new management instruments to evaluate and adjust the organizational structure and the existing HR

VCR – diagnosed problems Career number: 1179 General careers 653 Special careers 119 Special corps Single categories 407

VCR – diagnosed problems General careers/ Special careers 1 scale Several remuneration positions based on a single indicator Special Corps: one scale each; each scale has its own indicator for determining remuneration positions More than 522 different remuneration positions

VCR – diagnosed problems multiple kinds of legal status; excessive number of careers; opacity of remuneration system, not related to: Service output and managing options; Budget options. very rigid, not allowing for managing options; automatic raises in many cases; excessive relevancy of seniority.

New VCR: Legal status Only two types: Labor contract for Public functions (CTFAP) Special status (nomination) for functions related to sovereignty (Foreign affairs, Armed Forces, Security, Justice, Inspection) It can end: by mutual agreement and compensation Two inadequate assessments – previous disciplinary procedure required

New VCR: Careers and remuneration reduced number of careers only 2 career types: general and special one remuneration scale flexibility: recruitment salary managing options relevant impact of assessment (SIADAP)

integrated system of performance assessment SIADAP (current model) Middle managers Employees Incomplete Complex Bureaucratic

integrated system of performance assessment SIADAP (new model) Subsystem of Performance Assessment Services SIADAP 1 Subsystem of Performance Assessment Managers SIADAP 2 Subsystem of Performance Assessment Employees SIADAP 3

SIADAP General principles Coherence and integration Accountability and development Universality and adaptability Transparency and impartiality Effectiveness and efficiency Quality oriented; Comparability: use of performance indicators for comparison with national and international standards; Publicity of assessment (services); confidentiality of assessment (managers and employees) Participation of managers and employees in the process

SIADAP: main issues SIADAP 1, 2 and 3 work in a integrated way, based on coherence of goals fixed on planning level, goals fixed in the service’s managing cycle, goals fixed in the mission charter and goals fixed to middle managers and employees Performance Indicators Self appraisal and external appraisal GPEARI and SCI role

SIADAP 1 Goal type Concrete Goals Assessment Effectiveness goals Proposed by the service and approved by GM Surpassed Reached Not reached Efficiency goals Quality goals It operates in the context of a Reference Frame, using performance indicators, and monitored by GPEARI

SIADAP 1 final assessment Good Reached all goals, surpassed some Satisfactory Reached all goals, or more relevant goals Insufficient Did not reach the relevant goals In each ministry a Merit distinction can be awarded among services assessed with “Good”, recognizing Excellent Performance (meaning it surpassed all goals)

SIADAP 1 assessment impact It must be taken in account for Budget options Options and priorities for next year’s managing cycle Appraisal of top managers “Excellent” determines, for 1 year Larger quota for excellent and relevant assessments (HR). Larger endowment for raises or performance bonus Larger endowment for new projects

Quota for excellent (in each Ministry) Impact of assessment SIADAP 2– top managers Parameters Mission charter Leadership competencies Service appraisal Quota for excellent (in each Ministry) 5% Impact of assessment Tenure Bonus

SIADAP 2 – middle level managers Parameters Outcome in view of goals previously fixed to the unit (75%) Competencies (25%) 3 assessment levels Relevant performance Adequate performance Inadequate performance Quota for: relevant (25%) and excellent (5% of relevant) Impact of assessment Tenure Bonus

SIADAP 3 Parameters 3 assessment levels Quota for: Outcome in view of goals previously fixed (aligned with the unit and the service) Competencies 3 assessment levels Relevant performance Adequate performance Inadequate performance Quota for: relevant (25%) and excellent (5% of relevant) Impact of assessment Pay (it depends also on budget) Change in salary position or bonus: 1*monthly wage (for excellent and relevant) Vocational training Extra holidays

Thank you for your attention