1. Economic Development Department Organisational structure
Presentation to the Portfolio Committee
06 April 2011

2. Presentation outline Regulatory framework
Process for finalising the approved organisational structure
Organisational structure
Funding of structure
Funded posts
Staff complement
Equity status
Recruitment process
Concluding remarks

3. Regulatory framework Chapter III.B.2 of the Public Service Regulations
Subject to regulation B.2A, an executing authority shall, based on the strategic plan of the department-
(a) determine, after consultation with the Minister, the department’s organisational structure in terms of its core and support functions;
(b) define the posts necessary to perform the relevant functions while remaining within the current budget and medium-term expenditure framework of the department, and the posts so defined shall constitute the department’s approved establishment;
(c) grade proposed new jobs according to the job evaluation system referred to in Part IV; and
(d) engage in the human resource planning in accordance with regulation III D with a view to meeting the resulting human resource needs.

4. Regulatory framework, cont
Chapter III.B.2A of the Public Service Regulations
Directives issued in terms of section 3(3)(e) of the Act, shall specify which determinations on the organisational structure of the department, shall be subject to consultation with the Minister. For purpose of such consultation, the information to be supplied shall be set out in such directive.

5. Process for finalising the structure
Drafted the Strategic Plan (May-June 2009)
Developed an organisational structure aligned to Strategic Plan (September 2009)
The approved structure consists of 265 posts
Minister consulted with MPSA and approved organisational structure (December 2009)

6. Organisational Structure
Director General
Office of the Director General
Branch: Economic Policy Development
Branch: Economic Planning & Coordination
Branch: Economic Development Social Dialogue
Chief Directorate: Corporate Services
Office of the Chief Financial Officer
Director: Internal Audit

7. Programme 1 – Administration
Overview of functions:
Provide strategic support and administrative service to the Minister and Deputy Minister
Engagements with Cabinet, Parliament, government at national, provincial and local level, government entities and SOEs
Engagements with international economic agencies, foreign economic representatives
Stakeholders including social partners, communities, the media and the public
Provide strategic support and administrative service to the Director-General
Strategic advice and support on legislation, policies, policy alignment and coordination
Ensure compliance regarding planning and reporting requirements
Support the Department’s participation in the Cluster system
Support to Ministry and branches on operational and administrative matters
Ensure effective document flow
Provide internal audit and risk management services
Provide operational and administrative support to the Department
Legal services, human resource management, information technology services, financial management and related services, communication and events management services

8. Programme 1 – Administration
To render an effective efficient support and administration to the Minister, Deputy Minister and Department
___________
Administration
Purpose:
Ministry
Office of the Director-General
Office of the CFO
Corporate Services
Directorate: Internal Audit

9. Programme 2 – Economic Policy Development
Overview of functions:
Coordinate the implementation of the Growth Path
Develop papers and policy proposals, hold policy platforms
Consult with departments, municipalities, entities and SOEs
Develop economic policies and sector strategies
Identify macro and micro economic policy options
Outline and analyse future paths of the economy
Quantitatively analyse the likely impact of policy options
Promote broad-based BEE
Work to ensure the meaningful participation of the majority
Transform and mainstream the second economy
Develop policies to transform second economy activities
Establish an Economic Development Institute
Provide a platform for economic researchers and practitioners
Provide analysis of data collected by the state and other institutions

10. Programme 2 – Economic Policy Development
___________________________
To develop economic policy
Purpose:
Growth Path and the Creation of Decent Work
Economic Policy
Broad-based Black Economic Empowerment
Second economy
Economic Development Institute and Research

11. Programme 3 – Economic Planning & Coordination
Overview of functions:
Develop sector, spatial and national economic plans
Develop economic plans for SA
Promote the development of economic development action plans, particularly for key and distressed areas
Build the coherence of provincial and local economic development plans
Promote economic development in the major sectors of the economy
Promote investment for economic development
Provide oversight and strategic direction to DFIs
Channel and direct public, and where feasible and appropriate, private investment into economic development

12. Programme 3 – Economic Planning & Coordination
Overview of functions, cont
Promote competitiveness for trade and decent work
Oversight of and policy and strategic direction to the ERBs
Promote African and regional economic development
Engage with international agencies and multilateral institutions
Pursue economic opportunities with major economic groupings including BRICS, EU and USA
Leverage state budgeting, financing and procurement processes
Undertake research and analysis on the government’s developmental programmes and processes to ensure alignment with NGP
To identify opportunities for improving local procurement and production
Grow the Green Economy
Identify, develop and support projects, incentives and other measures to promote industries that create jobs and have lower or no carbon emissions in energy, agriculture, manufacturing and service sectors, especially tourism

13. Programme 3 - Economic Planning & Coordination
To promote economic planning and coordination
___________________
Purpose:
Spatial, Sector and National Economic Planning
Investment for Economic Development
Competitiveness for Trade and Decent Work
Economic Development, State Budgeting and Financing and Procurement Processes
Green economy

14. Programme 4 – Economic Development & Dialogue
Overview of functions:
Lead national social dialogue and implement strategic frameworks
Consult on and coordinate government’s policy input and contributions to social dialogue on economic development matters
Negotiate national economic development and decent work pacts
Coordinate the implementation of framework agreements
Engagement in sector and workplace dialogue
Develop partnership agreements in key sectors and workplaces
Support capacity building for economic development
Promote research output and knowledge among social partners through the establishment and administration of a Social Partner Fund
Periodically convene an Economic Advisory Panel
Create and coordinate knowledge networks
Convene an annual Economic Development Conference
Foster productivity, entrepreneurship and innovation
Develop a policy framework for the increasing productivity, enhancing innovation and entrepreneurship

15. Programme 4 – Economic Development & Dialogue
Economic Development and Dialogue
To foster economic development by promoting social dialogue
_________________
Purpose:
National Social Dialogue and Strategic Frameworks
Sector and Workplace Social Dialogue
Capacity Building for Economic Development
Productivity, Entrepreneurship and Innovation

16. Summary of the structure per programme
No of posts %
Programme: Administration 86 32
Programme: Economic Policy Development 68 20
Programme: Economic Planning & Coordination 81 31
Programme: Economic Development & Social Dialogue 30 11
Total
265
Ratio of 2 line staff to 1 support staff

17. Funding the structure
In December 2009 received medium-term allocation (excluding transfers) of approximately:
Funding the approved structure would cost approximately R160m per year (personnel budget) FY
2010/11
2011/12
2012/13
Allocation
R100m
R130m
R150m
For personnel
R60m
R75m
R90m

18. the medium term* Programme No of posts for 2010/11
Funded posts over
the medium term*
Programme
No of posts for 2010/11
No of posts for 2011/12
No of posts for 2012/13 %
Programme: Administration 54 62 44
Programme: Economic Policy Development 12 20 26 18
Programme: Economic Planning and Coordination 11 33 38 27
Programme: Economic Development and Social Dialogue 9 14 16
Total 98
129
142
*Please note: the figures are estimates and will vary according to the levels of staff recruited
(Ratio closer to 1:1 Line function 56% vs Support staff 44%)

19. Staff complement as at 22 March 2011
Programme
No of funded posts for
2010/11
No of posts
filled - Permanently
No of posts filled on contract
Total
Programme: Administration 54 28 20 48
Programme: Economic Policy Development 12 3 8 11
Programme: Economic Planning & Coordination 7 4
Programme: Economic Development Social Dialogue 9 6 98 41 38 79
In addition to the above13 staff members will join the Department on a permanent basis as from 1 April 2011

20. Staff complement per salary level
Filled permanent
Filled contract
Total 16 1 - 15 14 10 7 17 13 4 8 12 5 2 11 9 3 6 42 37 79

21. Equity Status as at 22 March 2011

22. Recruitment process The recruitment process is actively in progress:
Job evaluation process:
Public Service Regulations directs that before a newly created post is filled, it must be evaluated to determine its level
96 positions have been evaluated through the assistance of DPSA
Advertisement of posts:
28 positions in the line function have been advertised and are being filled (shortlisting, competency assessments, interviews, submission for approval)
Recruitment Strategies:
The Department embarked on Executive Search for critical posts
Ministry of Women, Youth and Disabilities contacted regarding a database of People with Disabilities

23. Concluding remarks EDD has funding for 129 posts in the coming year
Approved structure (265 posts) cannot be funded during the current MTEF without an increase in the baseline
In filling posts EDD must consider the ratios of line to administrative staff and senior management to middle management
Recruitment will continue apace, within budgetary constraints

24. Siyabonga