1. RIGHTSIZING THE CIVIL SERVICE:THE TANZANIA EXPERIENCE OF THE1990s
George Yambesi
Director of Policy Development
President’s Office-Public Service Management
Tanzania

2. Civil Service Reform Program (CSRP)
Goal: Achieve a small, affordable, well compensated, efficient and effectively performing civil service

3. CSRP-OBJECTIVES Redefine roles and functions of the government
Reduce government operations to affordable levels
Restructure to achieve efficiency
Control size and growth of employment
Compensate employees competitively
Functional analysis, organisation and efficiency reviews
Wage bill control
Simplification of pay and salary structure
Systems and records improvement

4. REFORM PROCESS BANG with some systematic planning. However:
Inadequate tools for planning
No reliable information
No reliable personnel data readily available
Weak management systems
Preceded by diagnostic studies:
size of government
civil service census
manning levels study
strategy paper on retrenchment and redeployment
civil service head count (february 1994)
Criteria spelt out and communicated
Formation of retrenchment and redeployment task force for direction, oversight and appeal

5. RESULTS
26% reduction in workforce. From 355,000 (1992) to 264,000 (1998) and today 272,478
75 % increase in real average salaries
25% reduction in ministerial structures ( )
Simplification and consolidation of civil service pay structure and payroll system:
196 grades to 45
-36 allowances to 7 (at present 3)
Since 2001 controlled increase in numbers (272478) due to new hirings in PRSP priority sectors which accounted for 82.6% and 76.2% respectively in and

6. EMPLOYMENT TRENDS

7. MORE RESULTS!
Phase 1 restructuring of regional administration completed:
From 2000 on average to 83 per region
Wage bill control:
wage bill exceeded budget by 40%
wage bill is only 2% overbudget
wage bill within budget
Integrated HRPMS linked to IFMS
Control recruitment replaced freeze

8. OBJECTIVES NOT MET
Retrenchment had little link to improvement in service delivery
Salaries remained low despite showing improving trends
Reforms not locally owned:
Part of structural adjustment program
Stakeholders unaware of broader reforms (cost containment only)

9. IMPLEMENTATION PROBLEMS
Pockets of resistance to retrenchment
Communication between Dar and regions
Poor records management resulting in lack of key personnel records
Cases of underpayment (terminal benefits)
Isolated cases of victimization
Resistance by employees, trade unions and politicians
Difficulty of moving paper records between Dar and regions

10. HOW WE ADDRESSED RESISTANCE
Involvement of key stakeholders (trade unions):
Discussion of selection criteria
Negotiation of retrenchment package
Scrutiny of retrenchment recommendations by management
IEC
Workshops/seminars for MPs
Implementation of redeployment program
Impact assessment of the redeployment program
Provision of counselling and retraining services to 36,000 retrenchees
Dilemma in determining severance package: wanting to make the package attractive but also wanting to keep costs low. Incomes outside the civil service were lower than within the service. Ultimately package was acceptable and affordable.
Skills training program asssisted 42.5 percent of retrenchees to take up new employment outside the service. Another 49.3 percent to improve on existing business. The program has positive effect on earnings of retrenchees as 54 percent had higher earnings over the pre-rentrenched period.

11. CHALLENGES
Service improvements require more comprehensive reforms than just rightsizing:
Capacity
Systems
Incentives
Responding to the poverty reduction agenda
Balancing service improvement demands and increase in number
Affordability: linking reforms to MTEF and PER process