1. Practices and trends in performance assesments in OECD countries Edwin Lau Division Head, Reform of the public sector OECD Issyk-Kul, Kyrgyz Republic August 25, 2015

2. Raises accountability Motivates/incentivizes the civil service - positive impact on workplace productivity Enforces goal alignment from the organisational level to the individual level Informs about the gaps (helps improve) Why performance management matters?

3. Cascading objectives in Canada Source: Treasury Board of Canada Secretariat

4. How does the OECD measure the use of performance management?

5. Yes, for all or almost allNo, only for someNo, not used at all AUSTRALIA, AUSTRIA, BELGIUM, BRAZIL, CHILE, DENMARK, ESTONIA, FINLAND, FRANCE, GERMANY, GREECE, HUNGARY, IRELAND, ISRAEL, ITALY, JAPAN, KOREA, MEXICO, NETHERLANDS, POLAND, PORTUGAL, SLOVENIA, SWEDEN, SWITZERLAND, TURKEY, UKRAINE, UNITED KINGDOM, UNITED STATES. CANADA, ICELAND, NEW ZEALAND, NORWAY, SPAIN. CZECH REPUBLIC, RUSSIAN FEDERATION, SLOVAK REPUBLIC Total: 28Total: 5Total: 3 Is formalised performance assessment mandatory for all employees? Source: OECD Strategic Human Resources Management Survey 2010

6. What are the current performance criteria explicitly used in most organisations? Source: OECD Strategic Human Resources Management Survey 2010

7. Importance of performance assessment regarding: Source: OECD Strategic Human Resources Management Survey 2010

8. Which of these factors are important for being promoted? Source: OECD Strategic Human Resources Management Survey 2010

9. Extent of the use of performance assessment Source: OECD Strategic Human Resources Management Survey 2010

10. – Training – Pay Figure: Extent of the use of performance-related pay in central government (2010) Link with other management aspects

11. Consequences of Performance in Budgeting OECD, Budgeting Practices and Procedures in OECD Countries, 2014

12. Normal distribution Ministry distribution (Israel)

13. What can we learn from the private sector? Microsoft: eliminates ‘stack rankings’ (2013) Google: Pay discussions are separated from annual reviews [Laszlo Bock, Work Rules!, 2015] General Electric: from “command and control” to “empower and inspire”: regular informal ‘touchpoints’ between managers and employees

14. What drives individual performance?

15. Levers to shape & prepare the Civil Service Leadership Recruitment Holistic planning (link org capacity with strategic outcomes) –Workforce planning –HR development –Leadership development Compensation Work Environment & Conditions Performance & Accountability Regime Monitoring & managing employee engagement Training; Learning Composition: diversity, gender experience, education Post-public employment Australian Public Service Capability Review Framework

16. Motivation Stable self-perception and self-confidence are therefore the most important motivators for individual success. Pay mainly demotivates (in the event of bad payment) or not (if payment is appropriate). Rarely adds motivation. Source: Demmke, Christoph 2007

17. Opportunity: an enabling workplace Performance and target achievement in public service almost always depends on a multitude of factors beyond the individual: – Organisational culture and structure – Work conditions – Workplace technology – Management – Job profile

18. Why I no longer commit myself: Inadequate information flow from superior: 97% Decisions without involving employees: 95% Manager cannot solve group conflicts: 82% Errors in superior's management behaviour: 81% No communication of purpose by the organisation: 71% Too much bureaucracy in organisation: 71% Source: Wolfgang Seidel, Emotionale Kompetenz, Heidelberg 2004, p. 314

19. Australia: Perceptions of Senior Leadership In my agency, senior leaders engage with staff on how to respond to future challenges... 19

20. What is employee engagement? Value congruence Perceived organisational support Positive core self- evaluation Autonomy and challenge in the job Antecedents Vigour Dedication Absorption Work Engagement Higher individual performance Higher organizational citizenship behaviour More pro-active, innovative behaviour Lower labour turnover Lower absence Higher job satisfaction and personal well-being Outcomes

21. Performance and motivation is not only about the individual, but also about the work environment, organisational culture, and quality of management. A good PA process should help to improve employee’s ability, motivation and opportunity to perform. Pay for performance depends on a careful assessment of the work and the situation, and has not always worked well in OECD countries. OECD countries are simplifying PA systems, and instead investing in the capacity of managers to manage performance. Concluding thoughts

22. To find out more… OECD website: www.oecd.org/governance http://www.oecd.org/employment/pem/ OECD iLibrary: http://www.oecd-ilibrary.org/