The applicability of performance management concepts as part of a human resource management strategy within the public sector in Suriname.

Transcription

1 The applicability of performance management concepts as part of a human resource management strategy within the public sector in Suriname. Master of Public Administration in Governance Marjory Mulier FHRISS April 2010 This paper was submitted in fulfillment of the requirements for the Master of Public Administration in Governance degree Institute for Social Studies F.H.R. Lim A Po Institute for Social Studies

2 Acknowledgment The finalization of the MPA program by writing this paper would not have been possible without the support and motivation of the following persons. First of all I would like to thank my parents, Irma and Arthur, and sister Deborah for looking after Jonathan and Sibonisa during my absence. I also would like to thank Mr.H.Lim a Po for the guidance, support and motivational talks throughout the whole program and of course the employees of the Institute. Special thanks to Jules De Rijp, whose inspiring support, especially with the thesis, was of great importance. I thank my supervisor Dr.F. Schiphorst for his guidance for writing this paper. I also want to thank those who give me the opportunity to attend this program, especially the Ministry of Home Affairs. As always it is not possible to thank everyone for their support during the whole program, and those, whose names are not mentioned in this thesis, I also want to say thank you for being there for me. Marjory Mulier April,

3 Table of Contents Acknowledgment... 2 Background Information... 4 Research objectives:... 5 Research questions... 6 Research methods and approaches... 6 Assumptions and Limitations Literature Review Purpose and Structure of the Literature Review Some views on Human Research Management HRM in the public and private sector Performance management as an HRM tool The role of the manager Application of Performance Management at the Ministry of Home Affairs Introduction The process of target setting Provision of Skills Provision of means Monitoring and evaluation Performance Appraisal Appropriate reward and incentives Role of the Manager Summary of the findings Conclusions and Recommendations Conclusions Recommendations References Annex 1. Activity matrix for the reforming of the public sector Annex 2. Questionnaire

4 1. Introduction Background Information The need for better performance of a result focused government has been acknowledge by the government of Suriname. This is shown in different policy notes and the Multi-annual Development Plan (MOP) Whereas mere traditional administration has focused primarily on the execution of tasks, the question of efficient and effective performance has assumed more importance today. The public sector is not performing as efficiently and effectively as can be seen in the poor quality of many areas such as infrastructure, public services and education. According to the MOP an effective and efficient functioning public sector is necessary to guide the development of Suriname. This is also essential for the improvement of the investment climate and for sustainable development. There are many efforts by the Government of Suriname such as the reform of the entire public sector with emphasis on issues such as institutional strengthening, decreasing the number of civil servants and quality improvement. In 2004 the government of Suriname resolved to corporate with the Inter Development Bank to initiate the Public Sector Management Strengthening Program, this related to the Public Sector Reform. In 2006 was start with the program and the component Civil Service Reform within the formulation of a new Human Resources Management Strategy. But these efforts do not include a framework for performance management within the public sector. As a result it is not clear to what extent the various efforts to improve the quality of public services, really contribute. There is also a backlog in the execution of these activities and it is not clear to what extent the goals as set will be reached. The vision for the public sector is clearly defined in the Roadmap for Public Sector Reform in Suriname (2006). In 2015, Suriname has a public sector that is effective, efficient and highly motivated. Citizens are happy with the improved services. Civil servants have clear performance standards and are held responsible for their work. Civil servants are hired based on merit, managerial and technical skills, and paid appropriately for the work they perform. Every civil servant is focused on core tasks that contribute to Suriname s goals. Government ensures that donor-funded projects contribute to national goals and priorities, and they are managed well. 4

5 This very challenging vision indicates that the overall goals of Suriname should drive all activities of the civil servants. But currently, the related projects do not clearly refer to a system to use the overall country goals as a starting point to organize and manage the civil servants activities. A sound and solid performance management strategy could close this gap between the overall goals and the activities on the operational level. According to Waal (2004) Performance management is the process within the organization, steering the systematic formulation of the policy, strategy and objective of the organization and to realize this on every organization level. One of the major challenges is realization of the goals on every organizational level because this is where it is all about managing human resources. Research objectives: This study seeks to define the applicability of performance management concepts as part of a human resource management strategy to improve individual performance of both manager and employee within the public sector in Suriname. 5

6 Research questions Main question What are appropriate elements for an effective implementation of performance management to improve the performance of the civil servants of the Ministry of Home Affairs in Suriname? Sub questions 1. What are the general characteristics of performance management within the public sector? 2. Are these characteristics found in Suriname? 3. Which factors encourage or hinder the application of these characteristics at the Ministry of Home Affairs? Research methods and approaches Firstly I study relevant literature in order to have a grasp on the issue of performance management in general, but with emphasis on performance management in the public sector. Special attention will be given to define a set of requirements for successful implementation of performance management within the public sector with special reference to the situation in Suriname. Secondly, I will use these characteristics to analyze the current situation in Suriname. Based on the findings of this analysis, I will suggest possibilities for the application within the Ministry of Home Affairs. In addition to a literature review, I had interviews with two Assistant Directors and three Heads of departments who are major actors involved in the personnel policy. Those are the Head of the Personnel department, the Head of Education and Training, the Head of the Central Personnel Administration. Assumptions and Limitations The scope of the study is on the Ministry of Home Affairs.. It was not easy to make an appointment with the Assistant Directors because the Ministry of Home Affairs had a leading role to organizing the election which will be held in May. 6

7 2. Literature Review 2.1. Purpose and Structure of the Literature Review The general purpose of this literature review is to define the scope of Human Resource Management in general and performance management in particular and the applicability within the public sector. Firstly some different views on human research management will be discussed; the possibilities and limitations of human resource management, human resource management in the public and private sector. The second part deals with the characteristics, the applicability of performance management in the public sector and the conditions for successful applications. The final part deals with the role of the manager on the individual performance of the civil servants Some views on Human Research Management The possibilities of a well developed human resource policy are numerous. It can be argued that good HRM will lead to well qualified and motivated staff to realize the objectives of the organization. HRM searches for optimal job satisfaction of the civil servants, and for responsible conditions of employment for the civil servants, as well as opportunities for capacity building. HRM involves the creation of opportunities for responsibility and self support, and seeks to stimulate the communication in the department by introducing fast working and reliable information systems. Indeed, HRM seeks to create a good communication atmosphere by providing more information about the development of the organization. The competitive advantage of a society in a global economy depends mainly on how well its human resources are managed. Of course other material resources are certainly also significant to the organization s achievement in the competitive worldwide market, but these resources are generated by the productive and innovative efforts of people, and it is their initiative that also ensures that these resources are efficiently deployed. It is no doubt then that the significance of the human resources role is more and more being renowned Mendonca, ( 1996). Some scholars have doubt about the applicability of HRM practices because they claim that it is cultural specific. Mendonca (1996) discusses claims that HRM practices which have been successful in the west, should also lead to success in developing countries. He also 7

8 mentions opposite views that HRM practices are cultural fit and that issues such as work ethics, religion, family ties and tribal aspects can be limitations for implementing of western based HRM practices. There are numerous definitions on HRM and a detailed study of all the differences and similarities is way beyond the scope of this study. Ramaswamy (2000) refers to a definition by Storey (1995, 5). The latter describes HRM as a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using the integrated array of cultural, structural and personnel techniques. According to Storey he summarized four key elements. These four elements are beliefs and assumptions, strategic qualities, critical role of managers and key levers. The first element concerns that it is the human resource among all the factors of production which really makes the difference. It is the human resource which gives competitive edge. The aim should be not mere compliance with rules, but employee commitment. The employees must be carefully selected and developed. The second element concerns strategy qualities. Because of the above factors, Hr decisions are of strategic importance. Top management involvement is necessary. Human Resource policies should be integrated into the business strategy. The third element concerns the role of line managers. Human resource practice is critical to the core activities of the business so it can not be left to only personnel specialists. It is a need that line managers closely involved as both deliverers an drivers of the Human Resource policies. The management of managers themselves must get greater attention. The fourth element concerns the key levers. Managing culture is more important than managing procedures and systems. Integrated action on selection, communication, training, reward and development. Another aspect of key levers is restructuring and job redesign to allow developed responsibility and empowerment. Armstrong s (1987) vision of HRM is that it is nothing more than a different, although more trendy, marker for personnel management and worker relationships. Every personnel policy in an organization has to do with humans. How to work together and how look at the personnel has to do with the meaning which is given to the personnel policy. In this context there are different views and terms in circulation. Beside 8

9 personnel and organization and the term personnel department is in these days using the modern concept human research management. HRM is a part of the integral management strategy which strives for a total new relation between employees and other means of production. This strategy is also called the new production- and organization concept. Shortly HRM consist of all activities, which can be set in with the purpose that the employees effective set in the labor process to contribute to the mission and objectives of an organization. The most important aspect in HRM is that to aim the objectives such as flexibility, creativity, innovation and engagement are expected when the employee has the opportunity in his labor to develop his capacities and to expand initiatives. The core tasks of HRM have an important role in the whole organization. HRM must look after that the right persons on the right time are on the right place with the right means and responsibilities to do their tasks with great motivation and quality. Storey talks of four dimensions of HRM; those are beliefs assumptions, strategic qualities, critical role of managers and key levers. According to Storey the core of HRM is making up by the employees who are essential for the success in the organization. Not only the performances and the welfare of the employees is important, also the success of the organization. In a word the commitment of competent and engaged personnel is an important success factor for organizations. To have a good view what HRM really is you have to compare it with traditional personnel management. Another definition of HRM is from Hans Doorewaard and Willem de Nijs, in their opinion HRM is the personnel management belonged by organizations with organizational labor structures within delegation and empowerment is used on the shop floor. In this definition HRM is made up by the structure and strategy of the organizations and from this the personnel policy is determined. In practice this lead to the situation that organization strategies seldom are tuned to the need of the employees. This is the so called Hard HRM. The responsibility for the personnel management is for the top management and the implementation of the personnel management is integrated in the line management instead of to delegate both to staff specialists. The basic point of difference between HRM and personnel management has to do with the paradigm on the personnel, the organization culture which has to support this, the relation between the different HRM instruments and the link between personal objectives and organization objectives. The base of HRM is the vision on the employee as Human Resource or Human asset or Human Capital. The personnel management must not focus on the employee as a debit and a nuisance. The personnel management must start with the conception of the employee as a produce source in which is invested and with who must handle with care. The HRM head 9

10 instruments: selection, appraisal, reward, development and the outflow must be mutually consistent and strengthening. One of the interesting distinctions is the dichotomy between the so-called hard and soft versions. Legge (2005, p 105) and Ramaswamy (2000, p 184) both discus this distinction referring to different scholars. The soft version focuses on HR policies in order to motivate and develop employees. The hard version on the other hand, emphasizes the objectives of the organization. Both soft and hard versions are related to achieving the objectives of the organization, but the hard version uses the HR systems to realize the strategic objectives. According to Stone (1995), HRM has as its focal point, supervising people within the employer employee relationship and involves marshalling the useful capability of an organization s members. Stone suggests that the area of HRM covers the gaining, progress, remuneration and inspiration continuance and departure of employees and characteristic areas of concern include HR plan and ability audits, enrollment and variety of employees, talent improvement and education, job development, performance assessment, formulating employment circumstance and compensation and remuneration. A HRM consultant hired by the Ministry of Home Affairs, De Turck, ( 2008) wrote that the emphasis of HRM is to plan, on the basis of a clearly defined objective, which human potential can be used when, where and how to achieve the objective. In the new HRM strategy for the public sector in Suriname emphasis is on the balance between the rights of the civil servants on the one hand and the improvement of the quality and performances of the civil servants on the other. These are just some of the many visions on the scope of HRM. They all mention the development of employees and all but Storey can be considered more soft than hard. The definition by Armstrong gives the impression that he regards HRM as a modern application of an old principle. The Ministry of Home Affairs has approved the results of the consultant, so we can conclude that the Ministry s vision on HRM is more or less in-line with the so-called soft version. 10

11 2.3. HRM in the public and private sector The purpose of this paragraph is to elaborate on the applicability of performance management principles in the public sector. It starts with a short discussion of the movement New Public Management (NPM) that had a significant impact on the performance management discourse. The second part of this section shows that there are many differences between the private and public sector and that as a result private sector HRM principles such as performance management can not be easily applied within the public sector. In the 1980 s a new movement, New Public Management, arose within the public sector in West European countries and the USA. One of the basic characteristics of the NPM model is that it tries to apply private sector principles within the public sector. This includes HRM practices such as performance management. The NPM got more influence because the governments had budgetary problems and the public wanted more value for their money with regard to public services (Boorsma, 2001). According to Pollitt (2003) the most important characteristics of NPM is a shift in the focus of management systems and efforts from inputs and processes to outputs and outcomes. It is also a shift from not measuring of performance to measuring with clear performance indicators. Also a shift towards the preference for more specialized, efficient and autonomous organizational structures instead of big, hierarchical departments. It was a renewal movement that has had great influence on the development of performance management within the government. But for the developing of performance management in the public sector it is important to look at some significant differences between the private and public sector. The following section describes six differences that should be taken into consideration when trying to implement performance management within the public sector (Waal, 2004). The first difference is the responsibility model. The responsibility model is in a modern private organization relatively simple. In a public organization this model is much more complex. There is political leadership (the government and the parliament) that is responsible for strategic formulation and an executive leadership (public organization) which is responsible for the realization of the strategy. The second major difference is the strategy and value creation. Both public and private sector organizations have to develop strategies and create value. For a profit organization the starting point for the strategy is simple. They must deliver to their shareholders a better than average return on investment. For a non profit organization 11

12 the value is defined by the civil servants, the parliament. One of the challenges for the public sector organization is dealing with many conflicting interests. Waal refers to an example that civilians want to pay less tax but other civilians want more social benefits. The third difference is the internal and external policy. The public organizations make policy plans which they can only realize by mobilizing civil servants and organizations. This external policy is different from the internal, where the management can steer towards their own organization. The policy objectives are not frequently expressed in figures. Also data on the realization of public policy is submitted long after the period has closed. The fourth difference is that the policy of the public organization has many, sometimes conflicting objectives. The point of departure of the politician is to satisfy many different interest groups. As consequence, the performance indicators in the public sector can be influenced by more than one interpretation unlike the indicators in the private sector. A fifth difference is the aspect of the customers and customer satisfaction. It is much more difficult for public organizations than for private organizations to enhance the customer satisfaction. In the private sector the customers pay and get the product or service. In the public sector there is another situation, a citizen can pay tax, but does not see immediately the things where he or she will receive benefits. The final difference has to do with the available means. Both public and private organizations have money and people. (Waal, 2004) also claims that something special of the public organizations is that they have public power, which we see in their activity such as revenue collection, maintaining of the law and environment rules. This means that the performance management of the public organization also has an integrity aspect. An additional challenge is to constantly be aware that this public power is not misused. Different New Public Management practices have been implemented in many westerns countries and it has shaped the public sector reform process. Even though some practices such as performance management can also be implemented in the public sector, it is essential that the fact that there are some significant differences between the public and private sector should not be ignored. The conclusions of the different researches are that performance management is working in the public sector but not all the private sector practices can be copied because of the differences in objectives of the public and private sector. 12

13 2.4. Performance management as an HRM tool Before we discuss performance management as an HRM tool we define performance management as a process within the organization by systematically formulating of policy, strategies and objectives of the organization and all her levels and measuring the objectives with critical success factors and performance indicators (Waal 2004, 17). Schiphorst (2001) describes performance management as the daily process working towards the performance expectations established in the planning phase. The managers and the individual employee together regularly review the employee's performance. If it is on track or exceeding expectations, the manager provides positive reinforcements. If performance is lacking, the manager coaches the employee on improving the trouble spots. This involves developing strategies with the employee to determine an appropriate action plan (e.g. areas for immediate remedial action, or plans for fulfilling training needs). The outcome of this review, therefore, consists of signals to the employee, and a plan of action. The positive effects of performance management Waal (2004) elaborates on some benefits of the introduction of performance management. The first one is that in addition to the operational and the financial objectives also the non-financial objectives can be targeted which have to do with civil servants and innovation. These non-financial objectives are important for public organizations. Secondly, performance management not only looks at the past (the achieved results) but also look at the future (the required results). This is in contrast with management based on traditional financial systems which record only the past. In this way, performance management plays a developmental role, not just an evaluative. The third benefit is that performance management helps to formulate exactly the policy objective to put this in critical success factors and performance indicators and often informs the managers of the results. Summarized according to Waal (2004) the advantages of performance management can be for the organization as well as for the individual. The advantages for the organization are: - The organization gets better results - The organization provide better service - The processes are executed much more efficient - There is a better relation between public organizations - Problems are easier to identify and to solve 13

14 - The organization is focused on getting results The advantages for the individual are: - Staff is regularly satisfied about the organization - The staff understands the objectives of the organization better. - Managers make better policy decisions. An advantage for both is a better relation between organization and employees; but also between organizational- and individual objectives. Organizations have objectives and one of the main challenges for human resource managers is coping with the challenges due to discrepancies between these organizational objectives and objectives of the individual. If these organizational objectives are not adequately translated to clear objectives for the employees, the challenge is much bigger. Conditions for successful application of performance management In order to have a starting point for the general characteristics of performance management, the six preconditions for effective performance management as described by Schiphorst (2001) are used. Firstly, there should be goals and values based on objectives, targets and vision of the organization. In his article on organizational effectiveness, Price (1972) refers to two different starting points with regard to goals and objectives. He claims that the traditional way to study organizational effectiveness is the goal approach. This means that the effectiveness of an organization is measured based on the level of achievement of the pre-defined goals. In this definition it is essential that the goals and indicators are clearly defined. Another approach is what he called the system resource approach. Proponents of this approach do not measure the effectiveness of an organization only by its achievement of goals, but in terms of the ability of the organization to exploit its environment in the acquisition of scare and valued resources. Further elaboration of these views is beyond the scope of this paper, but the paper makes it clear that there are many, different and even opposing views when it comes to measuring organizational effectiveness. In this paper I will use the characteristics of the goal approach in the sense that goals, mission, vision, targets must be defined. Secondly, the organization must have a structured competences management system. This means that the employees must have the right knowledge, skills and attitude to carry out 14

15 the activities that are required to achieve the goals. It is clear that life long learning principles must be applied in order to constantly align the current competences with the required ones. Thirdly, the organization must provide all the means necessary. It is also evident that if public servants have all the right knowledge, skills and attitude but lack the required means, the public organization will not be effective. Fourthly, to guarantee that everything is on course as planned there is need for a monitoring and evaluation system. This is called the performance review. This evaluation is beside the performance appraisal the foundation of the total system. The organization can make it understandable to the workers what is expected from him or her. Fifthly, to evaluate the performance of the employees there should be a suitable performance appraisal system. At least once a year a formal meeting must held between Head of Department and the employee. In the evaluation objective indicators are to be used. Based on the appraisal, the Head of Department can take decisions that have an effect on the place of the employee. A record of the meeting is put in writing, to be signed by the Head of the Department and the employee and a copy of this will go to the personnel file of the employee. Finally, to motivate the workers to perform to the expected levels and support the various activities, there should be a reward or incentive system. The successful operation of an organization depend on the effective delivery of rewards Schiphorst (2001) mentions five because he combined the means and the skills. But in order to have a more detailed list of characteristics, I have separated these two. Furthermore, I think that it is essential to include another requirement and that is the aspect of leadership. It is clear that the Head of Department plays a crucial role in this respect The role of the manager According to Waal (2004) the introduction and the use of performance management has a major impact on organizational and corporate culture. An important condition for successful application of performance management is another style of management. Of course, this element could also be included in the skills requirement but for the public sector in Suriname it has some additional characteristics. The American public administrator Denhardt refers to five different characteristics of a successful public manager. These are the value direction, customer kindness, shared 15

16 leadership, managing change/development and dedication to the public organization. The value direction that means that successful public managers try not to renew their organization by reforming but by paying attention to the culture and values in the public organization. A successful public manager strives for a customer focused organization and a constant quality care. Shared leadership means that helpfulness to the customer and the society is not possible without empowerment of staff. Successful public managers involve their employees and give them the feeling that working together is important. Managing change/refers to the inevitable change in every organization. Small changes in the right direction are in the long run the best for success. Successful public managers consider that working for the government is a calling, as something to be proud of. Waal formulated five preconditions regarding the competences of a modern public manager. The first one is another style of managing. Performance management is seen in the public sector as something that should be done in addition to the current, already overloaded agenda. In other words, it is not an integrated part of the manager s activities. However, performance management should be a change in managing style where the required results are known to those involved. The second one is effective leadership behavior. It is obvious that the managers give permanent attention to the objectives and organize feedback on the progress and the way the results are reached. The third one is the motivation of employees. The manager has to fight against the aversion against performance management. The factors such as a high alarming absence due to illness, lack of motivation, not working with deadlines, constantly stating new preconditions before a chore is done do not fit in the philosophy of performance management. The motivation of the employees strongly depends on good and effective interaction with the manager. The fourth precondition concerns the skills of employees. This precondition is connected to the precondition of leadership and motivation. The leader has an exemplary role and is important in situation of interactive policymaking. Working for the government depends on specific knowledge, insight and skills. Performance management within the government will not work if the top does not give the right example. The fifth and last precondition is the introduction of modern information flows. Modern management information systems are essential in order to steer the processes and to 16

17 evaluate the results. In practice it is an important precondition that the desired performance is measurable by performance indicators. How managers motivate their employees depends on many factors, most of them are situational. Still we can name two key elements. On the one hand the management must enthuse their employees; on the other hand they must consider sources of resistance and try to prevent such resistance. Referring to the literature, the third element of human resource management was according to Storey, the important role of the manager. Storey said that if human resources really are so critical for business success, then HRM must not left only to the personnel specialist but also to the line managers. The involvement as deliverers and drivers of the HR policies is also essential for the line managers. Another point of interest is the management of managers themselves. In the literature Storey highlights that one important element of HRM (compared to the previous notions of industrial relations and personnel management) is the fact that whereas under industrial relations anything having anything to do with people was left to the personnel department, i.e. specialists, in particular dealing with collectivities of employees. Read: trade unions. Under HRM, individual managers have to try and reach out to individual employees. No longer is this left to the personnel specialists, but now it is the task of the line manager, not only to manage production, but also to manage people. An important characteristic therefore of HRM is an increased role of the line manager. Performance management has a stimulating impact on everybody s involvement, because the individual manager and civil servant can work together to realize the objectives. The essential element is an open dialogue between manager and staff in which feedback given on the performance (Swindall, 2007). 17

18 In conclusion, I have identified seven basic characteristics for successful implementation of performance management within the public sector (table 1). Characteristic Remarks Clear objectives, targets and vision Based on the goal setting approach of organizational effectiveness Provision of skill To operate the system Provision of means Timely availability of all inputs for the job Performance review To ensure that everything is on course as planned Performance appraisal To make clear what is expected from the employees Reward/Incentives system To motivate the workers to perform to the expected levels and support the various activities Leadership To coach the employee to improve performance 18

19 3. The current situation at the Ministry of Home Affairs The purpose of the chapter is to provide insight in the structure, the objective, mission, vision, major challenges and relevant action plans of the GOS regarding the improvement of the performance. The first section provides some information on the size of the GOS workforce and general characteristics of the Ministry of Home Affairs. The second section elaborates on the major issues such as the quality of the services. The third section is a summary of the planned actions from the government. About 40% of the employed population is working for the Government (MOP, 2006) and a large part of the expenditures go to salaries (ABS 2005). According to the information derived from the database of the Ministry of Home Affairs, in January 2010 the number of public servants is The civil servants working at the Ministry of Home Affairs is 8 percent of the employed population working for the Government. The largest ministry is the Ministry of Education with employees; the smallest one is the Ministry of Planning with78 employees. Table 1. Civil Servants per Ministry Ministry Number of civil servants % of total Labour,Technology development and Environment Home Affairs Foreign Affairs Defense Finance Trade and Industry Justice and Police Agricultural Animal husbandry and Fishery Education and Civil development Natural resources Public Works Planning and Development Cooperation Regional Development Spacial Planning Regional Zoning Policy Social Affairs Transport Communication and Tourism Health TOTAL Source: the database of the Ministry of Home Affairs, in January

20 With regard to the public sector of Suriname, De Turck (2008) discusses four limitations. Firstly, the targets of departments are not well formulated and the staff is not aware of these targets. The objective can even be: to put everybody to work to keep away social instability, to build an electoral base; as long as the objective is adequately clear. The key in a democratic system lies in clearly stating useful, quantifiable, achievable objectives. If the Surinamese politicians would pay more awareness to clearer contact and monitoring of objectives for the Government of Surinam objectives which are received by the Surinamese populace it could have benefits for both politicians and Suriname people (De Turck 2008, 15). The second limitation of HRM in Suriname is that a great deal of the employed population is working for the Government and a large part of the expenditures go to salaries. There is no or insufficient alternative for employment in the private sector. Social employment has its raison d être. In the long-term this leads to insufficient appreciation for public officials and private entrepreneurs who do have a clear objective and who are doing a good job. In the long-term this leads to impoverishment of the Surinamese society and therefore also of its political actors. If the Surinamese politicians together with the captains of industry and the social and academic world really make work of a full employment alternative in the private sector and would take care of the necessary adjustment, than the pressure would diminish on people that have been, for social reasons, wrongly accommodated (De Turck 2008, 15). The third but also an important limitation is the unclear relation between the objective and the staff. The capacity of the staff of the personnel department is unsatisfactory, training is insufficient so the result is that the role the personnel department is an administrative role. However, these people keep the machine going; the staff should not only be identified, but should be scheduled in a correct and uniform manner. On top of this, if your staff is arbitrarily rewarded, promoted or dismissed or simply not cared for enough and the public official let this happen, than you create problems in a country where a large part of the labor population (8 to 10%) is a public servant. So accommodating people wrongly has a pernicious effect on government, public officials, and the population and for the politicians. 20

21 If the Surinamese politicians would give more attention to establishing clear objectives per ministry, to the development of a employment alternative and accommodating on the basis of clear organizational structures and staffing, including the current and future required human resources in such a way that the accommodated people have a clear objective and a clear position then politicians could create a positive effect, not only within the government, but also within their electorate and thus gain politically from better accommodation. Accommodation would then be based on clear regulation and is broadly accepted (De Turck, 2008, 16). The last limitation is the lack of political will to implement changes. For instance, reforming the public sector would require changes in the staffing. But if the positions are used or created to facilitate political proponents, it will be at least very difficult to make radical changes. Comparing these limitations of the public sector of Suriname, with the previous limitations, it became clear that the first and third limitations of Suriname are not related to the specific context. They have to do with goal setting, Mendonca (1996) and Ramaswamy (2000) consider this a practice that should always be in place. However, the second and fourth limitations in Suriname, are somewhat related to the political culture. In the sense that especially senior government positions are filled in by political party members and loyalists. The Ministry of Home Affairs has since its establishment always played the general role of facilitator of the public administration and the main issues are effectiveness, efficiency, transparency and democracy. 21

22 Organizational structure Minister of Home Affairs Pensionfund Suriname Auditing Secretary of the Minister NBG Cabinet of the Minister Secretaris of the Ministry CSFE Worship PSR Advising Automation Director General Affairs Director Home Affairs Director Environment Assistant Director. Legal Affairs and Rules Assistant Director Personnel policy Assistant Director General Management NBG: National Buro of Gender CSFE:Central Staff Organ Formation and Efficiency PSR: Public Sector Reform Mission and Vision The Ministry of Home Affairs takes the central servicing role within the government and the Surinamese society in the effective and efficient functioning of the public sector, with expert, motivated and customer oriented civil servants who in good harmony and working together with civil society try to realize the objectives of the ministry. The Ministry of Home Affairs wants to achieve this by developing, implementing and monitoring the Human Resource policy of the government in good collaboration with other ministries en institutions. The Human Resource policy should focus on optimal utilization of human resources and goal oriented functioning of the government. 22

23 According to the policy plan of the Ministry of Home Affairs for the policy period 2006 till 2010 the organization has the following challenges: To increase the efficiency by a more structured deliberate; Unequivocal personal policy through which the civil servants perceive better their opportunities of career development; To make division of tasks more univocal to increase the transparency; The structural tackling of the stagnation of the service to bring on time the resources such as chairs, desks, air-conditioning; Addressing these issues is not an easy job because the Ministry of Home Affairs has to deal with many challenges such as the defiance of implementing capacity. Also the lack of qualified executives plays an important role in the success and the speed of the realization of the activities. The revision of the salaries and the payment structure has financial implications. The complex characteristics of these problems require a high intensity of consensus of the implementing policy, not only within the public sector, but in civil society in general. (Policy plan ). Notwithstanding these very challenging issues, the Government of Suriname (GOS) is undertaking a process to reform and strengthen its public sector management. The Road Map for this process clearly defines a vision for the public sector namely that in 2015, Suriname has a public sector that is effective, efficient and highly motivated. Citizens are happy with the improved services. Civil servants have clear performance standards and are held responsible for their work. Civil servants are hired based on merit, managerial and technical skills, and paid appropriately for the work they perform. Every civil servant is focused on core tasks to contribute to Suriname s goals, Government ensures that donor-funded projects contribute to national goals and priorities, and they are managed well. (Page 7) This is a well formulated vision and it clearly refers to the central position of human resources. The main question remains to what extent the Government of Suriname is really in pursuit of this vision. In parallel to developing a Roadmap for Public Sector Reform, which provides a midto long-term comprehensive work plan for a progressive and coherent reform for the Government of Suriname, the Inter-American Development Bank has approved financing of the Public Sector Management Strengthening Program (PSMSP). The project is being executed through the Program Coordinating Unit (PCU) under the Ministry of Home Affairs 23

24 (MHA). The general objective of the PSMSP is to contribute to the improvement of the transparency, efficiency, effectiveness and accountability of the Public Sector in Suriname. The program will provide assistance to the Government for redefining legal regulations and for technically strengthening the institutions related to civil service, civil registry and procurement in order to enhance these public managerial systems. The new HRM strategy for the public sector is based on the balance between the rights of the civil servants on one side and the improvement of the quality and performances of the civil servants on the other side. Central points in this strategy are on one side the strategic upgrading of the personnel policy and on the other side the uniformity of this policy. This will take place without devaluating and minimizing the role of the other ministries and districts. This HRM strategy is realized with the participation of the relevant actors within the government, the labor unions and other organizations. 24

25 4. Application of Performance Management at the Ministry of Home Affairs 4.1. Introduction The purpose of this chapter is to determine to what extent the seven basic characteristics of successful implementation of performance management as mentioned in the literature review are in place at the Ministry of Home Affairs. The first section discusses the application of the seven characteristics and the second section contains a summary of the findings per characteristic The process of target setting Before we look at the basic characteristics of performance management we see in the interviews that the managers are not familiar with the concept of performance management. The first basic characteristic for successful implementation of performance management within the public sector is target setting. This section shows that the process of target setting at the Ministry of Home Affairs is not fully in accordance with the elements as defined in the literature review. These elements are: - Vision - Targets - Goals and values According to the literature the objective of all departments should be derived from the overall objective of the Ministry of Home Affairs. Further the vision and mission must be part of a performance management system. In the policy plan ( ) of the Ministry of Home Affairs we see that that the vision and mission of the departments are not clearly defined. The above mentioned plan is the only policy plan so the targets should be clearly defined for all stakeholders, especially the managers. After all they have to focus on their department objective and the objective of the Ministry of Home Affairs. Furthermore they have to motivate the employees to reach the overall objectives. In the evaluation report (2007 till the first part of 2008) of the MOP we see as general objective formulated for public sector reform in the MOP that the public sector has to be reorganized, reformed and 25

26 modernized to become a smooth, result focused and customer friendly sector. The absence of a planning in a period of time is a serious shortcoming.two different Heads of the departments said that the objective of their departments were formal formulated long ago and need to be adjusted. No targets have been put out to reach the targets of the department; there is no structural feedback within the Ministry to monitor the execution. In the Multi-Annual Development Plan and as shown in the activity tables (Annex 1), the Ministry of Home Affairs has a general objective. But not every department has its own objective derived from the general objective. This means that the ministries are mentioned, but there is no reference to a specific role or department. As mentioned in the literature review I apply the goal approach which means that the effectiveness of an organization is measured by the level by which the predefined goals are met. Based on this starting point, I have analyzed to what extend the goals of the Ministry of Home Affairs are clearly predefined. To determine this, I have summarized the goals of the Ministry and compared this to the goals in the policy plans. These results give an impression of the translations of the goals to clear actions for the Ministry and the departments. Secondly I have interview the department heads in order to determine if they are aware of the overall vision and targets and if their activities are related to the overall vision, mission and targets. I just want to stress here that the purpose of the analysis is not to evaluate the objectives but to determine whether the first required characteristics for performance management, namely the central role for clear targets, is present. The first finding is that there is no clear target setting. The MOP mentions some indicators but these are not used in the policy plans. Moreover, while the MOP covers a period of 10 years, there was only one policy plan ( ). The department heads do not have targets, financial means and human resources based on the targets. Annually, top management determines the budget for the departments. The department heads said that they are not involved in this process and there is no reference to the overall targets. So, we can conclude that also on the level of the department heads there is a clear lack of target setting based on the goal approach. This following table contains some of the targets as set in the MOP. The second column indicates which of the goals are clearly defined and integrated in the policy plans. The third column provides some feedback from the department heads that shows which targets are reached. 26