Hrm For Good Governance - Building Local Government Capacity For Effective Service Delivery

2 Human Resource Management for Good Governance Building local government capacity for effective service delivery S. M. Khatib Alam David Alan Watson Muhammad Shahid Alvi

March 2008

SelfActualization Esteem (self and others) Social Needs Safety and Security

Basic Physiological Needs

City District Government Faisalabad, Pakistan

This document is produced as part of the Strengthening Decentralised Local Government in Faisalabad (SDLGF) Project for the purpose of disseminating lessons learnt from the project. The views are not necessarily those of DFID or the City District Government Faisalabad (c) SDLGF March 2008 Parts of this case study may be reproduced for educational use, provided that such material is not printed and sold. The authors expect that, any material which is used will be acknowledged accordingly. Printed by: FaizBakht Printers, The Mall, Jhang (Punjab) Pakistan.

VISION “Pre-empting Poverty, Promoting Prosperity”

MISSION STATEMENT “We will provide high quality services which compare with the best in the country. We will work with everyone who wants a better future for our District. We will establish an efficient, effective and accountable District Local Government, which is committed to respecting and upholding women, men and children’s basic human rights, responsive towards people’s needs, committed to poverty reduction and capable of meeting the challenges of the 21st Century. Our actions will be driven by the concerns of local people”

ACKNOWLEDGMENTS This case study is the culmination of efforts by a number of individuals from government and the technical assistance team. Firstly it is important to thank all those who have cooperated with the team preparing this case study not only in the last few weeks but over the course of the last four years. They have been critical to the work and demonstrated what is possible to achieve in government when the right set of conditions prevail. We would also like to thank the communities, elected representatives and representatives of employee associations of the district that assisted the SPU team in implementing this project and its various components. The authors wish to thank Rana Zahid Tauseef, City District Nazim; Maj (Retd.) Azam Suleman Khan, District Coordination Officer; and Dr. Tariq Sardar, EDO Finance & Planning for their valuable contribution in making this project a huge success. We are also thankful to: Mr. Ch. Zahid Nazir, ex-District Nazim Faisalabad; Mr. Tahir Hussain, ex-DCO Faisalabad and Mr. Athar Hussain Khan Sial, ex-DCO Faisalabad for their valuable contribution to the success of this project. We are further thankful to all CDGF employees (past and present) and CDGF partner departments but we would like to specifically mention by name the following: Mr. Mumtaz Hussain Shah, EDO Education; Mr. Shabbir Ahmad Ch., EDO Community Development, Mr. Ashiq Hussain Dogar, EDO Information Technology; and Mr. Hassan Raza Saeed, District Officer, Human Resource Management for their efforts in successfully implementing reforms in their departments. We are thankful to all DFID Project Advisers and Management that have assisted in this project since its start and we would like to specifically thank Mr. Mosharraf Zaidi, Governance Advisor, DFID Pakistan and Mr. Wajahat Anwar, Deputy Program Manager, Accountability and Empowerment team, DFID Pakistan, for their continuous support and professional technical guidance since their involvement in 2005. We are thankful to Shahid Sharif, the International HRM consultant for all his guidance through out the 4 years, Mehreen Hosain for proof reading the document and all the SPU team members for their dedication, hard work and the many late hours spent designing, implementing and documenting the work of this project. These include: Mahmood Akhtar, Imran Yousafzai, Muhammad Tariq, Kashif Abbas, Ajaz Durrani, Farhan Yousaf, Asim Rashid, Faisal Najeeb, Muntazir Mehdi, Gul Hafeez Khokhar, Mirza Muhammad Ramzan, Muhammad Sharif, Sumara Khan, Humaira Khan, Saima Sharif, Mubarak Ali, Adnan Akram, Noor Muhammad Khan, Nuzhat Hanif, Syed Sheraz Akhtar, all the master trainers and training associates of the Institute of Learning, SPU IT Team, GIS team members, all long and short-term international and national consultants.

FOREWORD Years of under investment has left our departments and professionals short of the skills and tools needed to operate successfully in the 21st century. Since 2004, concerted effort has been made by all my staff and officers to reform and change. This has not been easy, however, I believe that this effort has transformed Faisalabad into one of the most progressive district governments in the country one that is now being hailed as a successful model. The City District Government has introduced Human Resource Management (HRM) as a central theme in its reforms. At the heart of this paradigm shift is development of a performance oriented workforce, operating within a new performance management culture. We have assigned proper roles and responsibilities to all district employees and also conducting the quarterly performance reviews of EDOs based on their job descriptions. HR as a functional area within government remains low profile it is our view that it is time to raise its profile and understand that it is potentially the most critical area in any organization if it wishes to achieve its goal and objectives. Keeping this in our mind the restructuring case of HRM department has been sent to the “Change Management Unit” Lahore for their approval. We are confident that they will approve it and the momentum of reform will continue. Similarly in order to make training a core element of the administrations business we have proposed to provincial government, the establishment of a high class training facility the Institute of Learning (IOL). I would like to take the opportunity to thank our City District Nazim for his valuable support to the reforms in our district. I would also like to congratulate my City District team members especially all the EDOs and DO HRM for working to achieve the success outlined in this case study. Finally, I would like to thank our major partners in development, the Department for International Development (DFID), UK, and their management consultants, GHK International Ltd., for assisting Faisalabad for the last four years. Maj. (Rtd.) Azam Suleman Khan District Co-ordination Officer City District Government Faisalabad March 2008

Clock Tower, Faisalabad

PREFACE In this case study we highlight the importance of Human Resource Management for Local Government. As a city government we have begun to invest in developing our human resource management systems realizing that there are considerable long term gains to be made. In part this is in response to re-inventing this government as more performance conscious and output oriented rather than simply focussing on inputs. Starting from a base where there was no strategic HR and it was just seen as for posting / transfer, now HR is playing pivotal role in achieving districts mission through best utilization of district's important asset its employees. The HRM dimensions of the Faisalabad local government reform process, have been remarkable for the speed of progress, and the extent to which basic HRM systems and tools have become functional and 'embedded' in the institutional fabric of city district government. One of the biggest areas of development has been establishing HR systems and process. Our Human Resource Management Information System, allows the departments to plan and project human resource needs, efficiently manage pension cases, and identify training and capacity building needs. Further, job descriptions have been developed for all categories of city government employees, clarifying functions and enabling improved performance management. This massive exercise was fully supported by all departments and relevant trade unions including the various number of Teachers Union. To gauge sense of pride and belonging within employees, we have conducted the first “Employee Motivation Survey”, targeting all its employees. Successful change and reform hinges on strengthening our internal capacity. Realizing this, we have embarked on a series of policy development initiatives related to improving human resource development. This case study shares our experiences and learning on HR engagement. We hope that it will help other districts to understand the importance of HR and its role in service delivery. We have a duty of care to provide information about our work and endeavours to our public. We remain committed to our efforts to improve local governance, provide quality services and fighting poverty. Dr. Tariq Sardar Additional Project Director Strengthening Decentralised Local Government in Faisalabad March 2008

Office of the District Co-ordination Officer, Faisalabad

Table of Contents

TABLE OF CONTENTS ACKNOWLEDGMENTS FOREWORD PREFACE ACRONYMS EXECUTIVE SUMMARY

1

BACKGROUND

3

The Context for HRM in Local Government in Pakistan The Situation faced by Faisalabad District in 2004

3 4 6

THE CASE Overview: Origins of the HRM strategy, and its inter-relationship with other development strategies of Faisalabad District Government Main elements, and rationale for the chronology of, the HRM strategic and operational plan (SOP) IMPLEMENTATION HRM Systems developed and the use to which they were put ACHIEVEMENTS What has changed since 2004? Achievements and benefits arising to date from implementation of the HRM SOP LESSONS AND REFLECTIONS Challenges faced in pursuing HRM and how (or if) they were surmounted Key aspects of 'unfinished business'; principal threats to future HRM progress and how momentum will be sustained Lessons from the HRM Experience: Success factors and Pre-requisites of pursuing HRM in Pakistan Local Government Benefits Cost and Limitations The practical implications for local governments of pursuing HRM reform in Pakistan Replication in other Local Governments to date The Role of Technical Co-operation and the Donor in supporting the HRM function in local government

6 7 8 8 14

14 17

17 18 19 21 22 23 23 24

CONCLUSIONS

25

BIBLIOGRAPHY

38

Table of Contents FIGURES Figure 1: Figure 2:

Education retirement projection Age profile of district government employees

8 9

HR core issues and strategic aims Costs & benefits analysis Training activities Drivers of change

27 28 30 32

ANNEX Annex 1: Annex 2: Annex 3: Annex 4:

Acronyms

ACRONYMS ACR ADB AEO AKU BHU CDGF CIDA CIPD CMIPHC CSRU DFID DO DCO DSP DTCE DDO EDO FMIS F&P GIS GoP HRM HRMIS IIA IOL IT NCHD NGO NRB P&D PC1 PER PFC PIFRA PIM PLGO PMU PRMP PRSP RoB SDLGF SDPI SDP SNE SOP SPU TA UC

Annual Confidential Report Asian Development Bank Assistant Education Officer Aga Khan University Basic Health Unit City District Government Faisalabad Canadian International Development Agency Chartered Institute of Personnel and Development Chief Minister's Initiative on Primary Health Care Civil Service Reform Unit Department for International Development District Officer District Co-ordination Officer Devolution Support Programme Devolution Trust for Community Empowerment Drawing and Disbursing Officer Executive District Officer Financial Management Information System Finance and Planning Geographical Information System Government of Pakistan Human Resources Management Human Resources Management Information System Institute of Internal Auditors Institute of Learning Information Technology National Commission for Human development Non Governmental Organisation National Reconstruction Bureau Planning and Development (Department) Planning Commission Proforma for Project Proposals Performance Evaluation Report Provincial Finance Commission Project for Improvement in Financial Reporting and Auditing Pakistan Institute of Management Punjab Local Government Ordinance Project Management Unit Punjab Resource Management Programme Punjab Rural Support Programme Rules of Business Strengthening Decentralized Local Government in Faisalabad Sustainable Development Policy Institute Strategic Development Plan Statement of New Expenditure Strategic Operational Plan Strategic Policy Unit Technical Assistance Union Council

Executive Summary

EXECUTIVE SUMMARY The Human Resource Management (HRM) aspects of the evolution of the CDGF's reform programme is central to good governance in Faisalabad. Development of the human resources of the Faisalabad local government were seen from the outset as a crucial condition of the programme. The Local Government Ordinance 2001 which established the legal environment for the devolution of powers and resources which have framed the City Government's development over the past five years, was however silent on the implications of the devolved role-changes in terms of the needs for analytical or resource management skills and professional competences at District and sub-District levels, nor did it propose how these and other human resource management (HRM) implications of these changes should be tackled. These lacunae were partly explained by the narrow conception of HRM at all levels of the civil service at the time. In common with other components of the CDGF reform programme embarked upon in 2004, a situation assessment in HRM aspects was conducted. It revealed a context very typical of local governments at the time, and one which is unfortunately reflected in many Districts currently. The Strategy and Policy Unit was established in 2002 as a 'Think Tank' to address the shortcomings in both the PLGO, and the governance context of the District government of the time. With consultant support facilitated by the UK's Department of International Development, it helped frame the Corporate Plan, and Departmental Strategic Operational Plans, including the HRM aspects of the reforms. A small HRM team was formed; a Human Resource Management Information System (HRMIS) was painstakingly developed over the next few years, and has become the centrepiece of the HRM function. Other major undertakings included job analysis for all 610 designations; subsequent consultative preparation of job descriptions and related training needs analyses; introduction of quarterly performance appraisal for EDOs (involving presentations to the Nazim DCO and peers on progress against targets and identification of bottlenecks); a survey of citizen's perceptions of CDGF services was conducted in all Unions; another major survey (Employee Motivation Survey) recorded staff opinion on how they were managed and motivated. An ambitious and diverse training programme was undertaken. DDOs, top management development and IT orientation were the three most urgent foci. While a modest Institute of Learning was established (primarily for in-service support to school teachers and head-teachers), an innovative approach was used to develop ‘Master Trainers': Departments officers who have undertaken one or more training programmes, who have not only applied themselves well to the substantive training offered, but who also expressed interest in helping train colleagues. HRM functions now fully and efficiently feasible thanks to the systematic HRM capacity building include on-line access to up to date HRMIS statistics; its application on human resource planning (formerly very difficult especially for large, geographically-dispersed cadres with numerous specialities such as teachers); identifying vacancy-rates and major capacity gaps, retirement schedules and seniority rankings (and thereby prompting timely recruitment, succession-planning and retirement benefit payment scheduling). The HRMIS facilitates processing of transfers and promotions, and has also identified cases where there are more incumbents than posts (in Revenue Department), thereby illustrating the consequences of politically-pressured employment of Revenue Clerks for reasons of local (constituency) patronage. When combined with Financial Management Information System data, the HRMIS has revolutionised and much-simplified payroll and annual budget preparation.

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Executive Summary Recently a pilot project has been introduced in two Unions and fifty Secondary schools whereby attendance is monitored through biometric (finger-print) data entry. After initial teething-troubles (technical and in terms of staff attitudes and scepticism), this is an encouraging innovation, which in turn is raising important issues connected with the use (and abuse) of the various types of official leaves from duty to which employees are entitled. It also underlines the importance of accurate recording of leave taken and due, and has revealed incidence of poorly kept leave records in the past. The principal changes since 2004 include longer planning horizons: better-trained staff backed up with Geographical and Municipal Service information systems have been able to formulate a Sustainable Long-Term Development Plan for the City District. This offers the prospect of attracting additional investment: a total of Rs 16 billion has been committed or promised as a result. Policies, management practices, and behaviours are now evidencebased; thousands of staff and elected representatives have been trained in practical skills for the first time. Hundreds of staff are 'IT-literate' and are thus empowered to access and use information systems. This in turn has promoted communication and co-operation between departments that before the reforms tended to work independently. Departmental functions are managed by EDOs who meet regularly. They are mutually and upwardly accountable for their Departmental performance, and who, thanks to the publication of findings of a recent Citizen's Perceptions Survey, are informed of the opinions of service users on perceived deficiencies and shortfalls in their Departments' service delivery. There has been a major change in the way the CDGF relates to the Provincial government, at the Punjab Development Forum and in a one-day Reform Seminar in June (attended not just by key Provincial Secretaries and Chair P&D, but by many Punjab Nazims and DCOs). Some things have not changed. Political pressures to employ, transfer, promote or dismiss employees continue. But the impact of unnecessary recruitment becomes apparent through HRMIS and FMIS data. The CDGF continues to be dependent on the provincial government for overall personnel policy, control of its most senior staff, for the eventual resolution of the long-awaited District Cadre issue, and approval of major proposed changes and new developments. Further development of accountability institutions (of Monitoring Committees, of elected representatives themselves, of the internal audit capacity of the Council, and of the recently-established Call Centre) is an important priority for Phase II of the reforms. The lessons include: first, that little could have been achieved without the sustained commitment and leadership of the Nazims and DCOs, nor without the remarkable support throughout from the Provincial government; the experience shows that for it to be effective, technical assistance teams must be 'on-site' and 'embedded' with colleagues day to day. Investment in information systems, IT systems, and HRM must come early in any reform process and be sustained throughout…and if full confidence in systems' sustainability, for somewhat longer than CDGF have had so far! For its part, the donor in this case has been constructively engaged, but without undue micro-management or interference, throughout. There is now a sense of common purpose in the organisation; there is much good news to be disseminated; Departments are managed, and are pulling together, not working independently. Despite these advantages, the effects are slow to percolate to the service delivery 'front line'.

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Background

BACKGROUND The Strategic Policy Unit (SPU) was set up by the Faisalabad district government in 2002, as a policy think-tank. Its key aim was to act as a conduit in the district from which all development programmes could be initiated. In 2004, the United Kingdom's Department for International Development (DFID) agreed to provide technical assistance to the district using the SPU as the platform from which change would be driven. The SPU over a four year period has acted as a key resource fostering social capital within the city government and often being the focal point for local and international technical assistance and programme development. With a cohort of key technical resources and change management agenda it plays a key role in facilitating public sector reforms and is replicable. It has been instrumental in assisting Faisalabad become a modern administration.

The Context for HRM in Local Government in Pakistan The Punjab Local Government Ordinance 2001 provided for devolution of planning, budgeting, and overall resource management functions for most major services to District governments, together with non-lapsable, rules-based financial transfers to fund such services. District managers of service delivery were to be accountable to locally-elected politicians. These changes were accompanied by new administrative arrangements with consequences and implications for the way in which human resources of local governments were to be managed henceforth (including the staff of Tehsil Municipal Administrations and Union Councils). These changes included the creation of a new post: a District Co-ordination Officer (DCO) accountable to an indirectly elected District Nazim (Mayor). The DCO position replaced the Deputy Commissioner who (as well as possessing magisterial powers) was formerly accountable to an un-elected Provincial Secretariat for the operations of District offices which were essentially 'outposts' of the Provincial government. The DCO has administrative authority over Executive District Officers, who head principal Departments of the District Government executive. Full administrative control over Departmental establishments (appointments, transfer and promotion) was to be vested in the local governments up to specified grades. It also introduced a range of bodies to enhance political- and user-scrutiny of the services delivered by the newly-empowered District executive, together with new entities Citizen Community Boards to galvanise popular participation in bottom-up planning and development project implementation. The PLGO was however silent on the implications of the devolved role-changes in terms of the needs for analytical or resource management skills and professional competences at District and sub-District levels, nor did it propose how these and other human resource management (HRM) implications of these changes should be tackled, other than its brief treatment of 'managing transition'. This section (amongst other provisions) prescribed a bar on recruitment, at least until the following year. Its treatment of 'training' referred only to training of Nazims, Deputies and Council members in courses to be prescribed by the Provincial government. Although the new local governments were permitted by the LGO to establish HRM offices, they had almost no experience or capacities in HRM issues, since Provincial governments

3

Background Box 1: District HRM Functions (Prescribed under Punjab RoB 2001) Ÿ Improvement in general efficiency and economic execution of Government business of the District government Advice regarding proper utilisation of stationery and printing resources of the Government with the District Government Ÿ Training in Organisation and Method Ÿ Suggestion Scheme Ÿ Preparation of Manuals Ÿ Career Pattern of District government employees Ÿ Simplification of forms and procedures within the District Ÿ Departmental examination in respect of District government employees Ÿ In-service/pre-service training of ministerial employees of District government Source: Punjab Government Rules of Business 2001 SOV (LG) 59/2001

had hitherto played a dominant role in appointment, transfer, and promotion issues, and the postings of staff (other than the most junior) at District and sub-District levels. Even at Provincial level, the broader notion of 'human resource management' was ill-understood, and not backed up with the information systems, managerial culture, nor analytical and coordination routines needed to permit HRM to be practiced. A clue to how 'HRM' was conceived at the time at Provincial level is the amalgam of loosely-related functions contained in the formal definition of the scope of HRM functions in the Punjab Rules of Business (see Box 1). Box 2: The Comments of DCO Faisalabad on Devolution ‘The devolution decision was made abruptly and top-down. There were initially no Standard Operating Procedures. Nazims and DCOs made suggestions through Provincial governments to the NRB. While there are political linkages between the various assemblies of elected members from District government down, clear administrative working relationships are still missing.’

The situation faced by Faisalabad District Government in 2004 Each of the Strategic Operational Plans (SOPs) drawn up by Faisalabad District Government assessed the situation encountered by its Departments in the second half of 2004. These analyses formed one element of the SOPs. The HRM analysis revealed that the overwhelming majority (virtually 90%) of its nearly 35,000 staff worked in education and health departments. None of the service sector Departments had any HRM offices: the only entity with HRM responsibilities was the newly-created post of District Officer HRM and an embryonic HRM Department. Personnel records were contained in individual files held in separate Departments, making difficult any attempts at corporate HRM analysis or planning. Faisalabad District government could not add or delete posts, nor appoint officers on its own authority: only the provincial government held that power. The District could not re-direct non-development budget resources saved from deleted posts, hence had no incentive to economise on staffing. For posts outside the purview of the Punjab Public Service Commission (i.e. below grade 16) it could however transfer existing staff, and fill existing posts. Both appointments and transfers were politicised activities, with councillors regarding them as important mechanisms for currying favour with constituents (despite injunctions against this type of involvement in the PLGO). After devolution in 2001, staff from three principal cadres (federal, provincial and previous local rural District governments) working at District level had been assigned to local government service. However, in practice, members of the first two cadres 'still looked to the

4

Background province' (not to the District) in terms of career development, promotion, postings and transfers. A circular subsequent to the LGO from the Provincial government issued in mid2004 asked Districts for proposals for establishing a District Cadre for local government departmental employees. This was welcomed by the District Government, because since 2001, authority over officers serving at District level had been fragmented: this confused their loyalties, and undermined morale. Accordingly the CDGF put forward two options in response to the circular: one involving transfer to Districts of existing employees and all aspects of HR authority over them (which would then became their employer). The second option (its preference) entailed different treatment for staff graded up to Grade 16 (who would be transferred to District service), and a phased, transitional transfer arrangement for more senior staff, based on an assessment of requirements. There have been no subsequent substantive developments of the District cadre notion since then, despite several meetings between the CDGF with representatives of NRB and CSRU. Operational ambiguities therefore remain in terms of the future authority of Districts to set pay and benefit levels for staff assigned to them; management of the Benevolent Fund for staff in grades 1-16; management of gratuities and pension rights, and group insurance issues, and whether Districts would be bound to apply any periodic recruitment bans imposed by Provincial government, or whether they would continue to be able to recruit contract employees in such circumstances. Any training received by District staff was on an ad-hoc bases at the behest of the provincial government, with no needs analysis preceding it, nor any dialogue between training providers and respective line departments. Only DMG staff (a federal cadre) attended prescribed training courses. For most others, training was only loosely related to jobs performed by trainees, and was therefore seen as largely irrelevant. Performance Evaluation Reports (formerly Annual Confidential Reports) were to be completed by line managers on their subordinates. In practice, this process was often initiated by subordinates only when seeking transfer or promotion, and was thus an irregular event, with little bearing on the nature of the job, incumbents' actual performance or the future development or training needs of the officers concerned. Indeed, job descriptions did not exist. Only the main responsibilities and functions of certain posts were summarised in general terms in the PLGO (those of the Nazim, the DCO, and EDOs). Pay scales for various grades of staff are set nationally, and federal rules governed movements between grades. No award or incentive schemes were in operation in Faisalabad, although one for teachers was proposed in the 2004 budget. No formal mechanisms for collective representation or bargaining between management and public sector Employee Associations existed, despite their strength amongst teachers and clerical grades. No consultation took place between management and Employee Associations on service delivery issues and possible improvements1. No suggestions schemes were in operation. Basic complaints-handling mechanisms existed within departments which responded to complaints forwarded through the Complaints Cell established in the Nazim's office (as prescribed by a Governor's circular). The notion of teamwork was alien to day-to-day operations in the District. Only two meetings of the (monthly) Nazim / EDO meetings had actually taken place in the three years since the LGO came into effect. Otherwise, meetings were arranged by issue, in an ad hoc fashion, and run in a top-down manner, not conducive to dialogue or sharing of ideas. 1

No Trades Unions are permitted to operate in the public sector.

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The Case

THE CASE Overview: Origins of the HRM strategy, and its inter-relationship with other development strategies of Faisalabad District Government Assessments - taking stock of the problems (and potential) emerging from the District's first experiences in making devolution work - were to form the basis of an over-arching Corporate Plan, and related sectoral Departmental Strategic Operational Plans (SOPs). Design The Corporate Plan was the framework which guided departmental Strategic Operational Plans (SOPs). The Corporate Plan laid out the Mission, and Core Values of the District Government. The first value 'setting high standards' gives a flavour of the challenge Faisalabad faced: the breadth of the vision which guided future HRM development was in stark contrast with previous notions of HRM in the Punjab public service. 'We will achieve (the Mission2) by comparing, competing, monitoring, evaluating and reporting on achievement, valuing and developing our workers and involving stakeholders in planning and decisionmaking.' Guiding Principles were enunciated, backed up by Change Activities to be undertaken. Virtually all the 12 principles were to be delivered via changes involving HRM dimensions from pro-poor and pro-women policies recruitment and budgeting, to clearer criteria for transfers and postings; from arrangements for whistle-blowing to improved internal communication and information systems; from citizens' surveys in respect of service delivery, to protocols, codes of conduct, and more objective performance appraisal machinery for staff. The HRM SOP was based on recommendations from the Situation Analysis of 2004. It was explicitly related to driving the corporate change-management agenda being pursued, as well as establishing the HRM function itself in an environment where none yet existed. Recommendations included the establishment of a small HRM team under the DCO (to comprise an EDO, a DO, DDO and Administrative Assistant). Other main recommendations included the establishment of a Human Resource Management Information System (HRMIS) including training needs analysis mechanisms; staff development and training (including job analyses and skill audits linked to the strategic objectives of the District); performance management (including a reassessment of current practices and identification of managerial skill-gaps, and definition of job descriptions and personnel specifications); a pilot scheme for rewards and recognition; improved employee relations through an assessment of current consultation arrangements, and improvements in communication including links with the communication strategy for the SDLGF project. The essence of the change-management agenda was change in 'the very culture of the way the District operates'. This vision was based on a realisation that there were far-reaching (but hitherto unarticulated) implications of devolution of resource-management and service delivery tasks to local 2

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The Mission Statement of CDGF forged through painstaking discussion between SPU and the departments over a period of 6 months - is 'We will provide high quality services which compare with the best in the country. We will work with everyone who wants a better future for our District. We will establish an efficient, effective and accountable District Local Government, which is committed to respecting and upholding women, men, and children's basic human rights, responsive towards people's needs, committed to poverty reduction, and capable of meeting the challenges of the 21st century. Our actions will be driven by the concerns of local people.’

The Case Box 3: Key Aimed-for Characteristics of the District Workforce Skilled flexible and well-trained Customer-focused and responsive Competitive with the best Productive and efficient Committed motivated and willing to learn Valued for its contribution Representative of the community it serves Accepting of the need for continuous improvement and open to change Committed to the District's values and ethical standards Source: HRM Department SOP December 2004

governments, especially when combined with the needs for greater responsiveness to public demands, enhanced public accountability, participation, and corporate integrity.

Main elements, and rationale for the chronology of, the HRM strategic and operational plan (SOP) The HRM SOP was linked to the overarching Corporate Plan 'in order to serve the District's business needs'. Its aim was to produce a workforce with key characteristics (see Box 2) supportive of the District's mission, and confirmed that implementation of the HRM SOP would in practice much depend on the 'philosophy, values and commitment of top management'. The elements of the SOP were expressed as Core Issues, each with a Strategic Aim, and backed up with several actions or outputs, which would lead to the achievement of the corresponding aim. These are paraphrased in Appendix 1, along with their planned sequencing. Urgent attention was to be given to establishing a HRMIS which was seen as the key to all subsequent attempts at planning and rationalising staff recruitment, placement/distribution, transfer, payroll, training and development (based upon skill-sets needed and prevailing shortfalls), welfare and retirement management. The highest priority training was in re-orienting top management, IT skills, and in the field of planning and budgeting. Motivated human resources were seen as a vital prerequisite for the new corporate culture. Rationalisation of financial resource allocation depended on major reorientation of key staff - in all sectors - to the principles of strategic planning and budgeting. These concepts had been as alien as 'human resource management' was to the Punjab civil service hitherto.

Consultation Meeting with Stakeholders

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Implementation

IMPLEMENTATION HRM systems developed and the use to which they were put. The principal HRM systems and tools which have been developed, supportive of better human resources management, are as follows, together with a commentary on how they have been utilised. Human Resource Management Information System The 'centrepiece' of the array of tools developed over the past three years is undoubtedly the HRMIS. It was built up during the first year into a system of 20,000 individual records in an accessible database of the workforce of CDGF. It now covers over 32,000 staff, and provides EDOs and DOs with on-line access to it. It records personal details, current grade and post details; employment record with government and the District government; academic and professional qualifications; work experience; training history; attendance, leave and discipline record and dates of performance reviews. The primary use of the HRMIS has been in human resource planning by linking current and future needs for human resources with probable future demand patterns. It has permitted specific investigations over the past three years into numbers employed, by organisational unit, and their skills 'inventory'. This is proving extremely valuable in the Education Department, given the complexities of managing a diverse teaching force, where geographical distribution, gender, grade, seniority and subject specialism factors are all important variables. The implications of predicted patterns and timing of retirements can be assessed with the HRMIS. The retirement reports and charts the HRMIS is producing are helping the City District Government to plan and assess; l l l

More accurately future staffing needs and deployment Financial implication (In form of gratuity and pension payment) Impact on service delivery (both for internal and external customers)

Figure 1:

Education retirement projection

30,000

27,860 Sanctioned strength

27,000

0

35 5

2,0 77

Cumulative retirement

7,6 97

7,0 34

5,3 22

4,6 14

3,9 22

1,6 49

3,000

98 4 1,2 93

6,000

2,6 11 3,2 38

9,000

5,8 95 6,4 78

12,000

Projected strength after retirement

18 ,20 6 17 ,63 3 17 ,05 0 16 ,49 4 15 ,83 1

15,000

21 ,45 1 20 ,91 7 20 ,29 0 19 ,60 6 18 ,91 4

18,000

68 3

Spatial Distribution of Vacant Posts Across the District

21,000

23 ,17 3 22 ,84 5 22 ,54 4 22 ,23 5 21 ,87 9

No. of Employees

24,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year As of December 2007

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Implementation This has also enabled better administration of retirement benefits: avoiding many of the payment delays, which used to be common. Within the teaching force, the HRMIS graphically illustrated the growing shortfall of teachers in post given the Provincial government recruitment freeze: this was lifted only in late 2006 by which time there were over 5,000 vacancies in the education department. On the other hand, it has also identified cases where there are more incumbents than posts (in Revenue Department), thereby illustrating the consequences of politically-pressured employment of Revenue Clerks for reasons of local (constituency) patronage. The District government is facing a critical challenge: managing an aging (and declining) skilled workforce. It will encounter a wave of retirements over the next decade. The younger workforce is developing a different set of work values and expectations than previous generation. The main issues necessary to address are changing mindsets about new concepts in work force management, retaining, energizing and rejuvenating knowledge for innovation and organizational learning, changing physical work environments, new ways of managing human resource, and new techniques to measure performance of an aging workforce. To manage the aging workforce, management must have an accurate understanding of its current and shifting composition of workforce and HRMIS is a key source of all such investigations. Figure 2:

Age profile of district government employees 37%

31% 22% 7% Under 20

Box 4:

Between 21 - 30

Between 31 - 40

3% Between 41 - 50

Between 51 - 60

Managing an Ageing Workforce

The Challenge Ahead Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

How big and serious are the challenges of an aging workforce and why are the challenges critical right now? Can the challenges be managed? How, what and where are the solutions? How will service delivery be affected? What interventions are possible? What should district government be doing? How to increase both productivity and creativity of the aging workforce What are the financial implication in terms of gratuity, pension etc.

Managerial Objectives Ÿ Ÿ Ÿ Ÿ Ÿ

What overall performance of an Aging Workforce should be measured? Understanding the nature of knowledge threats due to the aging workforce and how to retain critical knowledge? The importance of appropriate work environment and physical tools for an Aging Workforce A new managerial mindset concerning the Aging Workforce to be embedded in the organization How will talent, skills and innovation be managed in an aging workforce?

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Implementation More recently the implications of Provincial government policies, (for example the decision to move all Graduate English Teachers from primary schools to elementary and high schools) and the supply of candidates for employment have been investigated. It has identified gaps between approved establishment and the actual functional strength in certain categories of post or departments. It has also been helpful in identifying where (by location) DDOs are unavailable. Their absence has created major administrative and payment delays, with corresponding negative impact on service delivery. For example, in the first half of 2007, 118 high and higher secondary schools (mainly outside Faisalabad city) were without DDOs according to analysis of the HRMIS. Use of HRMIS in Day to Day Business

Biometric Attendance System

Previously, processing of requests for transfers and postings took a large amount of time. Now the HRMIS facilitates decision-making on such matters because it enables managers to see the implications of such decisions on 'origin' and 'destination' Departments or facilities. This application has had the greatest impact in the education department, which accounts for the bulk of the Faisalabad workforce. Various reports could be generated within couple of minutes like District establishment details which used to take at least a week and most importantly by involving all Drawing and Disbursing Officers (DDOs). For only this report it is estimated that district is able to save at least 500 man-days on quarterly basis. The spatial distribution (across) of vacant posts gives a very good quick snap shot to the management to identify the most adverse areas. Seniority listings are essential for assessing suitability of staff for promotion: these too are readily generated by the HRMIS. Similarly, the annual routine of budget preparation, previously extremely time-consuming, has been simplified by the existence and application of the HRMIS. The 2007/8 non-development budget preparation process was the first to have HRMIS and the Financial Management Information System (FMIS) inter-connected via employee personnel numbers. This has also saved much effort in compiling the budget. It also illustrated that there were staff who existed in the HRMIS but not in the FMIS, (or had a grade above their sanctioned grade) and set in train an exercise to reconcile personnel data in the two databases, this is revealing 'ghost' employees, enabling CDGF to regularise its personnel records, and payroll systems. Recently a pilot project has been introduced in two Unions and fifty Secondary schools whereby attendance is monitored through biometric (finger-print) data entry. After initial teething-troubles (technical and in terms of staff attitudes and scepticism), this is an encouraging innovation, which in turn is raising important issues connected with the use (and abuse) of the various types of official leaves from duty to which employees are entitled. It also underlines the importance of accurate recording of leave taken and due, and has revealed incidence of poorly kept leave records in the past. The HRMIS has also cast light on the extent to which the District is following policies and legislation on equal opportunities through clarification of numbers, grades, and distribution of disabled and other minority groups in the workforce. It also brings to light through analysis of their office location, the physical obstacles certain groups face in entering or moving through buildings, or accessing key facilities (including toilets). Resource Centres

DO HRM visiting HR Resource Centre established at EDO Education Office

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A major challenge to system efficiency and accuracy is that of regular data updating, which in the past caused major problems for the largest departments (education in particular). After

Implementation dialogue on the nature of these problems and possible solutions, a network of Resource Centres have been established serving the three main employing Departments (Education, Health and Municipal Services). The department have placed their own staff in these resource centres which are responsible for updating employee information The advantage of this system is that responsibilities for reporting changes, and entering them into the HRMIS, are clearly and unambiguously defined.

JOB DESCRIPTION EDUCATION DEPARTMENT

Job Descriptions and related Person Specifications have been developed as complementary HR tools. These were developed after a process of Job Analysis for EDOs over a period of six months within the first year of HRM strategy implementation. They incorporate (up to 20) generic responsibilities (common for all similar posts) and key specific responsibilities which were further defined in terms of Key Service Activity, corresponding Responsibility, and priority Tasks. Person Specifications described minimum-required and preferable educational attainments (qualifications); personal characteristics, special aptitudes, interests, disposition, circumstances and physical make-up of the incumbent. By the second half of 2006, Job Descriptions for all 610 designations in CDGF had been drawn up, agreed and translated into Urdu.

JOB DESCRIPTION

Job Descriptions and Person Specifications

HUMAN RESOURCE MANAGEMENT

(October 2007)

Job Description workshops for main job types a form of collective Job Analysis - proved very useful in revealing major (but unavoidable) distractions from core duties affecting some staff (for example attendance at ceremonies, electoral duties), and in boosting morale and teamwork. The uses to which these key documents have been put include recruitment and selection of new staff; objective performance appraisal (see below) and as a basis for employment contracts. They have been vital in the process of identifying training needs and making training plans for key categories of staff. They are also a means of communicating the District's expectations, priorities and values to all members of staff. More broadly, as more posts have Job Descriptions, it will enable Corporate and HR planners to understand how each job 'fits' into the overall structure and purpose of the District government (and in particular, whether there is un-necessary duplication of tasks taking place), and the traits that are required for these jobs to be performed by incumbents. Performance Appraisal Performance appraisal has been another major HRM tool applied in CDGF. Its application started in 2005 with the most senior managers EDOs. This coincided with training of the EDOs and DOs in leadership, which helped EDOs respond to the new challenge of having their performance appraised every three months. The use of performance appraisal has been a crucial element of the overall strategy of developing a culture of performanceorientation throughout the CDGF administration, but in the absence of significant flexibility over the material rewards that can be offered to staff to encourage them to perform. As part of the approach, every three months, EDOs are expected to give a presentation to the DCO and Nazim on the performance of their Departments to the DCO and other EDOs against their Job Descriptions. This includes a review of progress and achievements against target for the quarter, reforms introduced, additional work performed, and targets for the next quarter. One of the benefits of this process is that it encourages EDOs to communicate with and consult their respective DOs regularly.

EDO Health Giving Quarterly Performance Review Presentation

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Implementation Training Activities Training has been a fundamental plank in HR strategy throughout the period of SOP implementation. Please refer to Annex 3 for a summary of the training activities which have taken place, within CDGF, and using international study tours. Priority has been given to top management training (including time management and communication skills) for EDOs and DOs. IT skills have been introduced across the organisation, in order to facilitate and expedite the extent to which information systems including the HRMIS and the Financial Information System can be utilised, updated, and inter-related to become a routine modality of carrying out managerial administrative and accounting functions. A major early training priority was Budget and Planning skills for DDOs and account clerks in order that they could participate in the strategic planning and related budgeting exercises in which the CDGF was embroiled from late 2004 onwards, and which formed the 'philosophical' core of its approach to development of a performance-oriented, efficient and effective District government, responsive and accountable to those it serves. Over 960 DDOs and their account clerks were trained within the first full year of SOP implementation. Recently, emphasis has been given to preparation of materials for induction training of new recruits.

A View of Education Management Training

One major innovation has been the use of participative trainee-centred approaches to training, which has evoked favourable comments from ex-trainees. Efforts are being made to move beyond participants' 'reaction-sheets' as a means of monitoring and evaluating training, towards use of surprise visits (to monitor actual attendance at courses: penalties are imposed to late-comers by trainers), and post-training presentations by trainees. Recently, efforts have been made to reach out through training programmes to approximately 3,500 directly-elected Union Councillors and to the Nazims who are indirectly-elected members of the District Council. Brief courses in gender-based budgeting have been provided to over 3,000 councillors so far to help guide their selection of development schemes. Strategy for Developing Capacity for Training It was agreed that, as well as establishing an 'Institute of Learning' (initially for in-service teacher development, thereafter a facility for the development of all staff) a cadre of 'Master Trainers' would be developed. This feature of Faisalabad's strategy for developing its capacities to train its staff is imaginative, and appears to have effectively complemented other efforts at building the relationship of the SPU to Departments, and indeed to the mutual understanding of roles and inter-relationship of Departments themselves within the reform programme.

Government Official Giving Training to his fellow Officers

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Master Trainers' are Departmental officers who have undertaken one or more training programmes, who have not only applied themselves well to the substantive training offered, but who also expressed interest in helping train colleagues. They were subsequently selected by the SPU (in consultation with their 'home' Department) and given supplementary coaching in training techniques. They have been used as trainers on courses organised by SPU for their own departmental colleagues. They act as 'champions' of the reform programme within their home Departments, and are the principal contacts of the SPU within the Departments of the CDGF, and help with Job or Training Needs Analysis, and facilitate the introduction and application of new management systems (e.g. the HRMIS) within them. Given the numbers of employees in CDGF, the role of Master Trainers is crucial. They do not receive any additional honorarium for their duties, but have been awarded certificates of recognition by the DCO, together with a nominal cash award and group photograph.

Implementation The Institute of Learning (IoL) has been a major initiative (described more fully elsewhere in the Education Case Study). It has been hitherto education sector oriented (i.e. it has been focused on in-service training of teachers) and has permitted the implementation of the Whole School Development approach another innovation which Faisalabad has successfully pioneered. However, a PC1 / SNE has been prepared to establish the IoL in a new building, on a permanent footing, with both education and management & technical wings. This has been approved by the Provincial government; plans have been drawn up and approved for the new building, and the CDGF has committed funds for construction, and the next year's operational budget. Once fully operational, the IoL will be responsible for planning, designing and mounting training programmes for CDGF staff in both these major professional fields. Employee Motivation Survey The Employee Motivation Survey: mounted in three phases in mid-2005, and reported on inPerformance Reports as results became known over the period since, is one element in the dialogue between management and employees in the quest for enhancing motivation, in the absence of financial incentives. A series of meetings have taken place between management and staff on the results, which - management frankly admitted revealed significant feelings of alienation on the part of significant numbers of staff, and dissatisfaction with conditions of service. These meetings have gone some way to addressing some of the issues raised, and will provide material for discussion in future management training programmes.

Employee Motivation Survey

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Achievements

ACHIEVEMENTS What has changed since 2004? Achievements to date from implementation of the HRM SOP 'We are gradually moving towards a strategy-focused public administration. There is a concerted effort to move away from routine ad hoc implementation of activities to understanding how best to use our limited resources targeting key development priorities' More strategic, focused planning: longer planning horizons ‘For the first time, we are seeing where the gaps in services really are.' A Departmental official

The reform agenda now informed with more accessible data - is getting ever more focused and ambitious, and the corporate planning horizons longer. Scenario planning has entered the parlance of financial management. The combination of data from HRMIS and the GIS (and its depiction on maps) reveals under-staffed education and health facilities and gaps in service provision. These can be correlated with other indicators (e.g. literacy rates). Future infrastructure and other investment patterns are being adjusted to target these areas for immediate attention. Organisational re-structuring is being proposed in some key Departments to improve efficiency (already improved through the application of time-saving and accuracy-enhancing information systems). Better-trained officers backed up with Geographic information system have been able to formulate a Strategic Development Plan (SDP) for the City District. For the first time this offers the prospect of attracting additional investment resources for strategic economic infrastructure in a coherent, inter-related, logical, time-phased fashion. The (then) Chief Minister of Punjab, and the President of Pakistan were impressed by the SDP on their visits to Faisalabad that they committed provincial and federal government funding to finance its early stages. As a direct result, Rs 11 billion of infrastructure investment has been approved by Provincial authorities, and another Rs 5 billion is 'in the pipeline' from Federal sources. Changes in 'Ways of Doing Business': Leadership

Student Teacher Contact Days 82%

2% Casual leave Absent

12% 4% Long leave Actual contact days

‘We can see where the under-spends are happening, and why. We could not see that before' A Departmental official

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There is considerable evidence that the CDGF has indeed 'changed the way it does business' (compared to the Corporate and Departmental situations revealed in 2004) and has moved rapidly towards not just adopting, but embodying and illustrating compliance with, the principles enunciated in its Corporate Plan. The concept of 'leadership' having overarching significance in the Plan has been amply demonstrated, not just from the top, but within and throughout Departmental management structures. For example: Policies, management practices, and behaviours are now evidence-based: FMIS and HRMIS and recently a Geographical Information System (GIS) are not only 'up and running' but are themselves inter-related in operation. Hundreds of staff are 'IT-literate' and are thus empowered to access and use these information systems. This in turn has promoted communication and co-operation between departments that before the reforms tended to work independently. This inter-communication has been supported recently with the opening up of emailing possibilities between key officers, and the reinforcement of the network of Master Trainers. Departmental functions are managed by EDOs - officers who meet regularly; who are trained in leadership and other modern management practices, several of whom have had some international comparative exposure to municipal management and service delivery; who are

Achievements mutually and upwardly accountable for their Departmental performance, and who, thanks to the publication of findings of a recent Citizens' Perception Survey, are informed of the opinions of service users on perceived deficiencies and shortfalls in their Departments' service delivery. 'A culture of group meetings with citizens on service delivery aspects of the has been part of the reforms programme'. In the same vein, more partnerships are emerging between CDGF and NGOs in service delivery and consultations about standards and access. The latter have been instrumental in ensuring that women participate equally in such consultations. Staff are being trained in subjects and materials directly related to job functions and or new systems, and using methods which are practical and skills-oriented; steps are taken to assess the contribution of such training not just on individuals but the organisation itself. There are indications they are empowered by the experience: e.g. now DOs - including a female DO from F&B - make presentations to colleagues on aspects of systems development and operation. In the case of DDO training, attempts have been made at coordinating with, and integrating different capacity building interventions that are being rolled out by the Devolution Trust for Community Empowerment (DTCE), National Commission for Human Development (NCHD), the Devolution Support Programme (DSP) and Project for Improvement in Financial Reporting and auditing (PIFRA) in order to prevent duplication and confusion.

IT training for DDOs is a continuous feature

'For the first time, training was not a holiday: it was actually related to my job.’ A Departmental official

There is active consideration of equality of opportunity aspects of HRM, fed by better data on the location, grading, and discussion of career development options facing minority groups. Present Situation of HR Department There is a functioning HRM Department, under Grade 18 DO level leadership. It is now responsible for co-ordinating all Departments' training programmes. Staff resources need to be bolstered in view of its workload: a SNE has been submitted to the Change Management Unit of the Provincial Government for restructuring and reinforcement of the Department. CDGF / Provincial Relationships There has been a major change in the way the CDGF relates to the Provincial government. It has at its disposal for the first time evidence to illustrate the impact on service delivery of Provincial HR policies (for example the recruitment freeze), or the precise magnitude of its needs for supplementary finance. CDGF has built up management and information systems, and accumulated experience in their usage, which are unique in Pakistan's public sector, let alone local government. It has taken steps to communicate these coherently to the Provincial government (and other local governments, at the President's behest). For example, Faisalabad made presentations at the Punjab Development Forum in April 2007, and to the then Chief Secretary, and high level teams from the Provincial P&D, Finance, Education, IT departments in a series of visits. A one-day Reform Seminar was held in June 2007, which senior Provincial officers, and Nazims, DCOs and heads of Planning Departments from all Punjab Districts attended. There are indications that these products and insights into their utility from Faisalabad have fuelled the efforts of other reform initiatives at Provincial level, and have aided the ongoing externally-supported public sector management reformfacilitation efforts such as Punjab Resource Management Programme (PRMP).

'We are talking about “Confidence Building Measures” here. All Districts need a SPU. We are trying to empower our staff with better information, to give them more confidence in their own judgements.’ The DCO Faisalabad

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Achievements Typical Enmities Avoided A welcome improvement from all-too-typical tensions and rancour in local government administration since 2001 is that the discourse between incumbent Nazims and DCOs during the period of the HR reforms appears to have been remarkably collegial, mutually respectful and supportive. This relationship appears to have been aided by it being based on a mutual understanding of roles; a clear, written Council-endorsed Corporate Plan and respective SOPs; regular reporting based on firm information of what has been rapid progress; proven demonstrable benefits to CDGF and its constituents of the reforms, and growing confidence in each others' ability to steer and support the reforms. This unusually harmonious relationship between key players in the new structure of post-PLGO local government has survived the change of incumbents twice (of each position) since the reforms were started in 2004. Resistance to Pressures for Transfers There has been a remarkably low turnover of senior officials in CDGF. The strong reputation of the authority in terms of reforms, has meant the Nazim and DCO could argue for retention of key officials in post, despite pressures from the provincial government for their transfer out of Faisalabad. There is also some anecdotal evidence that the reputation and credibility of the CDGF's key officials have been enhanced and recognised in provincial government circles as a result of reform achievements.

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Lessons and Reflections

LESSONS AND REFLECTIONS Challenges faced in pursuing HRM and how (or if) they were surmounted Political Interference and Pressures It appears that political pressures on the management of the CDGF have led at times to recruitment of (essentially unnecessary) junior staff, and the posting of others. This is the 'norm' in local government in Pakistan. The managers of the authority are as vulnerable to these pressures as they are elsewhere. CDGF differs from other authorities in that the existence and consequences of these pressures become more apparent, because there is quantitative evidence available from the various information systems, which have been put in place. Thus there is the prospect that, over time, the evidence of the true costs of illconsidered political expediency will eventually convince politicians of the short-sightedness of their actions, and such pressures will subside.

'This is the beginning of the end of political games and distortions. For the first time we and they - have no place to hide. The costs of unnecessary appointments are clear for all to see.' 'The facts cannot be denied. At last there is some proof.' Senior Human Resources specialist, and another Senior CDGF Officials

Continued dependence of the CDGF on Provincial Government Many of the most serious and intractable challenges confronting CDGF over the past three years have related to policies, actions (or inaction) and procedures or regulations mandated in or by higher levels of government. In particular the following: District Cadre There was no offer of Provincial support to the preparation of the District operational chart and schedules for moving to a District cadre (as requested by CDGF when the original announcement was made). The slow pace of progress with the establishment of a District Cadre (primarily being driven by NRB but Punjab Provincial government is the key player in the short term) has already been noted above. The Staff Motivation Survey concluded 'After 4 years of implementation of the PLGO, over 40% of employees think that the Province is their employer'. Financial Provisions and Instalments Financial subsidy/grant provision (through the PFC) has been inadequate, and paid in small equal instalments (and therefore inefficient to administer and disburse). This problem has been addressed by the PFC, which has agreed to provide funds in three instalments in future. It has also been mitigated by the impressive increase in revenue accruing to the CDGF in part due to financial management reforms. Provincial Approvals Despite CDGF proposing an EDO post for HRM department in 2005, no endorsement was ever received. Although protracted dialogue has taken place between CDGF and the Provincial government, CDGF still needs to gain Provincial government approval of key elements of its reforms programme i.e. the strengthened HR Department, and the Institute of Learning.

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Lessons and Reflections Over-stretched HRM Department There has been persistent shortage of staff and other resources in the HRM department, which has been faced with the task not only of spearheading HR-related reforms and systems development (particularly the HRMIS) and its reconciliation with other major systems (FMIS and GIS), but also with the launching, development and operation of the training function (since January 2007, it has been responsible for all training programmes and their monitoring in CDGF). Attracting and retaining adequate IT staff to develop and service what is a burgeoning IT system network is proving a major challenge. ‘Women councillors rarely speak up. That explains why so little ever gets approved for schemes benefiting women.’ District Councilor

Perpetuation of Attitudinal Obstacles towards Women's Advancement There is persistence of an attitudinal / cultural 'glass ceiling' confronting the professional advancement of women employees. CDGF has attempted to arrange in-service training nearer the homes of female staff who have family responsibilities. Attitudinal Obstacles towards HR activities There is persistence of an attitudinal resistance towards whole HR initiatives including; Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ

Ÿ Ÿ

Resistance to change: - There are some employees who srongly believe that the existing system is working perfectly and they don't need HRMIS, job description, trainings etc. Strong scepticism towards the whole HR reform initiatives being undertaken by the CDGF. Employee perception towards the application of different initiative like in the case of job description, they believe government will use job description against them. Departmental politics lead to extra efforts and time to get ownership. Busy schedule:- Busy schedule of top management lead extra efforts and time for consultation and getting ownership. No clear understanding with their existing roles and responsibility. More interested to include easy functions to their job description while leaving difficult one for some one else. No understanding with the concept of devolving authority, employee feel by devolving some functions to junior staff will actually reduce their power. Resistance to use words which they feel will make them more accountable

Key aspects of 'unfinished business'; principal threats to future HRM progress and how momentum will be sustained Human Resource Development for Accountability Institutions 'We only saw the budget for the first time on day 2 of the three-day budget meeting; how are we expected to master and comment meaningfully on all that detail?' 'The system with its Call Letters and so on, is all pretty unfamiliar to us'. CDGF District Councillors.

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The Citizens' Perceptions survey pointed to a major piece of unfinished business: the urgent need for more human resource development and mobilisation of all accountability institutions, and of service users, in how to complain and follow-up complaints. Most Monitoring Committees have still not been set up; elected members appear to need more guidance in the role of Councillors, and in how to interpret and analyse CDGF official information (including proposed budgets). Observations have been made in Performance Reports about the dearth of human resource capacities in internal audit. Consultations with officials and councillors during the preparation of this case study indicated a general ambiguity in terms of responsibility for initiating training of elected representatives, and

Lessons and Reflections apparent doubts about its priority at the level of the Province. Despite the efforts made by the SPU, including the opening of a Call Centre (to handle public enquiries and complaints about service delivery), much more needs to be done to improve working relationships between officers and elected members, and them and their constituents.

'There is a bureaucratic stranglehold on Council business. Elected members are nowhere.’ A CDGF Official

Box 5: Auditor’s Roll in Present Setup ‘The way they act now, auditors are part of the problem: not the solution. Their performance is measured by the number of objections / queries they raise. They should be aware of the training we are doing to make compliance with financial regulations better. But they are not.' Several senior members of one Department, during an informal discussion with the authors.

Gender-Based Approaches Another major element of unfinished business is the need for more work on promotion and adoption of gender-based approaches in CDGF operations including employment, planning, budgeting, career development and flexible working practices. Support has recently been obtained from the ADB's District Support Programme to support development of a Gender Strategy encompassing all departments. Over 3,000 Union Councillors have had orientation in planning and budgeting: over 400 in gender-based approaches. Strengthening SPU Functions It is crucial that the innovative strategic roles played by SPU continue to serve Departments in future. A PC1 / SNE for Phase II of the reforms programme, and the future strengthening of the SPU has been submitted to the Provincial government for approval. It would permit contract staff hired for data input and processing for HRMIS, FMIS, and the GIS to be retained, and for selective national consultant services to be used as required.

'Information is only a tool. Its usefulness depends on councillors and managers being able and willing to use it.' A Senior CDGF Official

Lessons from the HRM Experience: Pre-requisites and Success Factors in pursuing HRM in Pakistan Local Government On reflection, the following lessons regarding factors and conditions which influenced the outcome of the last four years experience in Faisalabad can be distilled. The extent to which they can be replicated or adapted in other local government reform environments will be a key consideration in the ultimate feasibility of further take-up of the challenges of reform in Pakistan local government. Top Level Commitment and Leadership It is a commonplace observation, but nonetheless true, that unless there is high-level commitment to a devolution capacity development venture such as the reform programme of Faisalabad, it is unlikely to proceed very far. Two successive pairs of Nazims and DCOs have unfailingly supported the reforms and the technical assistance team's collaboration with counterparts in CDGF. Periodically, the political climate proved difficult as (for example) budget constraints, as well as the identified incomplete projects, necessitated a temporary freeze on new projects. Since these are the Councillors' primary means of currying favour with constituents, firm leadership of the Nazim is crucial at such times. This was forthcoming, providing 'space' and time for corrective measures (and better revenue performance) to permit a return to stability and the sound promotion of more strategic developments. The Nazim(s) and DCO(s) have collaborated closely throughout the reform experience, and indeed they led personally the presentations to the Punjab Development Forum and the Reforms Seminar in mid June.

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Lessons and Reflections Box 6: The Comments of DCO Faisalabad on Information Systems 'The Information Systems, and indeed so many of the other major reform components (job descriptions for example), exist, are known-about by everyone here, in the Provincial government, and in many of the other Districts. They cannot be ignored or destroyed by future Nazims or DCOs who would prefer to over-turn what we have done, and return to the way things were.'

Provincial Government Support / Interest By the same token, unless the Provincial government in question favours local government capacity development and reform, it is unlikely that reform activities in one local government will thrive, nor will experience be valued, permissive adjustments made in Provincial regulatory environment, nor shared easily with other local authorities. In this case, the Chief Minister and key officials at Provincial level (such as Secretaries Local Government, P&D, and Finance) have been supportive: they have observed how the Faisalabad experience has become an invaluable 'laboratory' for reform and experimentation, providing invaluable experience for possible replication not only in other Districts and municipalities but selectively at Provincial level too. 'Embedded' TA Another pre-requisite would appear to be a dedicated on-site technical assistance team, 'embedded' with counterparts, facilitating the introduction of reforms and innovative practices. A flexible scheduling of volume and type of TA inputs is important (rather than being driven by precise time-bound targets or outputs). A combination of international consultants (bringing credibility and comparative experience to bear, helping shape the overall direction of reforms initially) and national consultants is required. The TA model where consultants were part of the SPU team (as opposed to being in a separate PMU) proved highly successful in this case. The SPU is positioned within the DCO's office: sending appropriate 'signals' as to its strategic role and importance. 'This is the first time we can substantiate a claim that “we cannot afford it” to Councillors proposing ambitious new schemes. Access to objective information helps mutual open-ness.'

Information Systems The experience in this case indicates that a key priority indeed a prerequisite to successful capacity development - is the use of information technology to permit the establishment of simple, easily compiled, accessed, up-datable information systems: human resources and financial management information systems being the most critical for supporting further developments.

A Senior CDGF Official

HRM Investment sooner rather than later 'It became clear to us that the HRM function is very dispersed in practice: DDOs have important HRM responsibilities. Therefore it was important to get them to understand their full responsibilities, and the importance of looking after the people that depend on them.' A CDGF Consultant

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Another, related, lesson is that investment in human resource development should be 'frontloaded': i.e. disproportionate effort is required early in the reform process to tackle human resource re-orientation, core skill-development, and 'inventorisation' (simply finding out where the human resources are, or are not, available). The importance of rigorous surveys (for example of staff motivation and citizens' perceptions of the Council's services) should also be noted. In this case they provided solid evidence, which helped 'change mindsets', and fuelled productive debate between officials and councillors (and between CDGF and the Provincial government), and underlined the needs for and indicated priorities of, management and other skills development.

Lessons and Reflections Time Finally, although it has already been repeatedly stressed in dialogue on the Faisalabad experience, it is probably worthwhile noting the importance of allowing enough time for new systems and 'ways of doing business' to 'bed-down' and become routine. Part of the rationale for the Phase II reforms programme (subject to Provincial government approval of PC1s and SNEs) is to permit this process to continue.

Benefits The specific benefits (and financial costs) of HRM investment are summarised in Annex 3. This section mentions some generic benefits (and then costs) of the reforms in general, and HRM developments within it. A Sense of Common Purpose For the first time since the PLGO came into force, there is a shared sense of clarity of purpose and direction amongst staff and elected councillors, as to what they are trying to achieve (the Mission Statement is a common point of reference in documents, courses and key gatherings). According to the staff motivation survey, over 80% of senior (Grade 1) level staff agreed they knew how their job impacts the mission. A Clear Positive Message to Disseminate The Mission Statement in turn provides a clear 'story' which can be communicated with citizens and service users via the press and other means (Faisalabad's communication strategy is the subject of a separate case study). If the message can be disseminated successfully, the public image of local government may improve accordingly. Departments Learn to 'Pull Together’ The 'disaggregation' of the Corporate Plan into sectoral strategic objectives and operational plans, provided a focus for future managerial effort and encouraged collaboration with other related departments and systems. The quarterly collective appraisals of EDO (and Departmental) performance 'concentrated minds', encouraged two-way communication between EDOs and DOs, and provided regular briefings on all major developments between departments. From Administrators to Managers Fully 'owned' strategic corporate and sectoral objectives, derived after assessments of reality, and dialogue on the way forward, access to information, clear definitions of managerial jobs, provision of management training, and regular but constructive and interactive performance appraisal routines, enabled and empowered senior staff to behave like managers, not just indifferent, detached, administrators. The latter is, unfortunately, the usual image of the officials in the Pakistan public service. Work Environment Improved In an environment in which performance cannot be linked to remuneration, i.e. there is no means of rewarding extraordinary effort or achievements, the only recourse available to the Council, if it wishes to retain newly-trained more capable staff, is to provide a human resource

EDO Education recognizing DEO W-EE for her good work

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Lessons and Reflections management environment conducive to sustained effort. Evidence from the recent survey of staff motivation factors confirmed that, 60% of Grade 1 staff felt adequately (verbally) recognized for their efforts, and nearly 70% of staff overall felt that working conditions were conducive to high productivity.

Costs and Limitations On the other hand, the Faisalabad experience pointed to some of the 'downside' costs, limitations and risks emerging from such a far-reaching intensive reform process. Lags between Reform and Service Delivery Results One major limitation of the reform experience so far and potentially a threat to the whole reform agenda being pursued by CDGF is that the effects of essentially internal, resource management-process-related changes in the way the CDGF operates, percolate only slowly through to impact on service delivery 'on the ground'. On the other hand, it is too soon to expect meaningful results in terms of grass-roots service delivery. However, in the shortterm, improvements in the administrative and resource management machinery of CDGF are beginning to provide evidence (and the financial reforms the budgetary 'space') on which better service management decisions can be taken, and more investment made, in future. Box 7: Author’s Note Two primary schools and one large secondary school were visited during the preparation of this case study. In the case of the primary schools (one with over 100 pupils, the other with over 200 pupils) there were no useable buildings in the smaller one (which however is a 'Lighthouse' school as part of the Whole School Development programme), and only two small classrooms in the other (both not being used because of the cold windows were broken). There was no furniture in the first, and only a small amount in the second school. In the first case, two classrooms were being constructed with support of the 90% grant provided under the WSD programme. Teachers' materials (including kits) were however available in both cases.’

By the time of the citizens' perception survey in 2006 - i.e. after nearly two years of intensive, far-reaching, courageous reforms, fully owned by its political leadership and staff - citizens' views of Council services published in June 2007 were almost uniformly negative. Paradoxically, the only area attracting some satisfaction (rural health) was the very subsector of service delivery, which had been 'privatised' since 2004. BHU management has been outsourced to Punjab Rural Support Programme (PRSP), and is therefore out of the hands of local government here in common with 11 other Districts in the Punjab under the Chief Minister's Initiative on Primary Health Care (CMIPHC) scheme. There are indications that the CDGF is taking these results seriously, and they will serve to galvanise future activity, and improve the prospects for further partnerships in service delivery. Reaching the Field: those who interface with the public and users Any HRM reform efforts have to 'start at the top'. In a hierarchical bureaucratic cultural environment such as that in Pakistan's public service, any efforts at making services better 'on the ground' at facility level necessitate systematic reform higher up the delivery system in order to be sustainable. That implies that the 'lags' observed above will be inevitable. However, there are clear implications (already taken on board by Faisalabad's management) in terms of renewed efforts to improve service quality at the point of delivery, to rid the education and health services of their unfavourable image (at least compared to private sector or NGO providers). This is a key agenda in phase II of the reforms.

22

Lessons and Reflections

The practical implications for local governments of pursuing HRM reform in Pakistan A core team from any local authority contemplating HRM and other reform along the lines pursued in Faisalabad should study the materials which will be available by the end of the SDLGF project. They together with several senior elected representatives - should thereafter visit Faisalabad for face-to-face briefings on lessons learned and the possible implications of moving ahead in a similar vein. Any 'exposes' of reform proposals and/or to the experience of Faisalabad, should include representatives of the elected membership of Council bodies. This is because they could act as barriers or at least brakes on reforms, if unconvinced of their likely benefits (compared to the costs in terms of lost or diminished opportunities for patronage). The role of the Nazim is critical in regard to communication between the executive of the Council and the council members. Efforts have been made throughout to provide materials in Urdu to councillors (summaries of all performance reports, copies of Union Profiles, and dialogues on the SDP were provided to, and discussed with councillors). The tabular summary at Annex 4, of the 'drivers' of, and obstacles to, change in local government, presents a sobering picture of the challenges to local government reform, particularly in HRM, posed by the current governance environment in Pakistan. Strategies employed, or which could be employed, to surmount the formidable problems, are also noted.

Replication in other local governments to date There is growing evidence of replication of aspects of the Faisalabad experience elsewhere: Ÿ

Ÿ

Ÿ Ÿ Ÿ

DTCE collaborated with CDGF (HR Department) in training programmes for elected representatives, and has adopted some of the Planning and Budgeting training manuals. Senior officials of the Provincial government (Secretary Local Government, Secretary P&D) have already advocated replication of the CDGF reform approach in other Districts. The Change Management Unit will mount a workshop in February in Faisalabad bringing 11 Districts where reforms are scheduled - together to discuss taking forward HRM issues as part of their planned local government reform efforts. The Urban Unit, and the second phase of the CIDA devolution support programme in two Punjab Districts are actively applying aspects of the CDGF experience. The Karachi megacities programme is interested in replication of aspects of the HRM systems applied in CDGF for the municipality's 100,000 employees. A Punjab SPU is being considered to be set up to work in partnership with other Punjab Districts who wish to undertake a reforms programme on a cost sharing basis.

All senior personnel interviewed as part of this case preparation were optimistic that Provincial approval would be forthcoming for the proposed additional resources to permit IoL and HR Department restructuring, and SPU reforms to be carried forward into phase II. The role of technical co-operation (external consulting services) and donors in supporting the establishment of a HRM function in local government

23

Lessons and Reflections

The role of technical co-operation (external consulting services) and donors in supporting the establishment of a HRM function in local government Technical Assistance The SPU houses the interface between TA personnel and all engaged Departments. It also processes dialogue between the Council and any external support agency, and makes arrangements for in-bound visits by such agencies, as well as out-bound visits by CDGF officials overseas. The case provides some important insights into technical assistance provision especially where the HRM dimensions of reform are a key priority. The core team is made up of international consultants and locally-hired nationals, all based in Faisalabad. The latter are provided with technical back-up and professional development training by the headquarters office of the parent consulting firm. All IT devices and software tools for the HRMIS and other major systems were developed by local firms, and therefore have readilyaccessed back-up available. Departments of the Council have counterpart specialists working alongside TA personnel in the SPU. The SPU team has regular team meetings to exchange information and jointly plan initiatives. Ÿ

The DCO (in whose office building the SPU is housed) is Project Director; EDO Finance and Planning is the Additional Project Director. All key documents and correspondence of the Unit go out from SPU under the signature of the DCO or respective EDOs. All the outputs of the Unit are issued in the name of EDOs.

The Role of the Donor in local government HRM Support in the Faisalabad case The donor to SDLGF, DFID, has made the following contributions during its engagement with Faisalabad District government: Ÿ

Ÿ

Ÿ

Ÿ

The donor sought, and obtained, the approval of the Faisalabad District government to the appointment of the consultant team for the devolution reform project before appointing them. It demonstrated flexibility in the interpretation of the MoU with Faisalabad, when requests for additional objectives or elements of the programme were made by CDGF. The donor's regular monitoring and review processes were led by the Islamabad office of DFID, and by the same national officials: hence there was a degree of familiarity on their part with the antecedents and nature of the Faisalabad intervention. Donor review mission reports were compiled in a transparent, consultative, evidence-based manner, and concluded on the basis of consensus between Faisalabad (CDGF and consultants) and DFID stakeholders.

Box 8: Comments by an Official of CDGF on donor’s role. ‘Donors should realise that support to local government cannot be just financial assistance; technical assistance is needed too. The key to the effective management of our relationship with the donor in this case was our knowing what we wanted to do, and presenting a coherent case. We were proposing to go beyond the Memorandum of Understanding. The GIS and Call centre were not planned within the project. The donor people knew this. However, they backed us.’

24

Conclusions

CONCLUSIONS The HRM dimensions of the Faisalabad local government reform process, have been remarkable for the speed of progress, and the extent to which basic HRM systems and tools have become functional and 'embedded' in the institutional fabric of city government in a major population centre in Pakistan. Achievements have been all the more impressive, in view of the limited familiarity of anyone (at any level of government) with HRM principles and practice, before HRM became an integral dimension of the CDGF reform agenda in 2004. These achievements have gone a considerable way towards meeting CDGF's adopted key characteristics: i.e. making CDGF more strategic, efficient, effective, responsive, accountable and transparent. It has also allowed at least some of the objectives of devolution outlined in the major GoP/donor study on the subject to be met: holding its staff more accountable; increasing its ability to allocate staff where they are most needed and managing its financial resources better. Ultimately once liberated from Provincial regulatory straightjackets, it should be able to attract and retain skilled staff. In parallel to establishing and operationalising the HRMIS (and linking it largely successfully to the budgeting process); conducting job analysis, formulating job descriptions; operationalizing performance appraisal routines; initiating systematic training for key groups and promoting equal opportunities, the CDGF has conducted a diagnostic survey of employee motivation, and surveyed citizens in all its Unions to solicit their views on its services. These surveys have produced important 'baseline' evidence, which has already been fed into human resource management aspects of management training and performance appraisal criteria and routines, and into decision-taking on future departmental development budgets. The donor-supported TA advice and inputs have been available on-site, and well-aligned with Faisalabad preferences and priorities. They have been delivered, and reviewed by the donor consultatively, in a manner conducive to HRM capacity development. The HRM policy environment (external to Faisalabad District) has not changed as rapidly, nor as favourably. Lines of authority, particularly for senior staff, are still confused. Their appointment, promotion and transfer remain at the whim of the Provincial government. Little progress has been made in establishing a District Cadre (a career service for officers exclusively in local government service), despite a federal government target of late 2005 for its creation. Conditions of service are set nationally, at levels which are highly restrictive and de-motivating, especially to staff who have made as in this case - worthy additional efforts in making difficult reforms work, and who have been newly provided with skills which may well soon find a ready market outside government. The working environment created by the SPU and the reforms it spearheaded, is witness the comments above cited from those involved - more motivating and conducive to individual effort than anything which existed before devolution. There is now evidence-based and directed effort in pursuit of objectives which have been mutually-agreed between elected members (led by the Nazim) and officers; resource allocation is more closely aligned with these objectives; inter-Departmental communication is encouraged by regular performance reviews of departmental EDOs supported by their DOs; work is demonstrably more professionally satisfying. In short, there are now incentives to effort, where once there were none.

25

Conclusions CDGF must now build on further strengthening the HRM department and at the very least should focus on the following two components over the next 3 years: the first is a manual on formal written policies and procedures. If correctly implemented and publicised, well designed policies and procedures should help everyone within CDGF to understand the: “the organisation rules”; and the way in which the organisation operates.The second is to work with the Provincial Government on developing a toolkit for Talent Management and Succession Planning. Talent Management is the process by which districts can identify, manage and develop its people currently and for the future. Whereas, Succession Planning has, by contrast, a bias towards satisfying the district requirements- it is concerned with :identifying posts that are critical to success and deciding how best to satisfy future requirements; developing strategies to determine the optimum mix of internal and external recruitment. There appears to be enormous scope for more GoP and donor resources, and related TA, to be devoted to District-level institutional capacity development in the current devolved environment: which poses not only operational challenges, but huge opportunities for better service delivery, based upon local needs and priorities.

26

Annex

ANNEX 1:

HR Core Issues and Strategic Aims

Core Issues, Strategic Aims, Examples of Actions, and Priorities in the HRM Department SOP Core Issues Organisational Development

Strategic Aim

Example Actions

Priority / Phasing

A 'one organisation' culture embracing changes needed to deliver continuous performance & services improvement

Communication, training and example-setting to reinforce the new culture and style of working Performance appraisal/ management systems

Continuous

Workforce Information and Planning

Mechanisms to collect and analyse workforce information to monitor performance in relation to objectives, and to the corporate plan.

Establish a HRMIS Analysis to produce key indicators: workforce & skills audits; turnover & retention rates; gender balance; training.

Top priority: 1st year

Pay and benefits Management and Conditions of Service

Facilitate a flexible approach to delivery of services, through motivating the workforce.

Job evaluation 4th year Review of pay and grading Develop incentive & reward schemes

Recruitment / Resourcing

Ensuring District can recruit retain and motivate workforce reflecting local community

Revise and monitor recruitment and selection policy and practice Creating employment opportunities

3rd year

Training and Development Develop workforce skills knowledge and motivation to provide best value services

IT skills development Annual training needs assessment Induction programme Monitor contribution of training to business

Urgent and continuous 1st year = Top management + DDOs planning and budgeting; IT skills 2nd year = Councillors

Employee Relations and Communication

Stable and constructive climate for employee relations

Communications strategy Regular team meetings Partnership with Trade Unions

3rd year

Employee Health and Welfare

Working environment Ban smoking conducive to effective and Recording accidents healthy job performance Monitoring sickness

2nd/3rd year

Final year

27

Annex

ANNEX 2:

Costs and Benefits Analysis

The Costs and Benefits of Human Resources Management Investment in CDGF

Activities

Resources (Rs.)

Beneficiaries

1. Training and Development

28

ii. Elected Representative Training

7.3 Million

Nazims Naib Nazims Councillors

iii. Teachers Training

10.0 Million

Primary School Head Teachers Primary Teachers Assistant Education Officers School Council Members

iv. Exposure Visits

4.3 Million

Executive District Officers District Officers Deputy District Officers Principal/Headmaster Assistant Education Officers School Teachers

v. Establishment of IT Training Centre

0.8 Million

Drawing and Disbursing Officers Account clerks

vi. Training Needs Analysis

1.5 Million

Executive District Officers District Officers Deputy District Officers Drawing and Disbursing Officers

2. Attendance System

4 Million

District Government People of Faisalabad

3. Job description and person specification

0.5 Million

District Government District's employees

4. Employee motivation Survey

0.4 Million

District Government District's employees

Annex

Impact

Ÿ

Ÿ

Ÿ Ÿ Ÿ Ÿ

Capacity building of 3,063 elected representatives (Nazims, Naib Nazims and male & female councillors) on “Participatory Planning” enabling them to prepare union council plan in consultation with all the stakeholders particularly women and poor 413 district council members trained on gender responsive budgeting , budget & planning and governance & poverty Creation of Child Friendly Environment in schools. Development of 16 training modules and teachers' handbooks 470 Primary School Head teachers, 890 teachers and 300 school council members have been intensively trained. Introduction of a culture to involve local community, UC members and UC Nazims in local school decision making.

Ÿ

It helped management to learn good practices which they are applying in CDGF through the; i. Restructuring of district's HR department ii. Establishment of Institute of Learning (IOL) and IT Training centre to cater for continuous professional development of all district employees. iii. Establishment of Call Centre to ensure quality of services iv. Establishment of GIS Cell. v. Development of district's reward management strategy vi. Development of district's training policy etc.

Ÿ

Created favourable environment for IT acceptance and enhanced employee skills to work on data bases like HRMIS, FMIS. Use of email for official correspondence is increasing.

Ÿ Ÿ Ÿ

CDGF is in better position to identify its employee's deficiencies that can be address through training. It is in a position to use it training budget more effectively by arranging right training for right person. It will bring significant improve management performance and service delivery.

Ÿ

The presence of government employee at service delivery point like schools, BHU etc. has been ensured through the introduction of biometric attendance system at two pilot places (UC # 208 & 165)

Ÿ

Now employees are in better position to understand their roles and responsibilities and what are the expectations from them. Performance management system (ACR/PER) strengthened by giving job description to all 34,467 employees. This will pave way for ACR/PER process to be completed against their job descriptions in future. Development of performance management tool kit and its translation into Urdu is in process. Translation of job descriptions into Urdu for clarity and better employee understanding. Strong ownership of employee association on job description and each job description of teaching staff is

Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ

CDGF is now in better position to understand how motivated is its work force? What motivates its employees and their needs within different employees groups? It is being used as a base line for motivation, reward management strategy etc.

29 44

Annex

ANNEX 3:

Training Activities

Summary of Training-Related HR Programme Components and Activities Sr.

Training Title

No.

Participant Details Male

Female

Total

Target Group

Management Training Category 1: General Management 1

Time Management

11

1

11

EDOs, DOs

2

Leadership

11

1

11

EDOs, Dos

3

Corporate Plan

9

-

9

EDOs, DOs

4

Principles of Good Management

2

1

3

EDOs, DOs

5

Management by Objectives

1

-

1

EDOs, DOs

6

Development Course for Managers

1

-

1

EDOs, DOs

7

Development Course for Supervisors

8

Introduction to Project Management

1

1

2

EDOs, DOs

9

Practical Leadership Skills Training

1

-

1

EDOs, DOs

10 Improving Workplace Effectiveness through Creativity & Innovation

1

-

1

EDOs, DOs

11 Problem Solving and Decision Making Skills

4

-

4

EDOs, DOs

12 Team Work: Getting People to Work Together

1

-

1

EDOs, DOs

13 How Do Effective Managers Organize Themselves

2

1

3

EDOs, DOs

14 Effective Delegating Skills

1

-

1

EDOs, DOs

15 Improving Governance and Educational Leadership Practices

16

10

26

EDOs, DOs, Deputy DOs,

16 Office Management

12

8

20

College Principals

17 Good Governance

12

8

20

College Principals

18 Negotiation Crisis

12

8

20

College Principals

19 Budget and Planning

809

151

960

DDOs, Account Clerks

20 Mid Term Budgetary Framework (MTBF)

40

1

41

EDOs, DOs

21 Financial Management Course

2

-

2

EDOs, DOs

22 Forecasting Techniques for Managers

1

2

3

EDOs, DOs

1

-

1

EDOs, DOs

23 Finance & Accounting for Non-Financial Executives

-

1

1

EDOs, DOs

24 Value Addition through internal Audit

5

1

6

EDOs, DOs

25 Negotiation Crisis/ Communication Skills

12

8

20

College Principals

26 Workshop on Preparing Human Resource Policy Manual

2

-

2

EDOs, DOs

27 Performance Review Skills

5

-

5

EDOs, DOs

DDOs, AEOs

Category 2: Financial Management

Developing Project Proposals

Category 3: Human Resource Management

30

Annex Category 4: Information Technology 28 Basic Computing Course

483

109

592

DDOs, Clerks

29 HRMIS Application Training

110

57

167

DDOs, Clerks

30 FMIS Application Training

70

30

100

DDOs, Clerks

31 CCBMIS Application Trainings

3

1

4

DDOs, Clerks

211

259

470

Category 5: Teachers Training 32 Head Teacher Training (WSD Model)

Primary & Elementary Schools Head Teachers

33 Teachers Training (WSD Model)

400

590

890

Primary & Elementary Schools Teachers

34 School Council Training (WSD Model)

74

226

300

School Council Members

2,178

885

3,063

Councillors

36 Poverty, Governance & Gender

317

96

413

District Council Members

37 Budget & Planning Gender Responsive Budgeting

317

96

413

District Council Members

38 Participatory Planning & Poverty

39

2

41

EDOs, DOs

8

4

12

City District Nazim, EDO,

Category 6: Elected Representatives Training 35 Participatory Planning, CCBs and Local Government Monitoring System

Category 7: Exposure Visits 39 International Conference: Systemic Interventions In School Transformation & School Visits

DOs, Deputy DEOs, AEOs, Primary Teacher

40 Study Visit to UK Local Councils

3

41 Study Visit to Hong Kong & Malaysia

2 5,190

Total

3

DCO, EDOs, DOs

-

2

City District Nazim, DCO

2,558

7,748

31 44

Annex

ANNEX 4:

Drivers of Change

An Impression of the Factors Affecting HRM Development in Pakistani Local Government, and Some of the Implications for Action to Address the Challenges Type of Driver Structures

32

Driver of Change

Obstacle to Change

Possible Strategies to Address Obstacle

Punjab Local Government Ordinance (PLGO) of 2001 marked the first determined attempt to devolve authority and resources towards local

Long history, but no consistent support for devolved authority and resource flows to local government

[Explore possibilities of support to level of government where services delivered directly: to see how resources can be injected

2009 will be the first year that Provincial Governments will be able to change their Provincial Local Government Ordinances without Presidential approval.

LGO (and Provincial LGOs) were introduced 'top-down': with minimal consultation with Provincial or District levels. Role and authority of Provincial governments left ambiguous in LGO.

Support balanced (multistakeholder) reflection of aspects of the LGO which need change on the basis of experience since 2001. Acknowledge dangers of factions at provincial level making hasty and opportunistic changes in PLGO for their own ends during and after 2008.

Hostile attitudes amongst Provincial executives at least initially to devolution to Districts.

[Inform those Provincial players who are more favourably disposed towards devolution of any positive advances at District level.]

PLGO Anticipated that local governments would take over

District-level operational roles ill-defined and/or

[Inform debate on how to establish the proposed

Overt, bold attempt through national policy to build local democracy, engage more women as Councillors, and make civil service accountable to people.

Local level societal structures are still essentially feudal in nature: political power and influence are linked directly to wealth (land ownership; dynasties).

[Inform local Councillors of roles under LGO, and optimal approaches to performing them.] [Suggest constructive types of local schemes addressing gender and poverty issues.]

Bureaucracy is itself a generalist elite split into competitive and antagonistic 'cadres'.

Encourage inter-Cadre communication.

'Elite capture' frequent at local level : patterns of investment do not necessarily reflect needs of poorest.

[Provide suggestions for schemes benefiting local economic or social development] [Provide timely information about, and guidance in interpretation of, Council budgets]

Annex

Type of Driver

Obstacle to Change

Possible Strategies to Address Obstacle

Relatively rich local politicians and LG bureaucrats use private services, hence there is a history of chronic underinvestment in infrastructure in education and other services devolved to LGs

[Inject resources for infrastructure on 'counterpart contribution' basis: multiples of, or matching community contributions]

Entrenched corruption in management of public infrastructure building projects: affects costs, quality and therefore safety and durability of structures.

Explore approaches and technologies for equipping communities with basic skills of simple building design and supervision.

Lack of understanding of concept of Human Resources Management at all levels of civil service bureaucracy.

[Advocate for more attention to staff development in context of LG reform.] [Introduce basic (information) systems, demonstrate their utility, and gradually develop more detailed approaches.] [Demonstrate positive results and examples to Provincial government and other LGs] [Survey staff opinions on work and motivation; publicise and discuss results.]

As part of the PLGO 2001, Citizen Community Boards, Monitoring Committees for main services, School Councils, and elected Union Councils were established to facilitate popular 'voice' and put pressure on bureaucracy / executives.

Major difficulties experienced in establishing MCs: many still unformed. CCB establishment slow and cumbersome CCBs vulnerable to elite capture.

[Make efforts to create and strengthen key accountability institutions; reflect on results; re-plan if necessary; concentrate efforts at facility e.g. school or community level where there may be better prospects of take-up of support for more immediate advocacy or scrutiny of service performance] [Introduce streamlined procedures for CCBs'

Some examples emerging of people asserting rights and 'voice' if provided with support from NGOs

Civil service ambivalent about accountability institutions. Generally no 'culture' of public service: only of serving cadre interests.

[Generate objective, representative information about community opinions of service delivery and preferences, and disseminate for discussion.]

Major programmes of systems-development support provided to civil service.

Bureaucracy is itself a generalist elite split into competitive and antagonistic 'cadres'.

[Concentrate attention at local level where there are examples of mutual interservice inter-cadre dependency…thus demonstrating need for collaboration]

Driver of Change

Structures

Institutions

33

Annex

Type of Driver Institutions

34

Driver of Change

Obstacle to Change

Possible Strategies to Address Obstacle

Major challenge posed to staff at local level to understand and master new roles.

LGO formulated rapidly: without operationally-tested preparation of basic devolution-management systems: finance or HRM.

[Study nature and operation of mandated systems e.g. budgeting and accounting] [Suggest amendments based on local experience.] [Introduce changes permitted within existing routines, and reinforce compliance with application of IT]. [Ensure staffs' full familiarity and compliance with financial and other systems]

Local governments meant to reflect local priorities and realities in planning development programmes

No integrated strategic multisectoral planning based on assessments of problems, gaps, and opportunities has ever taken place at local level.

[Conduct initial assessment of problems, gaps, needs, opportunities and realities.] [Introduce notion of strategic long-term economic development planning.]

Since approx 2004, more attention at Provincial level in Punjab has been given to public sector management: performance is being emphasised.

Few incentives for performance for departments or staff in current bureaucratic structures and cultures.

[Build upon and reinforce New Public Management by defining jobs, roles and performance standards locally, and communicating positive outcomes of local level applications to Provincial level.]

Since approx 2004, more attention at Provincial level in Punjab has been given to public sector management: performance is being emphasised.

Few incentives for performance for departments or staff in current bureaucratic structures and cultures.

[Build upon and reinforce New Public Management by defining jobs, roles and performance standards locally, and communicating positive outcomes of local level applications to Provincial level.]

Agents

These DCOs are drawn from the elite District Management Group.

Relationships between Nazim and DCO have proved contentious and dysfunctional in many places. This has negatively impacted upon the quality of devolved service delivery. Anecdotal evidence of gradual decline in quality and experience of candidate DCOs, from DMG, due partly to past instances of negative relations with Nazims, (relatively) narrowly-defined role compared to past, and attractions of posts at Provincial level or

[Capitalise on and support favourable Nazim / DCO 'chemistry']. [Utility of SPU as 'Think Tank' and its Meeting Room as 'sanctuary' for highlevel meetings and decisiontaking.] [Build basic administrative and managerial systems (founded on good information) as an 'insurance' against bad 'chemistry' in future as personalities change or are replaced.] [HRMIS, FMIS, GIS, Document Management System]

Agents

These DCOs are drawn from the elite District Management Group.

Outside civil service (in donors offices, NGOs, private sector).

Annex

Type of Driver

Driver of Change

Possible Strategies to Address Obstacle

Donors have provided capacity building support for over a decade to Provincial and District level structures

Donors have concentrated resources and/or consultancy teams at federal and provincial levels

[Consultant team based at District level]

Donors and Government are currently seeking harmonised approaches to capacity development including local government capacity in the context of the Paris Declaration. There is an ongoing Asian Development Bank / Economic Affairs Division initiative on positive capacity development case studies (SPU is one of them).

Few examples hitherto of donors and counterpart agencies conducting evaluations of capacity development support and sharing (and learning from) results.

[Gather objective quantitative evidence of the effects of training programmes: measure time-taken, error rates or behaviours beforehand; compare to post-training experience] [DDOs] [Teachers] [Record and report upon performance improvements to demonstrate benefits of practical training]. See Appendix 7.

'Sitting allowances' paid for attendance at donor-financed courses have distorted motivation of participants from content towards level of allowances.

[Pay government rates for travel/per diem allowances for attendance involving outof-duty-station travel. Do not pay sitting allowances.]

Capacity building equated with 'training'. Training programmes tend to be Supply-oriented. Day-to-day coaching of subordinates is rare.

[Encourage variety of approaches to peopledevelopment. Encourage bosses to communicate with subordinates and take suggestions from below; pursue coaching.]

Training seen as a 'holiday': often ill-suited for, and unrelated to, tasks undertaken in jobs.

[Undertake Job Analysis: formulate Job Descriptions; design training around job realities and apparent needs for knowledge skills and attitude change.]

Sector agencies at Provincial level make sectoral plans (including for capacity building).

Training programmes often focused on needs and implications of one particular sector.

[Introduce notion of integrated strategic planning for District encompassing all sectors, and stressing interdependencies.] [Run training programmes for staff of more than one Department] [DDO courses]

These DCOs are drawn from the elite District Management

Outside civil service (in donors offices, NGOs,

A Local Government Academy exists (Lala Musa)

LG Academy has limited capacities: teaches LG rules and regulations and helps in

Key players at local and Provincial levels are targeted for (especially sectorallyoriented) capacity building.

Agents

Obstacle to Change

[Establish modest training facility reflecting local needs or priorities.]

35

Annex

Type of Driver

Driver of Change Provincial and Local governments notionally able to articulate own needs for capacity building and other inputs - more effectively.

36

Obstacle to Change

Possible Strategies to Address Obstacle

Information on location and condition of basic infrastructure and human resources available especially at local level is typically out-of-date, unreliable, dispersed and difficult to access.

[Build information systems based on 100% surveys of various 'populations': compare new databases subsequently.] [e.g. staff inventory compared with finance payroll; anomalies identified and corrected]

No detailed job descriptions exist for most civil service jobs at Provincial and especially District level.

[Develop Job Descriptions consultatively: using many incumbents differing experiences and observations to formulate generic job descriptions and personnel specifications.]

Performance appraisal of subordinates is either not done or done superficially to fulfil bureaucratic requirements.

[Introduce performance appraisal selectively] [EDOs only: quarterly reports to Nazim, DCO and peers; performance appraisal against agreed targets.]

Few links between training providers and agencies requiring training assistance.

[Forge links with existing public and private sector providers]

Realities at local government (District and below) not wellappreciated at Provincial level.

[Brief Provincial players regularly on progress; problems; innovations]

LGO forbids involvement of political players - especially councillors in civil service staff matters and management

Tradition of Provincial and local politicians 'protecting' members of the bureaucracy in exchange for generation of political support; includes pressuring administrators to employ constituents unnecessarily.

Avoid confronting abuses directly (risk of rejection and of TA being marginalized). [Produce objective evidence of incidence and costs of abuses]

Members of National, Provincial, and District Assemblies have access to development funds with which to sponsor / promote priority development 'schemes' locally.

Politicians tend to favour visible infrastructural investment (roads, street lighting) over investment in people (education, basic health services).

[Stress and demonstrate value of schemes favouring under-served groups.] [3,000 UC members trained in planning and budgeting] [Over 400 trained in genderresponsive budgeting.] [Over 400 trained in poverty, governance and gender.]

Annex

Type of Driver

Driver of Change

Obstacle to Change

Possible Strategies to Address Obstacle

Councillors as representatives of the citizenry are notionally the key to the democratic accountability of local government (and thereby the embodiment of what distinguishes it from higher levels of public administration).

Councillors have a wide range of educational backgrounds, and varying capacities to absorb financial or technical information or to judge development proposals. They may be members of entrenched elites and not concerned about or hostile towards, development benefiting under-privileged groups.They may be overlyparochial in their perspectives, and be apathetic about strategic issues.

[Prepare and distribute simplified summarised and translated versions of major planning documents or budgets] in a timely fashion before important meetings. [Stress the importance of spreading the impact of development programmes beyond single schemes in constituencies towards less privileged groups] [Make efforts to engage them in macro-issue debates: the allocation of resources within the Council budget, and changes year to year.; the Corporate Plan; the SLTDP; survey results.

Teachers: given their number and wide distribution - are influential agents at community level.

Teachers (and other groups of local government staff) have become target for politicians as 'constituency' mobilisers: in return Councillors put pressure on local governments in terms of teachers'appointments/postin gs/transfers/promotions.

[Develop HRMIS to provide evidence: access to information on teacher distribution; vacancy rates; consequences of requested transfers or postings.]

Auditors are crucial in enhancing discipline in probity and effectiveness of financial resource use at local level. External (State) Auditors and Departmental (Internal) Auditors have complementary roles to play.

State Auditors (and particularly Internal Auditors ) are short in supply. The former may be relatively oldfashioned in approach, and may not have been updated in new systems introduced. Their performance is assessed by number of queries / objections raised. Their attitude can be highly intimidating and pose serious threats to groups who are not used to being audited, and who may feel insecure as a result.

[Negotiate exemptions from audit for new fragile community-based structures where volumes of resources are relatively small.] [School Councils] Make efforts to influence the approach to auditing from 'problem-spotting / objectionraising' to 'solution-oriented'. Attempt to build constructive Internal Audit capacities: grounded in professional audit competences, together with an understanding of operational constraints and the nature and purpose of ongoing changes and reforms.

Private Sector Service Providers are important in their own right as potentially dynamic influences or supplementary support, and/or as suppliers of services not available in the public sector. The providers may go on to become future valuable resources for subsequent public sector capacity interventions, based on their earlier introduction and experience in a donorfinanced project.

Attitudes within the public service in general and local government in particular may be hostile towards use of or partnerships with the private sector.

Sub-contracting some services [Punjab Rural Support Programme for health services.] [Use of local expertise to provide IT software systems design and maintenance and therefore better sustainability] [Development of local HRM professionals previously inexperienced in the public sector.]

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Bibliography

BIBLIOGRAPHY City District Government Faisalabad Reports: Corporate Plan (2004 2009) Employee Motivation Survey (July 2007) Employee Reward Management Policy Framework Human Resources Management Strategic Operational Plan 2004 2009 Performance Reports (2004-2008) Organisational Structure June 2007 Selected Services in Faisalabad: Perceptions and Realities (June 2007) Staff Training and Development Policy 2008 - 2011 Sustainability Strategy (May 2007) Devolution in Pakistan (Vols 1 3) Asian Development Bank, DFID, World Bank 2004 Annual Review: SDLGF Project December 2006 (DFID Pakistan) + Aide Memoire Drivers of Change Briefing Note (DFID) Mid Year Review Report June 2007 (DFID Pakistan) Books Dienerova. K and Vavrova. L (2004), Public Relations for Local Governments: Bratislava: Faber Gilbert W (1975), Public Relations in Local Government, Washington DC: International City County Management Association Heeks R (2006) Implementing and Managing E-government: An International Text, Sage Publications London.

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OUR OTHER PUBLICATIONS

ABOUT THE AUTHORS S.M. Khatib Alam - Project Manager and Overall Team Leader Khatib Alam is an international management consultant with considerable experience of leading large and diverse teams on multi-disciplinary, complex and challenging projects around the world. He has a particular expertise in strategic management, organisational change management, institutional strengthening, urban development and corporate social investment. Since 2004, he has been the Overall International Team Leader on the innovative DFID funded SDLGF project.

David Alan Watson - DFID-accredited Governance and HRM Consultant David Alan Watson is a development economist and an international development consultant with special interests in the promotion of democratic governance (especially local government), human resource and institutional development, and capacity building. He was a line development economist for seven years for two governments (Fiji and Botswana), and leader of multi-ethnic training consultant teams (long and short-term) in Indonesia, Bangladesh and Ecuador. He has undertaken over ninety short-term assignments in Africa, Asia, the Middle East, the Former Soviet Union, and the Caribbean.

Muhammad Shahid Alvi Municipal HR Specialist Muhammad Shahid Alvi is a Municipal HR Specialist. He possesses 4 year professional experience in Municipal HR. He has worked on the SDLGF project as an HRM Specialist since 2004 and has been responsible for the establishment of CDGF’s HRM systems and processes.

City District Government Faisalabad DCO Office, Near Iqbal Stadium Faisalabad, Pakistan Tel: +92 (0) 41 9200205 Fax: +92 (0) 41 9200206 E-mail: [email protected] Internet: http://www.faisalabad.gov.pk

Strategic Policy Unit 2nd Floor, DCO Office Near Iqbal Stadium, Faisalabad Pakistan Tel: +92 (0) 419201256 Fax: +92 (0) 419201257 E-mail: [email protected] Internet: http://www.spu.com.pk

Management Consultants GHK International Ltd. 526 Fulham Road, London, SW6 5NR United Kingdom Tel: +44 (0) 20 74718000 Fax: +44 (0) 20 7736 0784 E-mail: [email protected] Internet: http://www.ghkint.com Internet: http://www.ghkpak.com