The Management of The Management of Senior Civil Servants in Senior Civil Servants in

KoreaKoreaOctober 6, 2003

Pan S. KimProfessor of Public Administration

Yonsei University, Korea E-mail: pankim@dragon.yonsei.ac.kr

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Finance and Economy Education and Human

Resources Development Foreign Affairs and Trade National Defense Culture and Tourism Commerce, Industry and

Energy Health and Welfare Labor Maritime Affairs and

Fisheries

Unification Justice Government

Administration & Home Affairs(MOGAHA)

Science and Technology Agriculture and Forestry Information and

Communication Environment Construction and

Transportation Gender Equality

Ministries

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The Civil Service Commission &The Civil Service Commission &The Ministry of Government Administration & The Ministry of Government Administration &

Home AffairsHome Affairs

The Civil Service Commission (CSC) is a central agency to formulate personnel policy of the administration

Composed of a chairperson and 4 commissioners

* Established in May 24, 1999

The Ministry of Government Administration and Home Affairs (MOGAHA) is responsible for the implementation of personnel policies.

Consolidation of HRM function?

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Career vs. Non-career civil service

- 1.7% of all civil servants are non-career

services (as of December 31, 2001)

Merit system vs. Spoils system

Rank system vs. Job classification system

- Generalist vs. Specialist

Closed system vs. Open system

Key feature of the Civil Service System

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Career Service General Service: Grade1-9, 18 OG, 75 Series Specific Service: Judges, Prosecutors, Police,

Educational,Diplomatic, Military Service, etc. Technical Service: simple, technical work

(Grade 1-10)

Non-Career Service Political Service: Ministers, Vice-ministers,

elected officials Excepted Service: No permanent job status;

personal secretaries, etc. Contracted Service: professionals,

scientists…..

Classification of National Civil Service

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Total Number of Civil Servants 868,120

Total Population: 45,985,289 (in 2000) 53 : 1

Number of Civil Servants (1), as of December 31, 2001

The Legislative

The Judicial

The Executive National Local

Other Constitutional Organs

3,211 (0.4%)

12, 817 (1.5%)

850,032(97.9%) 548,003(63.1%) 302,029(34.8%)

2,060 (0.2%)

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Total:548,003 as of December 31, 2001* Core workforce General Service (90,610)

No. of National Civil Servants (The Executive)

103Political Service

Excepted Service

Specific Service

Educational Service

Police & Fire Service

Foreign Service

General Service (CORE)

Technical Service

Labor Service

2,347(0.4%)

389,936 (71.1%)

291,257(53.1%)

97,215(17.7%)

1,464 (0.3%)

90,610(16.5%)

63,556(11.9%)

1,390(0.3%)

Contract Service 61

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Total General Service

Foreign

Service

Educational

Service

Police&Fire

Judges&Prosecut-

ors

Technical Service

Except-ed

Service

Labor Servic

e

Othe-rs

Total(A)

843,329 273,284 1,372 287,367 118,217 1,187 147,416 7,596 4,421 2,469

Female

(B)

278,225 64,078 67 168,746 2,454 49 36,831 3,573 1,438 794

Ratio(B/A)

33.0 23.4 4.9 58.7 2.1 4.1 25.0 47.0 32.5 32.2

As of December 31, 2001

Total

G1 to G5G6~G9 & ResearchSubtotal G1 G2 G3 G4 G5

No. of total employees 273,284 28,745 72 372 993 6,226 21,082 244,539

Female(B) 64,078 1,051 0 2 19 157 873 63,027

Ratio(B/A) 23.4 3.7 0 0.5 1.9 2.5 4.1 25.8

Yr 2001

No. of Women in the Executive (National+Local)

No. of Women in the General Service (The Exec.)

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Open/Competitive Entrance Examination

Exam for Grade 5 (Senior Civil Service Exam)

Exam for Grade 7

Exam for Grade 9 (Entry Level Exam)

Non-competitive selection examination

To prevent a backdoor entrance by political or personal patronage, the National Civil Service Act prescribes twelve cases in which non-competitive recruitment and selection is allowed.

Methods of Recruitment

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30%25%---G9

25%23%G7

20%20%

20%20%15%13%10%

G5

200220012000199919981997Yr 1996

Affirmative Action Plans

Quarter System for the Disabled Every ministry should retain more than 2% of disabled

employees needs to be “model employer”

To achieve this, 5% of new employees should be reserved annually for the disabled

* People in Science & Technology; Local Colleges?

Quarter System for Women Civil Servants

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Promotion to Grades 4-8 Performance evaluation(50%)

Seniority(length of service) (30%)

Training results(20%) - Eligibility list for each class (same grade, same

occupational series) is compiled twice a year

Promotion to Grade 5- Examination may be required in some ministries

Promotion to G3(DG) or Higher Screened and recommended by the Promotion Review

Committee/the Civil Service Commission

Performance, Abilities and Seniority

Ways of Promotion

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General Service Technical Service

G5 and above : 60G6 and below : 57

For those who have worked more than 20 years and wish to retire Paid Honorary Retired Allowance

(Average of $ 20,000 in 1999) Allowed to be Honorary Promotion

50 – 57Depending on job contents

Retirement Age

Honorary Retirement System

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Pay = Base Salary + Allowances + Welfare Expenses

Base Salary: 10 schedules by job categories.

Allowances:Common Allowances (5 types) : Diligence allowance,

Seniority Allowance ………Special Allowances (35 types) : High Risk Allowance,

special Task Allowance………Extra Work Allowances (3 types)………Other Allowances (5 types) : Performance Bonus,

Allowance for children’s Educational Expenses……

Welfare Expenses: 6 types

Pay Structure

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(Unit : US $)

Salary Table 2002

Grade/Pay-step

BasicSalary

CommonAllowances

WelfareExpenses

TotalSalary

(M o n th ly ra te )

Minister 4,594 893 5,487Vice-Minister 4,128 704 4,832

1 / 22 2,132 1,023 1,250 4,405

3 / 22 1,729 847 981 3,557

5 / 19 1,322 524 673 2,519

7 / 13 888 341 486 1,715

9 / 4 487 134 347 968

5 / 1 726 182 500 1,408

7 / 1 526 132 381 1,039InitialP ay -s tep

9 / 1 410 102 324 836

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Conduct Annual survey on the level of pay in the private sector (700 companies)

Narrowing pay differentials year by year Introduce a contingency system by pay-adjusting allowances

5 years Plan to increase Pay level

2000 Yr

91% 95%

2001 Yr

97%

2002 Yr

98%

2003 Yr

100%

2004 Yr

Pay level Compared to the private sector

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Financial Sector put an end to governmental control and enhance

autonomy of financial institutions 5 banks closed and 9 merged to larger ones ; 1 sold to

foreign investors, 16 out of 30 merchant banks to be shut down

Labor Market Labor, Management, Government - Tripartite Committee

established (reform through democratic consensus) provide liquidity in the labor market through introduction of lay off

and work dispatch system expand social safety net

Corporate Sector revamp corporate governance major conglomerates to restructure and swap business

lines and to stop financial cross-guarantees among subsidiaries

Major Sectoral Reforms

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Public Sector

FFor a small, but efficient governmentor a small, but efficient government

For an open and transparent governmentFor an open and transparent government

For a highly competitive governmentFor a highly competitive government

Toward an electronic-governmentToward an electronic-government

Restructure the government organizations Improve regulatory functions Enhance competition and efficiency in the government Civil Service reform…………….

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Past: Closed system in the past, except for entry positions in grades 9, 7 and 5 (Vacancies have been filled mostly through internal promotion)

Present: Open Post System (OPS) was established (20% of senior positions(142) are open to outside the government)

- Experts from the private sector are expected to be employed

- Employment conditions are based on contracts

Major Civil Service Reform: Open Post System

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Job PostingJob Posting

Vacant positions are posted publicly:

media and government

homepages(www.csc.go.kr)

Any eligible candidates are encouraged

to apply for the posted position.

Applicants are screened and interviewed

by the selection committee.

The best qualified person will be selected.

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Other Reform MeasuresOther Reform Measures

Introduction of 360 degree evaluation

- Most agencies use it for various purposes

Promotion of Personnel Exchanges:

- Central agency to central agency

- National government to local authorities

- Local authorities to local authorities

- Public sector to private sector

Employment of foreign experts by contract in

the field of education, scientific research, etc.

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PRP (I): Annual Merit Incremental Program - Application : Director General and

Higher (Grades 1~3)- Components of pay

fixed pay portion: minimum and maximum range for each grade, the amount of the pay for incumbents is calculated by their base monthly salary, quarterly bonus, and other allowances

variable pay portion: 4 categories of pay rate is decided by performance appraisal based on MBO

Performance pay rate:• Excellent: S grade(top 10%) 8%% of

performance standard amount in each grade

• Outstanding: A grade(30%) 5%%• Normal: B grade(50%) 33%%• Unsatisfactory: C grade(10%) 00%%

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PRP (II): Performance Bonus Program- Application : Director(grade 3 or 4) level and lower

- Form of payment : a lump-sum bonus

- Bonus amount Bonuses are calculated by multiplying standard

basic salary by the performance bonus rate

- Performance Bonus Rate:• Excellent (top 10%) 110% of standard basic salary• Outstanding (30%) 80% • Normal (50%) 40% • Unsatisfactory(10%) 0%

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New Agenda: Senior ManagementNew Agenda: Senior Management

Motive to ReformMotive to Reform Financial Crisis & IMF Bailout in 1997 Low World Competitiveness High Rigidity (Closed System) Lack of Leadership on the Top Lack of Competency & Responsiveness Necessity of Cultural Change: life-long

job security and lack of performance management

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Number of Senior Civil Number of Senior Civil ServantsServants

Grade 1: Assistant Minister Level: 201 Grade 2: Direct-General Level: 545 Grade 3: Direct-General Level: 514 HAVE ALREADY OPENED UP 20 PERCENT FOR

OPEN COMPETITION Excludes positions in the Office of the President,

the Office of the Prime Minister, the National Intelligence Service, the Board of Audit and Inspection

Excludes positions of the Specific Service (military, police, fire service, and prosecutors) and fixed term positions

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Number of Positions for Number of Positions for Open CompetitionOpen Competition

142 positions as of September 18, 2003

Filled 124 positions: 72: 28 89 positions (71.8%) by internal

recruitment 35 positions (28.2%) by external

recruitment (30 from the private sector; and 5 from other government agencies)

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The “Average” OPS The “Average” OPS CharacteristicsCharacteristics

Age: 50 years old Education: master’s degree (46%)

Doctoral degree (30%)

Employment: Career civil servants (62%)

Contact-based employment: 38%

Period of Employment: 2.1 years (a term of no more than 5 years)

Gender: Male dominated Women: only 4 persons (3.3%)

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Positive Effects of OPSPositive Effects of OPS

- openness & responsiveness

- competition: global competitiveness

- stimulation (cultural change): build up a performance culture

- improvement of expertise: self-directed learningcapacity building

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Problems Problems

Could not recruit the best of the best: lack of attraction in terms of pay, benefits, and job security

Possibility of Political Influence

Low Representation of Women

Fragmented HRM System: needs more comprehensive system for executives

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Korean Government’s Plan Korean Government’s Plan to Establish the SES/SCSto Establish the SES/SCS

2001: The Civil Service Commission considered to establish it, but failed to pursue

2003: Establishment of the SES/SCS was included in the “HRM Reform Roadmap” Became part of HRM reform agendas

President Roh (2003-2008) supports HRM reform

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Current Situation: Current Situation: Too FragmentedToo Fragmented

The management of senior civil servants has been improved in the last few years, but still fragmented and under-developed

The Civil Service Commission reviews their recruitment and promotion

Each ministry lacks autonomous personnel authority MOGAHA handles MBO: Their pays are determined

on the basis of the appraisal result of the management-by-objective (MBO)

CSC deals with PRP: This year’s annual pay = previous year’s annual pay + performance-related

pay +/- this year’s adjustment pay

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Motives of Further ChangesMotives of Further Changes Inbreeding: internally promoted

workforce; lack of nation-wide perspective; lack of competitiveness

Fragmented management Lack of strategic & systematic HRD Poor performance management Weak reward system Needs to “make the managers manage!” (to be “Change Agents!)

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Issues for Further Issues for Further DevelopmentDevelopment

Scope of Senior Management?- Director-General or Higher or- Director or Higher

* Whether to include: prosecutors, policemen, and diplomats Competencies: need to develop a new

framework (personal qualities, leadership qualities & management competencies?)

Separate system from the mid- and lower-level civil servants?

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Issues for Further Development—Issues for Further Development—continuedcontinued

Recruitment?- by selection committees- by assessment centers- by entrance competitions

Appointment? Job Security?- career - renewable term

Performance Appraisal and Pay Scheme?- performance plan or agreement- performance-related remuneration pay

Training (management & leadership development)?

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The role of CSC: integrated management of senior civil servants?

Personnel Autonomy:Each Minister’s Interest vs.Integration of the CSC

Mobility vs. Expertise Potential Monopolization of Elites

Particularly from the Economy-RelatedMinistries

Effects of the Spoils System

Issues for Further Development—Issues for Further Development—continuedcontinued

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Implementation PlanImplementation Plan Minimization of Political Influence & Internal

Resistance Improvement of Performance Management and

Provision of HRD Opportunities for SES/SCS Candidates

Devolution of Personnel Authority to Each Ministry: Deregulation of Personnel Authority for the Minister and the Establishment of HRM Department in the Ministry

Development of HRM Infrastructure: Job Analysis, Development of Competency Model, and Diversification of Recruitments…

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Time ScheduleTime Schedule 2003: Launched a Research Project for

Establishment of SES/SCS 2003: Launched a Target Group’s Job

Analysis of the Central Government Early 2004: Development of the Basic

Plan for Establishment of SES/SCS Early 2004: Policy Hearing for the

Establishment of SEC/SCS Late 2004 or Early 2005: Revision of

the National Civil Service Act