Human Resource Management

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MASTER OF PUBLIC ADMINISTRATION PROGRAM IN GOVERNANCE

2008 - 2010

Institute of Social Studies

FHR Lim a Po Institute for Social Studies

Human Resource Management

Implementing HRM within the Ministry of Foreign Affairs Suriname.

By

Natacha Seymor

In partial fulfilment of the requirements for obtaining the degree of

MASTERS OF PUBLIC ADMINISTRATION

Members of the examining committee: Dr. Freek Schiphorst (supervisor)

Paramaribo, Suriname April, 2010

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Acknowledgements

This ISP is written as a final requirement for receiving my Masters Degree in Public Administration. Fulfilling any type of study at this level may pose extreme difficulties when one has a full time job and other important social activities.

For me it was particularly difficult during the second phase of the program and at times I felt like giving up. Without the support and encouragement from colleagues and classmates it would have been harder to achieve my aim. That is why I would like to thank those who in times of need gave me the much

appreciated support. I would also like to express my gratitude to Ruth Renfurm who incessantly encouraged me to keep on going.

I‟m indebted to my mother Winnette and my companion Mike for their support, patience and understanding during these two years.

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List of abbreviations

HR Human Resource

HRM Human Resource Management

HRMIS Human Resource Management Information System ICT Information and Communication Technology IDB Inter- American Development Bank

IFI International Financial Institute IMF International Monetary Fund ISP Individual Study Project NPM New Public Management

OECD Organisation for Economic Co-operation and Development PA Personnel administration

PM Personnel Management

PSR Public Sector Reform

PSMSP Public Sector Management Strengthening Program SER Social Economic Council

UK United Kingdom

US United States

List of Tables

Table 1: Current Surinamese Civil Service employment Table 2: Number of staff per department at Foreign Affairs

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Chapter 1 Introduction

1.1. Background of research

Human resources are the backbone of every organization. Within the public sector civil servants play an important role in achieving the desirable quantity and quality of service delivery. In Suriname public sector performance has not always had the expected outcome and has also been questioned by various actors within society. The general conclusion from previous studies carried out by the Inter American

Development Bank (IDB) about the public sector in Suriname is that the public sector is bottom heavy and inefficient (IDB, 2006).

In order to enhance public sector performance the project for Public Sector Reform (PSR) was introduced by the government in cooperation with the IDB. Through this project the government has been trying to strengthen the policy making capabilities and the institutional framework of the public sector. The PSR project consists of widespread reform efforts throughout the entire Surinamese public sector and was designed to tackle the problems faced by the public sector (Ministerie van Binnenlandse Zaken, 2009). However, the program as it was initially planned could not be implemented, mainly due to the ambition of the project planners to try and tackle too many problems at once.

When it became obvious that it would be impossible to implement the PSR project within a short time frame (before the next elections of 2010), a shorter and easier version of PSR was introduced. In 2006 the Public Sector Management Strengthening Program (PSMSP) was launched. Its main goal is to improve transparency, efficiency, effectiveness and accountability of the Surinamese public sector. The

coordination of the implementation of PSMSP lies within the Ministry of Home Affairs.

In my ISP I focused on the civil service reform process within the Surinamese public sector, more specifically, I took a closer look at how Personnel Management (PM) is used to manage the human resources in the Ministry of Foreign Affairs and how HRM tools can improve this. My interest for this research derives from the unique personnel structure within Foreign Affairs, which also has people

working abroad at embassies and consulates. Also HRM in contrast to Personnel Administration (PA) puts more emphasis on the development of civil servants and the need to place the right person on the right job within the public sector. In order to achieve this, certain planning and recruitment strategies are required from public service organizations.

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7 1.2. Analytical Framework

Governments are confronted with an ever growing range of problems, both social and economic, which requires their constant attention. This has posed an enormous challenge for civil service capacity, leading to a constant need for upgrading knowledge and hiring talented people who are able to take on these

challenges.

For decision-makers this means an adjustment of current methods of recruitment and selection in relation to HR. HRM is one prominent paradigm which according to proponents can solve these challenges. (Storey, 1995)

1.3. Research problem and objective

Civil service reform has been on the Surinamese government‟s agenda since the 1990‟s. Every newly elected cabinet had its own idea of how the civil service needed to be reformed, but implementing broad reform projects always seemed problematic. Implementation of policy objectives is closely related to civil service capacity, culture, political will and also leadership. Therefore, it is very important to address these issues before implementing any type of reform within government.

HRM is seen by many as the answer to solving problems related to civil service capacity and efficiency. The implementation of HRM within the Surinamese civil service must improve the current personnel management, increase the capacity of the workforce, and as a result create a more effective and efficient civil service. One highly important HRM tool which can be availed of to achieve increased capacity is recruitment. Hiring capable and committed people is imperative to the success of any civil service organization, especially for Foreign Affairs which operates in an environment of constant international pressure and changes.

The objective of this research is to come to relevant policy measures which could be appropriate and useful in the successful implementation of HRM within the Ministry of Foreign Affairs and possibly other

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8 1.4. Research question

In which way can HRM procedures, mainly recruitment and selection improve the quality of staffing within

the Ministry of Foreign Affairs?

1.5. Relevance and justification

Having capable civil servants who are able to identify public needs is the ultimate desirable situation. But in reality we are confronted with various problems which can be traced back to poor civil service

capability. In order to achieve the ultimate desirable situation it is necessary to analyse the current and future needs of the civil service. This can only be achieved through attracting capable people.

In this constantly changing world it is of paramount importance to have a capable staff within the Ministry of Foreign Affairs, which is able to act in Suriname‟s best interest.

1.6. Research methods

In order to come to relevant and useful policy recommendations to improve the recruitment and selection procedures within Foreign Affairs, a literature study was carried out concerning HRM and also PSR. An analysis was made of the PSR documents of Suriname and also the report on implementing HRM in the Surinamese civil service provided by the Ministry of Home Affairs.

Next a case study was done on the current PA system within the Ministry of Foreign Affairs. Through interviews with senior officials responsible for personnel affairs, an analysis was made of the recruitment and selection procedures within Foreign Affairs.

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9 1.7. Limitations

One main obstacle in conducting this research was the period in which this was done namely shortly before the May 2010 elections. Reaching senior public officials was difficult, especially in the case of Home Affairs. Another limitation is the fact that many senior officials at Foreign Affairs are closely linked to political parties (mainly the coalition parties), which in one case resulted in an official not wanting to answer particular questions related to staffing procedures at departments abroad of the ministry.

1.8. Chapter outline

The second chapter of this ISP consists of a theoretical background on the HRM and also on the rhetoric behind the continuous pressure to reform the civil service.

In the third chapter the focus is on the PSR process in Suriname, with the emphasis on the restructuring of the personnel organizational structures within the civil service. The important component in this

organizational restructuring process is the implementation of HRM practices in the Surinamese civil service.

Chapter four focuses on the recruitment and selection procedures at the Ministry of Foreign Affairs. The chapter starts with an analysis of the current PA system at the ministry and ends with policy measures on how HRM can improve the quality of staffing within the organization. In the last chapter the conclusions and recommendations are presented.

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Chapter 2 Theoretical background on HRM

2. Introduction

In this chapter the various theories on HRM are discussed, starting with the reform process which led to the emergence of HRM as a new way to manage the human factor within organizations. In this respect the views of leading authors on the subject are also discussed. Also presented is a comparison of PA or PM, as some authors call it, which has up till recently been common practice within the civil service, to HRM. The chapter ends with an analysis on recruitment and selection strategies within HRM.

2.1. Background on the PSR process

Reform processes throughout the world have had different reasons, ranging from enhancing state

efficiency, attacking corruption or as a prerequisite for donor aid and International Financial Institutional (IFI) loans. The reform process in many countries was also stimulated by changing societal views of government‟s role in development. As Bale and Dale (1998, p. 113) describe the importance of civil service reform for developing countries:

In some cases public organizations are no longer able to perform the task for which they were created. Thus civil service reform may require more than minor changes; it may need to be more fundamental and based on a more finely tuned understanding of the causes of the malfunction. One dominant paradigm pushing public sector reform in developed and developing countries alike is the New Public Management (NPM) theory. NPM has been hailed by some as being a new paradigm

(Polidano, 1999, p. 2).

NPM was first introduced in a number of OECD countries during the 1980s. Central to the emergence of NPM laid the change in modes of public management and a shift towards “accountingization”1. The main idea behind this was the improvement of public accountability, through lessening or removing differences between the public and the private sector and shifting emphasis from process accountability towards a greater element of accountability in terms of results (Hood, 1995, p.93-4).

1_“_{The introduction of ever more explicit cost categorization into areas where costs were previously aggregated,}

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The assumption about NPM is that it is applicable everywhere and since its emergence it has gained more ground as a dominant paradigm of public sector reform in the developing world. But the introduction of NPM in different countries surely has had different outcomes. NPM cannot be seen as a public

management for all seasons, because different forms of government require different tools to run the public sector efficiently. NPM can provide governments with certain tools to achieve its goal. However, this is not the only management system available.

NPM in most cases entails, adopting private sector styles of managing public sector organizations. In the context of civil service reform one NPM element is of importance, namely the move towards greater use within the public sector of management practices which are broadly drawn from the private corporate sector (Hood, 1995, p.97).

Within NPM human resources has a prominent role to play. A strong and capable civil service is essential to achieve the vision of government. NPM has many implications for human resources within the public sector. By adopting HRM techniques and methods from the private sector, civil service is aiming at improving the efficiency and effectiveness of their employees.

The changes most commonly seen for HRM caused by the adoption of NPM principles are (Common, 2009, p 7-8):

„Decentralization allowing flexibility in the use of personnel budgets‟

„Performance management systems to enhance strategic control, to achieve targets and establish accountability‟.

„More focused management development programmes to meet emergent demands, and stimulate cultural change, from traditional public administration towards professional public management‟. „Increased delegation, coaching and performance monitoring to develop the potential of staff, with an emphasis on leadership‟.

„Flexible approach to career management, rather than standard hierarchical advancement‟. „Devolution of personnel decisions to line managers, supported by HRM professionals‟.

In the years after NPM was introduced there has been much criticism on the applicability of the theory. O‟Flynn for example (2007, p. 357) argues that the practical application of NPM “suffered from a range of

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weaknesses which reflected both implementation challenges and fundamental tensions”. In her view there is also no real evidence of efficiency gains as a result of privatization and contacting out.

Drechsler (2005, p. 26) is much more critical about the NPM theory and states the following:

...the plain and empirical observable fact that NPM simply does not work, even by its own strict set of criteria –that it does not deliver, that it does not create greater business efficiency, let alone state effectiveness, that it is expensive, disruptive, and in the end useless, that it is heavily ideological, overly simple, diametrically opposed to economic growth and especially development, and politically charged by a specific perspective, that of neo-liberalism – could have the effect that it toppled as a paradigm.

2.2. Background on HRM

HRM first emerged in the 1980s in the US and UK within the private and commercial sectors. These sectors faced new challenges such as intensification of international competition, globalization, the Japanese Janus (threat/icon), cultures of excellence, information technology, knowledge working, high value added and the enterprise culture (Legge, 2005, p.115).

These new challenges caused companies to become more competitive and aware of the role human resources could play in creating a competitive advantage. Companies in regions and countries outside the US and UK started to pose a threat by producing goods with cheap labour. Also the fact that they now had easier access to new technologies played an important role. During the 1980s many high cost American companies which could not compete in the changing environment went out of business (Ramaswamy, 2000, p. 189).

In order for companies to compete and increase their productivity and performance, it became essential for organizations to understand and better utilize the human resource factor within their organization. The Americans started to experiment with a range of strategies as a response to these challenges. First,

companies started with concession bargaining and reducing already negotiated wages and benefits in order to reduce production costs. Secondly, firms started to experiment with broadening job descriptions and compressing hierarchies. It was not until the Americans started to study the Japanese method of

organizational work and the nature of labour-management relationships that they understood that the key to their success lay in the calibre and performance of the human resource (Ramaswamy, 2000, p. 189- 91). Storey (1995, p. 5) describes HRM as follows:

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Human resource management is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques.

Organizations can adopt several HRM strategies in order to achieve their objectives. These strategies range from, selection and reward to appraisal and continuous improvement. HRM practices in western industrial society experienced the following strategies (Ramaswamy, 2000, p. 192- 99):

1. Communication. Direct communication between management and employees is the most

fundamental method within HRM. This method involves keeping the individual informed about a wide range of issues without the trade union functioning as a filtering medium between the two parties. The main objective of this strategy is to mould employee attitudes.

2. Participation. This can also be translated into greater employee involvement on management terms, in management-specified activities where trade unions are not involved. In order to increase

employee involvement HRM frequently uses quality circles (QC). Quality circles are problem solving groups which have as their main objective to tap into employee knowledge by getting them to improve not only daily work activities but also efficiency and performance. Another method used to increase participation is the Total Quality Management (TQM). TQM‟s main objective is to get employees to participate in the process of continuous improvement while leaving their managers alone.

3. Flexibility. HRM seeks two types of flexibility namely numerical and functional flexibility.

“Numerical flexibility is achieved by distinguishing between a privileged class of core workers with guaranteed employment and a subordinate class of peripheral or seasonal workers who are used to cope with shifts in demand”. Functional flexibility which is the major objective for all core

employees involves multi-skilling through skill development, group work, job rotation, and job enrichment. Flexibility‟s main objective is the fuller utilization of the human resource.

4. Just in time. This is seen as the ultimate objective of the HRM organization, using methods such as communication, participation, and flexibility. “Just in time aims to produce and deliver finished goods just in time to be sold, sub-assemblies just in time to be assembled into finished goods, fabricated parts just in time to go into the sub-assemblies and purchases materials just in time to be transformed into fabricated parts” (Schonberger, cited in Ramaswamy, 2000, p. 199).

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Within HRM a very important distinction is made between the „hard‟ and „soft‟ model. This distinction came about when critics started to argue that „HRM is nothing more than another, albeit more fashionable, label for PM and employee relations‟. In order to provide an answer to this criticism, HRM proponents made a comparison between a normative model of HRM and an empirical map of PM (Ramaswamy, 2000, p. 183).

The hard model stresses HRM‟s focus on the crucial importance of the close integration of human resources policies, systems and activities with business strategy, on such HR systems being used „to drive the strategic objectives of the organization

(Fombrun et al., cited in Legge, 2005, p. 105).

The hard model of HRM sees the HR largely as one of the factors of production, perceiving it as an „expense of the business rather than the only resource capable of turning inanimate factors of production into wealth‟ (Tyson and Fell, cited in Legge, 2005, p. 105).

The soft model according to Legge (cited in Ramaswamy, 2000, p. 184)

Views employees as valued assets, a source of competitive advantage through their commitment, adaptability and high quality…… Employees are proactive rather than passive inputs into

productive processes; they are capable of development, worthy of trust and collaboration, to be achieved through participation and informed choice. The stress is therefore on generating

commitment via communication, motivation and leadership... In this model, then, the focus is on HR policies to deliver „resourceful‟ humans, on human resource management.

When comparing the two models it can be concluded that the “hard model emphasizes the „quantitative, calculative, and business strategic aspects of managing the headcount resource in as „rational‟ a way as for any other economic factor” (Legge, 2005, p.105). It also values employees as assets. The soft model, however, focuses on the importance of integrating HR policies with business objectives (Legge, 2005, p 105).

Although HRM started as a private sector initiative it has started to gain ground in the public sector despite the critique surrounding its applicability. Ramaswamy (2000, p.188) argues that “there is so much hype about HRM even though there is so little evidence that a „hard‟ version is actually being implemented by industry because, HRM is not an empirical model but a cultural construction”.

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15 2.3. PSR efforts in relation to HRM

Looking at historic reform efforts which influence the performance of the public sector, Paul Light (cited in Berman et al., 2009, p. 13) identified four important reform philosophies. Evan Berman et al. (2009) use these reform philosophies to study the implications which they have for human resource management.

The first reform philosophy is scientific management. The emphasis here is on hierarchy, micro division of labour, specialization, and well defined chains of command. Scientific management‟s

implications for HRM can be found in the emphasis it puts on conformity and predictability of employee contribution to the organization, and seeing human relations as subject to management control. Some features of scientific management are standard procedures, narrow span of control and specific job descriptions.

The second philosophy is the war on waste. The emphasis here is on economy i.e. to determine how government can operate for less. The implication for this philosophy on HRM is, for example the fact that people become preoccupied with keeping costs down. In turn this leads to an increase in internal controls, oversight and regulations, managerial directives, tight supervision, and concerns about accountability. The war on waste can also result in an increase in detailed rules, processes, procedures, and multiple reviews.

Watchful eye is the third reform philosophy. The focus here is on fairness and openness. Watchful eye‟s implication for HRM could be found in the form of concerns about ethical conduct of employees. The HRM focus here is on creating an organization which values openness, transparency, careful record keeping, and also compliance with full disclosure and sunshine requirements.

The final philosophy is the liberation management. This philosophy focuses on higher performance in government. From this philosophy HRM implications are the trend towards employee empowerment, reengineering, work teams, continuous improvement, customer service, flattened hierarchies, and self-directed employees reflect the breakdown of the bureaucratic machine model and the move towards liberation.

(Berman et al., 2009, p. 13-5)

In many bureaucracies we find characteristics of all four types of PSR philosophies. The truth is that every philosophy contains components which are important to achieve the required efficiency in service

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All reform processes require two very important components; these are political commitment and leadership. Political commitment is important because in most reform cases a change in legislation is required to achieve reform success.

As McCourt (2006, p. 223) concluded;

Even after we have taken thorough account of the political economy of reform, commitment may still be necessary to carry a policy over the implementation threshold... commitment seems to be a concept where the academics who dislike it have to give way to the practitioners who find it indispensable.

Van Wart (2003b, p. 214) says the following about the importance of leadership:

To most people, the importance of leadership is self-evident no matter what the setting. In

organizations, effective leadership provides higher quality and more efficient goods and services; it provides a sense of cohesiveness, personal development, and higher levels of satisfaction among those conducting the work; and it provides an overarching sense of direction and vision, an

alignment with the environment, a healthy mechanism for innovation and creativity, and a resource for invigorating the organizational culture.

For the implementation of HRM within the civil service to be successful, policymakers and also political leaders have to commit themselves by taking a hands on approach to the situation.

In order to achieve successful implementation a change in the public sector culture is necessary. Daft (2006, p. 361) describes organizational culture as: “a set of values, norms guiding beliefs, and understanding that is shared by members of an organization and taught to new members as correct, and it represents the written and unwritten feeling part of the organization”.

An organization in which people feel as if they are part of the group will probably have more success. Organizational culture serves two critical functions, namely to integrate members so that they know how to relate to each other and to help the organization to adapt to the external environment (Daft, 2006, p. 361).

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17 2.4. The Reform process; from PA/PM to HRM

Berman et al. (2009) describe HRM as the development of policies for effective utilization of human resources in an organization. HRM affects every aspect of the relationship between the individual employee and the organization within which they function.

Here employees are seen as valuable assets to the organizational performance and growth. Harrison (1993, p.73) defined PM as:

That part of management concerned with people at work and with that relationship with an enterprise. Its aim is to bring together and to develop into an active organization the men and women who make up an enterprise and; having regard for the well being of the individual and of working groups; to enable them to make their best contribution to its success.

Within HRM the emphasis lies on achieving the strategic goals of the organization through knowledge and skills of the individual employees.

Previous studies have come to the following classification of HRM activities (van Marrewijk and Timmers, 2003, p. 177-8):

Personnel planning. These are all activities pertaining to hiring, promoting and firing members of the workforce within the organization.

Recruitment and selection. Within HRM recruitment and selection is an essential tool for acquiring skilled and motivated staff. Highly skilled staff is the basis for success within any organization, so it is important that organizational recruitment strategies are aimed at hiring talented people.

Socialization. Here we understand the way in which the employee is familiarized with the organization through formal and informal channels.

Work and task systems. Within work and tasks systems activities that aim at developing task descriptions and work systems are included. The importance of work and task systems is to contribute to improving efficiency and effectiveness in relation to a greater degree of employee freedom.

Training and development. Training and development are very important components within HRM which are used to maintain, promote and improve the competencies and talents of employees. Assessment. Employees are periodically evaluated on the basis of their work and performance. Positive assessments can result in line manager‟s proposal for promotion or periodical salary increases.

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Rewarding. This aspect of HRM holds elements such as job evaluation, reward systems and the system of primary and secondary terms of employment.

Participation. This is related to all systems that are being developed and implemented that aim at promoting the involvement of employees.

When comparing PM to HRM we find a number of similarities between the two models (Legge, 2005, p. 109-10):

1. Both the PM and HRM model emphasize the importance of integrating personnel or HRM practices with organizational goals.

2. Both the PM and HRM model vest personnel or HRM practices firmly in line management. 3. Both the PM and HRM model in most instances, emphasize the importance of individuals fully

developing their abilities for their personal satisfaction to make their „best contribution‟ to organizational success.

4. Both the PM and HRM model identify placing the „right‟ people into the „right‟ jobs. This is a very important means of integrating personnel or HRM practices with organizational goals, including individual development.

Legge (2005, p. 113-14) also points to some differences between the normative models of PM and HRM. Firstly, when placed in the context of the texts from which they are derived, PM is seen as a management activity which is largely aimed at non-managers. In this context PM appears to be something performed on subordinates by managers rather than something that the latter experience themselves. HRM in contrast to PM also emphasizes the importance of employee development, but also stresses the

development of „the management team‟.

Secondly, even though both models highlight the role of line management, the focus is different. Within the PM model line managements role is viewed as „all managers managing people, so in a sense all managers carry out PM‟. Within the HRM model, HRM is vested in line management as business

managers responsible for coordinating and directing all resources in the business unit in pursuit of bottom line results.

Thirdly, most HRM models focus on the management of the organizational culture as the central activity for senior management. Normative HRM models emphasize that only through an integrated and internally consistent set of HR policies in relation to recruitment, selection, training, development,

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rewarding and communications, will it be possible for organizations core values to be conveyed. In contrast, the normative PM models do not present personnel policies as senior management‟s instrument for reinforcing or changing organizational values in a manner consistent with preferred business strategy.

2.5. Recruitment and Selection strategies of HRM

Recruitment and selection are two important components within HRM. Finding talented people who identify themselves with the goals of the company and continually try to achieve them is not easy. Since a capable staff is the backbone of any company, recruitment of the most talented people can be seen as one of the cornerstones of HRM.

According to van Marrewijk and Timmers (2003, p.179-80) recruitment and selection from a HRM point of view is based on „personal and especially professional competencies‟. This is in contrast to PM where recruitment and selection procedures are based on the job description. They view HRM as a transcendence of PM.

Berman et al. (2009, p.85) identify three stages in the recruitment and selection process, these are:

„Planning and approval of the position‟, followed by „preparation of the position announcement‟ and lastly „selection and use of specific strategies‟. Combining recruitment and selection results in strategic staffing.

Planning and approval is the first stage in the recruitment process. Within this stage organizations must have a plan in place, in order to be prepared for future HR challenges.

Mintzberg (cited in Berman et al., 2009, p. 87) identifies two different types of planning.

Firstly, „strategic thinking about the future needs, challenges, and opportunities of their incoming workforce‟. Secondly, „agencies operationalize strategic plans as concrete positions become available‟.

The second stage is the preparation of the position announcement. After the organization has identified the HR needs it should be clear which vacancies there are and the requirements to fill them. In order for public sector organizations to attract the best applicants, position announcements should have a clear and positive content.

Specific recruitment strategies is the last stage in the recruitment process, and involves methods which can be used by the organization to attract the best and brightest out of the application pool. The most used strategies are job posting (electronic posting, newspaper recruitment, and trade journals), mail

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recruitment, personal contact recruitment, internship recruitment, headhunting, and non-competitive recruitment (Berman et al., 2009, p. 93-8).

Selection can be described as a process of choosing the right person for a vacant position out of all the applications received. Berman et al. (2009, 122-3) describes four phases of screening.

In the first phase a distinction is made between the qualified and unqualified applicants through screening applications to see if basic qualifications are met. The second phase involves the identification and

screening of the most qualified candidates. When the number of candidates is still big a type of screening test can be used to narrow down the number to only a few applicants. In the third phase there is only one suitable candidate and one backup in case the first choice declines the offer. The last phase is a

confirmation of the candidate‟s qualifications and ability. What follows now is the probationary employment period of the candidate.

2.6. Concluding remarks

Many civil service reform efforts have been initiated throughout the last three decades focusing on making it more effective and efficient in delivering services to the public. HRM is one private sector management style which could improve the public sector through strengthening the human factor. HRM can be seen as an improvement on the current PA system in the sense that it puts an emphasis on achieving strategic organizational goals through knowledgeable and skilled employees. HRM recruitment and selection procedures are very important components when it comes to achieving the desirable organizational HR build-up.

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Chapter 3 HRM within the Surinamese civil service reform process

3. Introduction

Chapter three starts with a description of the reform process in Suriname, which resulted in the formulation of a PSR plan in 2005. The second paragraph describes the Surinamese civil service culture, which is a very important aspect within organizational change, in relation to the PSR process. In the third paragraph an analysis is made of the current personnel administration in order to understand the need for change. In this chapter an introduction is given to the implementation of HRM within the Surinamese civil service. Here the focus lies on the components of the HRM plan which is being implemented. The chapter ends with some concluding remarks on the issues discussed in the paragraphs.

3.1. The civil service reform process in Suriname

Historically, civil service employment was always preferred by many because of the securities which came along with it. People within the civil service were guaranteed jobs for life, a monthly pay check, health insurance and a pension at the end of their career. After the period of military dictatorship in Suriname the need for reform became stronger, mainly because of the return of the international financial institution to the country during the 1990s. As was noted in the roadmap for public sector reform in Suriname:

Despite these positive indicators, the IMF considers that Suriname remains vulnerable to external shocks and needs to maintain stable macro-economic policies to moderate their effects. Amongst the key reforms needed to minimize the impact of future shocks and maximize continuing economic benefits, the IMF identifies civil service reform as critical (The Governance Network, 2006b, p. 6). In this context the government of Suriname together with the IDB initiated the PSR plan in 2005. The decision for reform was made on the basis of findings which suggested that Suriname‟s development is constrained by the weak policy making capability of the public sector and its institutions (The Governance Network, 2006b, p. 6-7). This plan was a very ambitious one which had as its main objective to tackle all capability problems faced by the Surinamese public sector at the same time.

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22 3.2. The Surinamese civil service culture

The Surinamese public sector faces many problems when it comes to efficiency and effectiveness of its service provision ranging from rent seeking behaviour of public officials to the rich natural resource endowment, and a vulnerability to drug-trafficking. The IDB in its country report on Suriname described the service provision as a patron-client network and also noted the following:

Patron-client networks tend to lead to an under-provision of collective goods, generate strong incentives for rent-creating economic policy interventions, bias policy-makers attention away from generalized policy formulation towards particular administrative decisions, and promote a high level of factionalism (IDB, 2001, p. 1).

The many functional problems related to the public sector led the government to formulate an action plan in order to reform the sector. For any type of change within an organization to work the people involved in, or affected by the process from top to bottom have to be consulted for the program to have a broad basis of support. If the members of the organization are involved from the beginning, the chance that they will be motivated and positive towards the change process will be greater. Most public sector organizations have a culture which focuses on the internal organizational issues and are seen as not being flexible and adapting to the external environment. The same holds for the public sector in Suriname.

Within the Surinamese public sector the Governance Network (2006b, p. 28-30) recognized the following aspects of cultural norms and values:

Within the public sector a strong commitment to planning can be recognized. This commitment to planning is a fundamental aspect of the public administration. Also recognized was a strong link between the planning process and developmental goals and donor funded development projects. This in turn suggests that in most instances that development projects generally reflect the international donor priorities and not necessarily the national development vision.

Political parties influence the daily operations of government. Leadership positions within

ministries are staffed by the party holding the ministerial chair and this mostly happens on an ethnic basis rather than on the basis of personal ability. This can lead to tension within the organization. Social partners i.e. the representatives of organized labour and business are seen as an important counterpart by the government in the decision-making processes which directly affecting the

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organizational build up of the public sector. Up till recently discussions were held separately with the various social partners making it difficult to reach consensus for pressing problems.

Within the government there is limited information sharing amongst the various ministries. There is a weekly meeting of the council of ministers but at the lower level information sharing hardly exists. This is important because for development goals to be successful inter-departmental work relations are essential because this is where the real implementation of policy happens.

The PSR process is striving to change daily civil service tasks which date back to colonial times and also cultural organizational norms and values which are deeply rooted into society. As we know no change process reaches its goals in a short period of time because change is a very lengthy and can sometimes be a very problematic and painful process. This is also the case with the PSR process of which the

implementation phase was only initiated four years ago.

For a successful PSR process all members of public sector organizations should be involved and also informed. The civil servants who will be directly affected by the change process should be well informed. If not, this can lead to resistance to the change process. If this process is to be successful, the earlier

mentioned cultural aspects of the Surinamese civil service should also be addressed. This is very important because these aspects already have a very big impact on the status quo and are likely to have an even bigger influence on the success of the implementation of the PSR process and the introduction of HRM within the public sector.

3.3. The current PA within the Surinamese civil service

Up till now HRM has not been common practice within the Surinamese civil service. PA has always been used to manage the civil service workforce. PA is mostly centrally planned with Permanent Secretaries having little discretion over payment, promotion and the hiring and firing of their personnel. The Surinamese Ministry of Home Affairs describes personnel policy as that part of the overall policy which focuses on all aspects of civil service performance observed from the viewpoint of uniformity,

effectiveness of the civil service organization, awareness of codes of conduct and organizational values, and personnel expectations

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Within the current PA there is no clear objective of what is expected from civil service personnel in terms of services rendered to the general public. Many employees are not aware of their tasks, obligations, and how they fit within the organization. Also on a higher departmental level a clear separation of tasks and obligations sometimes is not clearly defined. The general personnel policy within the civil service from a PA point of view is restricted to an administrative function.

The obligations and restraints concerning the Surinamese public sector workforce are rooted within the personnel law, which was lastly revised in 1985. In the personnel law guidelines concerning aspects such as hiring, firing, promotion, compensation, and fringe benefits are in most cases clearly stipulated.

Table 1: Current Surinamese Civil Service employment

Department

Number of Civil Servants

Number of Civil Servants in percentage of total

1 Home Affairs 3,047 8.1

2 Finance 1,167 3.1

3 Trade and Industry 448 1.2

4 Agriculture, Husbandry and Fishery 1,075 2.9

5 Natural resources 612 1.6

6 Justice and Police 3,922 10.4

7 Public Works 1,722 4.6

8 Regional Development 3,005 8.0

9 Education 14,642 38.9

10 Social Affairs and National Housing 2,413 6.4

11 Health 497 1.3

12

Labour, Technological Development and

Environment 333 0.9

13 Foreign Affairs 283 0.8

14

Transport, Telecommunication and

Tourism 614 1.6

15 Planning and Development Aid 78 0.2

16 Defence 3,209 8.5

17

Physical Planning, Land and Forest

Management 605 1.6

Total number of Civil Servants 37,672 100.0

Source: CEBUMA, November 2009

Table 2 shows the number of civil servants currently employed at the various seventeen ministries. These figures include all those who are paid by the Surinamese government; these also include teachers, nurses.

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The personnel law was last revised more than two decades ago. Changes within the public sector

landscape, which have certainly occurred during this period, are usually implemented through additional laws (state resolutions). The personnel law has at times proven to be a very big obstacle when

implementing reform processes within the public sector. This is because it is the basis on which all

decisions regarding personnel are made. Revising this law is a process which requires careful consideration and can become a very lengthy process. For HRM to be successful in public service, flexible legislation is essential.

The implementation of HRM in the Surinamese civil service must bring a solution to the problems faced by the civil service.

3.4. Introduction of HRM within the Surinamese civil service

In 2004 the PSMSP was initiated by the Government of Suriname in collaboration with the IDB as a result of the PSR project. One of the four main components of the PSMSP is the civil service reform project which was initiated in 2006.

The main objectives of the civil service reform project are as follows.

Firstly, the reform of the Surinamese civil service is to create more efficiency in delivering services to the public. Secondly, implementing personnel policy which makes sure that the right person is put on the right job, and is also accordingly compensated for their work. Thirdly, these changes must be put in relation to a well considered civil service policy in which there is a balanced relation between goals and staffing

(Ministerie van Binnenlandse Zaken, 2008, p.13).

The civil service reform project consists of the following main aspects, namely, the formulation of a new HRM strategy, the revision of the personnel law, the development of a procedural manual for PM, the implementation of a HRMIS and a training program.

The civil service reform project has four main objectives, these are (Ministerie van Binnenlandse Zaken, 2008, p.2):

1. The development of a strategy to improve the PM within the Surinamese civil service. 2. The introduction of new legislation needed to implement this strategy.

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3. The development and implementation of HRM protocols essential to achieving the objectives of the program.

4. The development and implementation of a Human Resource Management Information System (HRMIS), and training civil servants on how to use this system.

The Ministry of Home Affairs (2008, p. 4) describes HRM as „a system based on predetermined goals and plans of when, where, and how human potential is used to achieve organizational goals in the most

efficient and transparent way possible‟.

This HRM shall be carried out by human resource managers within the various civil service organizations. The HRM plan is to be executed through three main tasks (Ministerie van Binnenlandse Zaken, 2008, p. 4-6):

1. Recruitment, task assignment, and administration. In order to have the right person on the right job recruitment criteria are important. Depending on certain circumstances an internal or external recruitment procedure can be done. After the recruitment procedure a specific task, in accordance with the job description and educational background will be assigned to the employee. The

administration entails monitoring the personal and professional development of the employee, and also monitoring employee salary records.

2. Communication processes and management report. This is the path which documents (related to HR) have to follow within the organization. The objective here is to improve and increase the availability of information.

3. Evaluation, motivation, training and social care. Employees have to get coaching and assistance when practicing their job and trying to achieve organizational goals. In order to achieve the goals able and competent employees are essential. Periodic training of personnel is very important in order to quickly adapt to changes within the internal and external organizational environment. For employees to stay motivated a work environment is needed where employees are equally treated and correctly compensated for their work.

Two very important components which must guarantee the successful implementation and continuation of HRM in the Surinamese public sector are the National Institute for Civil Service Management and

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the Directorate for Personnel Management. The intention is to create two institutes which will address various problems and seek concrete solutions to these problems.

According to the coordinator of the workgroup „HRM implementation strategy‟ at the Ministry of Home Affairs (interview C), the National Institute for Civil Service Management should function as an autonomous advisory body. The institute will be given the task to give advice to the Board of Ministers about planning, staffing, and payment of civil servants within the ministries. Depending on the

political views, at the establishment of the institute, the decision on whether or not the advice they give must be binding shall be taken.

The Directorate for Personnel Management will be responsible for all HRM activities within the

Surinamese public sector. This department will function in close cooperation with the National Institute for Civil Service Management to achieve the entire HRM goals set for a better functioning civil service.

3.5. Concluding remarks

Introduction of HRM within the Surinamese civil service brings with it a change of the status quo and requires a broad base of support in order to be implemented correctly. But this change is necessary to achieve the strong organizations with skilled civil servants able to provide good services to the public. The next chapter looks at how HRM may alter the way the demanded skilled labour is acquired by the Ministry of Foreign Affairs.

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Chapter 4 HRM within the Ministry of Foreign Affairs

4. Introduction

This chapter starts with a background on the Ministry of Foreign Affairs and the current personnel policy. The second paragraph gives the reader insight in to current planning and staffing procedures and

recruitment policy at the Ministry. In the third paragraph the focus is on how HRM may improve the current personnel management policy. In order to gather information about the recruitment and selection procedures at Foreign Affairs interviews were conducted with members of an ad hoc commission

“recruitment” on a number of occasions, and I was also present (as an observer) at two interviews with applicants. The chapter ends with some concluding remarks on the issues discussed in the various paragraphs.

4.1. PM within the Ministry of Foreign Affairs

The Ministry of Foreign Affairs‟ main tasks are to maintain relations with other independent states and international institutions, coordination of the relations between the other ministries and foreign countries or institutions, and coordination of all activities concerning passenger travel and immigration. With its 283 civil servants Foreign Affairs is the second smallest ministry, consisting of 11 departments and 17 Embassies and Consulates. It is also the only ministry with representations abroad consisting of 26,5 percent of the workforce at the ministry. The unique setup of the ministry‟s staff brings with it other challenges when it comes to staffing, e.g. trying to find unique talent to represent the country abroad. The current personnel management is done centrally by the personnel department. Even though the departments‟ aim is to develop and implement personnel policy at organizational and at governmental level, in reality its daily tasks are purely administrative.

The responsibilities of the personnel department are, however, more than just purely administrative. They range from recruitment and selection to promoting and firing, training and development, payment and career development. Other important tasks are also the creation of a good work environment for employees and personnel care. These responsibilities imply that to a certain extent HRM activities are already

common practice within the Surinamese civil service, but as we saw earlier, in reality the department does not apply these activities in its daily tasks. They only seem to exist on paper.

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The personnel policy falls under the jurisdiction of the Permanent Secretary at the ministry, with the deputy Permanent Secretary for administrative and financial matters and the head of the personnel department assisting with the actual implementation. Here there is a clear vertical hierarchy when it comes to formulating and executing personnel management policy.

Table 2: Number of staff per department at Foreign Affairs

Department/Embassy/Consulate Number of Staff

Managing department 61

Domestic department 32

Financial department 15

Personnel department 12

Filing department 15

Internal Audit department 1

Public Relations department 4

Protocol department 18 Legal department 7 Consular department 12 Geopolitical departments (4) 31 Embassies (13) 56 Consulate Generals (4) 19

Total number of employees 283

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30 4.2. Planning and staffing procedures within Foreign Affairs

Planning is a very important factor when managing any organization; this also pertains to human resources. Adequate planning can ensure that organizations respond quickly to the changing business environment and human resource challenges.

Bechet (2002, p. 7) gives the following description of planning which he refers to as „strategic staffing or workforce planning‟

The process of identifying and addressing the staffing implications of change. It includes all managed movement into, around and out of an organization, for example, recruitment, promotion, transfer, redeployment, attrition and retention.

When managing human resources O‟Riordan (2006, p. 4) describes two approaches which are used by both the public and private sector.Firstly, we have the replacement approach; here the focus is on „identifying particular individuals as possible successors for specific top ranking positions, thereby recreating the existing organization‟. Secondly, she describes an integrated workforce planning approach; here there is „a strategic and systematic effort to ensure that the organization has the right people with the right

competencies at all levels of the organization‟.

These approaches reflect a shift from the need for filling key vacancies, which can be seen as a risk

management tool, to a more strategic long term approach where management and development of staff are at the centre. Using the integrated workforce planning approach could furthermore ensure the successful implementation of changes required by the organization in order to meet future challenges (O‟Riordan, 2006, p. 4).

Overall civil service staffing procedures are rooted within the Surinamese personnel law and depending on the position a different appointment procedure is followed.

Appointments at the executive level of the public service, which means generally the Director (Permanent Secretary), Deputy Director and Department Head level, are made by ministers, approved by the Council of Ministers, and formally implemented by presidential resolution. The common practice is reportedly for executives to be appointed from the political party of the

responsible minister. It seems to be accepted that political party affiliation or trust is needed in these positions, and that qualification for the position is an important but perhaps secondary consideration (The Governance Network, 2006a, p. 62).

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The planning and staffing procedures within the Ministry of Foreign Affairs are different for both local departments and those abroad. If we look at planning from a human resource perspective we can easily say that there is a lack thereof. After speaking with several senior officials at the ministry, it became clear that when it comes to HRM, problems which arise within the organization are dealt with on a case by case basis.

Planning at organizational level usually takes place by formulating broad political goals for the next 5 years after elections. But strategic plans for achieving these goals at the lower departmental levels are not clearly formulated. This then in turn influences the success of achieving these political goals.

The staffing procedures at the ministry are simple. At the lower level if there is a vacancy, this is usually filled by someone within the organization through reshuffling. This system works up to a certain level, e.g. administrative workers, but if specific knowledge and experience is necessary filling vacancies becomes more difficult. Also this type of reshuffling creates a vacancy at another department. In these specific cases a recruitment and selection procedure is initiated by the Permanent Secretary to fill the vacancies.

4.3. Recruitment and selection procedures at Foreign Affairs

A committee was installed in 2008 by the Permanent Secretary, with the main objective to recruit new staff for the various departments within the ministry, and also for new departments which the ministry plans to set up. This committee is composed of the deputy Permanent Secretary, the head of the personnel

department, and two policy advisors responsible for personnel affairs at the ministry.

Before the recruitment process started an assessment was made of all vacancies within the various departments. This gave the committee an idea of how many people were necessary and also how many people had to go through the selection process. The next step was to review all received application letters. It must be noted that the committee did not announce the positions through an advertisement or any type of posting. One committee member explained that “in the last 5 years there has been no job posting from the ministry because we frequently receive application letters, so we simply choose candidates out of all the applicants” (interview A).

After reviewing the incoming application letters of potential candidates, a first selection is made by carefully reviewing resumes and assessing if this person meets the job requirements. The applicants who get through this first selection are then called in for an interview with the committee. After all candidates

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are interviewed the committee then comes together to select potential new recruits. The selected candidates are not automatically recruited because the committee simply recommends these candidates to the minister via the permanent secretary. It is the Minister of Foreign Affairs who has the last say when it comes to hiring. But even then the ministry needs the approval of the Board of Ministers to legally hire new employees.

The recruitment process is afterwards evaluated solely by the Deputy Secretary and the Head of the Personnel Department, the other two members are said to „limit themselves to recommending potential candidates‟ (interview A). The evaluation of the recruitment process is according to the head of the

personnel department “not done according to a previously set out specific plan” (interview A). In total the committee has recruited 22 new employees since its instalment in 2008.

The heads of departments at which the new employees are put to work were asked about their work ethic and functioning during the first month. In cases where there were problems, the Head of the Personnel Department, the Deputy Secretary and the new employee would have a conversation which aims at

resolving the situation in a satisfactory manner. According to the Head of the Personnel Department, in one case this led to the transfer of a new employee to another department. In interviews with heads of four departments at the ministry the general conclusion was that the new recruits, who were selected by the committee, are capable of performing the tasks assigned to them, and in their view they were assigned to the right departments (interview A, E, F, H). One head however, pointed out that “it would be appreciated if heads of departments could actively participate in the selection process and hopes this will happen in the future” (interview H).

The senior level recruitment is solely at the discretion of the Minister. As mentioned earlier through the findings of The Governance Network (2006a), senior officials are either closely related to the minister or to the political party which appoints the minister. This is also the case when it comes to appointing senior officials at embassies and consulates.

In an interview one committee member (interview B) gave the following explanation on appointing political party members (of the current coalition parties) in high positions abroad:

Senior level positions at departments abroad (e.g. Ambassadors) are appointed politically, incidentally lower level positions are also appointed politically. These appointments were agreed upon by the currently in power „New Front Plus‟ government in 2005, in order to facilitate members of all government parties.

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He also pointed out that all 17 departments abroad were proportionally (depending on the number of seats in parliament) staffed mostly at senior level with officials affiliated to one of the coalition parties.

Mccourt and Ramgutty (2003, p. 608-09) identified a similar situation of political appointments, especially after regime changes in Mauritius where the „Public Service Commission‟ was responsible for recruitment of civil servants. He stated the following about their practices:

There is no professional selection expertise in the Public Service Commission, there is no evidence about whether this selection approach actually manages to identify able staff, and there appear to have been no innovations in employee selection in recent years, even though 'these people are literally ruling over the destiny of the civil service'.

Departments abroad are at the lower level also staffed with local employees. Depending on the position (e.g. drivers, janitors, receptionists) local people are recruited to do the job. From a financial (less costs), and other strategic perspectives (knowledge of the country, culture and language) this is also encouraged by the government.

There are also some other aspects to consider on HR level which are poorly developed within Foreign Affairs, and as such need to be properly addressed.

Firstly, we have the aspects of socialization and also motivation among the workforce. In an interview (A) with the head of the personnel department she bluntly said „there is no motivation policy at Foreign Affairs and no activities to create solidarity amongst personnel are organized‟. In her view these are also important tools to create a workforce able to work towards the realization of the organizational goals.

Secondly, although tasks are clearly defined employees are not always informed of what exactly is expected of them. In some cases they are not aware that the task entails more than what they actually do and in other cases they do more than what is expected of them. New employees are in most cases not equipped to do the job on their own and need to be trained and guided on how to perform (Interview B). This guidance is usually left to the colleagues. Some managers do not feel that guiding, motivating and development of their subordinates is part of their responsibility.

When employees do not exactly know what is expected of them, it can be difficult to assess whether or not they consciously do or do not perform well. The last aspect poorly developed is, assessment of employee performance. Assessment is supposed to happen, according to Surinamese civil service guidelines, by periodically (annually) conducting performance interviews. The personnel manager says that these

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interviews are not conducted within the ministry, they are not common practise and since her appointment in 2006 she has never conducted a single interview. In her view people should be assessed regularly on their performance and promotions should be given on the basis of good performance.

4.4. Implementing HRM within Foreign Affairs

Human resource management at its best is not something which can solely be left to the discretion of a small group of people within an organization. If achieving strategic organizational goals is a priority then all members should be informed of what is expected of them and how they can contribute to the

organization.

Within the ministry of Foreign Affairs and the Surinamese public sector as a whole, HRM is not practiced by heads of departments. Usually dealing with personnel in terms of management is seen as a task solely for the Personnel Department, and the Deputy Permanent Secretary (interview A, B). For HRM to succeed within the organizations the heads of all departments should in some sense also focus on achieving

organizational goals through harnessing the individual human potential within their subordinates. Motivating civil servants should become a priority for both the Ministry of Home Affairs and Foreign Affairs. Adopting and using HRM activities is the way to motivate employees which in turn shall lead to achieving the strategic organizational goals. One example is the periodic evaluation (mostly formal but also informal) of employees. Currently this is not commonly practiced but on paper it should be part of the personnel management policy. Having periodic evaluation must result in giving managers more insight into employees‟ work ethics, needs and goals. Managers can use the outcomes to map out an employee career development path. Training of employees is also necessary, especially within an organization which operates on an international level. Training and schooling at the ministry is not structured, but only happens when institutes offer their services. An assessment has to be made of the training and schooling needed throughout the organization and clear policy has to be formulated to achieve this goal.

Overall if we want to implement HRM principles, leadership and political will had already been pointed out earlier as important factors for success. The question is whether both of these are currently available. As was pointed out by one senior official closely related to important political and government officials at Foreign Affairs; „not all ministers agree with the HRM strategy initiated by Home Affairs, because it will take away their discretion to hire whom they want, so it is doomed to fail and the legislation to implement will not get passed the Council of Ministers‟.

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35 4.5. Concluding remarks

The Ministry of Foreign Affairs has a very dynamic role, which brings with it its own HRM challenges. Interestingly enough these tough challenges in terms of appointing both national and international representatives are left to political party favouritism. There is a lack of planning when it comes to the current and future human resource needs within the organization. Implementing HRM principles could improve the planning and staffing within Foreign Affairs, but a number of factors could make this very difficult to achieve.

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Chapter 5 Conclusions and Recommendations

5.1. Conclusions

Through the PSMSP the Surinamese government is trying very hard to reform civil service and transform it into an effective and efficient machinery. Obviously, in order for reform to succeed you have to start by enabling the human factor within the civil service institutions. With the Ministry of Home Affairs leading the reform process, the transformation of the current PA departments into an HRM department had been initiated in 2006.

HRM is seen by some scholars as a magic bullet which can be adopted anywhere with the same amount of success. HRM can provide organizations with useful tools to manage the human factor and achieve current and future organizational goals, but there are also other factors on which successful implementation

depends, e.g. political commitment and leadership.

In the case of the Ministry of Foreign Affairs I looked at how the recruitment and selection procedures can improve the quality of staffing within the organization. Although much is planned within the Surinamese civil service, when it comes to HR policy, especially within the Ministry of Foreign Affairs I noticed that this does not happen on a regular basis. Taking into account the recruitment and selection theory, I can conclude that up till the selection of candidates this process is done according to HRM theory. The main difference is the administrative procedure and the other links in the selection process, e.g. ministry of Home Affairs and the Board of Ministers.

Recruitment procedures differ depending on the level (lower, - mid or senior level) of the vacant position. At the lower and mid level potential candidates are selected and recommended by a committee to the Minister, who then decides who should or should not be hired. Although the committee has had some success in recruiting good candidates for most departments, some heads feel that they are left out of the selection process, and more attention should be paid to the candidate‟s background.

At the senior level it is the Minister who decides which „candidate‟ will be assigned to a position. In most cases the person appointed to the position is either loyal to the Minister, or the political party to which he or she is affiliated with. The main conclusion here is that the Minister has a lot of discretionary power when it comes to hiring and also staffing within the ministry.

Human Resource Management

Human Resource Management

Acknowledgements

List of abbreviations

List of Tables

Table of contents

Chapter 1

Introduction

Chapter 2

Theoretical background on HRM

Chapter 3

HRM within the Surinamese civil service reform process

Chapter 4

HRM within the Ministry of Foreign Affairs

Chapter 5

Conclusions and Recommendations