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The Management ofThe Management of
Senior Civil Servants in KoreaSenior Civil Servants in Korea
October 6, 2003
Pan S. KimProfessor of Public Administration
Yonsei University, KoreaE-mail: [email protected]
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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 & HomeAffairs(MOGAHA)
Science and Technology Agriculture and Forestry Information and
Communication Environment Construction and
Transportation G
ender Equality
Ministries
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The Civil Service Commission &The Civil Service Commission &
The Ministry of Government Administration & HomeThe Ministry of Government Administration & HomeAffairsAffairs
The Civil ServiceCommission (CSC) is a
central agency toformulate personnelpolicy of theadministration
Composed of a
chairperson and 4commissioners
* 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 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 Servants868,120
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 ConstitutionalOrgans
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 ServiceExcepted Service
S pecific Service
Educational Service
Police & Fire Service
Foreign Service
General Service (CORE)
TechnicalS
erviceLabor 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%)
63,55
6(11.9
%)
1,390(0.3%)
Contract Service 61
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Total General
Service
Foreign
Service
Educational
Service
Police&F
ire
Judges&
Prosecut-
ors
Technical
Service
Except-
ed
Service
Labor
Service
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
TotalG1 to G5 G6~G9 &
ResearchSubtotal G1 G2 G3 G4 G5
No. of total
employees273,284 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 personalpatronage, the National Civil Service Act prescribes twelvecases 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 ³model employer´
To achieve this, 5% of new employees should be reserved
annually for the disabled
* People inS
cience & Technology; Local Colleges?
Quarter S
ystem for Women CivilS
ervants
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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, sameoccupational 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 : 60
G6 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 ± 57
Depending 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 «««
S pecial 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
(Monthly rate)
Minister 4,594 893 5,487
Vice-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 1,039Initial
Pay-step9 / 1 410 102 324 836
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Conduct Annual survey on the level of pay in the privatesector (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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PublicS
ector
F For a small, but efficient government or a small, but efficient government
For an open and transparent government For an open and transparent government
For a highly competitive government For a highly competitive government
Toward an electronic Toward an electronic- -government 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 beemployed
- Employment conditions are based on contracts
Major CivilS
ervice Reform: Open PostS
ystem
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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 andHigher (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 theirbase monthly salary, quarterly bonus, and other allowances
variable pay portion: 4 categories of pay rate is decided byperformance appraisal based on MBO
Performance pay rate:
� Excellent: S grade(top 10%) p 8%% ofperformance standard amount in each grade
� Outstanding: A grade(30%) p 5%%� Normal: B grade(50%) p 33%%� Unsatisfactory: C grade(10%) p 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 standardbasic salary by the performance bonus rate
- Performance Bonus Rate:� Excellent (top 10%) p 110% of standard basic salary
� Outstanding (30%) p 80%� Normal (50%) p 40%
� Unsatisfactory(10%)p 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 CivilNumber 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 20PERCENT FOR OPEN COMPETITION
~ Excludes positions in the Office of thePresident, the Office of the Prime Minister,
the National Intelligence Service, the Boardof 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 forNumber of Positions forOpen CompetitionOpen Competition
~ 142 positions as of September 18, 2003
~ Filled 124 positions: 72: 28
G 89 positions (71.8%) by internal recruitment
G 35 positions (28.2%) by external recruitment(30 from the private sector; and 5 from other
government agencies)
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TheThe ³³AverageAverage´́ OPSOPSCharacteristicsCharacteristics~ Age: 50 years old
~ Education: master¶s degree (46%)G Doctoral degree (30%)
~ Employment: Career civil servants (62%)G Contact-based employment: 38%
~
Period of Employment: 2.1 years(a term of no more than 5 years)
~ Gender: Male dominatedG 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 learning
capacity building
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ProblemsProblems~ 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 morecomprehensive system for executives
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Korean GovernmentKorean Government¶¶s Plan tos Plan toEstablish the SES/SCSEstablish the SES/SCS
~ 2001: The Civil Service Commission
considered to establish it, but failed topursue
~ 2003: Establishment of the SES/SCS was
included in the ³HRM 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 fragmentedand under-developed
~ The Civil Service Commission reviews their recruitmentand 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 ofcompetitiveness
~ Fragmented management
~ Lack of strategic & systematic HRD
~ Poor performance management
~ Weak reward system~ Needs to ³make the managers manage!´
(to be ³Change Agents!)
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Issues for Further DevelopmentIssues for Further Development~ 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, leadershipqualities & management competencies?)
~ Separate system from the mid- and lower-level civil servants?
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Issues for Further DevelopmentIssues for Further Development ² ² 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 ofsenior civil servants?
~ Personnel Autonomy:
Each Minister¶s Interest vs.
Integration of the CSC
~ Mobility vs. Expertise
~ Potential Monopolization of Elites
Particularly from the Economy-Related
Ministries
~ Effects of the Spoils System
Issues for Further DevelopmentIssues for Further Development ² ² continuedcontinued
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Implementation PlanImplementation Plan~ Minimization of Political Influence & InternalResistance
~ Improvement of Performance Management andProvision of HRD Opportunities for SES/SCSCandidates
~ Devolution of Personnel Authority to EachMinistry: Deregulation of Personnel Authorityfor 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 JobAnalysis of the Central Government
~ Early 2004: Development of the Basic Planfor Establishment of SES/SCS
~ Early 2004: Policy Hearing for theEstablishment of SEC/SCS
~ Late 2004 or Early 2005: Revision of theNational Civil Service Act