Performance Management Systemfor Civil Servants in Korea

Nov. 2015

Ministry of Personnel Management

CONTENTS

Introduction1

2

Evaluation System3

4

5

Korean Performance Management Process

Current Issues

Performance–Related Pay

2

1. Introduction

Total number

1,008,929

Total number

1,008,929

Local officials362,023

National officials622,108

Judicial17,729

Judicial17,729

Constitutional Court284

Legislative3,993

Executive984,131

National ElectionCommission

2,792

National ElectionCommission

2,792

* as of December 31, 2014

3

1. Introduction

Grades 6-9(General Staff)

Grades 1-3(Deputy Minister, Director-General)

Minister & Vice Minister

Grades 3-4(Division Director)

Grade 5(Deputy Director)

Senior Civil Service

4

1. Introduction

1940~State Public Officials Act (’49)Presidential decree on Public Official’s Remuneration(’49)

1960~

1999~

Presidential decree on Public Official’s Allowance(’62)Regulations on Ratings for civil servants(’61)

Senior Civil Service(’06.7)Regulations on Work Performance Appraisal(’05)Performance related payment system(’99)

5

2. Korean Performance Management Process

2. Implementation

1. PerformancePlanning

직원

4. Feedback

• To set up goal, indicator, criteria

• To know method, capacity,behavior for performance

• Periodic performance record

• Performance interview

• Motivation

• Problem solving

• Goal modification

• Giving development

opportunities

• Goal attainment

• Exchange of opinions

• Data collection

• Interview preparation

Supervisor staff

3. PerformanceEvaluation

• To coach on strength, weakness, potential

• To decide appraisal grade

• Promotion

• Performance-relatedpay

6

2. Korean Performance Management Process

A consent between an appraiser & the person to be appraised The plan regarding performance goal & indicator, the use of

appraisal result At the beginning of the year

• Desirable status that each individual'swork should reachGoals

Indicator• Criterion for measuring whether or not

the performance goal is attained

Desirable conditions of Goals

Desirable conditions of Indicator

『SMART』 PrincipleSpecific, Measurable, Attainable, Result-oriented, Time-basedRecommend indicators on the outcome

Linkage of group and individuals’ goal Ease of final effect understanding Concreteness of understanding to anyone easily

7

2. Korean Performance Management Process

Objectives

ContentsPeriod

• Achievement

• Something to be desired

• Reasons of decision

- An appraiser conducts frequentexaminations on the work progress of the person to be appraised.

• Every quarter

Basically, record management is appraiser’s responsibility But, staff also needs to manage the record of his work process and result

To record & check the goal achievement degree & process To coach on unsatisfactory aspects & resolve difficulties To make an objective & fair evaluation in reference to the records

2. Korean Performance Management Process

Achievement Appraiser’s reviewGoal

Periodic Performance Record

Duties and responsibilities of office

Check on the goal achievement process (quarterly)

Quarter

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2. Korean Performance Management Process

Concept • To exchange opinions between an appraiser & staffregarding goal setting, progress & evaluation result

Need • To secure fairness in appraisal process

Time

• At the beginning of the year Planning interview • In progress Mid-term review

• Before the final appraisal Final interview

* Distribute various materials(video, brochure) to individual appraiser

10

2. Korean Performance Management Process

G5 & BelowSCS, G4 & Above

Signing of Performance AgreementFocus on Strategic PlanningPerformance Pay accumulated afterward

Setting Performance ObjectivesRegularly manage performance recordOne shot bonus

Promotion Performance-related pay Personnel management

Use of Performance evaluation result

- reassignment, training, low performer management

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3. Evaluation System

Period

Appraisal standard

Method

1) Strategic Planning2) Signing of performance agreement 3) Interim check4) Final evaluation

1.1 ~ 12.31

Achievement degree

Division evaluation result

Job ability

Grade 1(excellent,20%), 2, 3, 4, 5(10%, along with 4)

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3. Evaluation System

PeriodTwice a year (July, January)

Appraisal standard

Method1) Set Performance Objectives2) Regularly manage performance record3) Conduct performance interview and evaluation

1st : 1.1 ~ 6.30 / 2nd : 7.1 ~ 12.31

Work performance

Job ability

Selective item : Attitude, Division evaluation result

4. Performance Related Pay

Annualsalarysystem

Grade 4~9

職責給

Job basedyearly stipend

Fixed yearly stipend

Director level or higher,Contractual service

Performance basedyearly stipend

Seniority-based Payment +

Performance bonus

Political Service

Senior Civil Service

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4. Performance Related Pay

Performance based yearly stipend according to relative evaluation result

Annual salary Allowance+

+Base Annual Salary

Performance-RelatedAnnual Salary

Family support, meal,unused leave compensation, etc.

1) Pay structure

2) Adjustment method of Annual Salary : Accumulated system

(1st year) (2nd year) (3rd year)

Performance-RelatedAnnual Salary (B)

Base Annual Salary(A)

Base Annual Salary

(A) + (B)*α

Performance-RelatedAnnual Salary (C)

Base Annual Salary(A)

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4. Performance Related Pay

< General Service >

(ex) Grade 5 : $ 3,289Grade 7 : $ 2,404 Grade 9 : $ 1,698

< Teacher > (ex) Teacher : $ 2,846

Vice principal : $ 3,223Principal : $ 3,708

1) One shot bonus

2) Standard base salary

3) Performance bonus = Standard base salary Bonus rate

(unit : USD, 1$=1,060 ₩)

Performance grade S A B C

Quota for grade 20% 40% 30% 10%

Bonus rate 172.5% 125% 85% 0%

5. Current Issues

Capability and Performance-oriented

Personnel Management

Plan

(02.Oct.2015)

1

2

3

Strengthening Feedback

for Performance evaluation

Enhancing SCS’s Accountability

Building Infrastructure

for Performance Management

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5. Current Issues

LowestGrade

Evaluation

• MPM provide a guideline for ministries• Policy failure(e.g. Budget waste, social disarray)• Attitude(e.g. passivity), Capacity, Corruption

Dismissalfrom

Positions

• In case SCS’s performance is graded 4(low)-5(lowest)

• In case of issues in Capacity or Attitude, regardless of result of performance evaluation

• MPM develop “Leniency Index” and publish the resultof each ministry.

PerformanceEducation

• Provide special education programme for low performers

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5. Current Issues

< Diagnosis : 3 weeks > (Scope) Leadership, Capability, Speciality, Attitude(Process) In-depth interview(multi-dimensional), Psychological diagnosis

1) Target : Poor performers recommended by Ministries

2) Structure : 12 weeks, by COTI(MPM), Private Institutions, and Ministries

3) Application : Return, Transfer, or Dismissal(after due process)

< Education : 8 weeks > (Stage 1) Attitude Change : Mentoring, Self-reflection programme(Stage 2) Capacity rebuilding : Special programme on Leadership/Capability(Stage 3) Reinforcing Speciality : OJT, Meetings with stakeholders, Self-research

< Evaluation : 1 week >

(Evaluation Board) Senior officer from Ministry/MPM, Programme manager,Coach/Counsellor, and other experts

(Standard) A synthetic evaluation for all related procedures and results

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5. Current Issues

forHigh-performers

• Introduce Fast-track until G5* Special Promotion of two levels (e.g. G7 G5)

• Give Special bonus for top 2%* S+ 9201 > S 6,134 > A 4,445 > B 3,023 > C 0 (KW)

forPoor-performers

• Limit Annual salary increase for 6 months* for the lowest graders

• Provide Capacity Building Programmes

• Increase Competency of Appraisers* mandatory education on performance appraisal for director-to-be.

• Intensify Communication between Appraisers and Staffs* Keep periodic performance record, utilize them on incentives/penalties

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Inchul.SHIN@oecd.org

Thank you