Civil Service Legislation, Systems and ReformsAustralian Public Service

Mike JonesSenior Executive AdvisorAustralian Public Service CommissionJakarta

1. Australia: federal system of government

3 tiers of government• Federal• State• Local

Federal• Australian Public Service - 146,000 staff• other statutory & business agencies – 84,000

APS• central government• policy, regulatory, program delivery and funding roles• Canberra (central), state and regional offices

2. Australian Public Service Commission

The Commission is a central agency within the APS with a critical

leadership role in contributing to the future capability and

sustainability of the Service.

Roles

• workforce & employment policy

• public sector research & evaluation

• ethics advice & case work (advisor & review)

• strategic HR consultancy services

• leadership & development programs

MenPAN + BKN + LAN in a devolved environment.

3. Reforms

Towards a high performing national public service• efficient, effective and ethical services to community• 30 years of reform and continuing

Reform principles• increased responsiveness to Government• improved efficiency, effectiveness, devolution and results• performance within a distinctive ‘ps’ ethical framework• private sector standards to apply• greater community participation in Government

4. Major Reforms

• financial management• people management• transparency and accountability• government decision making

5. Financial management reforms

• open economy / floating of A$ in 1983• financial management improvement program 1984: let the

managers manage• rise of economic rationalists in the bureaucracy• program budgets – medium term estimates, operating cost

flexibility, programme evaluations• devolved & flexible budgets• efficiency dividends• accrual-based outcome budgets 2000 – output and outcome

performance information and reporting• superannuation / pensions (defined benefit to defined

contribution to choice)

6. People management & employment conditions reforms

• open & competitive recruitment and staff selection • redeployment and retirement legislation 1979• Senior Executive Service 1984• simplified classification system 1987• performance pay for SES and middle managers 1992• productivity based centralised workplace agreement 1992• fixed term appointments for CEOs 1994• AWAs and agency workplace agreements 1997• values based legislation 1999• CEO as employer 1999• flexible terms and conditions of employment within budget

(including classifications and pay)• preference for collective rather than individual agreements 2007

7. Transparency & public accountability reforms

• Ombudsman Act 1976• Administrative Decisions (Judicial Review) Act 1977• Freedom of Information Act 1982• increased Parliamentary scrutiny of budget management and

agency performance• Efficiency Scrutiny Unit 1986• Public Service Board replaced by small Commission 1987• devolution of people management to agencies• programme audits by Auditor-General• Management Advisory Committee 1987 & 1999• customer service standards and charters• Centrelink: one stop shop• private sector competition in service delivery

8. Government decision making reforms

• Cabinet and coordination processes strengthened and streamlined

• cross portfolio problems – use of taskforces• strengthened governance of statutory bodies and reduced

number

9. APS reforms: some progress

From To• process & inputs account for outputs &

outcomes• distinctive ‘ps’ approach private sector & ‘ps’ values• near-monopoly of policy advice competition in policy

advice & service delivery• mostly male diverse workforce• secure employment flexible employment,

redundancy & outsourcing

• relatively closed employment open competitive system• central control of personnel devolution of personnel• decentralised budgets• information & review for

citizens

10. Reform outlook

Reform is a continuous process: work in progress

Enhanced capacity to:• work across agencies• work across different levels of government• work across sectors (voluntary, private, academic) • respond to community needs flexibly / simplify access• integrated response to national challenges

11. APS legislation framework

Public Service Act 1999

Jurisdiction

• central APS, including audit agency

• not Prime Minister, ministers, members of parliament, ministerial & parliamentary staff, GBEs, judges, military, police, teachers, state government or local administration

Nature of legislation

• principles and professional standards

• authorize regulations, directions, procedures, delegations & actions

• no detailed procedures

• devolved responsibility / strong accountability

12. APS legislation framework

Structure • PS Act, regulations, Prime Minister’s Directions, Public Service Commissioner Directions,

Agency Head procedures

Coverage of legislation• APS as an institution• values and code of conduct (incl, conflict of interest)• merit• role of Public Service Commissioner• role of Agency Heads, including as employer• role of senior executive service• responsibilities of individual public servants• engagement & staff selection• authorize classification, remuneration & conditions• termination, retirement• review of some actions• Management Advisory Committee

Not much detail

13. HRM system: position based

• entry at any level against specified job criteria• 95+% of all jobs advertised as open• open competitive merit staff selection system• recruitment and staff selection fully devolved to agencies• agencies responsible for organizational structures• no prescribed training / some quals in professional jobs• prescribed skills and competencies in job criteria• agencies fund training• APSC role as commercial training provider• performance management: agencies, CEOs & staff

14. HRM system: grading

• single 12 level classification spine for reference purposes• individual agency classification structures• only barriers to jobs are skills and qualification requirements, eg

management ability, law degree for lawyers• agencies determine staff numbers against business needs (no

multiplier formulae !)• broad banding• multi-skilling

15. HRM system: remuneration & financing

APS staff• primarily salary / generally performance based• agencies determine salaries & allowances• agency agreements: pay, conditions & productivity• individual remuneration: senior staff• about 1:12 ratio between bottom and top jobs• salary advancement based on performance (agency & staff)• agencies manage salary budgets

“a janitor will not earn more than the Prime Minister, but a small number of agency heads do”

• moderating influences: agency budgets, reporting to parliament & committee appearances, comparative remuneration surveys & reporting, productivity gains, supply & demand

• but no standardization & considerable variation

16. HRM system: elected officials & public office holders

A word on elected officials, public office holders, etc• Remuneration Tribunal• public processes and published pay & conditions• surveys, submissions, hearings

17. HRM system: public service pensions

• defined benefits (closed, but grand parented)• defined contributions• choice• community standard• pension as % of salary (salary = bulk of remuneration, apart

from lease vehicle & very minor allowances)• defined benefits legacy partly funded from sale of the telephone

company• separate schemes for elected officials and state employees• pension managed by a statutory body

18. HRM system: payroll & HRIS

• agencies choose & manage payroll & HRIS• payroll & HRIS usually outsourced• centrally determined date available from all significant HRIS• data harvested from agency HRIS for whole-of-system reporting

& analysis (SOS report)• only collect data that is used• agencies can access comparative reports from central agency

19. Conclusions

• different strokes for different folks• our system is a product of our experience, context and reform

history• this is a point in time description: evolution is continuous• learn from each others experience• study, select, adopt and adapt