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INTRODUCTION TO BRITISH
ECONOMICS & POLITICS
Steven M WindmillSinobridge
Croydon
February 2012 2
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INTRODUCTION
Steven Windmill TD PhD MBA
Colonel in British Army
Air Assault 9 years
Whitehall / Government level 7 years
Judge since 2004
Professor of Economics & Management
Doctorate in Business Administration
MBA in marketing, finance and strategy
Chairman of several businesses [consulting, recruitment and event management] 7 years heading strategic planning and enterprise support for Training & Enterprise Council
and Business Link
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RESEARCH
Political & Enterprise strategy and research 1994-2003 Over nine years
72,000 chief executives consulted in SE England
96,000 homes visited (16,000 pa)
700,000 firms analyzed
Result investment of 7.2 Billion in enterprise support basedon above research
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OVERVIEW
Britain The Economic Position
British National Government
EU Government
EU IT & New Media Policy
Local City & District Government
City administration system, bodies involved in cityadministration and their responsibilities;
Civil Service: Selection, development, performance
monitoring 5
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ECONOMICS: DATA
Population: 62.69 million
Labour Force: 31.52 million agriculture: 1.4% industry: 18.2%
services: 80.4%
GDP: $2.256 trillion
GDP Growth Q2 2011 0.6%
GDP Forecast 2011-12: 0.7-2.2%
GDP Per Capita: $34,800
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Age Structure 0-14 years: 17.3% (male 5,575,119/female 5,301,301) 15-64 years: 66.2% (male 20,979,401/female 20,500,913) 65 years and over: 16.5% (male 4,564,375/female 5,777,253) (2011 est.)
Unemploymentall: 7.98%
Unemployment, youth ages 15-24: total: 18.86% male: 21.67% female: 15.63% (2009)
Population below poverty line: 14% (2006 est.)
ECONOMICS: DATA
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Economics: GDP Trend
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Economics: Unemployment Trend
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Economics: Unemployment Trend
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STRUCTURE OF THE
CENTRAL GOVERNMENT OF
THE UK
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OVERVIEW OF UK GOVERNMENT
parliamentary democracy
based on universal suffrage()
also a constitutional monarchy
ministers of the Crown govern in the name of theSovereign, who is both Head of State and Head ofthe Government
nowritten constitution
(rely on statute law,
common law and conventions)
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BASIC STRUCTURE OF GOVERNMENT
Monarch
(Sovereign)
Legislature Judiciary
Parliament
House of Lords
Executive
Prime Minister
MPs
Civil Service
House of Lords
House of Commons 13
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MONARCH
The Sovereign: the constitutional headof State
No longer exercises political power, but
performs symbolically:presiding over the State Opening of
Parliament, giving Royal Assent of
agreement to any new law etc. Keeping in touch with the Prime Minister
by a weekly meeting
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LEGISLATURE:
Legislative body: Parliament of Britain
Located in Westminster
Parliament consists of the House ofLords & the House of Commons
Governments policies can becomelaws only if approved by both Houses.
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MAIN FUNCTION OF PARLIAMENT
to pass laws
to provide - by voting for taxation - the meansof carrying out the work of government,
to scrutinise Government policy andadministration, including proposals forexpenditure,
to debate the major issues of the day.
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HOUSE OF LORDS
Members Before the reform:
Composed of hereditary peers, senior
judges and church figures, and somelife peers appointed by the Queen.
After the reform:
Members can no longer inherit theirtitles. More members will be electedthrough the society.
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HOUSE OF LORDS
Function
legislative: taking part in the laws making
Judiciary: the highest court of UK, playingimportant role in judicial part.
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HOUSE OF COMMONS
Members
659 Members of Parliament (MPs),elected by the people from the 659constituencies
Re-elected when a new government isformed.
The chief officer of the House ofCommons is the Speaker, elected byMPs to preside over the House.
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HOUSE OF COMMONS
Power
Most legislative power rests with it.
The leader of the party which has themost MPs becomes the Prime Ministerand selects his Cabinet among MPs.
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HOUSE OF COMMONS
Function
Debating issues of national and internationalimportance.
Supervising Government by questioning.Controlling Government income and
spending
Able to alter or oppose proposed new laws.
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EXECUTIVE
Executive body: the Sovereign, PrimeMinister & Cabinet
Dealing with regular national andinternational affairs
Making decisions of new policies
Supervising departments of the government
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PRIME MINISTER
PM: the leader of the political party which wins themajority of seats in Parliament.
Selecting the cabinet from their own party in the
House of Commons Responsible for the conduct of national affairs
directly
His authority comes from support in the House ofCommons.
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Historical Legacy
The Composition of Parliament Today
Managing the British Parliament
The Legislative Process
Parliament and Finance
Scrutiny and Select Committees
Other Instruments of Parliamentary Scrutiny
Parliament's Role in the Wider Political System 24
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CABINET
Members
consists of about 20 ministers chosen by thePrime Minister Selected by the PrimeMinister
Members of Commons
Sit on the
front benches
in the House ofCommons
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CABINET
Function
It balances ministers' individual duties withtheir collective responsibility as members ofthe Government and takes the final decisionson all government policy.
Cabinet Committees include those dealing
with defence and overseas policy, economicpolicy, home and social affairs, theenvironment, and local government.
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A Constitutional Framework of Executive
Power
Cabinet Government
Institutional Support for the Cabinet and
Prime Minister
Ministers and Departments
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CIVIL SERVICE
Servants of the CrownNon-political groupCareer officials who remain in
office despite changes ingovernmentOffering advice about the
possible consequences of
policyResponsible for implementing
the policies of Government
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JUDICIARY
The House of Lords is the ultimate appeal court inthe UK
The Secretary of State for Constitutional Affairs and
Lord Chancellor heads the judiciary and sits on thejudicial committee of the House of Lords. He alsopresides over the upper House in its law-makingrole and, as a senior Cabinet minister, heads the
Department of Constitutional Affairs.
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The Court Structure
The Police
The Military
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Changing Expectations and Values
Parliament
Tribunals
Inquiries
The Role of Ombudsmen
Administrative Law and Judicial Review
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A Changing Society
The New Labour Ascendancy
Constitutional Reform
The Impact of Europe
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THE CHARACTER OF THE MODERN BRITISH STATE
The Growth of theState
The Multiple
Dimensions ofGovernmentalActivity
ExplainingGovernmentalGrowth
An Overview of theModern British State
European? 33
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Scotland
Wales
Northern Ireland
SE & SW
London
East & West Midlands
Yorks & Humberside
NE & NW
East of England
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( ) y
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UK local government
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UK local government
Since the Local Government Act1972
was enacted, UK local government hasevolved. Especially in England and Wales,
local government system is quite similar. But
there are still a little difference in Scotland and
Northern Ireland.
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Type Quantity Remarks
Traditional type
County Councils 34two-tier
District Councils 238 Belong to county council
Unitary Local Authority
English Unitary
Governments46 Some of local governments
single-tierWalsh UnitaryGovernments 22
Scottish UnitaryGovernments 32
Northern IrelandCouncils 26
Metropolitan Councils 36 Such as Liverpool
London Borough Councils 32
London Corporation Council 1
Total 467
Type of UK local governments
UK local government
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Area Quantity Remarks
England
&Wales
47 County Councils
333 District Councils
11000 Parish Councils and Town Councils
36 Metropolitan Councils
32 London Borough Councils
1London Corporation Council
Scotland
9 Regional Councils
53 District Councils
1350 Town Councils and
3 Islands Councils
Northern Ireland 26 District Councils
UK local government
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Survey of UK local government
The core of UK local government is local elected
council. County Councils or District Councils are called
principal local authorities.
Survey of UK local government
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localelected
council
UK local government Structure
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Finance of local government
rate support grant RSG
National non-domestic rates
council tax
various feeLocal government revenue sources
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Finance of local government
UK central government every year distributes rate
support grant, providing support to carry out the duty of local
government. It can be used for any fields of local governmentoperation.
rate support grant
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Finance of local government
National non-domestic rate is based on value of
commerce and industry. Central government determines the
standard rate and levy in whole country and then distribute to
local governments according to their number of people.
National non-domestic rate
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Finance of local government
Council tax is the only tax levied by local government.
But before 1998, the upper limit of council tax was decided
by Parliament, and local government has no rights to excess it.
Recently the situation become flexible and local government
still struggle for more rights on council tax.
Council tax
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Finance of local government
Local government can also raise money in money market,
but it must be approved by the responsible minister or is
limited in the credit line that decided by central government.
Councils can also raise income through charges
for instance,
charges for some refuse collection services or leisure services.
various fee
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Most of the money of local government is used for
education, housing, road, social services, police, law and
order, environment, culture and entertainment. All of
expenditure cannot be over 7.9% of GDP. According tothe law local government is not allowed to have budget
deficit.
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CIVIL SERVICE HR
Building the Civil Service HR Talent Pipeline
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VISION
To build a strong, vibrant HR Community, that has a well-deserved
reputation for performance and for professional development, and thatattracts people with talent and ambition.
Will be:
business focused, delivering the business plan for our customers smaller, professional and more flexible
In demand - the best HR function in Britain
Innovative, enabling change
self sufficient with succession plans and an internal talent pipeline in place
for senior and key HR roles
Will work with customers to ensure:
they have the skills they need to deliver strong organisational performance
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HR TALENT MANAGEMENT PRINCIPLES(c) Steven Windmill February 2012
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HR TALENT MANAGEMENT PRINCIPLES
Attract By 2012 we will fill an increasing number of critical HR roles with internally developed talent
When we recruit into G7 and above, we will join up across the Civil Service through a strategic resourcing plan and ensurewe identify talent together, rather than solely recruit for individual roles
We will continue to bring in external talent to bring new ideas and experiences and to benchmark internal talent; to
address short supply capability areas, to refresh the profession; and to increase supply at entry level We will continue to provide talent development programmes for graduates who have the potential to become HR future leaders
Identify Potential is not just about those who can reach the very top. We will recognise expert talent in short supply HR capabilityareas as well as current and future HR leadership talent.
We will use and adapt the systems and processes from the HR Talent Reviews and align with departmental and CabinetOffice systems such as those for succession planning and talent
Civil Service HR Operations, Departments, and HR directors will work together to assess HR talent
The process will be transparent with line managers holding open and honest conversations with individuals at all levels of
the organisationDevelop We will actively manage people within the HR talent pipeline as a partnership between the individual, the department,
and Civil Service HR. Action will be on a prioritised basis and self-management of career will still apply withopportunities for development
An increasing number of critical HR roles will be filled by internally grown talent, and we will prepare and position ourinternal people to be the best candidates on merit.
Deploy In determining assignments we will focus on our most talented people to stretch them, and actively encourage individuals
to work across government. Together, Civil Service HR Operations and HR Directors will more actively manage, develop and broker moves for those
who are in the talent pipeline
HR talent belongs to Civil Service HR rather than individual managers or departments
We will recruit using the Civil Service HR Professional Standards, the Professional Skills for Government Core Skills, andthe Leadership Framework
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THE INDIVIDUALS RESPONSIBILITY
Pushes self to
develop andgrow
Finds opportunities to learnand knows andmanages own limitations
Is ambitious to advanceand develop owncareer; is careerfocussed and iscomfortable with the lifechoices this mayinvolve
Is aware of ownstrengths andweaknesses, is awareof knowledge gaps,and is prepared to askquestions and listen
Looks for opportunities to develop;thrives on challenges even if they areoutside comfort zones
Learns how to bestdeploy strengths andmanage weaknesses
Is receptive to newideas and feedback;has the courage totry somethingdifferent and adapt
style and approachif that doesnt work
Acts on insights gained and hasan outward focus, rather thanconcentrating on lengthy self-focussed introspection
Proactively take up opportunities to develop performance, knowledge,skills and experience in line with career goals
Sets self ambitious targets for growthand development, aspires to moresenior positions
Knows how to make themost effective use ofthe available supportand learning
opportunities, alsoseeks out mentors andchampions that canhelp
Identifies and helpsdevelop potentialsuccessors to own postbefore moving on
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THE CIVIL SERVICE HR SENIOR TALENT FORUM
Purpose To develop and prioritise actions for our most talented people
To have oversight of the critical HRSCS roles and agree a resourcingapproach for any critical HRSCS role vacancies
To have control over HRSCS appointments in all departments acrossgovernment
To succession plan for the critical HRSCS roles
To partner with individuals and departments to manage moves whereappropriate.
To partner with individuals and departments to develop people in the HRtalent pipeline and prepare them for future roles
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TRAINING & DEVELOPING CIVIL
SERVANTS
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EMERGENCE OF PERFORMANCE MANAGEMENT
Performance management has preoccupiedOECD since 1980s reasons are:Need to control public expenditure
Esure efficient and effective use of resourcesRising expectations of public
Increasing competition from private sector
Results culture
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NEW MANAGEMENT SYSTEMS
Results based budgeting
Human resource management
Competency management
Performance indicators
Staff evaluation
Continuing professional development
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WHAT IS PERFORMANCE MANAGEMENT?
A system for managing organisationalperformance
A system for managing employee
performance
A system for integrating the management oforganisational and employee performance
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A SYSTEM FOR MANAGING ORGANISATIONAL
PERFORMANCE
A rational approach involving:
Mission statements which set out the aims and values of theorganisation
Corporate plans which set out the goals and objectives ofthe organisation
Business plans which set out specific plans, budgets , targets
and standards of performance for each part of theorganisation
All 3 are regularly and systematically reviewed
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A SYSTEM FOR MANAGING EMPLOYEE
PERFORMANCE
Planning and setting key results areas, includingperformance targets, behaviour outputs and criteria formeasurement
Monitoring behaviour and objectives reinforcing
desired behaviour and redirecting inappropriatebehaviour
Appraising
Training and development, rewards
Re-planning
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Selection Performance
Rewards
Appraisal
DevelopmentThe human resource management cycle
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OF ORGANISATIONAL AND EMPLOYEE
PERFORMANCE
This rests upon the assumption that the interestsof the organisation and employees arecomplementary and compatible
It also assumes an integrated approach to strategicmanagement in which strategic HRM is integratedboth horizontally and vertically as part of businessplanning and in turn all aspects of human
resourcing are linked i.e. recruitment, rewards,training and development
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PERFORMANCE MANAGEMENT SYSTEM
Planning
Performanc
e objectives
and targets
Identifying
behaviour
Providingdirection
Managing
Monitoring
behaviour &
objectives
Reinforcing
through rewards
Providingcontrol
Appraising
Formal appraisal
PerformanceTraining &
Developing
Determine
rewards
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TYPES OF APPRAISAL
Top-down appraisal
Self-appraisal
Peer appraisal
Upward appraisal
360 degree appraisal
See handout for problems associated withappraisal
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REWARDING PERFORMANCE
Multiple functions of reward systems
Types of reward systems intrinsic, extrinsic,unconditional, conditional
Old pay- new pay
Throughout OECD move to New Pay
PRP, market led.
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PERFORMANCE MANAGEMENT IN THE BRITISH
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PERFORMANCE MANAGEMENT IN THE BRITISH
CIVIL SERVICE 1
Staff appraisal is not new to the civil service.Staff appraisal is an integral element ofmanaging staff and deciding on promotion anddevelopment. But traditionally top down
reporting by managers until 1970s Current systems of staff appraisal date from the
introduction of NPM post 1979 with its resultsoriented approach to managing public services
rationalistic, economistic and generic.
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remains central to New Labour policies forreforming public services since 1997. Set outclearly in the Modernizing GovernmentWhitePaper 1999, Reform of the Civil ServiceWilson
Report 1999, Vision of the Civil service for the21stCentury Turnbull 2004. ODonnells Vision 4 Ps pride, pace, passion, professionalism
Performance management is critical it is argued
to creating a high performance culture,continuous improvement and total quality
PERFORMANCE MANAGEMENT IN THE BRITISH
CIVIL SERVICE 1
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THE CIVIL SERVICE IN GENERAL
All departments and agencies have their own systemsof performance management and staff appraisal
There are around 100 departments and agencies withdevolved responsibilities for HRM including pay
Pay is determined by collective bargaining and there aresome 90 bargaining units
Variations are limited by overall guidance andcoordination by the Cabinet Office( central departmentfor HRM and overall management of the service). Alsothe Management Code sets down procedures and rightsetc of civil servants.
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PERFORMANCE MANAGEMENT IN THE SCS
The SCS consists of the top 3,700 civil servants found in alldepartments and large agencies. Managed by cabinet office.The system enables leaders to :
Focus individual performance & development on the delivery ofstrategic business priorities
Motivate people to give of their best
Support and inform succession planning, career and personaldevelopment
Provide capability - knowledge, expertise, experience
A basis for continuous improvement, sustaining contribution andsetting examples for all employees
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PERFORMANCE MANAGEMENT SYSTEM IN THE
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PERFORMANCE MANAGEMENT SYSTEM IN THE
SCS
All SCS have a job description which is normallylinked to a 4 year contract
performance year runs April to March
Performance agreement contains up to 4 businessobjectives or targets (SMART)
It also defines how the job is to be performed. Itidentifies key competencies, standards andbehaviours
In year performance reviews evaluate progress
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END YEAR PERFORMANCE REVIEW
Records achievements against objectives, overallcontribution, growth in skills and leadershipcompetence based on evidence from jobholder and360% appraisal (line manager gathers this
feedback)
Indicates whether there is need for a personalperformance improvement plan (PPIP)
Separately makes recommendations on pay andbonus and information for succession planning
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FURTHER ACTION
Within a month of the review individual and managershould meet to discuss and prepare a personaldevelopment plan
Regular development reviews cover both short-termand longer-term development including specificfeedback against SCS competencies and 360%feedback
Line managers can draw up performance improvementplans which indicate actions, measures, timescales andconsequences. PPIPs apply to lowest 20% ofperformers who are normally in the bottom tranche ofthe pay recommendation group
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SCS REWARDS
The SCS Pay system is a simple broad band structureunderpinned by a tailored JESP scheme/ senior posts
Most departments use 3 pay bands but some use 4 .
The SSRB (Senior Salaries Review Body) recommends
the level of uplift to the bands and progression targetsand also base pay and minimum bonus payments
Bonuses are non-consolidates payments rewardingdelivery of personal objectives.
Managers make recommendations on eligibility andlevel of bonus
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BASE PAY
Increases in Base salary recognises how the job hasbeen done as well as what has been achieved
End year managers make recommendations allocatingstaff to one of 3 tranches
Top tranche top 25% Middle tranche 65-70% contributed well and delivered
effectively
Bottom tranche 5-10% contributed least compared totheir peers
Departmental moderation committees endorse andauthorise pay rises and ensure consistency across thedepartments
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ISSUES
The system was introduced 2001early problems Difficulty for line managers in clarifying objectives and
behavioural outcomes
The appraisal forms were complicated
Staff did not understand the new pay system Lack of transparency
Concern about bias by line managers and theimpartiality of departmental pay committees
What to do with poor performers Unfairness
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10 YEARS ON - 2011
Improvement in recording systems now simplifiedand more dialogue, less forms
Research into causes of poor performance and
now guidelines for line managers to follow Latest staff surveys and evidence to SSRB
indicates higher levels of satisfaction
Latest report of Cabinet Office to SSRB indicates
evaluation generally positive
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SCS COMPETENCY FRAMEWORK
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SCS COMPETENCY FRAMEWORK
LEADERSHIP FOR RESULTS
Giving purpose and direction- creating andcommunication a vision of the future
Making a personal impact- leading by example
Thinking strategically- harnessing ideas and
opportunities to achieve goals Getting the best from peoplemotivating and
developing to achieve high performance
Learning and improving drawing on experience andideas to improve results
Focusing on delivery achieving value for money andresults
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DEVELOPMENTS IN THE SCS
Revision of the competency framework Introduction of professional skills for government
By June 2006 95% of SCS members had developmentplans in place linked to PSG
September 2012 95% of SCS will demonstratecompetence in 6 key skill areas, which are (i)people management
(ii) financial management,
(iii) analysis and use of evidence,
(iv) project and programme management (v) strategic thinking
(vi) communication and marketing
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NEW SCHOOL OF GOVERNMENT
The school will provide specialist courses in all areas ofthe new PSG structure and in particular courses inleadership training to achieve :
Visible leaders who inspire trust
Focus on strategic outcomes Take personal responsibility for delivering results
Work across traditional boundaries
Match resources to business priorities
Honest, courageous and realistic with staff andMinisters
Life long learner
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QUESTIONS