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Better HR Practices in Victorian Public Sector Organisations Report
August 2003
Executive summary
This report describes the better HR practices in the Victorian Public Sector that were identified by PricewaterhouseCoopers in the course of a study of 15 medium to large Victorian Public Sector enterprises, as engaged by the Office of Public Employment (OPE), between June and August 2003. The project sought to review not only the HR practices of the organisations involved, but also to: consider the role of the HR function within the organisation, particularly in relation to strategic aspects; and understand the level of influence of the Victorian Public Sector Employment and Conduct principles on the HR policy-making processes and the practical application of the organisations HR policies. In examining the role of the HR function, we utilised Ulrichs widely acclaimed framework which categorises the differing roles of the function in terms of employee champion, strategic partner, change agent and administrative expert. Within the organisations reviewed, HR commonly fulfilled the role of administrative expert and employee champion well. Our review suggested that although there is a significant level of awareness of the potential for HR to undertake strategic partnering and change agent roles in organisations, most HR functions within the organisations did not fulfil these roles to a significant extent. Despite the diverse nature of the sample organisations, the review uncovered some common themes and findings which are outlined below: 1. An excellent range of HR programs are offered by organisations. These tend to be well communicated and highly formalised in policy. In particular, there were highly evolved work/life balance programs, recognition programs, recruitment and promotion policies and leadership programs. In addition, the legislative and other obligations of the sample organisations have ensured that OH&S, and anti-bullying and harassment programs are well entrenched in most organisations. 2. There is a high level of awareness of the public sector employment and conduct principles (the Principles) across most organisations. While employees may not be consciously aware of them, they generally underpin the stated values of the organisations. Also, while different words may have been used, the concepts were commonly raised in the focus groups. 3. Each of the twelve organisations that participated in the benchmarking survey had an official written HR strategy. A number of these have been developed by HR in close collaboration with other parts of the organisation in order to ensure that the HR strategy engages with the rest of the organisation. The better HR strategies clearly allocate responsibilities, introduce measures to indicate success and link with the organisations strategic objectives. 4. Consistent with emerging best practice in HR, people management activities are often devolved to other areas of the organisation within the framework of policies developed by HR. While in some organisations this was supported with appropriate management development initiatives, in other organisations there was a lack of training in relation to people management skills. It was often stated in focus groups that the implementation of policies and procedures depends on the manager. As the role of the manager evolves and increasingly expands into people management areas, these employees should be supported by HR on an ongoing basis and such support should be easily obtainable during the transition period with an increased emphasis on how managers do their job, not just what they do.

Executive summary (continued)

5. There were significant variations in relation to how the HR departments are structured and their level of influence on the senior leadership team, the strategic direction of the organisation, and other managers and employees. Generally speaking, the HR functions in the sample organisations have the greatest influence where the head of HR is a member of the senior leadership team and the HR function is clearly visible to managers and employees within the business units. Ideally, this would be achieved through an embedded HR specialist in the business unit who supports the managers in their people management roles. 6. Excluding those employees at the senior levels of the organisations, there appears to be confusion surrounding the definition of an individuals level of performance (that is how exceptional, good and acceptable performances are distinguished) and how this interacts with poor performance issues. This confusion, in some instances, has translated into managers appearing reluctant to address underperformance issues and a lack of ongoing constructive feedback from line managers (this was noted in most focus groups). Furthermore, while some organisations have developed excellent performance management programs, their implementation has not always been successful and adherence to them is not consistently monitored. 7. Budget constraints were noted by most organisations. In particular, it appeared that employees are often able to complete only compliance-related training (rather than further development and education) due to budget constraints. The results of our benchmarking survey suggest that there is a significant variation in the HR spend per employee between the responding organisations. 8. The level of training available to employees in many organisations is significantly lower than the level of training provided to employees in private sector organisations. Some organisations have successfully addressed this issue by undertaking workplace training qualifications themselves and providing more training in-house. However, employees from many organisations are concerned that the training provided to them is limited to the technical skills considered essential to their roles rather than professional development (e.g. softer skills). 9. It was noted that the legislative, political and historical frameworks make it difficult to achieve best practice HRM due to the public sector culture constraints and the fishbowl environment. For example, managers in the focus groups often expressed feeling wary of rewarding staff under recognition programs due to a fear of being seen to misuse public funds. A similar attitude was observed in relation to some recruitment practices (for example, whether these fair and merit based recruitment processes ultimately lead to the best overall result , especially where there was an obvious successor at hand who had earned the role). These issues seem to be more likely to arise in organisations that are closer to the core of government (that is, government departments). Our review did not indicate definitively whether this perception is the result of structural or cultural characteristics of the organisations. Our view is that, generally, such constraints are likely exist due to organisational culture, rather than specific legislative frameworks.

Executive summary (continued)

10. Many organisations have recently adopted new leadership programs which are, in comparison with the past, more focused on the rising talent within the organisation rather than only the existing leadership. We consider many of these programs to be approaching best practice and place these organisations in an excellent position to meet their strategic HR objectives in the medium to longer term. These programs were often raised during the focus groups as positive examples of development opportunities. However, interestingly, the discussion of the programs also caused some confusion as to which employees were able to benefit from them (this may link back to the earlier points surrounding the discussions on individual performance). 11 Despite highly formalised policies in relation to recruitment and selection processes, many employees in focus groups expressed a view that sometimes these procedures are only followed technically and that the results of some recruitment and promotional opportunities are predetermined by the responsible manager. However, we did not investigate whether this actually occurred or was based on perceptions only.


Introduction

Aims and scope of the study

This project was commissioned by OPE to assist with the achievement of its goal of providing quality, robust and useful information to the Victorian public sector with regard to the best HRM practices currently in place to support the public sector employment and conduct principles. OPEs requirements for the project were that it: provide an intellectual framework which is tailored for the specific environment of the public sector; give OPE (and the sample organisations) access to best practice Australian and international HRM benchmarking in the public and private sectors; allow OPE (and the sample organisations) to work collaboratively with the external provider (PricewaterhouseCoopers) to determine and use the most robust and effective approach; and is managed in such a way as to facilitate a transfer of knowledge and the details of the framework to OPE staff in order to roll out this or a similar program to the broader public sector. The project incorporated an examination of existing material collected by OPE as well as site visits to each of the sample organisations. Our review did not specifically focus on: the specific competencies of HR staff; organisational data relating to the performance of the HR function and staff; or the level of efficiency of sample organisations HR administrative processes. Rather, our focus was on the policies and procedures that reflect the values inherent in the Employment and Conduct Principles in place in each organisation.

Methodology
Stage One Preparation and framework finalisation Following the selection of a representative sample group of fifteen Victorian public sector entities to participate in the project, PricewaterhouseCoopers established a tailored framework based on theoretical models (in conjunction with the reference group) to assist in the identification of best HRM practices in each organisation. The reference group consisted of three representatives from the 15 sample organisations, the Commissioner, Assistant Commissioner and the project manager from the Office of Public Employment. The construction of the framework took into account: a review of information previously obtained by OPE; and PricewaterhouseCoopers proprietary data from global sources. Relying on these sources, an analysis of the extent to which the differences between the environments of public and private sector organisations impact on the role of the human resource management function was undertaken. Following this, the PricewaterhouseCoopers project team performed site visits to each of the sample organisation. These entailed interviews with key senior executives and members of the human resource function and a focus group with a cross-section of employees. The focus groups were a vital part of the methodology as it enabled PwC to gain a better understanding of the extent to which practices and policies were embedded within the organisation and were valued by employees. It was the employee perceptions of these HR policies and practices which, to a large extent, informed the identification of the better practices for this report. PricewaterhouseCoopers also provided each of the sample organisations with an HR benchmarking survey in order to perform an analysis of quantitative data. In addition, the sample organisation data was analysed and compared against Australasian data (all sectors) and Global data (public sector).
Stage Two Data collection and analysis PricewaterhouseCoopers conducted research into the background and operations of each member of the sample group with the objective of: establishing a broad understanding of the legislative framework within which each of the sample organisations operates; compiling summary data from the existing OPE sources in relation to each of the samples organisations; and highlighting initial areas to examine in each sample organisation.
Stage Three Draft report and feedback A draft report was compiled to address the terms of reference outlined in the original request for quotation and feedback sessions were arranged at which PricewaterhouseCoopers communicated relevant review findings to the sample organisations and invited their response.

Methodology (continued)
Stage Four Final report and presentation Using data collected at the feedback sessions in stage three and the draft report, a final project report was compiled for presentation to OPE. As part of the delivery of the final report to OPE, PricewaterhouseCoopers facilitated a knowledge sharing session which comprised: an outline of the key findings of the project; a review of PricewaterhouseCoopers major recommendations for future initiatives by OPE in relation to better HRM practices as they relate to the public sector principles (and other aspects); and a recommended model for OPE to extend the research to other organisations.


Section I
Findings and Analysis
- HR strategy - Role of HR - Structure of the HR function - Prescription and devolution of HR practice

HR strategy
General observations Most of the sample organisations take a strategic planning approach to determining HR programs and activities. This was demonstrated by the fact that all sample organisations have documented HR plans in place, with the majority of HR plans identifying actions, deliverables and timeframes, and assigning responsibilities for carrying out HR strategies. However, the level of clarity and succinctness of HR plans varied considerably, with plans that were clearer and more succinct generally being more effective in communicating how HR intends to add strategic value to the organisation. Some of the HR plans of sample organisations (54 percent) identify objectives that perceptibly support and align to organisation strategy, and 53 percent were strongly or somewhat based on organisation competency or values frameworks. Greater alignment of HR strategy to organisation strategy tended to reflect the quality or importance of strategic planning at an organisation level, with some organisations commenting that any lack of strategic approach by HR was due to a lack of a strategic planning approach organisation-wide. Another factor impacting on the alignment of HR and organisation strategy was the proximity of the head of HR to the chief executive and/or whether the head of HR sat on the most senior executive team. These issues are discussed further under the section, Structure of the HR function. Only a few organisations demonstrated a fully inclusive approach to developing HR strategies. Those that did applied approaches that ranged from discussing the issues important to executive and other management staff in the organisation, to workshopping issues with a cross section of staff. In developing its new strategic directions document, Gordon Institute of TAFE had consulted 90 people at the time of our discussions with them and was planning to also incorporate input from a range of external stakeholders. This approach increases the likelihood of success of new strategies as employee and other stakeholder buy-in is obtained prior to their introduction. Better HR practices VicRoads VicRoads adopted an innovative process to develop and implement the people strategies for the organisation. Prominent aspects of the process included a high level of engagement and involvement of management across different parts of the business to develop and implement people initiatives. The planning process culminated in the succinct and pragmatic document entitled Great People Smart Services 2002-2004. This planning document clearly allocates actions between HR and executive and line management, demonstrates an alignment of people strategies to the business needs and issues, and identifies measurable success indicators to determine whether or not objectives under the plan have been achieved. Department of Treasury and Finance Nine behavioural accountabilities form the foundation of DTFs HR strategy, with the behaviours underpinning many peoplerelated programs and activities. The behaviours identified under DTFs Behavioural Accountabilities Framework are intended to support the articulation of the vision and aspirations for the organisation, and form the basis
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HR strategy (continued)
of key HR programs such as leadership and development, performance management, attraction and retention, and leadership. DTF consulted with approximately 100 staff in order to determine the behaviours which would be most suitable for the organisation. Focus group participants commented that in a relatively short time DTF has been effective in beginning to embed the behavioural accountabilities in the language of staff, resulting in a shift in the culture and typical behaviours seen throughout the organisation. HR Benchmark Data
100 percent of Victorian Public Sector participants in the HR benchmarking survey have an HR strategy that exists in an official written document. This is greater than for all Australasian respondents with 75% having an official HR strategy document, and the Global Public Sector respondents, with 71% having an official HR strategy document. The majority of HR plans for Victorian Public Sector respondents span a 2-3 year timeframe (75%). Two Victorian Public Sector respondent organisations have an HR plan that span a 1-year timeframe; one Public Sector respondents plan spanned longer than 5 years. 100% of Victorian Public Sector respondents were either very satisfied or reasonably satisfied with the influence of HR on the organisation strategy. Again, this is higher than for all Australasian respondents (with 96% being very or reasonably satisfied) and for Global Public Sector respondents (with 88% being very or reasonably satisfied).
Northeast Health The Northeast Health HR Strategic Directions Plan 2002/2003 provides a clear example of a HR plan that aligns to organisation strategy. The four key objectives outlined in the 2002/2003 HR plan mirror those in the organisations Strategic Plan & Values Statement 2002-2005. The HR plan is also very succinct (as is the organisations strategic plan) while outlining activities to support the achievement of objectives, outcomes, responsibilities, targeted completion dates, and progress against targets.

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Role of HR
General observations Role framework A widely used framework commonly used to describe the various roles that HR can play within an organisation is described by Dave Ulrich in his book, Human Resource Champions. This framework is outlined below.
Strategic partner - As a strategic partner, HR participates in the process of defining organisation strategy and supports the achievement of organisation-wide strategic objectives by identifying and designing strategically-aligned HR practices. In the public sector, this may equate to designing cost-effective HR programs that support the delivery of government policy and directives and the meeting of customer needs. Employee champion - As an employee champion, HR increases organisation success by working to optimise the contribution of employees through enhancing employee commitment and competence. To do this, HR needs to understand the people, communities and cultures within the organisation, and devise HR practices that address the issues that arise from these. HR also needs to seek continually to understand the issues of importance to employees as well as their needs and concerns, and ensure that they are effectively addressed. Change agent - As a change agent, HR helps to identify and implement processes to support organisation change while also facilitating and improving the organisations capacity for change. HR does this by continually identifying, framing and solving problems, proactively managing organisation culture and promoting cultural change. Administrative expert - As an administrative expert, HR delivers efficient and cost-effective processes for managing staff, often looking to be able to do more with less. To be effective as administrative experts, HR professionals need to undertake activities leading to continual reengineering of the work processes they administer.
Ideally, HR should play an holistic business partner role by carrying out the multiple roles in order to maximise the impact of HR on the business. Employee champion In terms of the Ulrich framework, the participant organisations were strongest in the role of employee champion. All of the sample organisations displayed a strong focus on supporting the rights and needs of employee. This focus was evidenced by rigorous and innovative policies and programs in the areas of occupational health and safety, grievances, work-life balance, diversity, and employee assistance (amongst others). The high level attention given by HR to the rights and needs of employees and the need to provide fair and reasonable treatment seems to be influenced by factors such as the high degree of unionisation and union involvement in sample organisations, the fishbowl aspect of the public sector resulting in a concern around being seen to be doing the right thing, and a focus in legislation (such as in the form of the employment principles set out by the Public Sector Management and Employment Act) on employee rights. However, in some focus groups employees expressed a desire to be better understood by HR. Aspects limiting HRs capacity for a greater understanding of employees included a limited ability for regular face-to-face contact with staff. This may be due to insufficient numbers of HR staff, HR structures that centralise HR staff and limit the connection to the business units, a disconnect between the working hours of HR and other staff (e.g. where there are high numbers of shift workers), and the location of employees over a large geographical area.

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Role of HR (continued)
HR benchmark data HR benchmarking data (number of HR staff (FTE) by HR process) indicates that Victorian public Sector organisations spend a significantly greater amount of time on employee issues such as:
Strategic partner HR and senior executives in many sample organisations demonstrated an awareness of the strategic partner role and expressed a strong desire to increase the capacity of HR to play this role. However, few organisations indicated that HR has already achieved (or are close to achieving) their potential as strategic partners in the organisation. Organisations that were moving towards the strategic partner role typically had heads of HR with a strong strategic mindset coupled with a chief executive who has a good understanding of HR practice and who understands the value of HR in terms of its actual and potential contribution to the organisation. Aspects limiting the ability of HR in sample organisations to carry out the strategic partner role include a need to catch up on more basic aspects of HR (e.g. in providing or improving the standard of necessary HR processes and programs), resulting in a lack of time or resources to focus on creating a more strategic approach to the HR and people management capabilities within their organisational management population. Other limiting factors include a lack of effectiveness of organisation-wide strategic planning processes, a generalist mindset adopted by the head of HR, and a lack of proximity of the head of HR to the leadership of the organisation.
Victorian public sector Health and safety Training planning, admin and delivery Employee counselling 16%
Australasia all sectors 8%
Global public sector 5%
17%
14%
14%
4%
2%
1%
HR benchmarking data HR benchmarking data indicates that Public Sector respondents apply approximately 12% of HR staff time on HR strategy. This is very similar to the Global Public Sector (13%), but significantly less than Australasian respondents (21%).

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Change agent Few HR functions sample organisations demonstrated effectiveness as change agents. HR generally plays a limited role in promoting or directing change in the sample organisations, while the level of support for organisational change provided by HR varied. Some organisations played an active role in supporting organisation change initiatives such as restructures and culture change, while other organisations carried out major organisation change without the significant involvement of HR. A perception of insufficient HR funding in the sample organisations creates an impetus for HR to provide costeffective HR programs. (However, we note that HR benchmarking data indicates similar mean and median HR budgets across the Victorian Public Sector, Global Public Sector, and Australasian all sectors.) Some organisations in the sample group address this issue by increasing the skills of HR to enable the internal provision of programs (e.g. in training and development). Many organisations use HR portals and intranet sites to disseminate and manage HR-related information, and the majority of organisations used HR information systems (such as the CHRIS system) to manage employee data. To enhance administrative efficiency, some organisations use shared services (e.g. in relation to payroll), while others outsource aspects of the HR function. In one organisation, focus group participants expressed concerns in relation to the outsourcing of key HR processes. Employees felt that the outsourced service provider did not have a sufficient understanding of the needs of employees and managers, nor of the culture and business objectives of the organisation, limiting its ability to provide effective and responsive service.
Administrative expert The focus on process in public sector organisations appears to result in a strong emphasis on the administrative expert role being carried out by HR in the majority of sample organisations. This emphasis appears to be encouraged by the following: The interpretation by public sector organisations of the requirements of the Public Sector Management and Employment Act 1988 (PSMEA) employment principles (e.g. in relation to selection and recruitment and requirements around advertising roles) appears to create an additional workload for HR and for line management. The high level of prescription of employment processes in industrial agreements (e.g. in relation to pay and performance management), also often creates greater process needs.

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In summary In sample organisations, the ability of the HR function in sample organisations to play the various HR roles, being the strategic partner, employee champion, change agent, and administrative expert roles, is influenced by the following factors: The competencies, capabilities and focus of the head of the HR function. The interest, knowledge, and roles attributed to the HR function by the organisations chief executive. The history of the HR function and whether or not HR is still working on primary HR activities for example, it is more difficult for an HR function that has traditionally played a personnel role or is playing catch up, still needing to create fundamental HR policies, to act as a strategic partner. The HR function structure for example, in relation to the proximity of the head of HR to the chief executive, and also in relation to the proximity of HR staff to the business units or divisions and the employees. The budget and resources available to HR.

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Better HR practice We have provided some case study examples below regarding some of the positive ways in which sample organisations are performing the various HR roles in the Ulrich framework. We note that the case studies provided are only some of the ways in which the different HR roles are illustrated and that other good examples, although not cited in this report, also exist. Department of Treasury and Finance The structure of HR at this organisation encourages HR to play a strategic partner role in the following ways: HR is led by the Deputy Secretary for Strategic Management who has a direct reporting relationship to the Secretary of DTF. This results in HR issues being high on the agenda at the executive level, regularly discussed at their meetings. The operational or housekeeping functions of HR are fully outsourced, enabling the core HR team to focus on strategic issues. There are regular meetings of the senior executive team with senior HR personnel to discuss strategic initiatives and people related activities.
Strategic partner Northeast Health HR in this organisation demonstrated many competencies which indicate that the function is stepping into the role of a strategic partner. The head of HR is a highly valued member of the senior management team, and despite not being ranked at the executive level, participates in all executive meetings. The chief executive and other senior employees in the organisation indicated a strong reliance on the views of the head of HR when making key organisation decisions it was stated we dont move without her. The degree of influence of the head of HR is illustrated in the organisations strategic plan, which focuses heavily on strategies relating to the contribution and competency of people in the organisation. The organisations HR plan also demonstrates the support of HR strategies for organisational strategy, with each of the HR strategies having been designed to assist in the achievement of one of the organisations four strategic goals.
Employee champion Northeast Health HR in this organisation demonstrates its strength in the role of employee champion in several ways. Upon arriving at the organisation, the head of HR instigated a comprehensive audit of all people practices and issues, with a view to gaining a full understanding of the concerns of employees and managers. (This audit is planned to be repeated in late 2003.) Since the audit, eighty-eight HR policies have been re-drafted. However, the processes adopted by HR to design and implement the new policies reflect HRs view that effective HR practice does not result from stringent policies alone these policies need to be brought to life by managers throughout the organisation who understand why these policies exist, know them inside-out, and embrace them as their own. HR has been able to encourage this by:

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Encouraging and supporting managers who were willing to undertake a Graduate Certificate in HR Management to improve their general understanding of HR theory and practice. Extensively consulting managers when revising HR policies. Conducting numerous workshops, once policies were designed, where managers were encouraged to share their previous experiences with carrying out HR policies and voice their frustrations, and HR engaged with managers in relation to their concerns and questions about new HR policies. Melbourne Health Melbourne Health has several programs that are specifically designed to meet the needs of employees. One that stands out is the feedback program, Melbourne Health Staff Comments, Suggestions, Compliments and Complaints. A brochure, which is visibly available throughout the organisations premises, explains this program to staff in a clear and concise manner, and sets out the ways in which staff can recognise each others contributions, make suggestions or comments, and lodge complaints or grievances through the appropriate avenue of redress. This plan is innovative as it wraps together the various aspects of employee feedback, communicating the importance to the organisation of employee feedback and lessening the stigma that is typically placed on giving negative feedback or lodging grievances. The program is also effective in highlighting the relevant Melbourne Health HR policies and where relevant, legislative references, and recognising the importance of involving line management as a first port of call. Another excellent program initiated by Melbourne Health is its Peer Support Program. This program is similar to others operated by other health and emergency-related organisations and recognises the stressful nature of the work of Melbourne Health staff. The program provides an opportunity for fullytrained volunteer peers to support employees with personal and work related issues within a confidential framework.
Each of these actions by HR resulted in a greater understanding, knowledge and acceptance of HR policies by management, as well as a strong desire to take responsibility for HR themselves, leading to significantly improved HR practices and levels of employee satisfaction throughout the organisation.

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Other programs Other programs that are supportive of employees needs and rights and contribute to the improvement of employees competencies and skills, demonstrating the role of employee champion played by HR, are described in later sections of this report. MAS is seeking to develop leaders at all levels and in all areas of the business. It has recently launched a pilot Mentoring Program that is aimed at developing non-management staff that have an interest in leadership and demonstrate values that are aligned with those of the organisation. A Mt Eliza Business School leadership program has been opened to nonmanagement paramedics.
Change agent Melbourne Ambulance Service In this organisation, HR has been successful in influencing the organisation in relation to the importance of people and cultural issues to the success of the organisation. As a result, the organisation is aiming to become a learning organisation and is seeking to achieve this by encouraging more innovation, knowledge-sharing and a culture that is less hierarchical and silo-based. The view of the CEO and of HR is that to achieve a learning mindset, employees need to be aware and informed not only of the customers needs but also of the organisations economic needs. One way MAS is seeking to break down silos is by hosting fortnightly CEO lunches where staff from different departments are invited to come and meet employees from other parts of the organisation, thereby expanding their networks and learning about the issues that affect others. The organisation is also promoting greater innovation through a new Employee Innovation reward program which aims to motivate and inspire employees to put forward new ideas, and reward them for those that are original and constructive.
Goulburn-Murray Rural Water Authority In order to improve the negotiation process with unions, this organisation has created a central consultative committee comprising approximately ten employee representatives and six management representatives. HR convenes the committee meetings, which are jointly chaired by one manager and one employee, during which problems are presented to the group and solved using a joint approach. Although the committee was created initially to address strained relationships between employees and management and to improve a employee relations environment, it has also developed into an innovative forum to regularly engage employees in relation to the current issues faced by the business that impact on employees. The creation of the committee has resulted in a more collaborative environment in which there is greater sharing of ideas and where mutually satisfactory outcomes can be agreed upon and sensitive issues dealt with in light of employee input.

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Administrative expert University of Ballarat The University of Ballarat was identified in the course of the project as exhibiting strong administrative expert characteristics. However, this organisation is also one in which the role of HR is changing. Its mission and structure are in the process of undergoing significant redesign in order to effect change on the basic culture of the organisation. Conscious planning and strategy creation such as this will assist organisations to move away from a purely administrative role for HR. Peninsula Health Peninsula Health delivers efficient and cost-effective training programs for staff, often looking to be able to do more with less. In particular, in order to decrease the costs of providing training, members of the HR department have completed a Certificate IV in Workplace Training and Education, enabling the organisation to provide a wider range of training without the expense of an external provider.

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Structure of the HR function

General observations Eleven of the fifteen participant organisations (73 percent) have a largely centralised HR structure . Factors influencing the adoption of a centralised HR structure include limitations imposed by HR budgets, the size of organisation (larger organisations are more likely to have a mixed structure), and a desire by the organisation to enable more centralised control of HR policy. One chief executive noted that HR had been decentralised but was subsequently centralised to provide the organisation with greater control in its efforts to significantly improve people management practices throughout the organisation. A typical centralised structure is illustrated below:
Chief Executive or Corporate Services Executive
Head of Central HR Function
OH&S
Training & Development
IR
Special Projects
Remuneration
Employment Services
Pastoral Care
EEO
HR Officer
Recruitment & Selection

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Structure of the HR function (continued)

Key concerns arising from centralised HR structures in the sample organisations included a lack of control or influence over the application of HR policies by line managers, as well as a weaker connection between HR and the business units due to a lack of a physical presence of HR within those business units. This was particularly apparent for organisations with centrally-located HR and geographically dispersed employees. None of the sample organisations had fully decentralised HR structures. The structures of organisations with HR functions that were partly centralised and partly decentralised varied. An example of a mixed structure is indicated on the following page. Where organisations had mixed HR structures, processes that were typically centralised included recruitment and selection, corporate training and development and administrative processes, such as payroll. The head of HR in eight of the fifteen sample organisations (53 percent) is a member of the top executive team and reports directly to the chief executive. It was apparent in the course of the project that the influence of the HR function in organisations in which the senior HR representative reports to the head of corporate services rather than directly to the CEO or senior leadership team was constrained. The project identified limited examples of organisations in which the head of HR did not have a direct reporting relationship to the chief executive, but was able to maintain a high level of influence on organisational agendas. The high level of influence in these cases appeared to be due to a large extent to the importance of HR issues to the chief executive, and the ability of the head of HR to influence and create strong networks amongst the executive team. A feature noted of many of the HR function structures in the Victorian public sector is the welfare or personnel approach adopted, as demonstrated through a focus on meeting compliance requirements (for example, in relation to industrial relations, occupational health and safety, and equal employment opportunity). This contrasts with the private sector where structures reflect a greater emphasis on supporting the needs of managers, with a greater focus on areas such as performance management, remuneration and benefits and training and development.

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Mix of Centralised and Decentralised
Chief Executive or Corporate Services Executive
Head of Central HR Function
Recruitment
Learning & Development
Executive Services
HR IS
OH&S
Employee Conditions & Benefits
Centres of Excellence
BU or Regional HR
BU or Regional HR
BU or Regional HR
BU or Regional HR
BU or Regional HR
Business Unit Relationship Managers
Note. There may or may not be dotted line reporting between BU / Regional HR and central HR.

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Better HR practice Melbourne Health a matrix structure Melbourne Health has a significant HR team with an equivalent of 37 full-time HR staff. The head of HR has implemented a matrix-style structure, where, generally, each HR manager has a dual role a division role and a portfolio role. This structure is depicted below. Chief Executive Director of HR This structure has several advantages: The HR function has a strong link to the various divisions, facilitating a deeper understanding of the particular needs of those divisions. This also allows HR to connect and engage with divisional managers, raising the importance of HR issues at the line-management level. The assignment of portfolio responsibilities replicates a centres of excellence approach, enabling specialist expertise to be applied to complex HR issues. Also, this approach enables HR managers to take into account the generalist knowledge gained through their divisional responsibilities, enriching their contribution to the design and implementation of HR policies as part of their portfolio role. The dual accountability is challenging for HR staff, creating more interesting and fulfilling jobs and helping to increase their levels of satisfaction and commitment to the organisation. It allows for sufficient flexibility, so that where there is a greater workload in relation to a particular division of HR, other HR staff can assist.
Staff Reward HR Recruitment People and Operations Services strategy and support services recognition business planning
ER/ IR OH&S
Divisional Head Divisional Head Divisional Head Divisional Head Divisional Head Divisional Head Divisional Head
HR Manager HR Manager HR Manager HR Manager HR Manager HR Manager HR Manager

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Northeast Health
Chief Executive or Corporate Services Executive Head of HR
Department of Human Services DHS is an example of an organisation in which HR issues are considered important and very influential, although the head of HR does not report to the chief executive. HR staff will have a significant amount of air time with the chief executive and others on the executive team during regular meetings between various members of HR and the chief executive in relation to key HR projects. The Department Secretary attributes the influential nature of the HR function to the strong professional relationships that the head of HR has built with executives.
Training & Development
OH&S
Payroll & Benefits
Return to Work
Customer Service Officer
HR benchmarking data
The HR benchmarking survey data indicated that for Victorian Public Sector respondents, HR budgets ranged from US$188 per FTE to $2,100 per FTE, with a median HR budget of US$666 per FTE. This was higher than the median HR budget of US $558 per FTE for Australasia all sectors respondents, but lower than the median budget of US$725 per FTE global public sector respondents. HR benchmarking data indicated that, at the median, for Public Sector respondents each HR staff member supports 69 FTEs. This compares with 92 FTEs in Australasia all sectors and 58 FTEs in the global public sector.
HR hotline This small, centralised HR function has been restructured several times over the last couple of years in order to improve its alignment with the people needs of the organisation. To maximise the output of the HR function, each of the HR managers reporting to the head of HR have a specialist focus and responsibility (e.g. in relation to training and development or occupational health and safety). At the same time, staff within the HR function work very closely as a team, supporting each other carrying out their responsibilities. In order to provide accessibility to HR and enable efficient delivery of HR service, the structure includes a support person who acts as a gateway to the HR team. Calls to an HR hotline are firstly directed to this support staff member who has a sufficient understanding of HR issues to be able to respond to simple queries. The caller will be directed to the appropriate HR specialist where queries are more complicated.

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Prescription and devolution of HR practice

General observations A typical approach to the treatment of various HR policies is represented in the table below. Prescription of HR process There is generally a high level of prescription of most HR practices in the sample organisations, although a few organisations take a more advisory or semi-prescriptive approach. In some organisations, a high level of prescription is a deliberate strategy to compensate for a perceived deficiency in the level of line manager HR competencies and skills. Concerns with visibility of management practice within the public sector (e.g. reflecting being in a fishbowl) also appears to encourage a high level of prescription of HR practice. On the other hand, certain HR processes, such as those in relation to career development, succession planning and training and development, were conspicuous by their lack of prescription across the sample organisations. However, even for those people management processes that are prescribed by HR, the level of compliance with or quality of implementation of HR policy was often said in focus groups to depend on the skills, inclinations and impartiality of the individual managers. Some organisations raised the concern that there was often a focus on an impartial procedure and process based on merit that was arguably unnecessary or at the expense of a focus on a fair and reasonable outcome. Again, this was seen to be a result of a fear of being seen to do things wrong.
Highly prescribed
Less prescribed (high flexibility) [NA]
Low devolution of HR decisionmaking Devolution with monitoring High devolution of HR decisionmaking
Pay (re. EBA)
EEO policies Occupational H&S Diversity policies Recruitment Promotions Performance management Recognition
[NA]
Career planning /management Succession planning
Training and development

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Prescription and devolution of HR practice (continued)

Devolvement of HR decision-making In the sample organisations HR decision-making was generally devolved to line management, except in relation to pay (which was set in accordance with industrial agreements). Certain devolved HR practices, particularly those regulated by legislation, were also highly monitored these included policies in the areas of equal employment opportunity, occupational health and safety, and diversity. Devolvement of HR decision-making to line management was not often strongly supported by the development and training of line managers to effectively or consistently carry out HR processes as prescribed by organisational policy. As noted previously, employees typically commented in focus groups that the level of quality and consistency in the application of HR processes much depended on the style, priorities and inclinations of the relevant managers. Better HR practice Department of Human Services Policies set by the central Human Resources Branch at DHS are advisory, rather than prescriptive, in nature. This deliberate lack of prescription is due to the view that in an organisation as large as DHS, the ultimate accountability for HR practice should lie with the business unit HR divisions. However, it is the role of the central HR Branch to provide the fundamental tools for good HR practice throughout the organisation. One way in which the HR Branch assists the facilitation of effective HR practice throughout DHS is through the use of a manager reference tool entitled Enhancing People Management. The key objective of the tool is to assist current and aspiring managers and supervisors to assess and enhance their people management capability. The tool comprises guidance for managers in the areas of employee recognition, mentoring, mediation, learning and development, career development, performance management, giving and receiving feedback, and employee orientation.

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Section II
Findings and analysis The principles and HR practice
- Performance management - Training and development - Reward and recognition - Recruitment and selection - HR policies Employment rights - HR metrics - Legislative framework and organisation characteristics - Differences between public and private sector human resource services
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HR practices Performance management

General observations Overall, the organisations surveyed appeared to find it difficult, or are reluctant, to differentiate between good and poor performance amongst their workforce. This could in part be due to the need for equitable treatment of all employees within the public sector, and the risks involved in managing out poor performers in the public sector environment. These risks include negative public relations and upsetting the unions. Several organisations indicated that it was more common to manage underperformance by using the redundancy process or by transferring staff to other areas or departments. In general, there were examples of well designed performance management processes. However implementation of these processes is patchy and appears to be dependent upon how important the process is to individual line or departmental managers. Some excellent examples were cited in which managers set clear accountabilities/objectives which were linked to departmental goals, regularly reviewed progress and provided constructive feedback. Other examples were cited where managers filled in the appraisal form and gave it to the employee to sign with no previous or subsequent discussion between the manager and employee. In some cases, a view prevailed in which the performance management system was viewed as a means of managing people out rather than as a motivational tool. Also, several organisations have taken steps to disconnect the reward process or bonus element from the performance management system as this was perceived to be counter-productive to performance review discussions. From an employee perspective, these steps appear to have had a de-motivating effect. Several focus groups commented that they felt that the disconnect between performance management and reward or promotional opportunities discouraged exceptional performance and that they were not motivated to devote time or effort to completing the performance management process. Better HR practices Pro-active commitment to confronting performance issues The Melbourne Health HR team was proactive in challenging their organisation to confront performance issues more openly. If an employee consistently behaved in a manner that is contrary to the organisational values or consistently underperformed, the HR team encouraged a focus on what is right for the organisation . Most importantly, this was coupled with a focus on treating the employee fairly and with significant compassion. Linking 360 degree feedback and bonuses to the appraisal system The Department of Justice is in the process of introducing greater accountability through the performance management system in terms of how executives and managers behave. Although at this stage it has only been introduced at the executive levels, the performance appraisal system involves a 360 degree feedback process which assesses executive behaviours. This comprises 30 percent of the appraisal process for executives and influences 30 percent of their individual bonus payment.

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HR practices Performance management (continued)

Focusing on the how The Department of Treasury and Finance has devoted significant work to the development of a Behavioural Accountability Framework (BAF) which has been incorporated into the organisations performance management process. The online process involves the employee setting a development plan of the duties and criteria that must be achieved throughout the performance period. In addition, the employee must identify the key behaviours from the BAF that must be displayed in order to achieve the duty. At the end of the cycle, the manager will review whether the duty, criteria and behaviours have been achieved. If the employee has achieved the outcome but has not displayed the key behaviours, the employee will not achieve the objective. Therefore, the employee is not only held accountable for results but also the way in which they are achieved. The performance management process also includes a midyear review enabling any adjustments that may be needed as well as providing a formal opportunity for the employee to receive feedback. In addition, the online program that has been selected for the performance management system, enables HR to track whether the appraisals are in draft, are signed by the employee or are completed. Ensuring a linkage between corporate, departmental and individual goals The Performance Development and Assessment process at MAS involves individual employees developing their performance goals and management behaviours, an interim assessment and an annual assessment. The goals must be approved by the relevant general manager in order to ensure they are linked to the annual divisional or departmental plan, and to confirm they are of an appropriate level of complexity for the position and level of the employee. The employee must establish a maximum of four goals, outline the complexity of each goal, establish the indicators of success or the ways in which the goal can be measured or assessed, outline the four key behaviours the person needs to demonstrate in the achievement of the goal as well as identify the training and development needs of the employee in order to achieve the goal. At the annual assessment, the manager and the direct report discuss whether the individual has achieved the goals and the employee will be assigned a rating between 1-5 for each of the goals and each of the key behaviours.

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Support for the principles The extent to which people in the focus groups felt that the accountability for results principle was applied in practice depended on the commitment of participants individual manager to the performance management process, and whether they set objectives and provided feedback on a regular basis. This was patchy across all organisations. The majority of the organisational value statements incorporated the responsive service principle in some shape or form. Organisations varied more significantly in terms of whether these values were incorporated as part of the performance management appraisal process and acted on by managers. Avenues of redress were established through policy in all organisations. However, in practice the degree to which employees used this processes to lodge a grievance if they felt unfairly treated was considered by the focus group participants to be low. This was sometimes because they feared perceived repercussions or felt it was not the done thing. Category (Median) Victorian public sector Australasia all sectors Global public sector Senior
management
Middle
Management
General Staff 70% 70% 70%
100% 90% 90%
90% 90% 90%
The following areas were considered to be part of the performance management process. Areas of review % of Public Sector organisations 100% 92% 92% 42% 50% 92%
Responsibilities taken Results achieved Professional / technical competencies Personal characteristics Living company values
HR Benchmark Data Some of the above observations were supported by the HR benchmark data. For example: The majority of organisations emphasise the completion of a performance review. Interestingly, there was perceived 100% completion at senior and middle management levels, but not at staff levels.
Individual learning and development

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HR Benchmark Data The data on compulsory terminations showed that on average, Victorian Public Sector organisations compulsorily terminated less than 1% of employees during the 2002/2003 financial year. This is compared with an average of 3% in the global public sector and 4% in the Australasia all sectors categories. The survey indicated that 60% of organisations feel that performance management in their organisation is quite effective or very effective, and that the appraisal was an influence for decisions in the table below.
Areas influenced by performance appraisal outcomes Base salary increases Variable pay (ie bonus) Promotions Training
% of Public Sector organisations indicating some or large influence 36% 91% 91% 100%

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HR practices Training and development

General observations Generally, the levels of training made available to employees of participant organisations are relatively low. This is possibly due to budget restrictions. Most organisations have introduced development plans for training, to be completed by employees throughout the year. Training needs are typically derived from a discussion between the individual and line manager, and are related to job requirements. Feedback from the focus groups suggests that development plans are not commonly followed up on and requested training often not provided. In general, employees seem to want receive more training, in particular some with more of a career development focus rather than a pure technical-focus or directly related to their current jobs. Management and leadership development A few of the organisations actively encourage management training and development. There is a a recognition by the majority of organisations that these skills need developing, hence a strong emphasis being placed on leadership and management development programs. Succession planning and career development Succession planning was not commonly found to be addressed amongst the organisations surveyed. At some organisations, high performers with leadership potential have been identified. However, the lists are mostly kept secret, due to a perceived difficulty in singling people out for special attention. This limits the extent to which the identified high performers can be developed for future roles. Leadership development at a number of organisations, either through management courses, acting roles (providing a maximum timeframe is not exceeded) or secondments, are commonly used for career development purposes. HR from the majority of sample organisations recognise that career development is an issue that needs to be addressed. The culture of public sector organisations and the requirement for equitable treatment introduces added complexities and administrative burdens to the career management process.
Better HR practices Higher provision of internal training Using limited resources and budget, Peninsula Healths HR staff members design and deliver most of the organisations corporate training on a range of core issues, including Aggression Management, Boundaries in the Workplace (e.g. to prevent bullying and harassment), Developing Business Cases, Conflict Resolution, through to more traditional HR courses relating to employment rights and occupational health and safety. In order to increase the level of training quality, all HR team members are completing a Certificate IV in Workplace Training. This will also decrease the need for HR to source training from external providers, enabling Peninsula Health to minimise its spend on training without sacrificing the provision of courses. Focus group participants noted the effectiveness of the training provided.

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HR practices Training and development (continued)

Good initiatives to raise employee awareness about their rights and codes of conduct A number of organisations have implemented excellent induction programs for new employees. These programs provide good information about their employment rights and how they can expect to be treated. Also, a number of organisations have conducted audits of the level of employee and management knowledge of employee rights and codes of conduct and are actively seen to understand the reality around how staff are being treated by management and the organisational issues and impacts of management behaviour. At one organisation, based on this data, HR acts to improve practices through management education programs and implementation of better policies and practices. HR also encourages staff to raise issues and to treat them as problems to be resolved, and not to allocate blame or treat people punitively. Management development Northeast Health recognised that there was a knowledge gap in relation to the role of HR at the managerial and leadership levels and including a lack of understanding of the people responsibilities of line managers. The organisation adopted an approach which aimed to educate managers on HR and strategic management principles. They are currently investing in the provision of a distance learning HR and Business Course from a local University for a mix of leaders and managers. VicRoads are introducing a number of good initiatives including the following: A top talent program for high performing employees aimed at developing their skills or broadening their outlooks. Management has nominated people for this program. A management responsibilities strategic plan aimed at improving the way managers manage their people, with a particular focus on developing skills in recruitment and selection, developing and motivating staff, managing change and addressing performance issues. The focus is on raising managers self-awareness and promoting management and leadership capabilities. A building relationships strategic plan aimed at disseminating knowledge of best practices and promoting the development of better internal relationships and understanding of external stakeholder needs.
Alignment of development needs to training The Department of Treasury and Finance have linked their employee development plans to a training calendar in order to ensure that employee training needs are acted upon and met.

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Career development The Victorian Arts Centre Trust recognised their own limitations in being able to provide career progression for employees (they currently have low turnover and are seen as the premier arts organisation within Victoria). In response to this they developed a Moving on and moving through program to support employees in obtaining their next position whether this was internal or external to the organisation. Study findings indicate that employees are often reluctant to use available avenues of redress to resolve concerns around inequitable treatment in relation to the provision of training opportunities.
Succession planning and career development The principles (for example, merit and fair and reasonable treatment) in some respects appear to be inhibiting organisations in their ability to effectively plan for leadership succession, manage career development, and develop leadership capability. The issue centres around how organisations select people for additional development and maintain a perception of fairness in the way the selection process is carried out throughout the organisation. Some organisations have gone to great lengths to implement a fair process in selecting their employees (for example, through outsourced development centres), only to find that they still ended up with too large a list, and that narrowing this down appears to be too difficult given the circumstances in which they operate. In some cases, organisations are using short-term appointments and secondments to enable career development, as this is a method of getting around the administrative and fair selection issues created by public sector processes and culture. For example, if the duration of secondments and acting roles is less than 3 months, they often do not need to be advertised internally and the organisation does not have to prove they have selected the best candidate for the role in accordance with the merit principle.
Support for the principles Employee training and development Training and education is provided in most organisations on Equal Employment Opportunity, discrimination and diversity (for example, in relation to harassment and bullying), equal employment opportunity, work life balance programs, diversity, women in management, womens network and cross cultural training. Focus group feedback indicated that there are diverse opinions regarding whether training opportunities are provided objectively and fairly. Some organisations could use induction processes to better promote awareness of the principles or codes of conduct. There is limited provision of training on performance management in order to ensure employees are held accountable for results and provide responsive service. In addition, employees have generally received poor feedback throughout their appraisal year and have expressed a need for training in this area.

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HR Benchmark Data In general, organisations do not appear to monitor the number of training days provided by the organisation. The data collected was based largely on estimates. However, benchmarking results showed that an average of 1 training day per employee was provided by Victorian Public Sector organisations which is below the Australasian average of 2 training days for Australasian respondents and and the global average of 3 training days per employee. The percentage of employees attending management development programs (8%) was the same as the global public sector results, however 50% less than found in Australasia (16%), suggesting that the public sector does not generally invest in management development to the same extent as the private sector.

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HR practices Reward and recognition

General observations Pay levels and structures are highly unionised and are largely dictated by enterprise bargaining arrangements. There is a strong perception amongst employees that pay levels are below market-median. However, focus group participants often acknowledged that their decision to work in the public sector is not driven by the levels of pay provided, and that it is frequently other benefits of working in the public sector that they value. These benefits include flexible work practices, the cultural environment, and the concern for the welfare of employees. Performance-based pay For most of the sample organisations, performance-based pay arrangements tend to apply only at senior levels. However, for many of these organisations, there is a perception that bonuses are often used to make up for the low base pay, rather than to reward for good performance. Some organisations operate performance-based pay arrangements at lower levels. However, this generally comprises a very small component of the overall reward package (some focus group participants commented that the performance element is worth two cans of coke). An example of performance pay for general employees includes a 1% of base pay increase which is provided in addition to the CPI increase, based on acceptable performance ratings. We note that focus group feedback suggests that little distinction is attributed between the levels of performance of employees and most employees receive the performance element of pay year-on-year. Non-financial recognition Due to a restricted ability to provide significant financial reward as a result of the public sector fishbowl environment, there is an emphasis on low or no-cost reward. However, this attitude was more prevalent in inner government agencies. A number of organisations are seeking to improve their recognition practices. In some cases this is in response to employee feedback; in others it is part of a cultural change program. Focus group feedback indicated that employees want more recognition and general feedback from their immediate managers and supervisors. Interestingly, some focus groups, such as that at Northern Melbourne Institute of TAFE, expressed their desire to receive more recognition from their peers as opposed to their supervisors.
Better HR practices Linking performance to the bonus The Metropolitan Ambulance Service policy on performance bonuses clearly outlines that the bonus element is to reward for performance and achievements beyond the day-to-day requirements of the role. The process supporting this requires line managers to follow a scoring mechanism that is linked to the achievement of KPIs and the performance rating. Bonus recommendations are reviewed by HR and then approved by a remuneration sub-committee.

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HR practices Reward and recognition (continued)

Introducing recognition initiatives and programs to celebrate achievements The Victorian Arts Centre Trust has recently introduced a reward and recognition program in response to feedback from employees indicating that rewards were only provided in one area of the organisation. The aim of the new program is to recognise exceptional performance (above the requirements of the job) fairly across the organisation. The program comprises a nomination process with no monthly quota system imposed. Nominations need to be linked to the corporate plan, and demonstrate the espoused values and behaviours. Rewards can be monetary (used for personal development or employee well being) or non-monetary (for example, through a letter, the publication of achievements in the employee newsletter, etc). The Department of Human Services have released a Recognition Guide for Managers and Staff as a tool to assist managers in implementing formal and informal recognition programs within their areas. It provides guidance on issues such as transparency and recognition principles, the application of fringe benefits tax, a suggested process to involve your team in the design process, thank you and congratulations cards etc. Parks Victoria places a strong emphasis on the recognition and celebration of achievements, with the CEO playing an active role in this. Examples include the annual staff travel award, a sabbatical award which allows a staff member to develop a Parks Victoria initiative over 6-8 weeks while on leave from their normal duties, corporate box tickets for major achievements, profiling of achievements in the company magazine, team awards, staff barbeques etc. The Department of Justice has released a Recognition Kit in order to help create a motivating work environment for all. It provides guidance on how to praise employees, the process for the program and any financial considerations. It also provides categories for recognition, e.g. customer service, team award and ideas and improvements. MAS Staff and Family Night Like many other public service organisations, MAS has had a long tradition of recognising staff, not necessarily for high performance or meeting objectives, but for contribution and long-service. Recognising its history and culture, MAS has taken the opportunity of using the traditional long service award nights to enhance the satisfaction of employees by transforming them into Staff and Family nights. The rationale behind this is that in addition to recognising staff for their contribution, the organisation is also recognising the contribution of employees family members and the importance of their role in supporting staff who work generally long hours doing a very stressful job.
Support for the principles Pay increases are largely dictated by formalised Enterprise Bargaining Agreements for the majority of staff. Accordingly, employees are treated with equality in line with the agreements. There is therefore little room for managerial discretion in terms of base pay. In response to this inflexibility in pay structure some organisations are looking for ways to work around the system to enable them to be more competitive in the marketplace and attract candidates with the necessary calibre. However, this can give rise to inequality. For example, one program provides graduates with competitive pay which exceeds the salary of long-term employees. Also, there is a persistent perception communicated in focus group sessions that remuneration bands are sometimes manipulated by hiring at a higher level than required by the job in order to be able to attract the desired candidate.

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HR practices Reward and recognition (continued)

Recognition programs do not conflict with the principles providing the nomination procedures and policies surrounding the reward are fair, reasonable, and based on merit. In some organisations, employees were suspicious of recognition going to mates within the organisation rather than being applied fairly based on effort. Generally, there was a reluctance to differentiate between peoples performance and where variable pay elements were introduced, decisions did not always appear to be made on an objective or impartial basis.
HR Benchmark Data The benchmark data shows that, overall, the sample group from the Victorian Public Sector was more dissatisfied with the way their financial reward systems support organisational objectives than organisations in the Australasian and Global samples. The data supports the fact that the variable pay component of the reward package is significantly smaller than organisations within the private sector. In addition, this data is conservative at senior management levels in the private sector in our experience.
If all targets are achieved, performance pay receivable as a percentage of base pay Category (Mean) Victorian public sector Australasia all sectors Global public sector Senior management 10% 20% 8% Middle Management 5% 10% 4% General Staff 2% 4% 3%

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HR practices Recruitment and selection

General observations All participant organisations have prescriptive processes for recruitment and selection. For example, most organisations stipulated that all permanent jobs be advertised at least internally with a majority using external advertisements where required. A centralised administration process exists for most organisations with interviewing and selection often conducted by the line manager. Most organisations provide managers with recruitment and selection skills training. In some cases, there is a view that there is a focus on process over outcomes. For example, it was often stated that the recruitment and selection procedure can be extremely time consuming and can often take longer than the notice given by the previous employee. The majority of organisations advertise promotion roles internally.There were a few that stated that they felt they could exempt promotion roles from internal advertising if this was needed. Based on focus group feedback, it appears there is sometimes a disconnect between what is written in policy and position descriptions and the actual basis for recruitment decisions. This was felt to be due to the level of management knowledge (for example, in relation to defining selection criteria and their relevance) and a willingness to apply this in practice. On occasions, managers were felt to be going through the motions of the process, having already determined who they wanted for the job. In other examples, external appointments were made, when it was felt that the skills were available internally. This disconnect may well be linked to, generally, a lack of open discussions around individual performance. That is, employees may have felt that they had the requisite level of skill and experience and may, indeed, have been lacking in key areas. However, this had not been communicated to them. Better HR practice Establishment of behavioural interviewing standards The Department of Treasury and Finance recruitment process is centred around the Behavioural Accountabilities Framework which comprises 9 key attributes and has less of a focus on technical skills. The process requires that interviewers must complete a one day behaviourally based training course before they can conduct interviews.
Innovative recruitment practices to attract candidates Melbourne Health and Northeast Health places a significant effort on developing recruitment campaigns which attract employees to careers in nursing within the hospital. This includes building an employer brand through a proactive PR campaign which differentiates them (in terms of the type of people they employ or by placing an emphasis on the benefits of their location) in addition to providing good training and potential career paths. Peninsula Health seeks out alternative talent pools overseas to fill skill shortages and has developed a cross cultural awareness program to assist overseas recruits in integrating into the hospital environment.

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HR practices Recruitment and selection (continued)

A useful recruitment and selection resource toolkit Using a toolkit approach, the Department of Human Services had developed a useful management guide for the recruitment and selection process. The guide includes a checklist, examples of attributes to look for and some sample behaviourally based interview questions. Support for the principles In most cases, organisations were acutely aware of the merit and fair and reasonable treatment principles and their implications for the recruitment and selection processes. In practice this had translated into recruitment and selection procedures which ensured internal advertising of all roles to enable opportunities for all and HR encouraging managers to identify key selection criteria for roles. According to the focus group feedback, application of the principles varies according to the way in which different line managers implement recruitment and selection policies. Variation is also due to the line managers level of awareness regarding the importance of the principles and their general understanding of why recruitment and promotion decisions need to be objective. Influencing line managers to carry out merit-based and objectively fair recruitment and selection procedures is difficult as HR needs to influence differing personalities and managers who are frequently under time constraints. Organisations that were doing this well, in our view, placed a heavy focus on management education (explaining what was expected of managers, why this was important for the organisation and the consequences of not doing this for them and the organisation). This was supported by the fact that many organisations saw management development as a priority business issue and were attempting to resolve a legacy of promoting technical managers and a lack of investment in their management skills development.
Putting significant effort into educating Managers Northeast Health has recently revised their recruitment and selection process based on feedback they received from the OPE People Matter Survey. The feedback identified that there was bias in selection decisions. As a result of this the HR manager revised the policy, outlined what was required at each step of the process, and then conducted educational sessions with managers to explain the process and encourage discussion of what used to happen and why. The approach taken appeared to combine integrity and honesty (e.g. explaining the issue, saying things how they are and enabling an environment where managers felt comfortable sharing their experiences), fun (through active participation, discussion and learning) and focused on explaining the consequences of inappropriate actions (e.g. the why).

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HR practices Recruitment and selection (continued)

Organisations that were successful in this area generally had an influential HR team, and worked with managers in a honest, involving manner. Managers were not beaten up for not following the process but the issue was tackled and the organisation sought to understand why managers were not operating in line with their code of conduct. Support was given in an effort to re-educate. There were some views that the Principles complicate recruitment and selection processes and make them unnecessarily long and laborious. Issues which sample organisations indicated they are grappling with included: How do you recruit objectively and based on merit for a position where there is an obvious successor at hand who has earned the role in a managers view?; and How does the organisation balance the desire to bring new blood into the organisation to enable cultural change and attract new ideas and fresh perspectives, with the need to base recruitment decisions purely on merit?

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HR practices HR policies and practices in relation to employment rights

General observations Overall, this was an area of focus for all organisations and some good practices were identified in a number of organisations. The sophistication of approach and process varied depending to some extent on the organisational context and level of resources and investment the organisation had decided to place on particular initiatives. Overall, there was HR compliance in developing policies in relation to the promotion of Employment Rights and the provision of an environment free of intimidation and bullying. For example, all organisations had grievance procedures of which employees were aware and harassment policies in response to government directives. There was variation in the implementation of these policies and this often depended on the role of HR within the business and level of influence that they had. Feedback from Focus Groups seems to suggest that Managers practices varied within and between organisations. Throughout our analysis we noted that where organisations were succeeding in enabling Managers to take note of practices, they were doing so through a variety of mechanisms which included: Having clarity around the code of conduct, making it clear, concise and simple and incorporating this into ways of working and other people documents (e.g. the position descriptions). Taking the time to educate Managers regarding what they need to do, why and what are the implications for the organisation. Working with Managers to work out how best to implement the policies within the organisational environment and understanding the difficulties they encounter and the unique nature of some the organisational contexts. Not just developing policies and leaving it then up to Managers to implement them.
PwC felt that the participative and educative approach taken by some organisations appeared to engender more managerial support for policy implementation and ensure that the principles in relation to equal opportunity and fair and reasonable treatment were lived within the organisation. There were also examples of where organisations which were taking a more punitive approach to policy implementation (e.g. not putting employees on payroll until the induction had been completed) and a more laissez-faire approach which focused on policy development and devolved implementation of the policies and the principles to managements discretion. However, we recognise that the organisation culture and leadership support of HR practices are important factors in terms of how things get implemented. In addition, many organisations had practices which raised employees awareness of their employment rights. Initiatives in this context included: Implementation of a thorough induction program. The Northern Melbourne Institute of TAFE has a very comprehensive induction checklist. Employee knowledge awareness programs, for example, Peninsula Health provided a variety of educative programs around harassment in the workplace etc. HR Managers operating an open door policy and actively encouraging people to come forward to enable issues to be resolved. For example Goulburn -Murray Rural Water Authority took the view that if HR did not operate an open door policy and come across as approachable and customer service oriented, who else could employees expect to be able to go to.
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A number of organisations made the point that the legislative requirements of government have a substantial impact on the workload of HR Departments and it would be useful if this was given consideration, either in policy development or at implementation. PwC felt that more support in rolling out new legislation would be well received. Interestingly, although organisations recognised that they had more HR reporting requirements placed upon them as part of the public sector, they appeared to appreciate the analysis provided to them by organisations like the Office of Public Employment, as this enables them to understand which of their practices need improvement. We noted that a number of initiatives appeared to be a result of these interventions, for example, looking at pay equity amongst males and females within the workforce. There were a number of interesting programs which we have highlighted below. Better HR Practices Diversity programs Parks Victoria has a strategic philosophy which aims to recruit a diverse workforce which is reflective of the community within which the organisation operates. They currently run a Strategic Koori Recruitment Program, which is exempt from the EEO legislation to encourage Kooris to join the organisation by putting in place a supportive environment to enable their integration. For example, they run cultural awareness training to educate their workforce on the Koori culture. The Department of Justice has a Koori recruitment and career development program that entails Koori Tertiary Scholarships, cultural awareness training courses and the recruitment of Indigenous staff into the Department. Recently, the Department launched, as part of their diversity strategy, a hard-copy calendar profiling Indigenous Australian staff employed within the justice system.
Work/life balance programs The Department of Innovation Industry and Regional Development has introduced flexible work practices and has also introduced a parenting room where employees can work in the office with their children where needed. Support programs VicRoads provides the My Career, My Life program, the aim of which is to encourage all employees to take primary responsibility for their own professional development and career direction. To this end, the program: provides information and support to all employees which focuses on career enhancement but also addresses life events and employees personal issues as they arise; and encourages to managers to provide more support to their staff inrelation to career and personal concerns. Goulburn-Murray Rural Water Authority has introduced a women in management program and a womens network for development purposes. Grievance and appeals procedures North East Health has recently introduced a program to prevent harassment in the workplace encouraging people to raise issues through the grievance procedure. They set an example of how they would handle grievances raised taking an investigative, supportive and educative approach focused on developing a solution to the problem, rather than allocating blame to the people involved. They had found that the number of grievances raised had increased and the focus on seeking solutions in a supportive manner was received positively by staff.

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Support for the principles All organisations were aware of the equal opportunity and fair and reasonable treatment principles and had implemented policies and procedures which complied with these. Some organisations are undertaking significant diversity programs such as Koori recruitment programs, flexible work practices, women in management programs and general EEO training. Avenues of redress procedures were very clear in almost all organisations. However, many employees stated a reluctance to use the process due to perceived repercussions (e.g. being looked at unfavourably by managers or co-workers, not wanting to rock the boat). Employees felt that the focus of the grievance procedure was on the negatives rather than viewing it as a problem solving channel or a channel through which to encourage good management practices.

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HR metrics
Metrics HR metrics play an important role in enabling comparison of performance and costs with other organisations and identifying areas for investigation. There was a significant focus within the sample group on HR metrics which is perhaps a reflection of the public sector approach to record keeping. All of the organisations within the sample group have maintained some HR metrics in accordance with requirements of external authorities such as the OPE People Matter Survey. However, in addition to the OPE requirements, the majority of the organisations within the sample group were obtaining additional information on data such as flexible work options, turnover and absenteeism. However, there were a number of notable omissions including, for example, the monitoring of EEO statistics for particular employees such as the disabled, training and development metrics, for example, the number of days training per employee, evaluations of training programs etc. In addition, we also noted that it could be useful for some organisations to more explicitly link an organisations strategic direction with its metrics, and ensure that the metrics focus on areas which are the key strategic value drivers for the organisation. In general, participants stated that it was time consuming and often difficult to access accurate data from HR systems, and one solution might be to set up payroll as the repository for all HR data. The organisations stated below were considered to be reporting on a selection of suitable HR metrics. Melbourne Health Melbourne Health has compiled a wealth of HR metrics. However, the information management system is of particular interest. The system enables business unit line managers to forecast and incorporates absences into the strategic plan of their departments. In addition, Melbourne Health compiles a significant amount of information regarding the graduate nurse program. In particular, Melbourne Health records qualitative data including the reasons why graduates applied to Melbourne Health and why they have stayed with the organisation. This type of information greatly assists in identifying potential causes of turnover before it is an issue. Department of Human Services Department of Human Services (DHS) compile a significant amount of information on people management matters. Through their Performance Information Management System, DHS are able to track information such as the workforce profile, workforce trends, turnover trends, organisational climate indices and general workforce statistics. A significant number of metrics are reported to the executive team, in addition to being available on the intranet for general employee access. Peninsula Health Peninsula Health report to the board bi-monthly on selected key performance indicators which are linked to major organisational issues. For example, the percentage of staff assaulted within a certain time frame. Once the issue has been adequately addressed by the organisation, the issue will be removed from the Board agenda and a new issue will be outlined for HR to address.
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Legislative framework and organisation characteristics

General constraints of the legislative framework Throughout the study, one focus adopted was to understand what participant organisations saw as some of the constraints to operating in the public sector environment. There were differing views depending on the person, the culture and nature of the organisation. However, there were also some common themes (for example, the pressure of funding and utilising this in the best possible way to achieve the goals of the organisation). The main views expressed have been captured below in summary form. The focus on process over outcomes Some participants felt that the Public Sector focuses more on getting processes correct and being seen to be treating people objectively and fairly, which at times results in the purpose of HR practices being watered down, rendered obsolete or just being too difficult to implement. Cultural context of public sector Generally we observed that the majority of HR functions within the participant sample put a substantial amount of time and effort into the employee champion role defined in the Ulrich model. Some of the consequences of this were that employees and managers were made aware of their employment rights, and often promoted a welfare culture which, promoted supporting employees to enable them to do their job. Sometimes this was perceived to be taking this too far, to the point where managing poor performers was felt to be too difficult and therefore it was easier to let things slide. There was also significant variation in terms of the degree of autonomy participant organisations had in managing the Employee Relations aspects of their organisation. In some organisations this was severely constrained by the Industrial framework, the power of the unions involved and the nature of the work conducted by the organisation. The impacts of changing legislation Compliance with the increasing amount of legislation from Government was raised as a constraint on HR resources. It was felt that more consideration could be given by Government to the time and resources required to implement the initiatives. The effects of public scrutiny All organisations felt the effect of public scrutiny. However, there was significant variation in terms of the degree and the impact of this on organisational HR practices, in particular within the arena of reward and recognition. This has already been described in another section of the report and will not be expanded upon here. An additional aspect is that some organisations expressed a concern that HR information provided to OPE did not result in any benefit directly to the organisation. Also, organisations expressed an interest in receiving further direct feedback from OPE. The point was made that external agencies have a tendency to think all Public Sector organisations are run in the same way, but the reality is that this is not the case. Finally, the degree of transparency that is required with customers and key stakeholders mean that significant investments of time and resources are required to ensure openness with key parties.

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Legislative framework and organisation characteristics (continued)

Focusing on the negatives associated with performance management Public Sector organisations and their workforces were felt to view performance management systems as the means for managing people out, and were considered to be poorly used. There was a perceived need to refocus public sector organisations on utilising performance management systems as tools for learning and development. This was felt to be part of a broader public sector issue which was to focus on the negatives and what you cant have rather than promoting the positives and what is possible. The reluctance to address performance issues Public Sector cultural legacy (e.g. conservatism amongst the workforce) and the effects of public scrutiny were considered to constrain a disciplined approach to performance management and there was a perceived need to improve team and individual performance plans, reviews and performance and accountability for results. The vocational pull verus the organisational pull Public Sector organisations were felt to have more diverse workforces in terms of vocational interests, beliefs and values, which provide additional complexity in terms of aligning the values and goals of all the differing and competing communities, often with substantial legacy and history driving entrenched values and behaviours. General trends associated with differing types of public sector organisations As is evidenced in various sections of this report, HR practices varied considerably throughout the sample organisations. However, it was difficult to identify typologies across the organisations illustrating and explaining commonalities. Nonetheless, in this section we have made some general observations for discussion.
Inner v outer government The experience of being part of a fishbowl seemed to be more front-of-mind for employees in government departments (as compared with employees in the public authorities). Proximity to government appeared to be a factor influencing the level of concern employees have in relation to not being seen to be doing the wrong thing, seeming to result in a greater focus on process. One way that this was expressed was through a heightened concern with misusing government funds in the area of employee recognition (e.g. when giving movie tickets as recognition for good work). Even though strict approval processes are almost always in place, managers in government organisations expressed a reluctance to give employees monetary-based rewards under recognition programs for fear of being exposed on the front page of a newspaper.

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The fear of being seen to be doing the wrong thing was also prevalent in the area of succession planning. Although succession planning was generally weak throughout the whole sample group, the government departments struggled to reconcile the perceived conflict between the necessity of planning for future leadership needs, and the need to be able to justify succession development activities under the merit principle. Consequently, succession planning processes are generally very informal and, in many cases, very secretive. All of the hospitals had had difficulties with the attraction and retention of nurses, and therefore put a lot of effort and focus on this issue. The HR benchmark data results revealed that the organisations in health and human services had higher absenteeism (excluding maternity or paternity leave) than other Victorian public sector participants. This may be linked to the difficulty in attracting and retaining nurses, however it may simply be a reflection of the stressful nature of the work.
Organisations in the TAFE sector and higher education Organisations in health and human services These organisations included the hospitals, the Department of Human Services, and the Melbourne Ambulance Service. Employees in these organisations tended to be caring individuals who are passionate about their work. These employees tend to be highly motivated to meet the needs of their individual clients but have less of a focus on the needs o f the organisation as a whole. (We note that Victorian Arts Centre Trust employees also displayed these characteristics.) Despite these common characteristics, the various health and human service organisations took very different approaches to motivating and retaining employees. HR in each of these organisations recognised the stressful nature of much of the work of employees, and focused on providing supportive HR practices in the areas of antiharassment and bullying, grievances, work-life balance and employee assistance. These organisations also tended to have sophisticated policies on occupational health and safety. HR in these organisations tended to have more of a personnel focus (although over the last couple of years, the Gordon Institute has addressed this). One issue faced by these organisations has been restrictions in funding for HR, resulting in a need for greater innovation to provide a cost-effective HR practice. The funding issue was also prevalent in the HR benchmark data, where the TAFE sector was found to have a low HR budget per employee when compared to other participants.
Organisations with a finance or industry focus These organisations comprised the Department of Treasury and Finance and the Department of Industry, Innovation, and Regional Development. These organisations attract greater numbers of employees from the private sector than the other sample organisations but are also experiencing significant loss of employees to the private sector. This phenomenon puts these organisations at a greater risk of having high levels of employee turnover. This was reflected
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in the HR benchmark data, where organisations with a finance or industry focus had higher percentages of voluntary terminations than all other participants. Also, these organisations were able to more easily cascade accountability for results throughout the organisation. For DTF, this meant a focus on creating more of a performance culture and working on the organisations performance management processes.
Organisations with geographically dispersed employees Organisations with employees located over large geographical areas included Parks Victoria, the Department of Human Services, Goulburn-Murray Rural Water Authority, and the Department of Justice. These organisations tended to have devolved HR practices, with varying levels of prescription by HR. Other than in DHS, HR functions tended to be centralised with no HR presence in the regions. For some organisations this posed some considerable constraints because it was felt to be more difficult to manage thorny HR issues in rural, tight knit communities, where work issues could frequently expand into the home and family lives of the people involved.

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Differences between private and public sectors

This section outlines our views on the major differences between some of the HR practices we have observed in this analysis of the Victorian Public Sector and our observations of leading edge, high performing organisations within the private sector. It is important to note that the quality of HR and Management practices varies significantly within the private sector, and that many of the issues and difficulties we have highlighted in this report also apply to large extent in private sector organisations. For the purposes of this report, we have focused on highlighting the comparisons with high performing private sector organisations. The key differences we noted were in regards to the manner in which Performance Management, Reward and Recognition and Talent Management HR practices were structured and implemented. Reward and recognition There is an enhanced emphasis on pay for performance and directly rewarding achievements at all levels in the organisation. The leadership teams have their pay closely aligned with their performance and frequently have a substantial component of at-risk pay. The organisations operate a disciplined approach which does not pay out bonuses, or other rewards when targets are missed. Non-financial rewards, which are common within most of the organisations, support a high performing culture as well as the work/life balance of employees. In contrast to the private sector, which tends to offer financial incentives to high achieving employees, in the public sector, time in lieu and flexible hours encourage employees to invest in their private life as well as their career.
Talent management Performance management Leading edge private sector organisations place a heavy emphasis on developing a high performance oriented culture which champions high-level performance. These organisations are generally scrupulous in setting specific goals which align with corporate and departmental goals, raising expectations every year, and enforcing performance benchmarks. In addition, managers and employees are inspired to do their best and there is a tendency to push decision making, responsibility and the ability to make a difference down the organisational ladder. Leading edge private sector organisations excelled in dedicating major resources to building and retaining an effective workforce and management team. This included personal attention from top executives, offering training and development to prepare employees for new jobs in the company, and career development initiatives such as work experience and accelerated employee development programs.

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Conclusions and recommendations

- Enhancing HR practice

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Enhancing HR practice
Enhancing the effectiveness of the role of managers in the management of people A key finding highlighted in this report is the importance of the contribution of line managers to the effectiveness of HR practice. Although key strategies used by HR in the sample organisations are the prescription and centralisation of HR policies, these strategies are only successful to the extent that policies are embraced by management and delivered consistently. We recommend that the following initiatives be considered in order to improve the contribution of line managers to HR practice: Greater inclusion and involvement of management in setting HR policy. As noted in this report, some organisations did this through manager focus groups and surveys. Provision of guidelines (for example, in relation to behavioural interviewing techniques) as tools for applying HR policies and carrying out better people management practices. More emphasis on management training and development to create a greater awareness of the importance of the managers role in people management, and to improve both the general people skills of managers and their skills in relation to the application of specific HR policies (for example, on giving feedback, dealing with grievances, carrying out performance appraisals and interviewing techniques). Greater emphasis placed on assessing people management skills competencies when selecting for management roles. Added emphasis placed on assessing people management skills and competencies in the performance appraisal processes for line management. Initiatives to build closer working relationships between HR and line managers to enable greater support of line management in carrying out their HR responsibilities. As noted in this report, HR function structures where HR staff are assigned to business units can assist to achieve this. Creating shared responsibility for achieving peoplerelated goals between line and HR management. The shared responsibility between line and HR management needs to be encouraged and modelled from senior management.
The role of the HR function It would benefit many of the sample organisations if both senior management and HR would clarify the way in which HR can best contribute to the organisation. As mentioned in this report, many of the sample organisations are not undertaking the strategic partner and change agent roles. To do this, HR would be required to increase their level of influence in the organisation and build more of a strategic mindset and the senior executive team would need to more clearly understand the value of strategic HR.

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Enhancing HR practice (continued)

Although we understand there are limitations for HR in the sample organisations, particularly in relation to funding, initiatives that could ideally help HR to expand its role and contribution include the following: Situating a strategically-minded head of HR on the senior executive team. This would mean that HR is led by someone who not only has a solid understanding of HR practice, but also has a grounded knowledge of the business and its objectives, the industry in which the organisation operates, and the organisations legislative and political constraints. The head of HR should also be economically literate, have a focus on cost-effective HR practice, and steward the desired organisational values and culture. Building the strategic and change skills of HR. In the same way that organisations need to have a greater focus on management development, development of the HR staff would also significantly increase the skills of the HR function and the organisation itself. Set goals for HR around the quality and outcomes of HR policies and initiatives. The assessment of the HR function should look at the quality of the HR policies set, the level of quality of the application of policies by line management, as well as the people outcomes of HR policies (e.g. in relation to employee and customer satisfaction). This would encourage HR to look holistically at the effectiveness of their contribution to the organisation and work to improve the application of their policies. Build the visibility of HR throughout the organisation. This would be particularly advantageous for HR functions that are purely centrally located and/or have geographically dispersed employees. Although most sample organisations already use induction and orientation training as well as technology-based tools, such as HR intranet sites, to disseminate HR information, feedback from many employees indicated that greater face-to-face contact with HR is vitally important. Achieving this may require structural change and/or a more strategic and innovative use of limited HR staff resource.
Managing performance An observation of the sample organisations is that there is a general reluctance to recognise and address performance issues, both in relation to distinguishing between good and acceptable performance, and in relation to managing underperformance. It appears that the key reasons for this reluctance are the culture within the public sector of fearing to be seen to do the wrong thing, and the difficulty public sector organisations have in articulating the essence of what good performance means. Initiatives to consider would include the following: Ensure that performance appraisal templates provide guidance on goal setting, enabling individual goals to align with organisational and departmental goals.

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Enhancing HR practice (continued)

Ensure performance appraisal templates are applicable for different business units and job families Assess both the level of completion and quality of performance appraisal. Consider the use of forced ranking in the performance appraisal process. This is one way of enforcing to managers the importance of identifying performance issues. However, for forced ranking to be effective, it would generally require additional effort in relation to defining what different levels of performance mean and supporting managers to assess employees fairly and accurately, and to give constructive feedback. Link 180 degree or 360 degree feedback to the performance appraisal process. Make it easier for managers to manage underperformance e.g. through conducting specific manager training in this area and encouraging them to access HR for support. Equip and encourage managers to use the performance appraisal process as a means to develop the performance of individuals, through manager training. Centrally track the completion of goals and actions set under employees development plans. Communicate this to managers and consider linking this to the managers performance appraisals. Ensure the provision of performance pay reflects employee performance (and that bonuses are not just used to top up base pay). Encourage and equip managers to give ongoing verbal feedback (e.g. through manager training).
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Sharing knowledge amongst public sector organisations During the feedback sessions, HR from the sample organisations expressed a strong interest in being able to participate in forums that would enhance their knowledge of good HR practice, enable them to improve their HR practice and therefore enhance the benefit they provide to their organisations. To do this, they expressed a view that using smaller and more industry-focused OPE-initiated forums would be useful, with these forums being facilitated, at least initially, by OPE. A number of organisations stated that they would benefit from an OPE website link or database that enables organisations governed by the PSMEA to develop online relationships with each other and the OPE. This would enable organisations to network across similar industries but also develop relationships with other organisations encountering similar business issues. In addition, it was also stated that they were interested in obtaining additional assistance from OPE in terms of the practical ways in which organisations can embed the principles into their organisation through either OPE providing training or facilitating networking across the organisations. They expressed a view that while OPE may not want to dictate how the principles should be lived, they felt that this would not only encourage face-to-face networking across organisations and with OPE but also provide organisations with the examples of living the principles.

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human resource services

Office of Public Employment

human resource services

Executive summary (continued)

human resource services

Executive summary (continued)

human resource services

human resource services

human resource services

Aims and scope of the study

human resource services

human resource services

human resource services

human resource services

human resource services

human resource services

human resource services

human resource services

Australasia all sectors 8%

Global public sector 5%

human resource services

human resource services

human resource services

human resource services

human resource services

human resource services

human resource services

Structure of the HR function

Head of Central HR Function

Training & Development

Recruitment & Selection

human resource services

Structure of the HR function (continued)

human resource services

Structure of the HR function (continued)

Mix of Centralised and Decentralised

Chief Executive or Corporate Services Executive

Head of Central HR Function

Learning & Development

Employee Conditions & Benefits

Business Unit Relationship Managers

human resource services

Structure of the HR function (continued)

HR Manager HR Manager HR Manager HR Manager HR Manager HR Manager HR Manager

human resource services

Structure of the HR function (continued)

Training & Development

Payroll & Benefits

Customer Service Officer

human resource services

Prescription and devolution of HR practice

Less prescribed (high flexibility) [NA]

Low devolution of HR decisionmaking Devolution with monitoring High devolution of HR decisionmaking

Pay (re. EBA)

Career planning /management Succession planning

Training and development

human resource services

Prescription and devolution of HR practice (continued)

human resource services

human resource services

HR practices Performance management