Transcript Document
Civil Service Reform: The Enduring Conflict Between Neutral Competence and Responsiveness Stephen E. Condrey, Ph.D. University of Georgia “One thing seems clear: that the principles of merit and the practices whereby they were given substance are changing and must change a good deal more to remain viable in our society.” Human resource management systems “should be decentralized and delegated to bring them into more immediate relationship with the middle and lower managers whom they serve.” - Frederick Mosher (1968) The Constant Tension Between “Neutral Competence” and “Responsiveness” “Since the rise of merit systems in the United States, civil service processes have been designed in large part to insulate public servants from politics and partisanship…The challenge has always been to find a way to temper the control and flexibility that are required with appropriate levels of protection for public employees.” - J. Edward Kellough & Lloyd G. Nigro (2006) Three Cases of Civil Service Reform: • State of Georgia • Jefferson County Personnel Board, Alabama • U.S. Department of Homeland Security State of Georgia • State merit protections abolished for new hires in 1996. • Decentralized state human resources administration. “I will also bring you legislation to revise the State Merit System, which was established more than 50 years ago to create a professional workforce that was free of political cronyism…But too often in government, we pass laws to fix particular problems of the moment, and then we allow half a century to roll by without ever following up to see what the long-term consequences have been…A solution in 1943 is a problem in 1996. The problem is governmental paralysis, because despite its name, our present Merit System is not about merit…It can take six to eight weeks to fill a critical position in state government. It takes a year to a year-and-a-half to fire a bad worker, because of the mountain of endless paperwork, hearings and appeals.” - Former State of Georgia Governor Zell Miller (1996) Percentage of Unclassified versus Classified Employees* State of Georgia: 1999 - 2008 Classified Dec 31, Number Unclassified Percent of Total Number Percent of Total Total 1999 39716 51.34% 37641 48.66% 77357 2000 34906 44.78% 43047 55.22% 77953 2001 31132 39.08% 48524 60.92% 79656 2002 28116 34.49% 53393 65.51% 81509 2003 25349 31.37% 55465 68.63% 80814 2004 22445 27.88% 58068 72.12% 80513 2005 19861 24.30% 61877 75.70% 81738 2006** 17830 21.67% 64452 78.33% 82282 2007** 15769 19.22% 66266 80.78% 82035 2008** 13818 17.21% 66495 82.79% 80313 *Headcount totals for full-time equivalent (FTE) employees for each year were pulled as available from PeopleSoft HR System as they existed 03-11-2009. *For purposes of consistency from year-to-year, FTE employees are defined as all regular, benefit-eligible employees on non-temporary pay plans. **Records for 2006 and forward are under current review by State Personnel as some may have been affected by the most recent PeopleSoft upgrade. Georgia – A Perfect Storm? Factors Influencing the Legislative Success of the Georgia Reform • Right-to-work state with weak public employee unions • Gubernatorial success in passing his legislative agenda • Editorial support of the state’s largest circulation newspapers • Support of the state’s bureaucratic leadership HR Professionals’ Experience with EAW Proper Use of At-Will Employment* % Agree/Disagree Mean Factor Loading Employees have been terminated at-will because of changing managerial priorities/objectives 40.7/35.0 3.02 .655 Employees have been terminated at-will in order to meet agency budget shortfalls 46.0/37.2 3.09 .902 Employees have been terminated at-will in order to meet agency downsizing goals 47.3/35.9 3.14 .924 Cronbach’s Alpha = .842 *Respondents were asked to indicate their agreement or disagreement with survey statements related to employment at-will using the following scale: 1 = “Strongly Disagree”; 2 = “Disagree”; 3 = “Neither Agree/Disagree”; 4 = “Agree”; and 5 = “Strongly Agree.” Percentages reported in the table do not sum to 100 percent due to rounding and omission of “neither agree or disagree” responses. HR Professionals’ Experience with EAW Misuse of At-Will Employment* % Agree/Disagree Mean Factor Loading EAW is sometimes used to fire competent employees so other people with friends or connections to government can be hired. 30.2/49.5 2.61 .806 I know of a case where a competent employee was fired at-will so that another person with friends or connections to government could be hired 10.3/74.1 1.91 .886 Employees have been terminated at-will because of personality conflicts with management 32.4/46.7 2.71 .772 Cronbach’s Alpha = .802 *Respondents were asked to indicate their agreement or disagreement with survey statements related to employment at-will using the following scale: 1 = “Strongly Disagree”; 2 = “Disagree”; 3 = “Neither Agree/Disagree”; 4 = “Agree”; and 5 = “Strongly Agree.” Percentages reported in the table do not sum to 100 percent due to rounding and omission of “neither agree or disagree” responses. Fundamental Flaw? “EAW systems may have a fundamental flaw in that they may undermine trusting workplace relationships necessary for effective public management.” - R. Paul Battaglio & Stephen E. Condrey (2009) Has EAW Diffused? Overall trend is toward lessening of employee rights and decentralized methods of personnel administration. General Summary of Interview Findings: Snapshot of Current Conditions in the States’ Personnel Systems (Source: Hays & Sowa, 2006) State Level of Human Resources Decentralization Expansion of At-Will Employees Alabama Alaska Arizona Partial Centralized Partial No No Yes Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Significant Partial Significant Partial Partial Significant Significant Centralized Yes No Yes No Yes Yes Yes No Partial Partial Recentralizing Significant Yes No Yes Yes Idaho Illinois Indiana Iowa Range of Grievable Issues Agency specific Restricted Restricted Restricted, agency specific Expansive Restricted Expansive Expansive Restricted Restricted Expansive Agency specific Expansive Restrictive Expansive Activist Governor "Decline in Job Security" No Yes Yes Yes No Yes No Yes Yes No No Yes No No Yes Yes Yes No No Yes Yes No No No Yes No Yes Yes Yes No General Summary of Interview Findings: Snapshot of Current Conditions in the States’ Personnel Systems (Source: Hays & Sowa, 2006) State Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina Level of Human Resources Decentralization Expansion of At-Will Employees Significant Centralized Partial Recentralizing Partial Partial Partial Partial Partial Yes Yes No No No Yes No No Yes Significant Partial Centralized Partial Partial Partial Centralized Partial Significant Yes No Yes No No Yes No No Yes Range of Grievable Issues Expansive, agency specific Expansive Restricted Expansive Expansive Expansive Expansive Expansive Restricted Agency specific Restricted Restricted Expansive Expansive Expansive Expansive Expansive Restricted Activist Governor "Decline in Job Security" Yes Yes No Yes No Yes No No Yes Yes No Yes Yes No Yes Yes Yes Yes Yes No No No No No No No No Yes No Yes No No Yes No No Yes General Summary of Interview Findings: Snapshot of Current Conditions in the States’ Personnel Systems (Source: Hays & Sowa, 2006) State North Dakota Ohio Oklahoma Oregon Pennsylvania Level of Human Resources Decentralization Significant Partial Significant Partial Significant Expansion of At-Will Employees No Yes Yes Yes No Rhode Island South Carolina South Dakota Tennessee Centralized Significant Centralized Centralized Yes Yes No No Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Complete Partial Significant Significant Significant Partial Partial Partial Yes Yes Yes No Yes Yes No Yes Range of Grievable Issues Restricted Restricted Restricted Expansive Expansive Expansive, but not utilized Restricted Expansive Restricted Not applicable Expansive Restricted Restricted Restricted Restricted Expansive Restricted Activist Governor No No No Yes No "Decline in Job Security" No No Yes Yes No Yes No No No Yes Yes No No No Yes Yes No Yes Yes Yes No Yes No Yes Yes Yes Yes Yes No Jefferson County, Alabama • Placed into receivership by the federal courts (first verifiable instance) • Strong civil service system • Emphasis on modernization, not abolition as in Georgia Jefferson County, Alabama Personnel Board • Established 1935 • Covers approximately 12,000 employees in Birmingham, Jefferson County, and other cities within Jefferson County • Very traditional civil service system – 3 member Board, citizens commission appoints the Board • Mayors and County Commissioners have little or no influence over the Board Contrary to the Overall Trend Civil Service Reform and the Decline of the Commission Format “Ironically, at the same time that the federal government has been pressuring state and local governments to adopt and strengthen merit systems, the commission form of administering them was on the wane for reasons similar to the abolition of the commission form at the federal level. Put simply, independent structurally, and politically isolated personnel agencies of a regulatory nature were having great difficultly in serving the needs of elected executives and public managers. They became viewed as obstacles to efficiency and effectiveness and were often seen as unduly influenced by pressure groups.” - Norma M. Riccucci & Katherine C. Naff (2008) Receivership History • Failure to produce valid civil service examinations • Federal judge calls director “incompetent” • Ronald Sims (Management Professor at The College of William & Mary) appointed as receiver on July 8, 2002 • Released from receivership on November 20, 2008 Receiver Findings • PBJC mired in the past • Organizational problems – Structure & Personnel • Outdated Technology “Only a few employees could access the information and only then generally for the limited purpose of manual data entry. Other member jurisdictions had no electronic access to the information. There were virtually no analytical tools, no query-building capabilities, and no logical relationships between data structures. Office shelves were crowded and floors were littered with binders of outdated reports and stacks of continuous-feed papers reflecting information housed in an otherwise inaccessible database. The staff was generally not computer literate. Few desktop computers existed in the organization. In short, the Receiver believed that the lack of infrastructure contributed to PBJC’s struggling to execute its basic statutory responsibilities.” - Ronald R. Sims (Forthcoming, 2009) Receiver Accomplishments • Replaced or trained existing staff • Modern HRIS system • New pay plan • New organization structure • Remodeled offices • Revamped rules • Met requirements for professional examination and testing division PBJC Outcomes • Rebuilt 1935 Cadillac • Complaints of responsiveness by Mayors • Released from litigation dating from the 1970s PBJC in Perspective • Attempt to professionalize from the “bottom-up” • No attempts for “top-down” professionalization • Corrupt County Commission • County near bankruptcy • Strong mayor form of government • Legislative push for a county manager Department of Homeland Security “Change through crisis has been ongoing theme in American government. In a system designed to move hesitantly and incrementally, emergencies, not grand theory, are what often spark the energy for significant action.” - Camilla Stivers & Ralph P. Hummel (2007) Decentralization Trend Seen in States Continues In Federal Government • Thompson terms this “disaggregation” • Related to private sector and aligning strategy and mission • DOD and DHS are examples: “A direct consequence of these new systems, however, is the disaggregation of the federal personnel system into multiple, agency-specific systems. Disaggregation, in turn, represents a fundamental threat to an institution whose viability is contingent on its inherently collective nature.” - James R. Thompson (2006) DHS Overview • Created October 8, 2001 • Afforded greater flexibility with labor relations, compensation, etc. • Union opposition • Political rollercoaster – 2002 election & 2006 election Public HRM is Necessarily Political “In sum, the election results of 2002 suggest that the Bush administration effectively reframed the debate over the human resource system in the DHS from an issue of management flexibility versus employee rights to an issue of national security versus self-interested union power.” - Norma M. Riccucci & Frank J. Thompson (2008) Obama Administration • Reverses diminution of public employee rights • Will abolish the National Security Personnel System (NSPS) at the Department of Homeland Security Obama Agenda • Move toward recentralization of HR functions • Possible consolidation of pay systems and overhaul of the Federal General Schedule • Improved Labor/Management relations • Possible introduction of pay-for-performance Obama Agenda Continued • Possible unified performance management system • Increased recruitment – “Make Government Employment Cool Again” • Increased emphasis on training and development • In-sourcing and a reduction in privatization Conclusions • There are lessons to be learned from extremes – State of Georgia and Jefferson County • DHS case points to the power of unions in mitigating extreme management philosophy • There is no “one best way” to structure civil service systems • Organizations should seek a proper balance between employee rights and managerial flexibility • Obama agenda still forming – John Berry most activist OPM Director in recent history