Refurbishing of Personnel Administation – Scaling New Heights requirements of the department in which he/she is working, and (iii) a final section which captures the specific requirements and targets relating to the post that the officer is holding. Performance appraisal should be year round: provisions for detailed work-plan and a mid-year review should be introduced for all Services. Guidelines need to be formulated for assigning numerical rating: DOPT should formulate detailed guidelines to guide the reporting and reviewing officers for assigning numerical ratings for their subordinates. Training modules for implementing performance management systems should be designed and introduced for training programmes for civil servants. b. Government should expand the scope of the present performance appraisal system of its employees to a comprehensive performance management system (PMS). c. In implementing PMS in government, it must be emphasized that the PMS should be designed within the overall strategic framework appropriate to the particular ministry/department/organization. It is also necessary to link individual contributions to strategic objectives of the organization. It will therefore be necessary for each ministry/department/organization to customize its PMS relevant to them, while incorporating the general features described in Chapter 11. d. 242 Annual performance agreements should be signed between the departmental minister and the Secretary of the ministry/heads of departments, providing physical and verifiable details of the work to be done during a financial year. The actual performance should be assessed by a third party – say, the Central Public Services Authority – with reference to the annual performance agreement. The details of the annual performance agreements and the result of the assessment by the third party should be provided to the legislature as a part of the Performance Budget/Outcome Budget. MOTIVATING CIVIL SERVANTS 12 12.1 Human Resources and Governance 12.1.1 As with any other enterprise, how effective a government is, depends on the various resources it has – human capital, finances, natural resources, technology etc. Of all these organizational resources, human capital is the most important. Therefore, organizations – Corporates, NGOs, Government - all place considerable emphasis on developing it. Human resource development includes a wide spectrum of activities - recruitment, training, placement, motivation etc. While other aspects of human capital have been dealt with in the foregoing chapters, the Commission has examined issues relating to motivation of government servants, in this chapter. 12.1.2 A motivated and willing civil service is the best instrument to achieve the outcomes desired by the state and society. Motivation comes through incentives. Contrary to popular perception that it is monetary incentives which matter the most, the fact is that academic theory as well as experience both in the Corporate sector and in Government, indicates that it is the non-monetary incentives which are the key factors in motivating employees especially in the context of Government. 12.1.3 The common perception is that the incentive structure in government is too weak and inadequate to motivate better performance. Even the tool of promotion is not always used for motivation, as the principle of seniority is generally followed rather than competence and performance. It has also been noted that often civil servants adopt a ‘minimalist’ approach in their functioning, and confine their work to disposing of files making no special effort at resolving problems. In other words, a public servant rarely walks that ‘extra mile’ in carrying out his/her duties. The Sixth Central Pay Commission observed as follows: “Government employees are generally de-motivated, with poor self perception reflected in low morale and low performance. This is notwithstanding the fact that at recruitment stage, through competitive procedures, the best quality is available to the Central Government at all levels. The problem, therefore, lies in retaining this excellence through designing motivating jobs with greater responsibility, accountability 243 Refurbishing of Personnel Administation – Scaling New Heights and recognition of merit. A system rewarding performance in terms of the results achieved has to be heralded. Pride in public service and core public service values with effective and responsive delivery have to be rebuilt.” Motivating Civil Servants a. Employment security b. Respect in society 12.2 Factors Affecting Motivation of Public Servants c. Balance between work and life 12.2.1 The word “motivation” has originated from the Latin word “movere”, which means to move. Motivation can be defined as the process of driving individuals to attain the organizational as well as the individual’s goals. There are various factors which motivate a person to work. These include working to earn a living, for personal fulfilment, for professional satisfaction or to meet the challenges that the profession offers. The issue of motivation has been the subject of considerable research and a large number of theories have been propounded. It is now well understood that motivation is a complex subject and a wide variety of factors influence the motivation of an individual. d. Opportunity to be part of the larger cause of serving the country e. Variety in job profile 12.2.2 Herzberg had propounded a two-factor theory. He categorized the factors influencing an individual at work into two groups – hygiene factors (extrinsic) and motivation factors (intrinsic). He stated that absence of hygiene factors - wages, working conditions, quality of supervision - would dissatisfy an employee. But motivating factors – status, recognition, sense of personal achievement, challenging nature of work - would lead to satisfaction among employees. Researchers have often argued against the division of the factors into two groups but there is a consensus over the proposition that a large number of factors need to be addressed to improve motivational levels of employees in any organization. One of the important extrinsic factors for motivation is of course the monetary compensation a public servant receives. However, as stated earlier apart from the monetary remuneration, a public servant is perhaps primarily influenced by several non-monetary factors. 12.2.3 The Sixth Central Pay Commission has broadly categorized the benefits a public servant gets by virtue of his/her being in public service, into two broad categories - ‘transactional benefits’ and ‘relational benefits’. Transactional returns are those returns – monetary and nonmonetary - that the employee is entitled to perennially. To illustrate, the basic pay, dearness allowance, house rent allowance, city compensatory allowance, conveyance allowance, etc., and all the intangible benefits fall under this category. “Relational” returns refer to those needs that are not necessarily monetary in nature. These returns satisfy the self-esteem and self-satisfaction needs of the employees. They include, for instance, the pride of having an association with an organization, job challenge and satisfaction, opportunities for learning and advancement, a sense of being part of a nobler cause (in case of some organizations), job security and so on.108 The relational benefits in government are different for different people; but roughly the list below would be applicable to most employees.109 244 12.2.4 Generally, the ‘transactional returns’ for a government servant are much less as compared to a similarly placed person in the corporate sector, but the ‘relational benefits are generally much more. 12.3 Motivating a Public Servant 12.3.1 The Sixth Central Pay Commission examined the issue of giving monetary incentives in order to motivate government employees for better performance. The Pay Commission observed: ““In India, Government employees are paid according to their service incremental salary scales. For a larger (majority) section of employees there is hardly any performance for pay incentive available to them. Their salaries are today only a composite of basic pay plus certain allowances (variable) including DA that are admissible depending on the nature of jobs and duties and accompanying working conditions. In fact, natural increases in salary are very much guaranteed to Government employees. This leads to a situation where employees do not exert themselves for a higher level of onthe-job performance and achievements, thus depriving the Government of potential productivity gains and service delivery enhancements, both in terms of quantum and quality. There is no external motivation for risk-taking and delivering a higher level of performance, because though the risk-taking is punished if things go wrong, it is not financially rewarded if things improve because of employees’ initiative and risktaking. Over the years, this has led to the development of a culture where employees have become risk averse.” 12.3.2 The Pay Commission has recommended introduction of a new performance based pecuniary benefit, over and above the regular salary, for Government employees Performance Related Incentive Scheme (PRIS). It is based on the principle of differential reward for differential performance. The Commission agrees with the recommendations made by the Pay Commission. 245 108 109 A study of Estimating Cost to Government for a government employee; XLRI; The study was Commissioned by the Sixth Central Pay Commission A study of Estimating Cost to Government for a government employee; XLRI; The study was Commissioned by the Sixth Central Pay Commission Refurbishing of Personnel Administation – Scaling New Heights and recognition of merit. A system rewarding performance in terms of the results achieved has to be heralded. Pride in public service and core public service values with effective and responsive delivery have to be rebuilt.” Motivating Civil Servants a. Employment security b. Respect in society 12.2 Factors Affecting Motivation of Public Servants c. Balance between work and life 12.2.1 The word “motivation” has originated from the Latin word “movere”, which means to move. Motivation can be defined as the process of driving individuals to attain the organizational as well as the individual’s goals. There are various factors which motivate a person to work. These include working to earn a living, for personal fulfilment, for professional satisfaction or to meet the challenges that the profession offers. The issue of motivation has been the subject of considerable research and a large number of theories have been propounded. It is now well understood that motivation is a complex subject and a wide variety of factors influence the motivation of an individual. d. Opportunity to be part of the larger cause of serving the country e. Variety in job profile 12.2.2 Herzberg had propounded a two-factor theory. He categorized the factors influencing an individual at work into two groups – hygiene factors (extrinsic) and motivation factors (intrinsic). He stated that absence of hygiene factors - wages, working conditions, quality of supervision - would dissatisfy an employee. But motivating factors – status, recognition, sense of personal achievement, challenging nature of work - would lead to satisfaction among employees. Researchers have often argued against the division of the factors into two groups but there is a consensus over the proposition that a large number of factors need to be addressed to improve motivational levels of employees in any organization. One of the important extrinsic factors for motivation is of course the monetary compensation a public servant receives. However, as stated earlier apart from the monetary remuneration, a public servant is perhaps primarily influenced by several non-monetary factors. 12.2.3 The Sixth Central Pay Commission has broadly categorized the benefits a public servant gets by virtue of his/her being in public service, into two broad categories - ‘transactional benefits’ and ‘relational benefits’. Transactional returns are those returns – monetary and nonmonetary - that the employee is entitled to perennially. To illustrate, the basic pay, dearness allowance, house rent allowance, city compensatory allowance, conveyance allowance, etc., and all the intangible benefits fall under this category. “Relational” returns refer to those needs that are not necessarily monetary in nature. These returns satisfy the self-esteem and self-satisfaction needs of the employees. They include, for instance, the pride of having an association with an organization, job challenge and satisfaction, opportunities for learning and advancement, a sense of being part of a nobler cause (in case of some organizations), job security and so on.108 The relational benefits in government are different for different people; but roughly the list below would be applicable to most employees.109 244 12.2.4 Generally, the ‘transactional returns’ for a government servant are much less as compared to a similarly placed person in the corporate sector, but the ‘relational benefits are generally much more. 12.3 Motivating a Public Servant 12.3.1 The Sixth Central Pay Commission examined the issue of giving monetary incentives in order to motivate government employees for better performance. The Pay Commission observed: ““In India, Government employees are paid according to their service incremental salary scales. For a larger (majority) section of employees there is hardly any performance for pay incentive available to them. Their salaries are today only a composite of basic pay plus certain allowances (variable) including DA that are admissible depending on the nature of jobs and duties and accompanying working conditions. In fact, natural increases in salary are very much guaranteed to Government employees. This leads to a situation where employees do not exert themselves for a higher level of onthe-job performance and achievements, thus depriving the Government of potential productivity gains and service delivery enhancements, both in terms of quantum and quality. There is no external motivation for risk-taking and delivering a higher level of performance, because though the risk-taking is punished if things go wrong, it is not financially rewarded if things improve because of employees’ initiative and risktaking. Over the years, this has led to the development of a culture where employees have become risk averse.” 12.3.2 The Pay Commission has recommended introduction of a new performance based pecuniary benefit, over and above the regular salary, for Government employees Performance Related Incentive Scheme (PRIS). It is based on the principle of differential reward for differential performance. The Commission agrees with the recommendations made by the Pay Commission. 245 108 109 A study of Estimating Cost to Government for a government employee; XLRI; The study was Commissioned by the Sixth Central Pay Commission A study of Estimating Cost to Government for a government employee; XLRI; The study was Commissioned by the Sixth Central Pay Commission Refurbishing of Personnel Administation – Scaling New Heights 12.4 Non-monetary Motivating Factors As stated earlier, there are a large number of factors apart from monetary motivators which impact the performance of an employee. The Commission has examined some of these in the following paragraphs. 12.4.1 Recognition 12.4.1.1 It is a well established tenet in both public and private sector organizations that linking rewards with performance is a powerful motivating tool for its employees. So far as the public services in India are concerned, this fact had been highlighted in 1984 by the then Prime Minister Shri Rajiv Gandhi who in his broadcast to the nation had said: “Our administrative system must become more goal-oriented. A new work-ethic, a new work culture must be evolved in which Government is result-bound and not procedurebound. Reward and punishment must be related to performance.” 12.4.1.2 Government of India has launched major initiatives for linking performance with rewards including through its recently revised Performance Appraisal System with the notification of the All India Services (Performance Appraisal Report) Rules, 2007. It has also since 2006 instituted national awards for those civil servants who have made outstanding contributions to public administration and this is duly acknowledged every year on the occasion of Civil Service Day. While these are very positive steps, there is need to further emphasise on incentives like conferring the Padma awards more frequently to serving civil servants award systems for recognizing good performance should also be instituted at the State and district levels. It must further be ensured that selection for such awards is made through a prompt, objective and transparent mechanism because the value of such awards should not get compromised by either subjectivity or lack of transparency. Further, all organizations should evolve their own in-house mechanism for rewarding good performance from simple, verbal and written appreciation to more tangible rewards. 12.4.2 Job Enrichment 12.4.2.1 A large number of public servants perform jobs which are largely routine and monotonous. This is especially true for Group ‘C’ and ‘D’ employees. As mentioned earlier a feeling of accomplishment, is an important motivator for any person but a person rarely gets a sense of achievement in the midst of drudgery. Therefore, enriching jobs is an important motivation tool. Job enrichment is a type of job redesign intended to reverse the effects of tasks that are repetitive requiring little autonomy. Some of these effects are boredom, lack of flexibility, Motivating Civil Servants and employee dissatisfaction (Leach & Wall, 2004). The underlying principle is to expand the scope of the job with a greater variety of tasks, vertical in nature, that require self-sufficiency. Since the goal is to give the individual exposure to tasks normally reserved for differently focused or higher positions, merely adding more of the same responsibilities related to an employee’s current position is not considered job enrichment.110 Job enrichment as a motivational tool has not been used widely in Government. 12.4.2.2 It may not be possible to make specific recommendations regarding job enrichment, as they would differ for each office/department and even within an office/department they would differ from position to position within the office. The Commission is of the view that it should be the responsibility of the head of the office to examine the job content of each person working in the organization and then ensure that the job is rich content-wise so that the employee derives a sense of satisfaction by performing tasks assigned to him. The head of the office could seek the assistance of a professional agency for this purpose. Any effort towards job enrichment should be backed by adequate opportunities for skill and capability development. 12.4.3 Linking Career Prospects with Performance 12.4.3.1 Better career prospects can be an important motivating factor within an organization. The corporate sector uses this optimally. In Government and the public sector because of compulsions of uniformity and absence of a perfect performance evaluation system, career prospects often get de-linked from performance. As a result, promotions are largely based on seniority. The Commission is of the view that in matters of promotion, the performance of a candidate should be given due weight. This once again brings to the fore the importance of an effective performance evaluation system. 12.4.3.2 Posts in foreign countries are mostly encadred in the Indian Foreign Services. However, there are a limited number of posts for which officers from other Central/All India Services are also considered. These assignments are generally coveted and considered to be prestigious. The general impression, however, is that selection to these positions are often not done in a transparent and objective manner. The Commission has elsewhere talked about the need for transparency and competition in all appointments both as a measure of good governance and as a motivational tool. The Commission, therefore, recommends that all foreign assignments (other than those for officers of the IFS) should be made, based on the recommendations of the Central Civil Services Authority. The Authority should follow the due process of inviting applications from eligible candidates and preparing a panel of officers who are most suitable for such assignments based on their domain competence. 246 247 110 http://edweb.sdsu.edu/people/ARossett/pie/Interventions/jobdesign_1.htm Refurbishing of Personnel Administation – Scaling New Heights 12.4 Non-monetary Motivating Factors As stated earlier, there are a large number of factors apart from monetary motivators which impact the performance of an employee. The Commission has examined some of these in the following paragraphs. 12.4.1 Recognition 12.4.1.1 It is a well established tenet in both public and private sector organizations that linking rewards with performance is a powerful motivating tool for its employees. So far as the public services in India are concerned, this fact had been highlighted in 1984 by the then Prime Minister Shri Rajiv Gandhi who in his broadcast to the nation had said: “Our administrative system must become more goal-oriented. A new work-ethic, a new work culture must be evolved in which Government is result-bound and not procedurebound. Reward and punishment must be related to performance.” 12.4.1.2 Government of India has launched major initiatives for linking performance with rewards including through its recently revised Performance Appraisal System with the notification of the All India Services (Performance Appraisal Report) Rules, 2007. It has also since 2006 instituted national awards for those civil servants who have made outstanding contributions to public administration and this is duly acknowledged every year on the occasion of Civil Service Day. While these are very positive steps, there is need to further emphasise on incentives like conferring the Padma awards more frequently to serving civil servants award systems for recognizing good performance should also be instituted at the State and district levels. It must further be ensured that selection for such awards is made through a prompt, objective and transparent mechanism because the value of such awards should not get compromised by either subjectivity or lack of transparency. Further, all organizations should evolve their own in-house mechanism for rewarding good performance from simple, verbal and written appreciation to more tangible rewards. 12.4.2 Job Enrichment 12.4.2.1 A large number of public servants perform jobs which are largely routine and monotonous. This is especially true for Group ‘C’ and ‘D’ employees. As mentioned earlier a feeling of accomplishment, is an important motivator for any person but a person rarely gets a sense of achievement in the midst of drudgery. Therefore, enriching jobs is an important motivation tool. Job enrichment is a type of job redesign intended to reverse the effects of tasks that are repetitive requiring little autonomy. Some of these effects are boredom, lack of flexibility, Motivating Civil Servants and employee dissatisfaction (Leach & Wall, 2004). The underlying principle is to expand the scope of the job with a greater variety of tasks, vertical in nature, that require self-sufficiency. Since the goal is to give the individual exposure to tasks normally reserved for differently focused or higher positions, merely adding more of the same responsibilities related to an employee’s current position is not considered job enrichment.110 Job enrichment as a motivational tool has not been used widely in Government. 12.4.2.2 It may not be possible to make specific recommendations regarding job enrichment, as they would differ for each office/department and even within an office/department they would differ from position to position within the office. The Commission is of the view that it should be the responsibility of the head of the office to examine the job content of each person working in the organization and then ensure that the job is rich content-wise so that the employee derives a sense of satisfaction by performing tasks assigned to him. The head of the office could seek the assistance of a professional agency for this purpose. Any effort towards job enrichment should be backed by adequate opportunities for skill and capability development. 12.4.3 Linking Career Prospects with Performance 12.4.3.1 Better career prospects can be an important motivating factor within an organization. The corporate sector uses this optimally. In Government and the public sector because of compulsions of uniformity and absence of a perfect performance evaluation system, career prospects often get de-linked from performance. As a result, promotions are largely based on seniority. The Commission is of the view that in matters of promotion, the performance of a candidate should be given due weight. This once again brings to the fore the importance of an effective performance evaluation system. 12.4.3.2 Posts in foreign countries are mostly encadred in the Indian Foreign Services. However, there are a limited number of posts for which officers from other Central/All India Services are also considered. These assignments are generally coveted and considered to be prestigious. The general impression, however, is that selection to these positions are often not done in a transparent and objective manner. The Commission has elsewhere talked about the need for transparency and competition in all appointments both as a measure of good governance and as a motivational tool. The Commission, therefore, recommends that all foreign assignments (other than those for officers of the IFS) should be made, based on the recommendations of the Central Civil Services Authority. The Authority should follow the due process of inviting applications from eligible candidates and preparing a panel of officers who are most suitable for such assignments based on their domain competence. 246 247 110 http://edweb.sdsu.edu/people/ARossett/pie/Interventions/jobdesign_1.htm Refurbishing of Personnel Administation – Scaling New Heights 12.4.4 Removing the Causes of Dissatisfaction 12.4.4.1 There are a large number of factors which lead to dissatisfaction among officers/ officials in the government. Some of these factors are: a. Poor working conditions b. Unfair personnel policies c. Excess or absence of supervision d. Absence of fair-play within the organization e. Indiscipline f. Lack of transparency within the organization g. Lack of opportunity for self-expression h. Interference in objective functioning. 12.4.4.2 The above factors are well known, but a lack of emphasis on employees’ motivation has often led to their being overlooked. The Commission is of the view that it should be the responsibility of the head of each office to ensure that a congenial work environment is created. Indeed, one of the inputs for evaluating the performance of a supervisory officer should be the extent to which he/she has created a congenial atmosphere in the office by addressing the above mentioned ‘dissatisfiers’. Motivating Civil Servants the motivation level of its employees. It also needs to be understood that motivation is only a means and the end is improved performance. This underlines the importance of a good performance management system within an organization. The Commission has examined the issues relating to performance appraisal in Chapter 11. 12.5 Recommendations a. There is need to recognise the outstanding work of serving civil servants including through National awards. Awards for recognizing good performance should also be instituted at the State and district levels. It must be ensured that selection for such awards is made through a prompt, objective and transparent mechanism because the value of such awards should not get compromised by either subjectivity or lack of transparency. Further, all organizations should evolve their own in-house mechanism for rewarding good performance from simple, verbal and written appreciation to more tangible rewards. b. Selections for foreign assignments referred to in Paragraph 12.4.3.2 should be made, based on the recommendations of the Central Civil Services Authority. The Authority should follow the due process of inviting applications from eligible candidates and preparing a panel of officers who are most suitable for such assignments. c. It should be the responsibility of the head of the office to examine the job content of each person working in the organization to ensure that the job content is meaningful and challenging so that the employee derives a sense of satisfaction in performing the tasks assigned to him/her. The head of the office could seek the assistance of a professional agency for this purpose. d. Each head of office should ensure that a congenial work environment is created in the office. His/her success in this should be an element in evaluating his/her performance. 12.4.5 Disincentives for Non-performers 12.4.5.1 Reward and punishment are two sides of a coin. Therefore, while those government servants who perform well must be rewarded as discussed above, it is equally necessary both in the interests of good governance and for motivating good performers that instruments of performance management – counselling, warning, action – are used for those who do not perform. Not doing so would, in fact, negate the various incentives which are given to those employees who perform well. 12.4.6 A Sound Evaluation System 12.4.6.1 It is necessary to measure the motivational level of all employees in an organization. Therefore, each organization should institutionalize a mechanism for periodic evaluation of 248 249 Refurbishing of Personnel Administation – Scaling New Heights 12.4.4 Removing the Causes of Dissatisfaction 12.4.4.1 There are a large number of factors which lead to dissatisfaction among officers/ officials in the government. Some of these factors are: a. Poor working conditions b. Unfair personnel policies c. Excess or absence of supervision d. Absence of fair-play within the organization e. Indiscipline f. Lack of transparency within the organization g. Lack of opportunity for self-expression h. Interference in objective functioning. 12.4.4.2 The above factors are well known, but a lack of emphasis on employees’ motivation has often led to their being overlooked. The Commission is of the view that it should be the responsibility of the head of each office to ensure that a congenial work environment is created. Indeed, one of the inputs for evaluating the performance of a supervisory officer should be the extent to which he/she has created a congenial atmosphere in the office by addressing the above mentioned ‘dissatisfiers’. Motivating Civil Servants the motivation level of its employees. It also needs to be understood that motivation is only a means and the end is improved performance. This underlines the importance of a good performance management system within an organization. The Commission has examined the issues relating to performance appraisal in Chapter 11. 12.5 Recommendations a. There is need to recognise the outstanding work of serving civil servants including through National awards. Awards for recognizing good performance should also be instituted at the State and district levels. It must be ensured that selection for such awards is made through a prompt, objective and transparent mechanism because the value of such awards should not get compromised by either subjectivity or lack of transparency. Further, all organizations should evolve their own in-house mechanism for rewarding good performance from simple, verbal and written appreciation to more tangible rewards. b. Selections for foreign assignments referred to in Paragraph 12.4.3.2 should be made, based on the recommendations of the Central Civil Services Authority. The Authority should follow the due process of inviting applications from eligible candidates and preparing a panel of officers who are most suitable for such assignments. c. It should be the responsibility of the head of the office to examine the job content of each person working in the organization to ensure that the job content is meaningful and challenging so that the employee derives a sense of satisfaction in performing the tasks assigned to him/her. The head of the office could seek the assistance of a professional agency for this purpose. d. Each head of office should ensure that a congenial work environment is created in the office. His/her success in this should be an element in evaluating his/her performance. 12.4.5 Disincentives for Non-performers 12.4.5.1 Reward and punishment are two sides of a coin. Therefore, while those government servants who perform well must be rewarded as discussed above, it is equally necessary both in the interests of good governance and for motivating good performers that instruments of performance management – counselling, warning, action – are used for those who do not perform. Not doing so would, in fact, negate the various incentives which are given to those employees who perform well. 12.4.6 A Sound Evaluation System 12.4.6.1 It is necessary to measure the motivational level of all employees in an organization. Therefore, each organization should institutionalize a mechanism for periodic evaluation of 248 249