A Preliminary Assessment of the Senior Civil Service System in Korea

1
A Preliminary Assessment of the Senior Civil
Service System in Korea
2
Keun Namkoong , Ph.DProfessor, Seoul National
Univ. of Technology President, Korean Society for
Public AdministrationCo-chairman (with Prime
Minister), Government Information Sharing
Committee
3

• I. Introduction
• II. Major Characteristics of the Civil Service
  System
• in Korea
•   
• III. Recent Civil Service Reforms in Korea
•   
• VI. Key Elements of SCS in Korea
• V. Preliminary Assessment of SCS operation
•   
• VI. Some Recent Adjustments

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I. Introduction

• The first parts describe major characteristics of
  civil service system in Korea and recent reform
  efforts of Kim Dae-Jung and Rho Mu-Hyun
  Administrations.
• SCS system was introduced as a part of Roh
  Mu-Hyun Administrations Civil Service Reform
  package in July 2006.
• The second parts describe key elements of SCS in
  Korea,
• assess its implementation for two years, and
  the Lee Myung-bak Administrations adjustments in
  2008.

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II. Major Characteristics of the Korean Civil
Service System

• Park Jung-Hee administration(1961-1979) laid the
  foundation of modern civil service system in
  Korea.
•    The basic characteristics of the Korean civil
  service
• system can be summarized as the merit system,
  the rank
• oriented classification system, the closed
  career
• system, and the centralized management system.

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1. Merit Principle

• The open competitive entrance examination
  become the most common methods of recruitment.
• They were classified as three types according
  to the ranks (or grades)   for grade 5, grade
  7, and grade 9.
• The examinations were administered by the
  Central Personnel Agency.

7

• 2. Rank Classification System
• In 1961, nine rank system was introduced by
• the revised National Civil Service Act    
•   In 1981,  a nine grade system replaced the
  nine
• rank system grade 1 the highest
  (assistant minister level)
•     grade 9 the lowest.
•  
•   This grade system applies fully to the
  engineering
• and administrative occupational groups.

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3. Closed Career System

• Korea had used the closed type career system.
•    
• New outside recruitments are made at the 9th,
  7th, and 5th
• grade levels. Manpower vacancies at the
  9th grade are
• met by new recruitments, while vacancies
  at the 7th and
• 5th grades are filled in large part by
  promotions or transfers
• and, to a lesser extent, through new
  recruitments.
• Seniority is the key to grade promotions among
  others.
•   In this sense, promotions are mainly
  seniority-based.

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4. Centralized Personnel Management System

• The Central Personnel Agency (CPA) of Korea
  has been
• changed several times.
•   The personnel management function was
  centralized from
• the beginning, and not altered in spite of
  the CPA changes.
• The CPA not only managed personnel
  administrative
• functions of the central government but also
  those of local
• governments to a certain extent.

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III. Recent Civil Service Reforms

• 1. Reform Efforts of the Kim Dae-jung
  Administration(97-02)
• The 1997 financial crisis instigated the Korean
  reform program.
• Thus, crisis was the impetus for the
  recent public sector reform in Korea.
• Embracing NPM elements, the Kim administration
  sought to
• create 'a small and efficient but better
  serving government',
• the ultimate goals of which were to raise
  Korea's national
• competitiveness (MPB, 2002).

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2. Civil Service Reform of the Roh Mu-Hyun
Administration(03-07)

• The government innovation of the Roh Moo-hyun
  administration inherits the Kim administration's
  pursue of an "efficient and better serving
  government".
• But it shows several differences from the
  past.
•     The Roh administration emphasized the active
  role of the  government rather than small
  government.
• The Roh administration adopted a participatory
  model of governing rather  than market model or
  the new public management model.

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• The "Presidential Committee on Government
  Innovation and
• Decentralization(PCGID)",  was established on
  April 2003.
• - comprised both of outside specialists and
  government
•   officials. The composition of PCGID members
  takes the merits
• of  creativity of the private sector and the
  binding powers of a
• government organization.
• By August 2003, the innovation road-map was
  developed
• based on the opinions of  academic scholars
  and civilian
• professionals participating in the
  Presidential Committee.

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• The road-map of civil service reform was
  formulated by the
• HR management reform sub-committee of the
  PCGID in
• collaboration with the Civil Service
  Commission (July 2003)
• The vision was "building a participatory HR
  management
• system based on fairness and expertise".
• 20 specific tasks  can be grouped into five
  categories
•   (1) recruitment of core talents from closed
  to open,
•   (2) enhancing representativeness of
  personnel system, 
•   (3) developing competency from generalist to
  specialist,
•   (4) reward system from seniority-based to
  performance-based,
•   (5) personnel authority from centralized to
  decentralized system.

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• The Senior Civil Service (SCS) was introduced on
  July 2006 as a major reform program of the Roh
  Administration.
• The SCS is the Government-wide system for
  selecting, preparing, paying and managing a
  differentiated group of top managers.
• It is composed of director-general or above level
  positions in the central government covering
  approximately 1,500 positions.
• The SCS is managed by combining the open
  competition system 20, the government wide job
  posting system 30, and agency flexible
  management 50.
• Former grades for the SCS positions (formerly
  grades 1-3) were abolished. 

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IV. Key Elements of SCS

• 1. Objectives of the SCS
• SCS is adopted in Anglo-American Countries
  US(78), Australia(84), UK(96)
• Objectives of the SCS typically include
• - Government-wide management of top managers,
• - Open recruitment for SCS positions,
• - Mobility Between Departments and Agencies
• - Emphasis on Management Skills and
  Competencies
• - Enhanced Training and Career development,
• - Performance Contracts and Performance
  Appraisal, and
• - Performance Pay.

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Strengthening government competitiveness and
improving administrative service qualities
Enhancing performance and competency of senior
officials
Openness and Competitiveness
Senior Civil Service
Performance and Accountability
Competency and Development
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2. Progress
Apr 2003 The Senior Civil Service was selected
as a key agenda of Civil
Service Reform Road-map
Jul 2003 - 2004 Civil Service Commission (CSC)
conducted job analysis for
1,437 senior positions
Jan 2004 CSC implemented Director-General level
personnel exchange program
across government agencies
Nov - Dec 2004 CSC hosted public hearings and
an International Conference
on The SCS Among Developed Countries
Dec 2005 Congress amended the National Civil
Service Act
Jul 2006 The Senior Civil Service System was
launched
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3. Personnel Management

• Scope Membership
• The SCS covers all Director-General or above
  positions in the central government
• - National civil servants in General,
  Excepted, Contracted
• and Foreign Services (approximately 1,500
  individuals)
• - National civil servants in local
  governments such as vice
• governors, vice mayors, and vice education
  superintendents

All Director-General or above positions in the
central government (1,316)
Longterm Leave (34) Etc (24)
Long-term Leave, etc

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Mobility Assignment
Secondment (76) Training (87)
163
General Service (822) Excepted Service
(179) Contracted Service (94)
Regular Assignment 1,095
As of Oct 2007
The number of positions in the Foreign Service,
about 300 is excluded.
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• From Rank in Person to Position
• Grades for the SCS members were abolished
• - The SCS members are managed in accordance
  
• with their ability and performance
• Personnel management is based on rank-in
• -position rather than rank-in-person
  system

Rank In Position
Rank In Person
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• Government-wide Pool System Government agencies
  select the most qualified personnel from an
  expanded pool

Agencies
CSC
Appointment request and Personnel management
Consultation, mediation, And surplus management
Senior Civil Service
Private sector
Private sector
Mobility across government agencies
Agency A
Agency B
Agency C
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Staffing through Openness and Competition
20
Open Position System (20 Competition with the
private sector) Job Posting System (30
Competition with other agencies) Agency
Flexibility (50 Ministers discretion)
30
50
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• Core Qualifications for the SCS
• For Entry to the SCS, The successful
  completion of the SCS Candidate Development
  Program and Competency Assessment is required.
• ? All former senior officials were allowed
  to join the SCS without any training or
  certification processes as a part of smooth
  transition efforts at July 1st, 2006

Candidate Development Program
Competency Assessment
Agency Flexibility
Open Position System
Job Posting System
Screening Process
Joining the SCS
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The SCS Candidate Development Program -
Division directors at the central government are
required to receive Action Learning based
training - They concurrently participate in
the training program at their current jobs
Competency Training
Action Learning and Real-world application
Leadership Assessment
Problem-solving Activities
Performance Evaluation
Comprehensive Evaluation
Training Completion
Supplementary Training
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• Competency Assessment
• SCS candidates are required to go through
  assessment process
• - Various assessment methods such as group
  discussion, role-play, presentation, and
  interview are used to appraise competency
• Screening
• The Civil Service Commission screens
  promotions and appointments only for
• initial entry to the SCS
• - Agencies have greater flexibility for
  selecting and developing senior managers

Screening by Civil Service Commission
Past
Current
Senior Civil Service
Grade 1
Candidates From private sector
Screen
Grade 2
Screen
Grade 3
Screen
Screen
Screen
Screen
Grade 4
Division Directors
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Performance-Based Management

• Performance Agreements
• Each SCS member should make individual
  performance agreement with
• performance objects and measures
• - Agreements are made through performance
  interview with direct supervisor
• of the SCS member
• Annual performance appraisal is conducted
  with 5 different ratings

Agreements
Final Review
Mission --------- Goals
Performance Appraisal
Mid-year Review
Objectives --------- Performance measures
5 different ratings
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• Job and Performance Based Pay

Pay is based on difficulty and importance of
the job and performance rather than seniority
and grade Linkage between performance and
reward is strengthened
Maximum
Level E
Level D
Level C
Level B
Level A
Minimum
Basic Pay
Job Pay
Performance Pay
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Re-certification

• Re- certification process is held on regular
  basis (every 5 years) or non-regular
  (as-needed)
• The Re-certification Committee for fair
  re-certification process is organized
• - Committee Chairperson CSC Chairman
• - Committee Members 7 to 9 including vice
  ministers, the SCS members and private sector
  members

non-regular ? Lowest rating for 2 consecutive
years or 3 separate years ? No
position assignments for 2 years without valid
reasons
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Re-certification process
Regular basis (every 5 years
Re-certification Committee
Requested By agency
Dismissal
Not Re-certified
Has to be Re-certified

• 7 to 9 members
• Chairperson CSC Chairman
• Members vice ministers etc.

Non-regular (as needed)
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V. Preliminary Assessment of SCS Implementation

• - SCS has been implemented for two years.
• Criteria of Assessment
• 1) Open Recruitments
• 2) Inter-Agency Mobility
• 3) Training for the SCS Candidates
• 4) Competency Assessment
• 5) Performance Management Rewards

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1. Open Recruitments

• The open position system (OPS) was introduced
• on May 22, 1999 prior to the 2006 SCS
  system
• The basic goal is to recruit competent
  personnel
• through open competition among the
  applicants
•     from public and private sectors.
• Under the OPS program, a ministry should
  designate
• 20 of its SCS positions as open
  competitive
• positions.
•    

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ltTable 1gt Prior positions of OPS appointees, Dec
2007, and Oct 2008

• No. of total ops position is reduced because of
  governmental reorganization of Lee Myung-bak
  administration.

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ltTable 2gt Comparison between outside
appointments of OPS positions by the Kim Dae-Jung
Administration and the Roh Moo-Hyun
Administration
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2. Inter-Agency Mobility

• Prior to SCS, the director-general level (grade
  2 or 3) inter-ministry exchange program was
  introduced in 2004.
• SCS in Korea introduced a government-wide Job
  Posting program. A ministry should designate 30
  of its SCS positions as Job Posting Positions.

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Appointmentsof Job Posting Position

• Lee Myung-bak administration reduced the Job
  posting positions from 30 to 15.

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3. Training for the Candidates - Candidate
Development Program

• Operated by COTI (Central Officials Training
  Institutes)

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No. of Trainees of the SCS Candidate Development
Program
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4. Competency Assessment for the SCS Candidates

• Various assessment methods such as group
  discussion, role-play, presentation, and
  interview are used.
• Operation of Assessment
• - Twice a Week (Tuesday, Thursday)
• - From 0830 AM to 1800
• - Participants
• Evaluators 7 Candidates 6

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Results of Competency Assessment(06.6-08.10)
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5. Performance Management and Rewards of SCS

• 1) Performance Appraisal based on Performance
  Agreement
• - Annual assessment of SCS officers performance
  is based on degree of achievement of objectives
  in the individual performance agreement.
• - However, it is criticized that more than 80
  of SCS members received Excellent ratings, and
  less than 2 received Poor ratings in 2006 and
  2007.
• - It is argued that the standard of SCS
  members performance objectives and measurement
  indicators in the agreement are generally too
  low.

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Performance Based Pay for the SCS

• Pay scheme of the SCS members is composed of
  Basic Pay, Job Pay, and Performance Pay.
• Basic Pay(2007, Thousand KRW, annual)
• Minimum 48,525
• Maximum 72,236
• Job Pay (Five Level)
• Level A 12,000 B 9,600
• C 7,200 D 4,800 E
  2,400

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Performance Based Pay

• Rating for Performance Based Pay is different
  from the performance appraisal.
• - Ratings for performance based pay
• relative ratings among SCS members in an
• agency
• - Ratings for performance appraisal
• absolute ratings against individual
  objectives.

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Distribution and Amount of Performance Based Pay

• Amount of Performance based Pay
• (Basic Pay Job Pay) Pay Rate
• Performance Pay differences were increased in
  2007.

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VI. Some Recent Adjustments

• Lee Myung-bak Administration made some
  adjustments
• 1) Change of Central Personnel Agency
• Former Civil Service Commission is merged
  into Ministry of Public Administration and
  Security (MOPAS).
• 2) Portion of Government Job Posting position is
  reduced
• from 30 to 15.
• 3) Job pay level will be reduced from 5 to 2 in
  2009.