Public managers are expected to improve the performance of their organisations and the outcome of their activities. As such, they have to work with their staff to encourage, enable and support them in a continuous quest for improved quality and productivity while simultaneously upholding core public sector values. By delegating some authority for HRM to line ministries, departments and agencies, governments aim to increase the ability of public sector managers to adapt working conditions to the business needs of their organisation and to the merits of individual employees. As HRM responsibilities have been delegated to line ministries, the role of the central HRM body has begun to focus more on setting minimum standards and formulating policy rather than implementing them. However, delegation is not without risks, which can include an increased variability of conditions of employment across government organisations, decreased mobility of staff, and difficulties in maintaining shared government values and a whole-of-government perspective.

Most OECD member countries have increased the role of line ministries in HRM decision making. However, the extent of their involvement varies across OECD member countries, and sometimes even across government bodies within the same country. Thus, there is no single model or common standard. A few countries stand out as having granted line ministries a greater degree of authority: New Zealand, Sweden and Australia. In these systems, ministries have more flexibility to identify their staffing needs, recruit staff, and determine compensation levels and other conditions of employment. In comparison, Italy, Ireland, France and Turkey tend to have more centralised HRM models. The level of delegation does not indicate how well public service staff members are managed. However, it does indicate the level of flexibility that departments have in adjusting their HR policies to the specificities of the organisation, the job or the individual.

Compensation levels are a key factor in managers' ability to recruit, motivate and retain staff. Most OECD member countries have delegated managers some authority to determine compensation levels. Across OECD member countries, the basic level of pay is more likely to be determined by a centralised authority, while public sector managers have more authority to determine the variable portions of pay, such as benefits or performance-related increases.

Further reading

OECD (2008), The State of the Public Service, OECD, Paris.

Notes

Figure 13.1: Data are not available for the Czech Republic, Greece, Poland and the Slovak Republic.

Table 13.2: Based on Q.36 "Do the levels of pay/terms and conditions of employment vary significantly across government organisations for the same level of posts?" .