The Management of Senior Civil Servants in Korea Finance and Economy

НазваThe Management of Senior Civil Servants in Korea Finance and Economy
Дата конвертації26.04.2013
Розмір487 b.

The Management of Senior Civil Servants in Korea

Finance and Economy

  • Finance and Economy

  • Education and Human Resources Development

  • Foreign Affairs and Trade

  • National Defense

  • Culture and Tourism

  • Commerce, Industry and Energy

  • Health and Welfare

  • Labor

  • Maritime Affairs and Fisheries

The Civil Service Commission & The Ministry of Government Administration & Home Affairs

  • The Civil Service Commission (CSC) is a central agency to formulate personnel policy of the administration

  • Composed of a chairperson and 4 commissioners

  • * Established in May 24, 1999

Career vs. Non-career civil service

  • Career vs. Non-career civil service

  • - 1.7% of all civil servants are non-career

  • services (as of December 31, 2001)

  • Merit system vs. Spoils system

  • Rank system vs. Job classification system

  • - Generalist vs. Specialist

  • Closed system vs. Open system

Career Service

  • Career Service

    • General Service: Grade1-9, 18 OG, 75 Series
    • Specific Service: Judges, Prosecutors, Police, Educational,Diplomatic, Military Service, etc.
    • Technical Service: simple, technical work (Grade 1-10)
  • Non-Career Service

    • Political Service: Ministers, Vice-ministers, elected officials
    • Excepted Service: No permanent job status; personal secretaries, etc.
    • Contracted Service: professionals, scientists…..

Total Number of Civil Servants 868,120

  • Total Number of Civil Servants 868,120

  • Total Population: 45,985,289 (in 2000) 53 : 1

Total:548,003 as of December 31, 2001

  • Total:548,003 as of December 31, 2001

  • * Core workforce  General Service (90,610)

Open/Competitive Entrance Examination

  • Open/Competitive Entrance Examination

    • Exam for Grade 5 (Senior Civil Service Exam)
    • Exam for Grade 7
    • Exam for Grade 9 (Entry Level Exam)
  • Non-competitive selection examination

    • To prevent a backdoor entrance by political or personal patronage, the National Civil Service Act prescribes twelve cases in which non-competitive recruitment and selection is allowed.

Promotion to Grades 4-8

  • Promotion to Grades 4-8

    • Performance evaluation(50%)
    • Seniority(length of service) (30%)
    • Training results(20%)
    • - Eligibility list for each class (same grade, same
    • occupational series) is compiled twice a year
    • Promotion to Grade 5
    • - Examination may be required in some ministries
  • Promotion to G3(DG) or Higher

    • Screened and recommended by the Promotion Review Committee/the Civil Service Commission
    • Performance, Abilities and Seniority

Financial Sector

  • Financial Sector

    • put an end to governmental control and enhance autonomy of financial institutions
    • 5 banks closed and 9 merged to larger ones ; 1 sold to foreign investors, 16 out of 30 merchant banks to be shut down
  • Labor Market

    • Labor, Management, Government - Tripartite Committee
    • established (reform through democratic consensus)
    • provide liquidity in the labor market through introduction of lay off and work dispatch system
    • expand social safety net
  • Corporate Sector

    • revamp corporate governance
    • major conglomerates to restructure and swap business lines and to stop financial cross-guarantees among subsidiaries

Job Posting

  • Vacant positions are posted publicly: media and government homepages(

  • Any eligible candidates are encouraged to apply for the posted position.

  • Applicants are screened and interviewed by the selection committee.

  • The best qualified person will be selected.

Other Reform Measures

  • Introduction of 360 degree evaluation

  • - Most agencies use it for various purposes

  • Promotion of Personnel Exchanges:

  • - Central agency to central agency

  • - National government to local authorities

  • - Local authorities to local authorities

  • - Public sector to private sector

  • Employment of foreign experts by contract in the field of education, scientific research, etc.

PRP (I): Annual Merit Incremental Program

  • PRP (I): Annual Merit Incremental Program

  • - Application : Director General and

  • Higher (Grades 1~3)

  • - Components of pay

    • fixed pay portion: minimum and maximum range for each grade, the amount of the pay for incumbents is calculated by their base monthly salary, quarterly bonus, and other allowances
    • variable pay portion: 4 categories of pay rate is decided by performance appraisal based on MBO
    • Performance pay rate:
      • Excellent: S grade(top 10%)  8% of performance standard amount in each grade
      • Outstanding: A grade(30%)  5%
      • Normal: B grade(50%)  3%
      • Unsatisfactory: C grade(10%)  0%

PRP (II): Performance Bonus Program

  • PRP (II): Performance Bonus Program

  • - Application : Director(grade 3 or 4) level and lower

  • - Form of payment : a lump-sum bonus

  • - Bonus amount

  • Bonuses are calculated by multiplying standard

  • basic salary by the performance bonus rate

  • - Performance Bonus Rate:

    • Excellent (top 10%)  110% of standard basic salary
    • Outstanding (30%)  80%
    • Normal (50%)  40%
    • Unsatisfactory(10%) 0%

New Agenda: Senior Management Motive to Reform

  • Financial Crisis & IMF Bailout in 1997

  • Low World Competitiveness

  • High Rigidity (Closed System)

  • Lack of Leadership on the Top

  • Lack of Competency & Responsiveness

  • Necessity of Cultural Change: life-long job security and lack of performance management

Number of Senior Civil Servants

  • Grade 1: Assistant Minister Level: 201

  • Grade 2: Direct-General Level: 545

  • Grade 3: Direct-General Level: 514


  • Excludes positions in the Office of the President, the Office of the Prime Minister, the National Intelligence Service, the Board of Audit and Inspection

  • Excludes positions of the Specific Service (military, police, fire service, and prosecutors) and fixed term positions

Number of Positions for Open Competition

  • 142 positions as of September 18, 2003

  • Filled 124 positions: 72: 28

    • 89 positions (71.8%) by internal recruitment
    • 35 positions (28.2%) by external recruitment (30 from the private sector; and 5 from other government agencies)

The “Average” OPS Characteristics

  • Age: 50 years old

  • Education: master’s degree (46%)

    • Doctoral degree (30%)
  • Employment: Career civil servants (62%)

    • Contact-based employment: 38%
  • Period of Employment: 2.1 years

  • (a term of no more than 5 years)

  • Gender: Male dominated

    • Women: only 4 persons (3.3%)

Positive Effects of OPS

  • - openness & responsiveness

  • - competition: global competitiveness

  • - stimulation (cultural change):

  • build up a performance culture

  • - improvement of expertise:

  • self-directed learning

  • capacity building


  • Could not recruit the best of the best: lack of attraction in terms of pay, benefits, and job security

  • Possibility of Political Influence

  • Low Representation of Women

  • Fragmented HRM System: needs more comprehensive system for executives

Korean Government’s Plan to Establish the SES/SCS

  • 2001: The Civil Service Commission considered to establish it, but failed to pursue

  • 2003: Establishment of the SES/SCS was included in the “HRM Reform Roadmap”  Became part of HRM reform agendas

  • President Roh (2003-2008) supports HRM reform

Current Situation: Too Fragmented

  • The management of senior civil servants has been improved in the last few years, but still fragmented and under-developed

  • The Civil Service Commission reviews their recruitment and promotion

  • Each ministry lacks autonomous personnel authority

  • MOGAHA handles MBO: Their pays are determined on the basis of the appraisal result of the management-by-objective (MBO)

  • CSC deals with PRP: This year’s annual pay =

  • previous year’s annual pay + performance-related pay +/- this year’s adjustment pay

Motives of Further Changes

  • Inbreeding: internally promoted workforce; lack of nation-wide perspective; lack of competitiveness

  • Fragmented management

  • Lack of strategic & systematic HRD

  • Poor performance management

  • Weak reward system

  • Needs to “make the managers manage!”

  • (to be “Change Agents!)

Issues for Further Development

  • Scope of Senior Management?

    • - Director-General or Higher or
    • - Director or Higher
  • * Whether to include: prosecutors,

  • policemen, and diplomats

  • Competencies: need to develop a new framework (personal qualities, leadership qualities & management competencies?)

  • Separate system from the mid- and lower-level civil servants?

Issues for Further Development—continued

  • Recruitment?

  • - by selection committees

  • - by assessment centers

  • - by entrance competitions

  • Appointment? Job Security?

  • - career

  • - renewable term

  • Performance Appraisal and Pay Scheme?

  • - performance plan or agreement

  • - performance-related remuneration pay

  • Training (management & leadership development)?

Issues for Further Development—continued

  • The role of CSC: integrated management of senior civil servants?

  • Personnel Autonomy:

  • Each Minister’s Interest vs.

  • Integration of the CSC

  • Mobility vs. Expertise

  • Potential Monopolization of Elites

  • Particularly from the Economy-Related

  • Ministries

  • Effects of the Spoils System

Implementation Plan

  • Minimization of Political Influence & Internal Resistance

  • Improvement of Performance Management and Provision of HRD Opportunities for SES/SCS Candidates

  • Devolution of Personnel Authority to Each Ministry: Deregulation of Personnel Authority for the Minister and the Establishment of HRM Department in the Ministry

  • Development of HRM Infrastructure: Job Analysis, Development of Competency Model, and Diversification of Recruitments…

Time Schedule

  • 2003: Launched a Research Project for Establishment of SES/SCS

  • 2003: Launched a Target Group’s Job Analysis of the Central Government

  • Early 2004: Development of the Basic Plan for Establishment of SES/SCS

  • Early 2004: Policy Hearing for the Establishment of SEC/SCS

  • Late 2004 or Early 2005: Revision of the National Civil Service Act


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