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The Management ofThe Management of

Senior Civil Servants in KoreaSenior Civil Servants in Korea

October 6, 2003

Pan S. KimProfessor of Public Administration

Yonsei University, KoreaE-mail: [email protected]



1

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

Unification Justice Government

Administration & HomeAffairs(MOGAHA)

Science and Technology Agriculture and Forestry Information and

Communication Environment Construction and

Transportation G

ender Equality

Ministries



2

The Civil Service Commission &The Civil Service Commission &

The Ministry of Government Administration & HomeThe Ministry of Government Administration & HomeAffairsAffairs

The Civil ServiceCommission (CSC) is a

central agency toformulate personnelpolicy of theadministration

Composed of a

chairperson and 4commissioners

* Established in May 24,1999

The Ministry of

Government

Administration and

Home Affairs

(MOGAHA) is

responsible for the

implementation of personnel policies.

~ Consolidation of

HRM function?



4

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«..

Classification of National Civil Service



5

Total Number of Civil Servants868,120

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

Number of Civil Servants (1), as of December 31, 2001

The Legislative

The Judicial

The Executive

National

Local

Other ConstitutionalOrgans

3,211 (0.4%)

12, 817 (1.5%)

850,032(97.9%)

548,003(63.1%)

302,029(34.8%)

2,060 (0.2%)



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Total:548,003 as of December 31, 2001

* Core workforce General Service (90,610)

No. of National Civil Servants (The Executive)

103Political ServiceExcepted Service

S pecific Service

Educational Service

Police & Fire Service

Foreign Service

General Service (CORE)

TechnicalS

erviceLabor Service

2,347(0.4%)

389,936 (71.1%)

291,257(53.1%)

97,215(17.7%)

1,464 (0.3%)

90,610(16.5%)

63,55

6(11.9

%)

1,390(0.3%)

Contract Service 61



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Total General

Service

Foreign

Service

Educational

Service

Police&F

ire

Judges&

Prosecut-

ors

Technical

Service

Except-

ed

Service

Labor

Service

Othe-

rs

Total

(A)

843,329 273,284 1,372 287,367 118,217 1,187 147,416 7,596 4,421 2,469

Female

(B)

278,225 64,078 67 168,746 2,454 49 36,831 3,573 1,438 794

Ratio

(B/A)33.0 23.4 4.9 58.7 2.1 4.1 25.0 47.0 32.5 32.2

As of December 31, 2001

TotalG1 to G5 G6~G9 &

ResearchSubtotal G1 G2 G3 G4 G5

No. of total

employees273,284 28,745 72 372 993 6,226 21,082 244,539

Female(B) 64,078 1,051 0 2 19 157 873 63,027

Ratio(B/A) 23.4 3.7 0 0.5 1.9 2.5 4.1 25.8

Yr 2001

No. of Women in the Executive (National+Local)

No. of Women in the General Service (The Exec.)



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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 personalpatronage, the National Civil Service Act prescribes twelvecases in which non-competitive recruitment and selection is

allowed.

Methods of Recruitment



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30%25%---G9

25%23%G7

20%20%

20%20%15%13%10%

G5

200220012000199919981997Yr 1996

Affirmative Action Plans

Quarter System for the Disabled

Every ministry should retain more than 2% of disabled

employees needs to be ³model employer´

To achieve this, 5% of new employees should be reserved

annually for the disabled

* People inS

cience & Technology; Local Colleges?

Quarter S

ystem for Women CivilS

ervants



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Promotion to Grades 4-8 Performance evaluation(50%)

Seniority(length of service) (30%)

Training results(20%)

- Eligibility list for each class (same grade, sameoccupational 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

Ways of Promotion



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General Service Technical Service

G5 and above : 60

G6 and below : 57

For those who have worked more than 20 years and wish

to retire Paid Honorary Retired Allowance

(Average of $ 20,000 in 1999)

Allowed to be Honorary Promotion

50 ± 57

Depending on job contents

Retirement Age

Honorary Retirement System



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Pay = Base Salary + Allowances + Welfare Expenses

Base Salary: 10 schedules by job categories.

Allowances:

Common Allowances (5 types) : Diligence allowance,Seniority Allowance «««

S pecial Allowances (35 types) : High Risk Allowance,

special Task Allowance«««

Extra Work Allowances (3 types)«««

Other Allowances (5 types) : Performance Bonus,

Allowance for children¶s Educational Expenses««

Welfare Expenses:

6 types

Pay Structure



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(Unit : US $)

Salary Table 2002

Grade/Pay-step

BasicSalary

CommonAllowances

WelfareExpenses

TotalSalary

(Monthly rate)

Minister 4,594 893 5,487

Vice-Minister 4,128 704 4,832

1 / 22 2,132 1,023 1,250 4,405

3 / 22 1,729 847 981 3,557

5 / 19 1,322 524 673 2,519

7 / 13 888 341 486 1,715

9 / 4 487 134 347 968

5 / 1 726 182 500 1,408

7 / 1 526 132 381 1,039Initial

Pay-step9 / 1 410 102 324 836



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Conduct Annual survey on the level of pay in the privatesector (700 companies)

Narrowing pay differentials year by year Introduce a contingency system by pay-adjusting allowances

5 years Plan to increase Pay level

2000 Yr

91%95%

2001 Yr

97%

2002 Yr

98%

2003 Yr

100%

2004 Yr

Pay level Compared to the private sector



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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

Major Sectoral Reforms



16

PublicS

ector

F For a small, but efficient government or a small, but efficient government

For an open and transparent government For an open and transparent government

For a highly competitive government For a highly competitive government

Toward an electronic Toward an electronic- -government government

Restructure the government organizations

Improve regulatory functions

Enhance competition and efficiency in the government

Civil Service reform«««««.



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Past: Closed system in the past, except for entry positions in

grades 9, 7 and 5 (Vacancies have been filled mostly through

internal promotion)

Present: Open Post System (OPS) was established (20% of senior

positions(142) are open to outside the government)

-Experts from the private sector are expected to beemployed

- Employment conditions are based on contracts

Major CivilS

ervice Reform: Open PostS

ystem



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Job PostingJob Posting

Vacant positions are posted publicly: media and

government homepages(www.csc.go.kr)

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.



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Other Reform MeasuresOther 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.



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PRP (I): Annual Merit Incremental Program- Application : Director General andHigher (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 theirbase monthly salary, quarterly bonus, and other allowances

variable pay portion: 4 categories of pay rate is decided byperformance appraisal based on MBO

Performance pay rate:

� Excellent: S grade(top 10%) p 8%% ofperformance standard amount in each grade

� Outstanding: A grade(30%) p 5%%� Normal: B grade(50%) p 33%%� Unsatisfactory: C grade(10%) p 00%%



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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 standardbasic salary by the performance bonus rate

- Performance Bonus Rate:� Excellent (top 10%) p 110% of standard basic salary

� Outstanding (30%) p 80%� Normal (50%) p 40%

� Unsatisfactory(10%)p 0%



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New Agenda: Senior ManagementNew Agenda: Senior Management

Motive to ReformMotive 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



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Number of Senior CivilNumber of Senior Civil

ServantsServants~ Grade 1: Assistant Minister Level: 201

~ Grade 2: Direct-General Level: 545

~ Grade 3: Direct-General Level: 514

~ HAVE ALREADY OPENED UP 20PERCENT FOR OPEN COMPETITION

~ Excludes positions in the Office of thePresident, the Office of the Prime Minister,

the National Intelligence Service, the Boardof Audit and Inspection

~ Excludes positions of the Specific Service(military, police, fire service, and prosecutors)

and fixed term positions



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Number of Positions forNumber of Positions forOpen CompetitionOpen Competition

~ 142 positions as of September 18, 2003

~ Filled 124 positions: 72: 28

G 89 positions (71.8%) by internal recruitment

G 35 positions (28.2%) by external recruitment(30 from the private sector; and 5 from other

government agencies)



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TheThe ³³AverageAverage´́ OPSOPSCharacteristicsCharacteristics~ Age: 50 years old

~ Education: master¶s degree (46%)G Doctoral degree (30%)

~ Employment: Career civil servants (62%)G Contact-based employment: 38%

~

Period of Employment: 2.1 years(a term of no more than 5 years)

~ Gender: Male dominatedG Women: only 4 persons (3.3%)



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Positive Effects of OPSPositive Effects of OPS- openness & responsiveness

- competition: global competitiveness

- stimulation (cultural change):

build up a performance culture

- improvement of expertise:

self-directed learning

capacity building



27

ProblemsProblems~ 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 morecomprehensive system for executives



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Korean GovernmentKorean Government¶¶s Plan tos Plan toEstablish the SES/SCSEstablish the SES/SCS

~ 2001: The Civil Service Commission

considered to establish it, but failed topursue

~ 2003: Establishment of the SES/SCS was

included in the ³HRM Reform Roadmap´ Became part of HRM reform agendas

~ President Roh (2003-2008) supports HRM

reform



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Current Situation:Current Situation:

Too FragmentedToo Fragmented~ The management of senior civil servants has been

improved in the last few years, but still fragmentedand under-developed

~ The Civil Service Commission reviews their recruitmentand 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



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Motives of Further ChangesMotives of Further Changes~ Inbreeding: internally promoted workforce;

lack of nation-wide perspective; lack ofcompetitiveness

~ Fragmented management

~ Lack of strategic & systematic HRD

~ Poor performance management

~ Weak reward system~ Needs to ³make the managers manage!´

(to be ³Change Agents!)



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Issues for Further DevelopmentIssues 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, leadershipqualities & management competencies?)

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



32

Issues for Further DevelopmentIssues for Further Development ² ² continuedcontinued

~

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)?



33

~

The role of CSC: integrated management ofsenior 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

Issues for Further DevelopmentIssues for Further Development ² ² continuedcontinued



34

Implementation PlanImplementation Plan~ Minimization of Political Influence & InternalResistance

~ Improvement of Performance Management andProvision of HRD Opportunities for SES/SCSCandidates

~ Devolution of Personnel Authority to EachMinistry: Deregulation of Personnel Authorityfor 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«



35

Time ScheduleTime Schedule~ 2003: Launched a Research Project for

Establishment of SES/SCS

~

2003: Launched a Target Group¶s JobAnalysis of the Central Government

~ Early 2004: Development of the Basic Planfor Establishment of SES/SCS

~ Early 2004: Policy Hearing for theEstablishment of SEC/SCS

~ Late 2004 or Early 2005: Revision of theNational Civil Service Act

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