Professional and Personnel Management to HRM / HRIS Key Issues Challenges.

Detailed Summery 
This paper examines why and how Human Resource department personnel functions should reorient their activities to take a more strategic and developmental approach to human 
resource management (HRM). Currently, human resource (HR) policies are, in the main, 
centrally determined and developed. There is a commitment to decentralise and devolve 
HR responsibilities. Allied with this more strategic focus is the concept of devolution of 
responsibility for day-to-day human resource matters to line managers. The need for 
informed research in relation to the professionalisation of HRM and the devolution of HR 
responsibilities has been given particular emphasis by the recent publication of the fifth 
national social partnership agreement, the Programme for Prosperity and Fairness 
(2000). This programme identifies the need for a more strategic approach to HRM issues 
in the public sector, with greater involvement by line managers in the management of their 
staff. 

A detailed review of the relevant HRM literature highlights a range of issues and 
challenges associated with the process of developing a strategic approach to HRM: 
· HR strategies should be devised during the process of business strategy formulation. 
· The devolution of appropriate HRM matters to line managers can free up resources in 
the personnel section to develop strategic policies. Such a development requires that 
line managers be equipped with the appropriate skills, knowledge and attitudes to 
effectively manage and develop staff. 

· The selection and development of personnel staff with appropriate expertise is crucial 
in ensuring that the personnel section is equipped to take on its strategic role. 
· Overall, the change process must be planned for and carefully managed. It will require 
a change to the organisation’s existing culture. 

Lessons are also drawn in the paper from international experience. Developments 
from a number of OECD countries that have embarked on the professionalisation of HRM 
are explored. These suggest that the key challenge lies in granting departments adequate 
freedom to manage financial and human resources. This facilitates the development of 
best practice HRM, while at the same time retaining appropriate control of the essentials 
at the centre, in relation to overall running costs.


The paper also outlines findings from in-depth interviews conducted with a range of 
key informants at central, line department and trade union level. Overall, the findings 
indicate a general view that limited progress has been made to date in reforming HRM in 
the Irish civil service. At the same time, there is a considerable level of continuing 
commitment for change to the existing system among those interviewed. The recent 
launch of a civil service wide performance management and development system is a 
reflection of such commitment. There are also examples of individual departments, within 
the existing system, who are developing a more proactive approach to HRM. 

Finally, the paper draws conclusions and makes recommendations as to appropriate 
approaches to delivering on HRM reform. 

A number of critical issues which must be addressed if progress is to be achieved are 
identified and discussed: 

· developing an integrated approach to HRM; 
· professionalising the approach to HRM; 
· devolution of appropriate functions to line managers; 
· decentralisation of appropriate HRM issues from central departments. 


Ultimately, the successful implementation and overall impact of the HR strategy will 
depend on the capability and commitment of senior management, personnel sections and 
line managers. The roles of the key actors must adapt: 

· The role of senior management. The findings clearly highlight the need to raise the 
profile, role and capability of the personnel section at line department level. Best 
practice indicates that the extent to which this is achieved is influenced significantly by 
the belief of senior management in the added value that HRM can contribute to the 
organisation, and in the visible support given to HRM.

· The role of the HR section. Best practice indicates that the successful transition from 
personnel management to strategic HRM is dependent on equipping HR staff with the 
appropriate knowledge, skills and attitudes. Line departments need to commence or 
speed up the process of obtaining and developing specialisms in their personnel 
sections. 

· The role of the line manager. A number of factors will be crucial to the successful 
devolution of HRM to line managers. Devolution must take place within the broad 
framework of strategic and business planning for the department as a whole as 

opposed to being a separate exercise. Managerial competencies under the new 
performance management and development system should place an emphasis on skills 
and behaviours required for the effective development and management of staff. It is 
equally important that adequate resources are allocated to the training and education 
of line managers. 

· The role of the centre. In the longer term, the issue of greater flexibility in relation to 
grading and pay may need to be revisited, if a fully integrated approach to HRM is to 
become a reality. Similarly, centralised recruitment processes require some change if 
line departments are to be facilitated in better planning and deploying their human 
resources. In future, the centre should concentrate on providing guidance and 
expertise to departments in developing HR strategies, implementing performance 
management and professionalising HR at the personnel section level.


1  INTRODUCTION AND BACKGROUND 
1.1 Setting the scene In 1998, the Committee for Public Management Research (CPMR) initiated a series of research studies to inform national debate on the key human resource management (HRM) challenges facing the Irish public service in the context of Delivering Better Government (1996). The first of these studies, which was broad in its coverage, identified the key relevant HRM issues (Humphreys and Worth-Butler, 1999, CPMR Discussion Paper no. 10). The study concluded that ‘to provide further assistance in the development of practical solutions to some of the very difficult problems remaining … further research should be undertaken to identify the key outstanding issues and best practice approaches to finding solutions in five areas of enquiry’. These areas were identified as: 

· effective approaches to the decentralisation and devolution of HRM; 
· gearing the recruitment, selection and placement of new staff to the long-term and immediate needs of the organisation; 
· improving the arrangements for the development, retention, promotion and mobility of existing staff; 

· professionalisation of the human resource (HR) function and development of line management; 
and 
· the development of flexible and innovative working arrangements. 

The first of these detailed studies was The Development of Flexible and Innovative Working 
Arrangements (Humphreys, Fleming and O'Donnell, 2000, CPMR Research Report no. 3). The committee then decided to focus on two interlinked areas for the purposes of the next study: the decentralisation and devolution of HRM; and the professionalisation of the HR function. The rationale for this choice is now outlined. 
1.2 Rationale and context for the study 

A recognition of the need to develop a more strategic, focused approach to the management of people is not unique to the Irish public service. For example, there is increasing evidence of a shift from traditional personnel management to HRM in many advanced economies, and approaches adopted in this regard have ranged from highly radical reforms to changes of a much more incremental nature (see Organisation for Economic Co-operation and Development (OECD), 1996). 

In an Irish context, the main impetus for HRM reform stemmed from Delivering Better 
Government (DBG) in which it was recommended that departmental personnel sections should reorient their activities to take a more strategic/developmental approach and devolve responsibility for day-to-day human resource matters to line managers. It was recommended that this reorientation would take place ‘in tandem with an incremental, but concerted and sustained process of devolving authority from the central Department of Finance’ (1996: p.34). Additionally, each department was to develop a human resource (HR) strategy linked to its overall business strategy. 

Similar reforms are envisaged in local government and the wider public service. 

The need for informed research in relation to the professionalisation of HRM and the 
decentralisation and devolution of HR has been given renewed emphasis by the recent publication of the Programme for Prosperity and Fairness (2000). The programme calls for a re-focusing of the existing human resource function, a more strategic approach to HRM issues and greater involvement by line managers in the management of their staff. 
In order to assist in the development of appropriate approaches to these envisaged reforms, the primary focus of this paper is to explore the challenges and issues involved in developing a new strategic role for the HR function in the civil service, as a first step to its extension to the wider public service. However, the professionalisation of the HR function must be considered in the context of a wider range of influences. For example:

· It is necessary to consider the implications of the devolution of routine administrative HR 
activities to line managers within line departments; this potentially frees up resources in the 
personnel section to develop more strategic proactive HRM policies. 

· Equally, it is necessary to consider the extent to which HRM policy matters should be 
decentralised from the centre (Department of Finance and Civil Service Commission) to 
empower and professionalise personnel functions carried out at line department level.

· Finally, devolution of human resource matters to line managers, and decentralisation of 
decision making from central to line departments, will not on their own result in a more 
strategic role for the personnel section. Much of the literature suggests that integration is the 
key to successful HRM. Specifically, there should be integration or complementarity between 
key HR policies such as recruitment and selection and promotion and training. There should 
also be integration between HR policies and business strategy. 

1.3. Terms of reference and research approach 
The following terms of reference were agreed by the committee. The study should: 
· focus on relevant national and international literature to identify conceptual frameworks for the development of best practice approaches which are appropriate to the Irish public service; 

· review how the issues have been addressed in a selected number of other public administrations with experiences relevant to the Irish situation; 
· analyse the range of current practices and procedures within the Irish public service; 
· analyse the challenges faced by a number of organisations seeking to develop a more strategic role for the personnel section in the context of the current programme of reform; 
· outline possible ways forward in order to inform discussion of the key issues amongst public 
service managers; 

To deliver on these terms of reference, the following tasks were undertaken in this study: 
· a critical evaluation of the current division of responsibilities at central (Department of Finance 
and Civil Service Commission) and line department levels; 
· a critical analysis of the current role played by personnel sections (obtained through case 
studies of selected organisations); 

· an examination of the practical issues involved in decentralising HRM responsibilities from 
central (Department of Finance and Civil Service Commission) level to line departments; 
· an examination of the key challenges involved in devolving HRM to line managers;

· a consideration of the ways in which a more strategic role might be developed by individual personnel sections; 

· an identification of the knowledge and skills required by staff working in the personnel section to enable them to develop a more strategic approach; 
· an identification of the knowledge and skills required by line managers to enable them to take on responsibility for a range of HR issues. 
1.4 Structure of the paper 

Following this introductory section, Chapter 2 contains a detailed review of the relevant HRM literature. Specific features of the public sector organisation are also examined insofar as they impact on the development of a strategic approach to HRM. Chapter 3 critically examines the existing structure of HRM in the Irish civil service at central and line department level, in the context of the reform set out in Delivering Better Government. Chapter 4 examines international developments in public sector HRM reform, in order to draw on key lessons and best practice from these experiences. Chapter 5 draws upon in-depth discussions with key informants at central, line department and trade union level to explore the issues and challenges involved in professionalising, decentralising and devolving HRM. Chapter 6 draws together the key conclusions of the research and outlines the challenges which must be addressed in order to professionalise the approach to HRM in the civil service. It also sets out a practical framework for change to assist in addressing 
these challenges. 

1.5 Terminology 

A notable feature of the HRM literature is the diversity of terminology used to describe and define 
particular activities. It is useful therefore to define some of the key concepts referred to throughout 
this paper. 
Decentralisation refers to the process of shifting decision making outwards, in this context 
from central to line departments. 
Devolution refers to the process of shifting decision making downwards, in this context from 
personnel sections to line managers. 
Finally, the terms personnel section and HR section are used inter-changeably in this paper. 
Generally the term personnel section is used with reference to the existing system, while the term 
HR section is used in the context of a desired shift towards a more strategic focus for the existing 
system.

2 LITERATURE REVIEW 
2.1 Introduction 
For more than a decade, public sector reform has been a significant feature in most OECD 
countries. OECD research (1992) suggests that public sector organisations are 
increasingly recognising that cultural change, as a means of developing responsive and 
adaptable structures, can only be achieved through innovative policies for the management 
of human, as well as financial, resources. The focus in this chapter will be on the process 
and challenges involved in moving from personnel management towards human resource 
management (HRM) in a public sector context. 
2.2 From personnel management to HRM? 
At the outset it is important to clarify the distinction between personnel management and human resource management (HRM). The origins of the traditional concept of personnel management can be traced to the post World War One 'welfare tradition' of concern for the basic needs of employees. The developing and mature phases of personnel management from the 1940s to the 1970s saw an increase in the status and professionalisation of the personnel function, particularly in relation to industrial relations (IR) matters (see Armstrong, 1997 and Gunnigle et al, 1997). 

The concept of HRM, as a new strategic approach to the management of people, evolved in the early 1980s. Its evolution was influenced by a range of factors, including increased competitive pressures caused by deregulation and globalisation, and the influence of notable academics in the US and the UK. Although it has been suggested that HRM may be no more than 'old style personnel management with a new name' (Lawton and Rose 1994, p.114; Legge, 1995 and Gunnigle and Flood, 1990), Storey (1989) identifies four features of HRM which distinguish it from traditional personnel management: 

· it is explicitly linked with corporate strategy; 
· it seeks to obtain the commitment of employees rather than their compliance; 
· employee commitment is obtained through an integrated approach to human resource policies (for example, reward, appraisal, selection, training); and 
· unlike personnel management, which is primarily the domain of specialists, HRM is owned by line managers as a means of fostering integration. 
These issues will be considered in further detail throughout this chapter.

2.3 Best practice models of HRM 

Before considering in detail the challenges implied in HRM, it is useful to briefly explore key 
elements of the most well-known HRM models. While there is no best ‘fit’ or generic model of HRM which would be entirely applicable to the public sector, key features of some of the most influential models will be explored. The needs and interests of key stakeholders are also examined.


2.3.1 'Hard' and 'soft' approaches to HRM 

A distinction is often made in the literature between 'hard' and 'soft' approaches to HRM. For 
example, if an organisation focuses on control of resources and achievement of strategy, it may adopt a 'hard' approach to HRM (see Storey, 1989) in which employees are viewed as a resource to be managed like any other factor of production. In this approach, the critical task for management is to align the formal structure and HR systems of the organisation so that they drive the strategic objectives of the organisation. This approach is exemplified in the strategic model of HRM developed by Fombrun et al (1984). It has been argued however that an over-emphasis on hard HRM ignores the potential resistance of workers and trade unions, factors which cannot be ignored if business strategy is to succeed (see Hendry, 1995). In contrast, an organisation may place an emphasis on a 'soft' approach to HRM (Storey, 1992 p. 30), in which employees are viewed as a valuable asset whose commitment will assist in achieving organisational success. The objective for organisations in such an approach is to integrate HR policies with the strategic planning process, to gain the willing commitment of employees, to achieve flexibility through avoidance of rigid bureaucratic structures and to improve quality (see Guest, 1987). Recent evidence indicates that there is a desire to move towards a soft approach to HRM in the Irish civil service, since the need 
for a culture of performance and the harnessing of employee commitment have been publicly 
identified as priorities under the Strategic Management Initiative (see Hurley, 1995). 
The most well known 'soft' model of HRM, known as the Harvard Model of HRM (Beer et al 
1984), views business strategy as just one situational factor which influences management's 
approach to HRM. This model identifies a range of other situational factors which influence HR policy choices, including prevailing management philosophy, laws and societal values. In the context of this study, this model is significant in that it identifies a range of stakeholder interests (including unions, government and management) which influence HR policy choices. It is argued that unless HR policies are influenced by key stakeholders, the enterprise will fail to meet the needs of these stakeholders, and ultimately its own objectives (see Beer et al 1984). 

Storey (1992) outlines a further model which illustrates the process involved in shifting from 
traditional personnel management to HRM. While this is an 'ideal type' model, it comprises 
features which are significant for this study. For example, it stresses the need for integrated links between beliefs, assumptions, management issues and key elements of HRM. It also identifies key levers of change in the various elements of HRM, including recruitment and selection, training and development and conditions of employment. A strategic approach to HRM can be developed by creating effective policies in these areas. 

2.3.2 Key stakeholders: Government 

Drawing on the Harvard model, it is worth considering briefly the role of some of the key 
stakeholders insofar as they influence HRM policy choices. Government is a key stakeholder. The significance of this stakeholder influence is of particular relevance for public sector organisations, because government acts as both stakeholder and employer. Government may act as a key driving force for HRM reform. For example, radical HRM reforms implemented in the UK civil service were primarily driven by the Conservative government's desire to 'roll back the frontiers of the state' and achieve greater efficiency and value for money in the public sector (see OECD, 1990). 

Conversely, a lack of political support for change was identified as a constraint on attempts to 
reform HRM in the Irish civil service in the 1970s and 1980s (see Murray, 1990). 
2.3.3 Key stakeholders: Management A second key stakeholder influence on HR policy choices is management (Beer et al, 1984). 

Storey (1992) argues that the real appeal of HRM for top management is its apparent ability to bring coherence, direction and form to a cluster of existing personnel policies which are perceived by the organisation to be outdated or ill-fitted to new environmental demands. Similarly, in clarifying the distinction between personnel management and HRM, it has been suggested that HRM is primarily a 'discovery of personnel management by chief executives' (Fowler, 1987, p.1), in which there is an emphasis at senior management level on the strategic use of human resources as a key factor in organisational success. Conversely, in the absence of top management support, the development of a strategic approach to HRM will be problematic. 

2.3.4 Key stakeholders: Unions 

While unions can be identified as key stakeholders in the context of the public sector, Guest (1995) 
points out that most analyses consider HRM from a management perspective and fail to take account of union reaction to HRM. He suggests that the predominantly unitarist nature of HRM, which seeks to maximise employee commitment to organisational goals, may be viewed by unions as a threat to their traditional negotiating and representative roles. In the light of this concern, there is increasing evidence in many organisations of a partnership approach to HRM, which gives a role to unions as key stakeholders in organisational decision making (Cradden, 1992). Partnership structures may also include the direct involvement of employees, in addition to representation by unions on behalf of employees. 
Lawler and Mohrman (1987) warn however that the success of partnership is dependent on a significant 
shift in mind-set by unions, since they must come to the business process not just periodically as an 
adversary trying to 'grab an even larger share of the pie' (p.296) but as one of a number of stakeholders 
in an ongoing complex process. They also suggest that it may equally be in management's interests to 
engage in partnership, since joint decisions are more likely to be accepted by the workforce. They warn 
however that the development of a successful partnership is a slow process, particularly where there is 
no immediate threat to the survival of the business. 
2.4 The integrative aspects of HRM 
A key theme running through many of the models is integration, which according to Guest (1987) 
lies at the heart of HRM. He identifies integration at three levels: 
· integration of HRM policies with business strategy (external fit); 
· integration of a set of complementary HRM policies (internal fit); 
· integration of HRM into the line management function. 
This is elaborated on further by Guest and Hoque (1994) who in a discussion of HRM argue 
that 
... the key is strategic integration. What this means is that personnel strategy must fit the 
business strategy, the personnel policies must be fully integrated with each other and the values 
of line managers must be sufficiently integrated or aligned with the personnel philosophy to 
ensure that they will implement the personnel policy and practice … Where this can be 
achieved, there is growing evidence that a distinctive set of human resource practices results in 
superior performance. (p. 44) 
The challenges implied in achieving each of these levels of integration, and their consequences 
for the role of the personnel function, will now be explored. 
2.4.1 Integration with strategy 
A key feature of most HRM models is the linkage between HRM strategy and business strategy. 
HRM may play a proactive role in shaping the business strategy, or as is more common, HRM 
may play a reactive role, in which business strategy determines HRM strategy. Linking HRM 
strategy with business strategy is however not an easy task. According to Purcell and Ahlstrand 
(1995), the literature provides little practical guidance in relation to linking HRM with business 
strategy. Indeed it often ignores the significance and power of both organisational politics and 
culture as variables in shaping (and possibly subverting) the links between HRM and business 
strategy. 

Linking HRM with business strategy may be particularly problematic in the public sector, in 
which the strategy making process is complicated by a range of factors including conflicting 
objectives, multiple stakeholders, short-term political pressures, and existing structures and 
processes (see Mintzberg, 1996; Elcock, 1993; Roche, 1998; Lawton and Rose, 1994). The 
impact of such complications on the HRM/business strategy linkage process are illustrated in a 
recent CPMR research report (Boyle and Fleming, 2000). For example, if an organisation sets a 
strategic objective of providing better service to its clients, its HRM policies may focus on training 
and development as a means of developing the necessary skills to improve communications skills 
and decision making. However, if the existing structure is rigid, with little incentive for staff to use 
their own initiative, or if managers have little control over the selection of staff with the skills 
necessary for the appropriate roles or tasks, the achievement of better service delivery may be 
undermined. Notwithstanding the difficulties involved, there are clear business arguments for 
linking HRM and business strategy. The practical experiences of other administrations in linking 
these two elements will be explored in Chapter 4 of this study. 
2.4.2Internal integration of HRM policies 
The second integrative aspect of HRM relates to internal fit, or the integration of a proactive and 
complementary set of HR policies (see Guest, 1987). Achieving such fit is problematic however, 
particularly in organisational structures in which there are divisions of responsibilities between 
central and line departments. In such structures, the more significant HRM issues 'may actually be 
determined outside the plant in the higher reaches of the organisation' (Purcell and Ahlstrand, 1995, 
p.3), thus limiting the ability of the line department to develop integrated HRM policies. In this 
context, significant attention has been devoted in the literature to the arguments for and against the 
decentralisation of personnel policies in the public sector (OECD, 1990). For example, the 
decentralisation of HRM policies from central department level was identified as a prerequisite for 
the successful development of HRM policies at line department level in the US civil service 
(Cassels, cited in Tyson and Fell, 1986). At the same time, the process of decentralising may be 
difficult as 'there may be many vested interests to be overcome and much bargaining to take place' 
(Lawton and Rose, 1994, p. 177). 
The implications of not decentralising HRM responsibilities are highlighted by Lawton and 
McKevitt (1996) in a case study of Cologne City Council. They observed that while strategic 
change often requires the devolution of responsibility, the strong role of central departments of 
finance and personnel may constrain the autonomy of line departments. Where significant 
decentralisation of HRM from central level to line department level does not take place, internal 
integration of HR policies may be undermined. Further difficulties may arise when line 
departments attempt to develop a soft HRM approach, in which there is an emphasis on developing 
human resources, within a hard HRM approach at central level which may focus on minimising 
investment in human resources (Purcell and Ahlstrand, 1995). 
The literature suggests that in order to develop an integrated set of policies, it is necessary to 
critically assess the structure of and responsibilities for HRM at central level. In this way it can be 
decided what policies should remain centralised and what can and should be decentralised to line 
department level. Furthermore, if HRM strategies are to support business strategies, different 
HRM strategies may be required within different line departments where a centre-line structure 
exists (Tyson, 1995). 
Hendry (1995) provides a set of questions to assist organisations in considering how best to 
allocate responsibility for HRM: 
·What should the structures for pay bargaining and industrial relations (IR) be? Can they be 
restructured and decentralised?

· What kinds of internal labour markets should operate? A well defined internal labour market 
implies well defined job ladders, job security rules, limited points of entry, and pay which is set 
by internal criteria. This is very much the structure in most public sector organisations. 
· How should the personnel function be organised between the centre and line department level? 
Even where decentralisation of HRM is feasible, it may not be desirable. For example, Purcell 
and Ahlstrand (1995) suggest that decentralisation of pay bargaining can lead to a 'leap-frog' 
dynamic, in which changes agreed in one department may create discontent in another. This may 
create difficulties, particularly in the public sector, where the government acts as both an economic 
regulator and employer. Similar concerns have been raised regarding the negative implications of 
decentralisation for issues such as equity and equality of opportunity across line departments 
(OECD, 1996). Purcell and Ahlstrand (1995) warn however that while centralised bargaining 
provides stability and equity, ‘it may inhibit the achievement of activities, including pay bargaining 
and flexibility, to meet local requirements’ (p.139). They suggest that a two-tiered pay-bargaining 
structure may be most appropriate for the public sector, which enables control to be maintained at 
central level, while allowing for local flexibility. It is also worth noting that while decentralisation 
of responsibility for HRM from the centre increases autonomy at line department level, it also 
creates a challenge for the central function, since 'if corporate HR is going to help the line 
organization transform itself, the function must undergo its own internal transformation' (Eisenstat, 
1997, p.7). Approaches adopted by other OECD countries to meet this challenge are considered in 
Chapter 4. 
2.4.3 Integrating HRM with the line management function 
The final integrative aspect of HRM concerns line management since, it is argued: 
... if human resources really are so critical for business managers, then HRM is too important 
to be left to operational personnel specialists. (Storey, 1995 p.7) 
Research by Bevan and Hayday (cited in McGovern et al, 1997) indicates however that 
managers may be reluctant to take on HRM responsibilities which they do not perceive to be a 
legitimate part of their job, particularly if they are not adequately consulted about the devolution of 
such responsibilities. Armstrong (1997) suggests that line managers may be only too glad to let the 
personnel department deal with the people management aspects of their job, particularly in relation 
to disciplinary and grievance matters. He suggests that the successful devolution of HRM to line 
managers requires a 'delicate balance' between providing help and advice to line managers and 
creating a 'dependency culture' in which line managers are reluctant to take responsibility for 
people management issues. This reluctance is not helped where there is poor organisational 
support for the devolution of HRM to line managers. For example, in a recent study of a number 
of UK organisations, Hope-Hailey et al (1997) found that the managers' roles in HRM activities 
were rarely included in the objectives set for them, or assessed as part of the performance appraisal 
process. In addition, this study found that short term priorities of the organisation to obtain 
tangible results, coupled with workload pressures, resulted in a tendency by managers to view HR 
activities as less of a priority. As a result, people management activities were often the first to be 
'squeezed out' of the line managers’ day-to-day activities. 
Similarly, Marchington and Wilkinson (1997) suggest that many line managers may feel that 
they are already suffering from work overload, and thus will not place a high priority on HRM 
activities. They suggest that even where the mission statement of the organisation places an 
emphasis on staff development and management, line managers may pick up contrary signals from 
senior management about the ordering of priorities, and thus will focus on the achievement of 
targets which are more measurable and valued than HRM related activities. 

The structure of large bureaucratic organisations, in which there is often a 'powerful 
centralised personnel function', may also diminish the capacity of line managers to take on 
responsibilities for HRM (Armstrong, 1997). The implications of this are borne out by a study 
which was carried out in the UK Department of Social Security (Common et al, 1993). This study 
highlighted that while managers were given autonomy in staff management, they were not given the 
resources required to do so, since centralised control was maintained over staff numbers and costs. 
Another key issue which must be considered in the devolution of HRM is the development of 
the skills required by line managers. Boyle suggests that, 'if devolution of responsibilities is to take 
place and operate effectively, line managers must be equipped to take on the people management 
aspect of their job' (1995, p.43). While research indicates that the development of people 
management skills is a critical success factor in the devolvement of HRM (McGovern et al, 1997), 
Boyle (1995) suggests that the development of such skills represents a particular challenge in the 
public sector, where managers may see themselves as specialists, rather than as managers of 
people. In addition to people management skills, managers also require practical and professional 
support if they are to take on responsibility for HRM (Merchant and Wilson, 1994). For example, 
a lack of knowledge by line managers of procedures relating to disciplinary or equal opportunities 
matters may lead to legal or IR problems. 
The foregoing analysis suggests that there are three key requirements for the devolution of 
HRM to line management: 
· training and development of managers to equip them with the appropriate skills and knowledge 
required to deal with HRM issues; 
· the provision of incentives for managers to take on responsibility for HRM issues, for example 
through the incorporation and measurement of such activities into the performance 
appraisal/performance management and business planning process; and 
· an ethos where HRM activities are visibly valued by senior management. They must be 
prepared both to reward and value line managers who place a priority on people management 
activities, and to invest the necessary resources to ensure that line managers are equipped and 
empowered to take on responsibility for HRM. 
The personnel section also plays a key role in assisting this process, an issue which will be 
considered further in section 2.5. 
2.5 Professionalising the HR function 
The achievement of the three integrative aspects of HRM implies the need for a repositioning of the 
role of the personnel section (Legge, 1995). In a centre-line structure such as that which exists in 
the Irish civil service, the level of allocation of responsibility for HRM will also influence the role 
of the personnel section and its ability to develop integrated HRM policies (Purcell and Ahlstrand, 
1995). For example, the development of a rewards-based performance management system may be 
limited if pay policies are determined at central level. 
2.5.1 Models of the personnel function 
A range of typologies of personnel models can be identified from the literature. One of the most 
well-known typologies is outlined by Tyson and Fell (1986) who identify three models of the 
personnel section: 
· clerk of works - in which personnel is a low level activity responsible for administration and 
welfare provision; 
· contracts manager - in which the focus is on the implementation of well-established procedures 
and agreements with a heavy industrial relations (IR) emphasis; and

· architect - in which the personnel function plays a key role in establishing strategic HRM 
policies to support the achievement of corporate objectives, while routine personnel activities 
are delegated to free up time for strategic activities. 
The ability of the personnel section to develop a more strategic 'architect-like' role represents a 
significant challenge, particularly where it may be perceived within the organisation to be a noncritical 
function. This can give rise to a 'vicious circle in personnel management' (Legge, 1992, 
p.27); when management does not involve personnel in planning, and HR problems ensue which 
are left to the personnel section to resolve. This results in pressure of time and work on the 
personnel section, leading to negative perceptions regarding its efficiency and effectiveness, and a 
re-affirmation of management's initial belief that personnel should not be involved in planning. 
Legge argues that even the provision of training and development for staff in the personnel section 
will not necessarily break this vicious circle, since in order to obtain resources to develop a more 
strategic role 
... a personnel department requires power which it presently lacks, precisely because of its 
inability to convince those who do control resources of its potential contribution. (1978, 
p.136) 
Similarly, Marchington and Wilkinson (1997) argue that contrary to claims made in the 
literature, the reality is that many personnel specialists spend considerable time undertaking routine 
administrative work. They suggest that if organisations wish to develop a more integrated 
approach to HRM, the role of the personnel section needs to be critically assessed, redefined and 
repositioned. 
2.5.2 Skills development 
How can personnel sections develop a strategic 'architect-like' role, and what are the challenges 
involved in doing so? A common theme in the literature is the need for active support of top 
management for the development of a strategic HR function (see Ulrich, 1998, Legge, 1995). 
Unless this support translates into giving the personnel section access to key business information, 
it is likely to remain marginalised. In turn, to earn this support, it may be necessary to 'market' the 
HR function better in order to convince senior management of its added value (see Armstrong, 
1997 for further reading). Successful marketing of the function however is dependent on personnel 
specialists being equipped with appropriate skills to visibly demonstrate their contribution to the 
organisation. Marchington and Wilkinson (1997) identify three core skills required by personnel 
sections in this regard: 
· they should be capable of formulating HRM policies and a procedural framework to ensure 
adherence to corporate policy at all levels of responsibility; for example, they must be familiar 
with a range of HRM techniques, including human resource planning, selection techniques, 
employee development techniques and performance management systems; 
· they should provide expert advice and guidance on HRM matters (e.g. employment law, equal 
opportunities, appraisal) to line managers; 
· they should be able to undertake responsibility for the training of line managers in relation to 
their responsibilities for HRM. 
The development of such skills presents many challenges. Ulrich suggests that the most 
challenging task for senior managers in driving forward a 'new mandate for HR' is to improve the 
quality of the HR staff itself, since, he argues, 'when more is expected of HR, a higher quality of 
HR professional must be found' (1998, p. 133). He argues that unless the requisite expertise 
exists, HR cannot expand its role, nor can it earn what it too often lacks - respect. There is a 
significant debate in the literature concerning the extent to which HRM can be considered a distinct 
profession. The argument to support its distinctiveness as a profession is diluted by some factors, 

such as the inability in most cases to regulate or restrict entry to HR sections to qualified 
professionals, unlike other professions (Gunnigle and Flood, 1990). In the light of this concern, 
Armstrong argues that a broader definition of professionalism as it applies to HR specialists might 
be seen as: 
... the practice of specific skills based on a defined body of knowledge in accordance with 
recognised standards of behaviour. (1997, p.97) 
While there may be different interpretations of what specific skills, knowledge and standards 
are required, professional associations such as the Chartered Institute of Personnel Development 
(CIPD)1 have an important role to play in setting and improving professional standards for 
personnel specialists. Typically, CIPD membership is attained through the achievement of formal 
qualifications in a range of HRM areas, such as employee resourcing, employee development and 
employee relations. CIPD membership is increasingly becoming a compulsory requirement for 
HRM positions in the Irish private sector, and many parts of the UK public sector. 
As an alternative to, or in tandem with the professional qualification route, Armstrong (1997) 
outlines a competency profile which might be used to select, appraise and develop personnel 
specialists: 
· strategic capability 
· business awareness 
· professional development and understanding 
· internal consultancy skills 
· organisational effectiveness 
· quality 
· service delivery. 
The literature also suggests that a concern for and competence in relation to equality and diversity 
matters is also of increasing importance from a strategic HRM perspective (Crow, 1999). 
Regardless of the model or profile used to select and develop the necessary expertise, how does 
the organisation go about securing HR expertise? The necessary expertise may already lie within 
the personnel section, it may be brought in from other parts of the organisation, or ultimately it 
may have to be brought in from outside. There is, for example, increasing evidence of outsourcing 
of HR activities within UK local authorities (see Pickard, 1998 and Merrick, 1999). Irrespective 
of the source however, it is important that a systematic approach is adopted to select, train and 
develop staff for positions within the personnel area. 
Training alone however will not ensure the professionalisation of the HR section. For 
example, since HRM implies 'giving personnel away to line management', many personnel 
specialists may feel comfortable with established routine procedures and may resist change (Guest, 
1987, p. 519). Equally, as the previous section indicates, line managers may be unwilling to take 
on responsibility for HRM. In order to overcome these sources of resistance, Armstrong (1997) 
recommends that personnel specialists should form strategic alliances with influential line 
managers or 'champions of change' who will not only lend support to change, but will also cooperate 
in pilot-testing it in the organisation. In a similar vein, he suggests that service level 
agreements, whereby personnel specialists agree to provide defined levels and quality of service to 
functional areas, should be developed (e.g. filling of vacancies within x weeks, induction training of 
y days). 

2.5.3 From knowledge to action: the role of human resource planning 
On the assumption that personnel specialists have developed appropriate HRM knowledge and 
skills, it is important that these are translated into action, if they are to inform day-to-day HRM 
activities and make a visible contribution to the organisation. Armstrong (1997) suggests that a 
formal HR strategy is a useful means of verbalising intent and communicating the activities 
necessary to achieve HRM strategy. The broad stages involved in formulating HR strategy are set 
out in figure 2.1 
Figure 2.1 
Establish Corporate Objectives 
High level HR Objectives 
Divisional Objectives 
Human Resource Planning 
Recruitment, Selection 
Promotion 
Training and Development 
Rewards/Pay 
Industrial Relations 
Equality 
Health, Safety and Welfare 
Personnel Administration 
Terms and Conditions 
The first stage in this process involves translating the implications of high level business 
objectives into high level HRM objectives. A useful mechanism for the subsequent translation of 
high level HRM objectives into meaningful HR action plans is the human resource planning (HRP) 
process. The key purpose of HRP is to ensure that the organisation has the appropriate level and 
quality of human resources that it needs in the context of its business objectives. There are four key 
stages in this process: 
· Stocktake existing resource and skills levels in the context of the requirements of business 
strategy. This process will be influenced by external factors which are outside the control of 
the organisation, including labour market trends and central recruitment processes. 
Nonetheless the impact of a range of internal factors, including, staff turnover trends, 
absenteeism and skills levels should be identified. 
· Forecast likely future resource levels by reference to projected flows in and out of the 
organisation, e.g. based on likely promotion, resignation, recruitment levels. 
· Next, there is a need to critically evaluate existing HR policies to establish what needs to 
change if the organisation is to be appropriately resourced and equipped. Ulrich (1998) 
outlines a useful framework (see Appendix 1) which enables an organisation to both identify 
desired plans and critically assess existing activities in the light of its strategic objectives.

· Following this evaluation, specific plans for a range of HRM activities should be developed, 
and drawn together into a formal HR strategy. While its specific content will vary from 
organisation to organisation, plans should be developed for a range of areas, including 
recruitment, training, rewards and performance management. The further translation of these 
plans to section level should be linked with the business planning process. 
The process by which the HR strategy is developed is also important. Armstrong (1997) 
suggests that the engagement of key stakeholders, including senior management, line managers and 
employees, can be useful as a means of gaining support for change in HRM. For example, an 
employee attitude survey could be carried out to assess current perceptions of HR policies and 
future expectations regarding what HR policies should provide. Similarly, the use of partnership, 
to engage management and trade unions in the process, can be useful as a means of mobilising 
support for a changed approach to HRM. 
2.6 Implementation of HRM in the public sector 
Finally, it is necessary to consider the relevance of the foregoing themes to the public sector, since 
it is frequently argued that there are unique dilemmas which characterise management in the public 
domain (Stewart and Ranson, 1988). Farnham and Horton (1996) outline three responses to this 
question: 
1. Strategic management may be perceived to be of secondary importance to the public service 
manager. For example it has been suggested (Boyle, 1995) that the public sector manager 
operates in an environment which gives rise to complexities and constraints which do not 
concern the private manager, including, political, legal and public dimensions and the absence 
in many areas of competition. 
2. Management practices, including HRM, may be perceived to be generic and equally applicable 
to the public sector. 
3. Finally, they describe a new public management (NPM) model, which differs from both public 
administration and private management. NPM emerged as a model of public sector 
management in response to pressures to cut public sector costs and a political ideology which 
saw a need to develop a more market-oriented culture in the public sector. This model 
emphasises the central role which HRM policies, including recruitment, training and 
communications strategies, can play in achieving the cultural change necessary to bring about 
employee commitment. 
Features of the NPM approach are evident in reform initiatives in a number of OECD 
countries, most notably the UK and New Zealand and these are considered further in Chapter 4 
(see also Farnham and Horton, 1996). A number of other contributors suggest that there are 
features inherent in the public sector which may impede the implementation of a strategic approach 
to HRM. Storey (1989) suggests that while bureaucracy may ensure consistency, equity and 
impartiality, it can also result in a lack of responsiveness which may conflict with the flexible, 
commitment-based nature of HRM. Similarly, Barnhart (1997) suggests that in a bureaucratic 
structure, staff may be accustomed to following centrally determined rules and circulars, and a reallocation 
of responsibility for HRM may represent a significant challenge to the status quo for 
many who are comfortable with the existing structure and culture. This implies the need for a 
planned approach to change in moving from personnel management to HRM, particularly since 
very often what organisations are actually trying to change through the implementation of HRM is 
culture itself (see Legge, 1995). 
Lawton and Rose (1994) outline a number of questions which organisations should address 
before implementing cultural change: 
· Who brings about the change - is it externally or internally driven?

· What changes are required to structures, people, processes and culture? 
· Who does it affect? Who will obstruct this change? 
· Are there appropriate mechanisms and processes for change? 
· How much will it cost? Can the organisation afford not to change? 
The last point is of particular significance since the absence of significant political or economic 
pressures may dilute the motivation for change. It is important therefore that the cost of not 
changing is carefully considered. For example, in the US Federal Government Offices, the primary 
motivation behind ongoing decentralisation of HRM is cost reduction, since it has been estimated 
that central control structures not only stifle line management's autonomy, but consume billions per 
year in salary and administrative costs (Barnhart, 1997). 
Lawton and Rose (1994) suggest that unless the above questions are addressed, those affected 
may feel that change has been imposed from above and they may resent change. Similarly, it has 
been suggested (Hendry, 1995, Beer et al, 1993) that a succession of top down change programmes 
can actually inhibit change in the long run by promoting cynicism and scepticism among staff. 
This has been identified as a barrier to change in the Irish civil service, where negative attitudes to 
change may be ingrained because of experience of similar failed reform initiatives (Tuohy, 1996). 
In the light of such concerns, a number of authors (Hendry, 1995, Armstrong, 1997) suggest that 
change is more likely to be achieved when it is introduced incrementally, in a bottom up fashion, 
focusing on the work itself rather than trying to change attitudes. Similarly, Beer et al (1993) 
argue that the most effective way to change behaviour, and as a consequence performance, is to put 
people into a new organisational context, which imposes new roles, responsibilities and 
relationships on them, thus effectively forcing new attitudes and behaviours. Armstrong (1997) 
stresses however that senior management must play a role by creating the right climate and 
supporting structures for change. Additionally it has been suggested that reform is more likely to 
be successful when there are significant driving forces for change, including political leadership, 
legislative change, and economic crisis (see Schick, 1996). The influences of these factors are 
considered in more depth in the review of international experience outlined in Chapter 4. 
2.7 Conclusions 
The literature highlights a range of challenges involved in the process of developing a strategic 
approach to HRM. Regardless of whether an organisation wishes to emphasise a hard (control 
focused) or soft (commitment focused) approach to HRM, typically what it wishes to achieve is 
integration of HRM policies with business strategy, internally and at line management level. Key 
stakeholders influence, and in some situations can undermine, the process of integration at these 
levels. Similarly, the division of responsibilities between central and line department level shapes 
and dictates the extent to which HRM policies provide strategic fit. 
Integration of HRM with business strategy can assist the organisation in achieving its 
objectives. In turn, the integration of HRM responsibilities at line management level frees up 
resources in the personnel section to develop strategically integrated HRM policies which add 
value to the organisation. 
Drawing together these issues, a number of key stages in the development of a strategic 
approach to HRM can be identified: 
· A critical evaluation of the division of responsibilities between central and line department 
levels is required to assess the extent to which it is both desirable and feasible to decentralise 
HRM activities.

· HR strategies should be devised during the process of business strategy formulation. This has 
a number of implications for the personnel section. Firstly, its ability to play a meaningful role 
in this process depends on the belief of top management in the value which HRM can add to 
the organisation. Secondly, personnel sections need to critically audit existing HRM policies 
and develop the time and expertise required to devise new strategic policies. 
· The auditing of existing activities and development of new strategic policies can be facilitated 
by a number of key levers. Firstly, the devolution of appropriate HRM matters to line 
managers can free up resources in the personnel section to develop strategic policies. Any 
such devolution requires that line managers be equipped with the appropriate skills, knowledge 
and attitudes to effectively manage and develop staff. This implies a significant need for 
training and development; and this must be supported by key levers such as performance 
management, to ensure that the managers' HRM responsibilities are recognised, measured and 
rewarded. Secondly, the development of strategic HR polices is dependent on appropriate 
expertise in the HR section. Such expertise is critical if a HR section is to both support line 
managers in their activities and make a more strategic contribution to the organisation. 
· The selection and development of personnel staff is important in ensuring that the HR section 
is equipped to develop a more strategic role. Best practice indicates that staff should be 
selected on the basis of their competencies in a range of HR activities, including human 
resource planning and performance management. Where such skills do not exist, they should 
be specifically developed, assisted where necessary by external expertise. 
· The process of moving from personnel management to HRM implies the need for change to the 
organisation's existing culture, and as a consequence, change may be resisted by key 
stakeholders. Accordingly there is a need to plan for and carefully manage the change process. 
The need for change, the process involved and the benefits of such change, need to be clearly 
communicated and key stakeholders such as unions and line managers should be involved. 
Partnership can be a valuable mechanism in involving stakeholders, but to be successful, it 
requires a significant change in mindset among the various groups involved. 

3 
CURRENT PROFILE OF HRM IN THE 
IRISH CIVIL SERVICE 
3.1 Introduction 
In order to assess the challenges implied in decentralising, devolving and professionalising HRM, it 
is necessary to identify the context in which the HRM reforms set out in Delivering Better 
Government (1996) will be introduced. In order to do so, it is necessary to examine existing 
responsibilities for HRM at central and line department level. Relevant research is also reviewed 
here, although it is important to recognise that research in this area has been limited. 
3.2 Existing structure 
The existing personnel management structure in the civil service can be usefully discussed by 
reference to a range of key HRM activities. Since the purpose of this discussion is to provide a 
broad overview of the roles and responsibilities at central and line department level, the analysis 
will not focus on the detail of the various activities. 
3.2.1 Recruitment 
External recruitment (to clerical and graduate level posts) and inter-departmental promotion 
competitions (confined to existing civil servants) are undertaken by the Civil Service Commission 
(CSC) on behalf of departments and offices, while internal promotion is carried out by individual 
line departments. Quotas for external and internal promotions are agreed between the Department 
of Finance and the trade unions. Typically in the case of external recruitment and interdepartmental 
competitions, central selection processes are used to select candidates who are then 
placed on panels in order of merit. Traditionally, the prevailing selection devices used by the CSC 
were written examinations followed by interviews. Advances have been made in recent years with 
the introduction of psychometric tests and competency-based selection interviewing. Other changes 
are envisaged in this system. For example, a central group was recently established to consider 
and address a range of issues identified in a number of recent studies carried out for the CSC. 
These issues include the need for a greater marketing of the civil service as an employer of choice, 
and staff retention in the civil service (see MRC, 1999). Similarly, while Delivering Better 
Government (1996) makes it clear that the current approach, whereby selection for the vast 
majority of appointments is made by the Civil Service Commission, is likely to remain, in the 
longer term it has been stated that ‘a new model for public service recruitment, underpinned by new 
legislation, is currently being developed’ (Ahern 1999, p.4) in order to provide greater flexibility, 
for example in relation to temporary recruitment (see also Humphreys, Fleming and O'Donnell, 
2000). In relation to internal promotions carried out by line departments, while traditionally 
seniority has prevailed as the basis for such decisions, increasingly departments are developing 
competitive promotion criteria (most commonly through the use of selection interviews). 
3.2.2 Pay and grading 
The Department of Finance2 exercises responsibility for the management and development of pay 
policies for the civil service and the wider public service (which includes the defence forces, Garda 
Síochána, health, education and local government sectors and semi-state bodies). Pay policies are 
negotiated through the Conciliation and Arbitration Scheme, which comprises public sector unions 
and Department of Finance representatives. Similarly, issues relating to grading structures and 

staffing levels are centrally developed, managed and regulated by the Organisation, Management 
and Training Division (OMTD) of the Department of Finance. 
Efforts have been made, in recent years, to introduce a limited degree of localised pay 
bargaining. For example, in a number of recent national agreements provision was made in respect 
of specific grades for the payment of additional increases based on criteria which would be 
determined by individual departments. Also, the 1996 national agreement Partnership 2000 
provided for additional increases linked to partnership-based achievement of change at line 
department level. The new agreement, Programme for Prosperity and Fairness (2000) also 
acknowledges the need for greater flexibility in existing systems of both pay and grading. For 
example, it recognises the necessity to examine issues such as ‘flexibility in grading, including 
broad-banding, complemented by imaginative reward and recognition systems, including an 
examination of gainsharing’ (p.23). While recognising that there are existing agreements on these 
issues, the relevant partners have committed themselves to addressing these issues during the 
currency of the new programme. By and large however, with the exception of likely future 
developments in this regard, the existing system remains highly centralised. As a consequence, the 
role of departments in relation to pay and grading is largely concerned with implementing and 
adhering to the terms of centralised agreements and policies. 
3.2.3 Other key HRM policies 
The majority of all other personnel policies are centrally developed by the Department of Finance. 
Specific sections within the Personnel and Remuneration Division (PRD) of this department are 
responsible for the development of personnel policies, including terms and conditions of 
employment, recruitment policies (in conjunction with the Civil Service Commission), promotion 
policies, equality and staff welfare issues for the civil service. A more detailed discussion of the 
activities undertaken in this regard is provided in Appendix 2. In order to understand the 
department's role in regard to such policies it is necessary to consider the process of HRM decision 
making in this regard. 
Under the Civil Service Regulations Act, 1956, the Minister for Finance is specifically 
responsible for making regulations to fix the terms and conditions of employment for civil servants, 
while PRD's role is to implement these regulations for the minister, through the issue of official 
circulars to all departments. These circulars are collected together in what is known as the 
Personnel Code. The Personnel Code is referred to by personnel units within each department 
when implementing and interpreting centralised personnel policies. Where difficulties arise in 
particular cases, personnel sections consult with the relevant section in the Department of Finance 
for advice or decisions. 
Any changes to these centrally agreed personnel policies must be negotiated with unions, and 
these negotiations take place through the Civil Service Conciliation and Arbitration Scheme. For 
example, changes to annual and sick leave regulations would be negotiated through this forum. 
Conciliation operates at two levels - central (General Council) and departmental (Departmental 
Council) level. Issues common to the civil service as a whole are negotiated between unions and 
senior management from the Department of Finance at General Council. Additionally, certain 
aspects of personnel policies are negotiated through the 'departmental council' structure at line 
department level between management and unions, although the use of this mechanism is largely 
confined to consideration of non-pay issues. 
3.2.4 Training and development 
The Civil Service Centre for Management and Organisational Development (CMOD) which is a 
part of the Department of Finance plays a central role in relation to the provision of training and 
development for the civil service. CMOD comprises a number of units including Organisation 
Development Services, a number of IT units, and Human Resource Development Services 
(HRDS). HRDS has responsibility (in conjunction with line departments) for the development, 

promotion and implementation of best practice in relation to human resource development in line 
with the HRM proposals set out in Delivering Better Government (Department of Finance, 
1998b). Traditionally, this area was predominantly involved in the delivery of training, but 
increasingly it is more involved in providing focused training for particular initiatives such as 
performance management. Many of the larger line departments have their own specialist training 
units, and most departments have a designated training officer. While larger departments such as 
the Revenue Commissioners and the Department of Social, Community and Family Affairs deliver 
much of their training internally, many departments avail of external training services, not only 
from CMOD but also from external training bodies. 
3.3 Limitations in the existing system 
While there has been a number of attempts to reform HRM in the Irish civil service3, little change 
had occurred prior to the launch of Delivering Better Government in 1996. At the same time, 
there had been, and continues to be, an increasing awareness of the need for change, and this is 
highlighted in a number of research studies. Some of the findings of these studies are worth 
considering, insofar as they highlight shortfalls between the existing system and best practice 
identified in Chapter 2. 
Subsequent to the launch of SMI in 1994, a review of the existing system was carried out by a 
group of senior civil servants (McNamara (ed), 1995). In their critique of the existing system, the 
group suggested that responsibility for HRM matters had been overshadowed by the control and 
budgetary functions of the Department of Finance. They suggested putting the HRM functions of 
the department into a separate body which would have responsibility for driving reforms in the 
HRM area. They highlighted a number of features of the existing structure, including a lack of 
flexibility in recruitment and selection processes, and the lack of freedom at departmental level 
over pay and conditions of service, features which they identified as 'a bar to effective management' 
(p.39). These structures, they concluded, resulted in limited roles for individual personnel sections 
and they highlighted the need for decentralisation of HRM to line departments, coupled with the 
development of greater HRM expertise at line department level. Overall, they concluded that if the 
process of modernising the civil service was to become a reality, 'HRM must become the major 
plank of the SMI' (p.93). 
3.3.1 The role of the personnel section 
A recent study by White (Administration, 2000) focuses on the role of the personnel section in the 
civil service, and its readiness and ability to develop a changed approach to HRM. The study, 
which surveyed personnel officers at line department level, identified a number of concerns. While 
80 per cent of personnel officers surveyed had third level qualifications, only 22 per cent had a 
specialist qualification in a personnel or related field. Additionally, where personnel sections had 
staff with specialist qualifications, the number qualified was on average less than 30 per cent of the 
staff complement in the personnel area. The study also found that the majority of personnel work 
continues to be concerned with personnel administration and industrial relations (IR) matters. 
While personnel officers envisaged a greater involvement in more strategic HRM activities, 
including the development of HR strategy and partnership, they did not anticipate a corresponding 
fall off in traditional workload. 
While a majority of personnel officers indicated that they envisaged devolution of day-to-day 
activities to line managers, an overwhelming majority believed that line managers do not want to 
take on responsibility for routine HR matters. At the same time, in the case of specific activities 
such as training and development, 90 per cent indicated that decisions in this area were made by 
line managers. Finally, while the role of the Department of Finance was not seen to significantly 
hinder the role of the personnel section, 77 per cent of the respondents said that they would 
welcome further delegation of HR, particularly in relation to recruitment of staff. There was also a 
desire for greater consultation by the Department of Finance with personnel sections in relation to 

centralised pay agreements to avoid some of the practical difficulties which arise in their 
implementation. The study concluded that the key obstacles to implementing the SMI were 
resource issues (personnel staff numbers and skills), the existing relationship with the centre, the 
role of the line manager, senior management and leadership issues and resistance to change. 
3.3.2 Integration of HR strategies at department level 
As part of the agenda for change under Delivering Better Government (1996), guidelines were 
produced by the SMI Implementation Group in 1998 to assist departments in formulating 
statements of strategy under the requirements of the Public Service Management Act, 1997. One 
of the key concerns in the guidelines centred on the need to embed the strategic management 
process in departments by ensuring that internal processes, including HRM, support the 
implementation of strategy. The extent to which departments made efforts to link HR strategies 
with business strategy was one of a range of issues considered in a recent CPMR Report (Boyle 
and Fleming, 2000). This report highlighted a considerable absence of linkages between business 
strategy and HR strategy in most departments. While the majority of departments placed emphasis 
on the need to value and develop human resources, there was little evidence of attempts to identify 
or think through the HR implications of strategic issues. For example, many departments 
conducted a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis as a prerequisite 
to setting out strategic objectives. At the same time, weaknesses in relation to HR systems were 
simply described in the majority of cases, and there were no identifiable actions set out to address 
such weaknesses. 
Similarly, very few line departments identified HR needs arising from the pursuit of strategic 
objectives, for example in relation to training or future recruitment needs. Similar concerns 
regarding poor linkage of HR policies were identified in another recent CMPR Report 
(Humphreys, Fleming and O'Donnell, 2000). This report noted that new initiatives, for example in 
relation to flexible working arrangements, are frequently introduced in an ad-hoc manner with little 
thought given to their consequences for existing flexible working arrangements and other HR 
activities such as promotion or training and development. 
3.4 Proposals for change in HRM 
A central theme of Delivering Better Government (DBG, 1996) concerns the need for a 
'modernisation in HRM' (p.32) as a means of achieving excellence in service quality and delivery. 
DBG acknowledges that ‘the degree of central regulation of the human resource function has been 
increasingly called into question’, and a range of proposals are outlined to reform HRM, most 
notably that: 
· each personnel section should re-orient its activities to take a more strategic/developmental 
approach, facilitated by the devolution of responsibility for 'day-to-day' human resource 
matters to line managers (p. 34); 
· this re-orientation should take place in conjunction with 'an incremental but concerted process 
of devolving authority from the Department of Finance to departments' (p. 34). 
It also stated that each department should develop a HR strategy which should be linked with 
its business strategy. Finally, it proposed that the Department of Finance should institute a 
programme of training and development for staff assigned to departmental personnel sections. It 
envisaged that all of these changes would be underpinned by a centrally agreed performance 
management and development system (which was subsequently launched in May 2000). To 
advance the process of change, a HRM working group was established to develop proposals for 
change in HRM.4 In addition, partnership committees were set up in each civil service department, 
in tandem with the existing industrial relations (IR) structure, to progress change in HRM and 
other issues5. In addition to this set of structures, the Department of Finance and the Department 
of the Taoiseach play a role in contributing to the advancement of the HRM reforms under DBG 

and this role is reflected in their recent statements of strategy (Department of Finance, 1998b, 
Department of the Taoiseach, 1998). 
Some concerns have been expressed regarding the HRM reforms envisaged in DBG, in 
particular regarding the likely re-allocation of HRM responsibilities. For example, Roche (1998) 
comments that ‘the SMI does not seem intent on opening the Pandora's box of public sector pay 
determination more generally’ (1998 p. 12). He argues that this limits the extent to which HRM 
can be strategic, particularly because political intervention into public sector pay may undermine 
the autonomy of senior civil servants in influencing HR policy choices. At the same time, he points 
out that because the containment of public sector expenditure is not the supreme driver of change, 
this may make it easier to balance the hard and soft goals of HRM. This contrasts for example 
with the UK approach where containment of public sector costs motivated much of the HRM 
reforms. O'Dowd and Hastings (1997) suggest that the acceptance of a unified pay and grading 
structure may represent a pragmatic acknowledgement of the need for a more gradual and 
circumspect approach to the devolution of what are politically contentious issues. 
In the context of the proposals for reform, it is also worth noting that changes have been made 
to the legislative framework governing civil service employment, most notably the Public Service 
Management Act (1997), which amends and expands on the Ministers and Secretaries Act (1924). 
The Public Service Management Act (1997) introduces a degree of potential flexibility with regard 
to HRM in individual departments/offices and it transfers responsibility for personnel matters, 
including appointment and dismissals below principal and equivalent levels, from the minister 
concerned to the secretary general of each department (subject to an amendment in the Civil 
Service Regulation Act, (1956) which is pending). 
3.5 Conclusion 
In summary, the vast majority of HR policies are centrally determined and developed. The existing 
role of personnel sections within departments is largely concerned with implementing centrally 
agreed HRM policies. This limits the extent to which they are capable of exercising discretion the 
development of organisation-specific HRM policies and this is recognised in Delivering Better 
Government (1996). At the same time, it is evident that the extent to which HRM policies will be 
decentralised is likely to be limited as long as the existing unified pay and grading structure is 
retained. The challenges involved in developing a more strategic approach to HRM within the 
context of the changes proposed will be considered in Chapter 5.

4 
LESSONS FROM INTERNATIONAL EXPERIENCE 
4.1 Introduction 
While no one model or framework has shaped the approach to HRM reform in other OECD 
countries (see OECD, 1996), it is useful to briefly examine broad trends internationally insofar as 
they inform the discussion in this study. While it is important to recognise that HRM reforms have 
generally taken place within a wider context of public sector reform, this examination focuses 
primarily on the central themes of this paper, namely; the decentralisation of HRM, the devolution 
of HRM to line managers, and the professionalisation of the HR function. In addition to an 
examination of broad trends, this chapter focuses in depth on the experiences of the UK and 
Denmark. In the context of the decentralisation debate, the lessons learnt from these two 
administrations, which vary significantly in structure, are useful. In the UK for example, 
decentralisation of HRM was a key element of its reform programme. In contrast, the Denmark 
system remains largely centralised in relation to HRM policies. In addition to secondary sources, 
the experience of the UK was drawn from interviews with key informants in the Cabinet Office 
and the Northern Ireland civil service. 
4.2 Broad trends and lessons 
According to a recent OECD report (OECD, 1996), decentralisation of HRM responsibilities from 
central bodies to line departments and agencies, accompanied by devolution to line managers, 
stands out as a key feature of reforms in OECD countries in recent years. Decentralisation and 
devolution of HRM have ranged from extensive reform in Sweden, New Zealand and Australia to 
more limited approaches in Finland, Ireland and Norway. The OECD report highlights a number 
of broad themes and concerns raised by member countries: 
· HRM reforms are more effective when they are mandatory rather than relying on departments 
and agencies to develop their own HRM initiatives. 
· A key concern centres on the need to strike a balance between decentralisation and consistency. 
Devolution and decentralisation of HRM are generally deemed to be necessary for the 
development of strategic HRM. Yet, frequently there is a fear of losing a service-wide 
perspective. This creates a desire in many administrations to ensure that fundamental 
principles and values remain intact across the service. For this reason, in the interests of 
achieving an appropriate balance between central control of HRM and managerial flexibility, 
the majority of countries surveyed by the OECD retain a basic common core of conditions 
across their public sectors in order to preserve a 'corporate civil service philosophy'. 
· The devolution of HRM to line managers is made problematic by the fact that many managers 
do not regard HRM as an important part of their work, knowing as they do that frequently it is 
neither rewarded nor valued institutionally. As a consequence, there is a need to provide the 
necessary supports for managers if they are to assume responsibility for HRM matters, 
including training, guidance, accountability, and information. Moreover, the need for 
devolution of other responsibilities including financial management is seen as critical to the 
successful devolution of HRM responsibilities (OECD, 1996, p.29). 
· An overwhelming concern voiced by top management and central departments was the lack of 
clarity in re-thinking the role of the centre in a decentralised HRM environment (OECD, 1996, 
p. 30). Typical concerns focused on the degree of control which should be exercised by the 

centre in a decentralised environment in the interests of ensuring appropriate performance and 
accountability by line departments. 
International experience also suggests that HRM reform is more likely to be successful when 
there are significant driving forces for change, including political leadership, legislative change, 
and economic crisis (see Schick, 1996). For example, cultural change in the New Zealand public 
sector was achieved through significant change in the legislation governing HRM and financial 
procedures, decentralisation of HRM from the State Services Commission to departmental level, 
and organisational restructuring (see Farnham, 1993, and Schick, 1996). On a cautionary note 
however, it should be noted that the radical changes pursued in the New Zealand administration 
have also had negative consequences for staff (see McNamara (ed), 1995). The success of reform 
in the UK, which was also influenced by significant driving forces, will be considered in detail in 
section 4.3. 
4.3 Reform of HRM in the UK 
Reform of HRM in the UK public sector took place in the context of significantly wider 
developments in the UK administration. Nonetheless, some useful frameworks and approaches 
were developed in relation to specific issues which are relevant to this study. In order to 
understand the UK HRM reform, it is necessary to briefly outline the background to these reforms. 
Unlike the current programme of reform in Ireland, fiscal constraints were the supreme driving 
force for the changes which took place after the election of the Conservative Party to government in 
1979 (OECD, 1999). Subsequent developments in the 1980s led to significant changes to the 
structure of the UK public sector, through privatisation and the setting up of Next Steps 
Agencies6. 
The current approach to HRM in the UK public sector differs radically from that which 
prevailed prior to the mid-1990s. Prior to then, centralised personnel policies, which were 
negotiated with the Council of Civil Service Unions, were set out in a lengthy and complex 
personnel code. By the late 1980s however, there was an increasing recognition that while much 
progress had been made in achieving cost reductions, insufficient attention had been paid to the 
'people' issues7. At central level it was also recognised that individual departments and agencies 
were in the best position to know what HR policies were required to meet their specific objectives. 
As a consequence, critical questions were raised concerning the role of the Cabinet Office in HRM 
decision making and the need for 'soft' HRM issues to be accorded greater priority at department 
and agency level. A process commenced to decentralise HR decision making to departments and 
agencies, culminating in the production of a new Civil Service Management Code (Cabinet Office, 
1996a) to replace the old set of personnel policies. The code, which was produced following 
consultation with recognised civil service trade unions, sets out the broad parameters governing 
terms and conditions of civil service employment. As part of this HRM reform process, authority 
was delegated to ministers and office holders, in respect of their own departments, to: 
· determine the number and grading of posts (excluding senior civil service posts); 
· determine terms and conditions of employment including remuneration, allowances, expenses, 
performance and promotion, holidays and hours of work; and 
· prescribe the qualifications for the appointment of home civil servants (with the exception of 
the fast stream development programme). 

The removal of central determination of HRM policies demanded a new role of the Public 
Service Office in the Cabinet Office. It set out to develop a role in which it would act as a 
facilitator and source of best practice and advice, in contrast to its previous 'prescriptive' approach. 
As a consequence there was a need to develop new ways of working and thinking. The 
Development Division of the Cabinet Office was instrumental in achieving this, largely through a 
changed approach to encouraging best practice HRM at departmental level. This is usefully 
illustrated by the 'consortium approach' which they used to identify best practice for a range of 
HRM policies, including delegating human resource development (HRD) to line managers, 
objective setting and the development of a strategic approach to people management (Cabinet 
Office, 1993a, 1993b, 1996b). The process undertaken in one of these projects is illustrated in 
Table 4.1. The content of the findings of this project will also be considered in the next section. 
Table 4.1 
In 1993, the Cabinet Office launched a consortium project A Strategic Approach to 
People Management. The main objective of the project was for consortium members to 
work towards the development or implementation of new human resource strategies to 
support business and organisational objectives. In some cases, the role of the HR function 
was also examined to ensure that it was adequately equipped and skilled to meet future 
challenges. Ten departments and agencies participated in the consortium. Each 
consortium member had an individual project, varying for example, from the development 
of a human resource strategy in the Benefits Agency, to the development of competencies 
to aid integration of HR strategy in the War Pensions Agency. The rationale for the 
consortium approach taken was that the use of case studies would be more informative for 
departments at a practical level, given the limited academic research in the specific issues 
involved. An executive summary and report were published to highlight the lessons learnt 
from the projects. The key lessons learnt from the projects were grouped under three 
headings: 
· The process of developing HR strategies 
· The content and focus of HR strategies 
· Implementation and impact on the HR function. 
It was stressed in the report that the intention of disseminating the findings was not to be 
prescriptive. Rather the findings should provoke debate at top level, and act as a guide to 
departments in the process of developing HR strategies. It was also intended that the report 
would inform action taken by departments under the agenda set out in the Continuity and 
Change white paper. 
A year after the report, an evaluation, based on interviews, questionnaires and workshops 
was carried out and published to reflect on progress and changes made by consortium 
members in the light of what had been learnt from the project.

Adapted from Cabinet Office (1995) and (1996b) 
4.3.1 Professionalising HR 
In addition to highlighting the benefits of an 'action-learning' approach to developing best practice, 
many of the findings which emerged from the consortium project (Cabinet Office, 1993a) and a 
subsequent follow-up report on the project (Cabinet Office, 1996b) are of relevance to this 
discussion paper. For example, the study identified a number of levers for change as a means of 
professionalising the HR section, most notably: 
· greater professionalism amongst staff in HR sections through increased use of qualification 
programmes to rid the ‘HR image of amateurs passing through’ (1996b, p.19); 
· the development of more robust marketing and communications strategies by the HR section 
with business strategists and line managers to get 'closer to the business'; and 
· the development of concrete evaluation measures to demonstrate the added value of HR. 
The report also considered in some detail the practical issues involved in linking HR and 
business strategy. Based on the practical lessons learned by consortium members, the report draws 
together a framework, which is illustrated in Figure 4.1, to guide departments and agencies in 
making this linkage. The report also identifies a number of key levers required to ensure successful 
development of HR strategy and linkage with business strategy:

Figure 4.1: Process for formulating a HR Strategy 
Organisation business goals/objectives 
Ú 
Corporate strategy 
Ú 
Critical success factors (CSFs) for achieving business goals 
Ú 
Analysis of internal 
environment 
Contribution of HR to 
CSFs 
Analysis of external 
environment 
Ú 
SWOT analysis of HR 
function 
Ú 
Key HR issues to 
contribute to CSFs 
Ú 
Internal workshops/ 
discussions 
Broad review Benchmark external 
organisations 
Ù Ú 
Review HR objectives and 
priorities 
Ú 
HR plans 
Ú 
Implementation 
· focus first on the key strategic issues and ask managers how, in practice, the HR function can 
contribute to the achievement of these issues; 
· identify the critical success factors (CSFs) concerning people which determine how well the 
organisation achieves its business objectives; 
· ensure that the consideration of HR issues is built in as a fundamental part of the business 
planning process and is given as much attention in the review/reporting stage as financial 
issues; 
· take steps to engage in a dialogue within the top team about HR issues; 
· develop a process for monitoring what employees think about working for the organisation and 
demonstrate visible commitment to acting on these findings. 

4.3.2 Devolution to line managers 
A further Cabinet Office consortium project, which focused on the devolution of Human Resource 
Development8 (HRD) to line managers, also highlights valuable lessons (see Figure 4.2). That 
report (Cabinet Office, 1993b) and a subsequent evaluation which took place one year after the 
project, highlights two lessons about the respective roles which top management, line managers 
and personnel sections should play in the devolution process: 
Figure 4.2: A Framework for HRM Delegation 
Line Manager as HRD Manager 
· Overall, there is a need for an integrated approach; actions undertaken by line managers must 
be linked both to an overall HR strategy and the business planning and implementation 
process. 
· There should be good communications and visible action by top management to emphasise the 
importance of delegating HRD responsibilities. (See also Appendix 3). 
· Delegation of HR responsibilities should not be an initiative driven by the personnel function; 
line managers must have a major say in setting the agenda. In this regard, it is critical that they 
are involved in defining and developing their new roles. This might be achieved, for example, 
through the use of small project groups which would be asked to tackle specific issues and to 
test out and implement proposed solutions to such issues. The successes of such initiatives 
should be used to illustrate to top management the potential of particular aspects of devolution. 
HR strategy 
derived from 
department 
or agency 
goals 
Evaluation: Is 
HR delegation 
helping the 
business to 
deliver 
Making the 
managers 
accountable 
Helping line 
managers to 
deliver 
Getting line 
managers 
involved 
Define role of 
line managers 
Role of top 
management 
leadership and 
communication 
Department or 
agency goals 
Source: Cabinet Office, 1993b

· The personnel section must see itself as providing two key services to the organisation. The 
first service is that of developing a HR strategy which is linked to the organisation's goals and 
which sets the boundaries within which line managers can act. Secondly, there is a need to 
move to a new relationship with line managers in which the manager is a customer and the 
personnel section facilitates the process of delegation through the provision of support and 
professional advice, as opposed to determining the process. 
· Finally, there is a need to build in review and accountability mechanisms, for example through 
the inclusion of relevant 'hard' and 'soft' performance measures into the performance 
management process and evaluation tools. This might be achieved through the use of annual 
attitude surveys to track performance and measure employee and management perspectives and 
experiences. 
It should also be noted however, that the prior devolution of financial management to 
department, agency and line management levels, was a critical success factor in the devolution of 
HRM matters to line managers in many parts of the UK public sector. 
4.3.3 The role of the centre - present and future 
The Cabinet Office continues to develop and seek new ways of facilitating change and encouraging 
best practice at line department level. For example, they regularly hold and facilitate workshops 
for personnel officers and managers, which are set up to consider HRM issues of common interest. 
They also continue to play a role in monitoring and ensuring best practice in training and 
development, for example, through the setting of targets in relation to Investors in People (IIP) 
accreditation by departments and agencies9. Policy matters relating to pay and grading are dealt 
with separately by the Treasury Office through annual settlements with departments and agencies 
on running costs. 
Notwithstanding the changes that have taken place, there is a recognition that some 
departments and agencies have achieved significantly more progress than others in developing a 
strategic approach to HRM. There is also an acknowledgement in the recent white paper 
Modernising Government (March 1999) that further change is necessary to ensure that initiative is 
rewarded and inflexible practices in pay and conditions are dismantled, while at the same time 
ensuring that the corporate identity of the civil service is strengthened. A number of mechanisms 
have been put in place to achieve such changes. For example, the Cabinet Office has set out a 
range of corporate action plans on better cross-departmental mobility, performance management, 
development of staff and equality (Cabinet Office, 1999). 
Another key element of the ongoing modernisation process is the role of the Centre for 
Management and Policy Studies (CMPS) which it is envisaged, will be 'the nerve centre of the 
reformed organisation' (Rana, 2000). Its task will be to create a new generation of civil servants 
who have the skills, training and values required to meet the changing requirements on the civil 
service. The Civil Service College, which has been given more than three quarters of the CMPS's 
£23 million budget, has been charged with the task of creating a climate for change and equipping 
civil servants with the necessary skills for the twenty-first century (Rana, 2000, p. 37). This will 
be achieved through a range of mechanisms including the delivery of courses and initiatives on 
'mastering change' leadership, and the roll out of 360 degree feedback and personal development 
plans to all senior civil servants by 2001. 
4.3.4 Northern Ireland Civil Service 
In the context of this study the impact of changes in the UK civil service on the Northern Ireland 
civil service (NICS) are of interest. The system in the NICS has remained significantly centralised. 
Responsibilities for HRM policies in the NICS, which employs 30,000 people, are exercised at 
four levels - UK Cabinet Office level, the Central NICS, NICS line departments and Next Steps 
Agencies. The broad parameters covering personnel policies and guidelines are set out in the Civil 

Service Management Code (Cabinet Office, 1996a). In many senses however, the structures and 
HR systems of the NICS are a 'hybrid' version of the UK structure. There has been some measure 
of decentralisation but with a relatively high degree of centralised control maintained in relation to 
pay, grading and recruitment. The lack of an 'absolute imperative' to decentralise such policies 
was, it is suggested by some, a reflection of the absence of direct ministerial control over NICS 
departments at the time of the decentralisation programme in the UK. 
Central responsibility for a range of HRM matters in the NICS is exercised by the Department 
of Finance and Personnel (DFP). The DFP has central responsibility for pay matters, terms and 
conditions of employment, recruitment to non-industrial grades on behalf of the Civil Service 
Commissioners of Northern Ireland and equal opportunities policy and guidelines. Recruitment to 
industrial posts is carried out locally by individual departments. The outcomes of recruitment and 
selection procedures for all posts are monitored by the Equal Opportunities Unit of the DFP to 
assess the representativeness of decisions by gender and religious background. The general 
consensus is that it is highly unlikely that recruitment and selection will be decentralised for a 
number of reasons. First, while there were practical difficulties in handling recruitment and 
selection centrally in the UK, the relatively small size of the NICS means that this is not an issue. 
Second, given the importance of equal opportunities, centralised recruitment is seen to play an 
important role in ensuring best practice. A similar argument is put forward in support of the 
centralisation of pay bargaining, since it is felt that a fragmentation of existing arrangements could 
have potentially negative implications in terms of equal pay matters. At the same time, they have 
made some changes, for example in relation to recruitment processes. In the case of a recent panel 
set up for a particular management grade, a process has been put in place whereby departments 
can 'trawl' this panel to identify suitable candidates for particular positions as opposed to being 
assigned 'the next candidate on the list'. 
In other areas of HRM, for example in relation to terms and conditions of service, the DFP has 
issued a code of practice which departments use to operate disciplinary matters, leave 
arrangements and other terms and conditions of employment. The centre however still plays a 
significant role where legal issues arise. The central DFP sees its role as one of providing guidance 
and specialist expertise to personnel sections in line departments. In turn, the line department 
personnel sections provide guidance to personnel sections in the Next Steps Agencies under their 
remit10. Some areas of HRM have been decentralised to agency level. Training is primarily 
handled at agency level and agencies are actively encouraged to attain Investors in People (IIP) 
accreditation. 
4.4 Reform of HRM in Denmark 
Unlike the UK, responsibility for HRM matters has remained largely centralised in the Danish 
public administration. Pay and terms and conditions of employment are primarily negotiated 
between the Ministry of Finance and trade unions. In 1994, the Ministry for Finance issued for the 
first time an overall personnel policy, Human Resource Development in Danish Central 
Government, for central government departments. In a subsequent review in 1997, while they 
acknowledged progress made, for example in relation to training and performance appraisal, they 
also acknowledged that 'crystallising personnel policy intentions into concrete action is generally 
lagging behind' (Ministry of Finance, 1999, p.2). In recognising that a formal personnel 
framework does not necessarily translate into good practice at departmental level, a new central 
personnel policy, Central Government Personnel Policy - Taking Words into Action (Ministry of 
Finance) was issued in 1999. This sets out a framework in which emphasis is placed on adapting 
overall objectives to local conditions in each department. 
The 1999 personnel policy focuses on three themes and associated requirements: 
· Management Development - which requires that the connection between the performance goals 
of the institution and its personnel policy be described in a performance contract and/or 
strategy and be reported in annual business reports. 

· Human Resources Development - which requires that regular management evaluations be 
made, to be used as a basis for management development activities; this would be assisted by 
the introduction of a new pay system which rewards performance. 
· The 'whole employee' - which requires that the relationship between life and work be included 
in the annual performance interview and reflected in personnel policy. 
In order to translate these aims into action, the 1999 document sets out a personnel policy 
flow, to act as a guide to the development of local personnel policy. The personnel policy flow 
covers three processes: 
· Analysing and evaluating basic personnel policy conditions, taking into account both local 
conditions which influence the work of the organisation and central terms and conditions which 
influence personnel policy. 
· Prioritising and setting up objectives for personnel policy work. 
· Evaluating and following up personnel policy activities. 
To assist departments in implementing this flow, the document also sets out a checklist, to be 
used as a basis for both reviewing the existing approach to HR policies, and for following up on 
areas requiring further development. 
In addition to the above developments, agreement has been made with the majority of trade 
unions on a new wage system, which, while retaining a high degree of centralised bargaining, also 
provides for non-centrally negotiated supplements between individuals or groups with employers 
based on functional and qualificational characteristics. Finally, the central government Centre for 
the Development of Human Resources and Quality Management was established in January 2000 
to promote greater efforts in relation to human resource development (HRD) in central government 
departments. 
In summary, the approach advocated by the Ministry of Finance recognises the need, within a 
centralised system, for some flexibility at local level to tailor personnel policies to suit particular 
conditions. At the same time, progress in developing personnel policy and linking it with overall 
business strategy is formally captured, while the focus in HRM terms is on performance and 
developmental activities. 
4.5 Conclusions drawn from international research 
A review of international experience highlights lessons of relevance to the Irish reform programme. 
The experiences reviewed in this chapter suggest that the key challenge lies in granting departments 
adequate freedom to manage financial and human resources, facilitating the development of best 
practice HRM and HRD, while at the same time retaining appropriate control of the essentials at 
the centre, in relation to overall running costs. 
Much of the criticisms levelled to date at the Irish reform programme centre on the limited 
degree of decentralisation which will take place in relation to key areas such as pay and grading. 
At the same time, the UK experience suggests that the decentralisation of pay and grading will not 
in itself result in a more strategic approach to HRM at line department level. This is recognised in 
the new approach adopted at Cabinet Office level, the aim of which is to facilitate rather than 
prescribe best practice in relation to the 'soft' or developmental aspects of HRM. This is achieved 
through a range of interventions such as action research projects. It is also interesting to observe 
that the ongoing process of modernising the UK civil service has been strengthened by the 
commitment of resources to the Centre for Management and Policy Studies. 

Further, the comparable sizes of the NICS and the Irish civil service suggest that there are 
practical arguments for the retention of centralised control over HRM activities such as 
recruitment. Centralised control also ensures consistency of treatment, for example in relation to 
equal opportunities matters. At the same time, the Danish experience suggests that if central 
policies are to be translated into action at line department level some policies, such as pay 
determination, may require a degree of decentralisation to take account of local conditions. 

5 
THE INTERNAL PERSPECTIVE 
5.1 Introduction 
This chapter discusses the findings obtained through interviews with a range of key people at 
central, line department and trade union level. The framework used for these interviews broadly 
centred on obtaining their views on: 
· the existing system of personnel management in the civil service 
· the changes required to the existing system to move towards a HRM approach 
· the key levers or actions required to bring about these changes. 
The challenges and issues raised in the interviews are considered under the broad themes 
identified in Chapter 2. The implications of these findings will be further revisited in Chapter 6, 
which plots ways forward in the development of HRM, drawing also on national and international 
best practice. 
5.2 Decentralisation of HRM from the centre 
Many of the interviewees acknowledged improvements that had been made to the centralised 
system of recruitment and selection. For example, the Civil Service Commission has in recent 
years improved turnaround times for the provision of staff to departments, and it has also 
developed more sophisticated selection techniques. A number of interviewees at central level 
supported the long-term continuance of a centralised system, on the basis that the relatively small 
size of the Irish civil service did not warrant the setting up of localised recruitment. Concerns were 
also raised regarding the ability of departments to take on responsibility for recruitment. At line 
department level however, there is a clearly a desire to see some loosening of this system, for 
example to fill temporary vacancies to meet local office needs. While new legislation is in the 
process of being drafted, which should make the existing legislative framework more responsive 
and flexible, it was suggested that this will not address other shortfalls in the current system. 
There was significant recognition among interviewees of the need for a much better matching 
of people to jobs, within the existing generalist system of recruitment and promotion. While the 
generalist system works well overall, current labour market conditions have created a situation in 
which existing and potential employees are more selective in their choice of employment, 
increasingly basing such decisions on the specific nature of the work being offered as opposed to a 
job offer or promotion per se. However, it was stressed that a far bigger constraint on the 
attraction and retention of candidates is pay levels, particularly at clerical entry-level grades, 
which, it was suggested, inhibit the civil service's ability to compete for scarce labour and to be 
seen as 'an employer of choice'. The foregoing concerns were also highlighted in recent studies 
conducted on behalf of the Civil Service Commission (see for example MRC, 1999). 
Notwithstanding these criticisms, some interviewees stressed that ultimately changes to the 
centralised recruitment system will not address all of the shortfalls in HR practice at department 
level. There is a need for line departments to become better at identifying their own specific future 
human resource and skills needs, and at planning appropriately for such needs, not just through 
recruitment, but through other policies such as internal promotion and mobility. Efforts are 
currently being made to address some of these shortfalls, for example through the setting up of 
service level agreements between the Civil Service Commission and line departments. 

There was significantly less satisfaction with the existing centralised pay and grading system. 
From the line department perspective, typical concerns centred on inflexibilities in the current pay 
system. Rigidities in the existing administrative budget system were also highlighted. These can 
hinder the line department's ability to deploy resources flexibly to meet strategic priorities. Where 
a particular project or strategic priority demands additional resources, it was suggested that greater 
freedom in assigning additional resources, subject to an agreed administrative budget ceiling, 
would be of benefit. This should apply particularly where a project might ultimately result in 
either savings in other elements of the administrative budget or longer term benefits. 
Rigidities such as these were believed by some to colour the perception held by departments of 
'the centre'. It was suggested for example, that while on the one hand departments are being 
encouraged to take decisions and develop better HRM policies at departmental level, on the other 
hand decision making can be constrained by the control exercised by the centre over issues such as 
staff numbers within particular grades. In the context of these concerns, it was suggested that 
reform of financial management under Delivering Better Government (1996), should give 
consideration to 'loosening' the existing administrative budget system. 
At central level however it was suggested that such concerns are over-stated, and that in many 
cases, if departments wish to do so, ways can be found within the existing system to deploy and 
reward staff. For example, it was suggested that departments themselves could develop more 
effective ways of rewarding staff, particularly in relation to non-monetary rewards such as job 
satisfaction, more open and competitive internal promotion systems, and staff mobility and 
training. Concerns were also expressed regarding the challenges involved in controlling staff costs 
and numbers in a more decentralised system. It was also suggested, for example that differing 
pay systems in the UK civil service have had negative side effects, such as a reduction in crossdepartmental 
mobility. Cross-departmental mobility is seen by many as a key strength of the Irish 
civil service, and some believe that decentralisation, for example in relation to pay, in addition to 
hindering mobility, would have other negative implications. For example, the management of 
crosscutting departmental issues might be undermined if departments operated on a ‘stand alone’ 
basis. 
In relation to other HR policies, such as promotion and terms and conditions of employment, it 
was acknowledged that some progress had been made in decentralising day-to-day HR decision 
making from the Department of Finance level to line department. The Department of Finance 
recently commenced an incremental process of reducing its role in day-to-day implementation and 
control of HR decision making. For example it has relaxed the procedures involved in securing 
sanction for promotions by departments. However many departments are still inclined to refer to 
the Department of Finance for decisions or interpretations and this continuing practice may 
represent an element of 'hiding behind Finance' where decisions are unpopular or difficult to make. 
The Department of Finance envisages its new role as one of setting broad parameters in relation to 
key areas such as terms and conditions of employment, and of acting as an advisor where difficult 
cases arise. It also sees itself as playing a role in facilitating departments in the change process, 
although its ability to do so continues to be hindered by its involvement in day-to-day decision 
making on behalf of departments. At the same time, some interviewees suggested that unless key 
activities such as pay and grading decisions are decentralised, there will be limits to the extent to 
which departments can develop strategic integrated HRM policies. 
Change is planned to develop the role of the central training area, the Centre for Management 
and Organisational Development (CMOD), to ensure that it assists the change process in line 
departments. It will play a role in assisting departments in upskilling their HR sections and 
facilitating the implementation of performance management in departments. Its ability to deliver 
in this regard however will be influenced by the level of resources available to it, which are 
currently limited. 

5.3 Developing HRM at line department level 
Throughout the interviews, there was a clear recognition of the need for change in the approach to 
HRM at line department level. The views expressed in relation to the existing system, and the need 
for change in this system, can be usefully considered under the broad themes considered in Chapter 
2. 
5.3.1 Integrating HR strategy with business strategy 
The lack of progress to date by departments generally in linking HR strategies to business 
strategy was already highlighted in Chapter 3. At the same time, it is important to 
recognise that some departments have achieved progress in better aligning HR policies 
with business strategy. As part of its business strategy formulation process, the 
Department of Social, Community and Family Affairs set up a working group to identify 
high level strategies required to 'release the potential of staff' to ensure that other 
strategies were achieved; and specific HR issues have been identified at divisional level 
through the business planning process. To further this process, the department recently 
established a high level HR group to devise a HR strategy which would support its 
business strategy. 
It was suggested by some interviewees that the centrality or otherwise of HRM to business 
strategy was dependent on both the relationship between the head of the personnel section and the 
secretary general of the department and indeed the value placed by the secretary general on the 
contribution that HRM could make to the department. Frequently it was suggested that where a 
high value was placed on HR issues by the secretary general, it was more possible for the 
personnel section to obtain extra resources or to place such issues on the top management agenda. 
In contrast, where this was not the case, it was suggested that staff in the personnel section 'are 
often the last people to hear about a change which has implications for HR policy'. 
5.3.2 Development of internally integrated HR policies 
The literature reviewed in Chapter 2 highlights the benefits of developing an integrated 
complementary set of HR policies at organisational level. A number of interviewees however 
identified difficulties which arise in achieving such integration. For example, because some 
policies, such as pay, are centralised and others are not, the effects of centrally driven policies are 
seen by some to undermine success in local efforts to introduce change. For example, central 
restructuring agreements which provide for upgrading and promotion of staff can create significant 
difficulties in human resource planning terms, since a department may have little control over the 
locations in which upgradings occur. This can create severe difficulties in local offices, where it 
may take some time to fill vacancies created by upgrading. In addition there was a view that recent 
agreements of this nature had not provided management with the expected increase in functional 
flexibility. It was suggested however that there will be potential for change in this area, in the 
context of recent discussions concerning broadbanding (Programme for Prosperity and Fairness, 
2000). 
Concerns were also expressed regarding the impact of centralised recruitment on the integrated 
development of HR policies. Because the work of departments can vary significantly, for example 
in terms of policy work versus high volume service delivery, staff recruited on a service wide basis 
may not always be suited to particular positions or roles. Where there is a mismatch between the 
individual and the job at the initial selection stage, the impact of subsequent HRM policies, (e.g. 
training, development for promotion) for that individual may be diluted. The limited scope which 
departments have to vary the numbers of staff in each grade was again raised. While it was 
acknowledged that the administrative budget system had been loosened somewhat to allow greater 
freedom in promoting and assigning staff, it is still seen to be very difficult to vary or change the 
numbers of staff in each grade to respond to changing business needs. 

Notwithstanding these constraints, a number of interviewees at central level stressed that 
departments do have freedom to develop certain aspects of HRM and are at very different stages in 
this regard. Notable progress has made in some departments. For example, the HR strategy 
produced by the Department of Public Enterprise represents a good illustration of an integrated and 
comprehensive approach to the development of HR policies. The statement, which was initially 
produced in 1998 through some consultation with staff, was updated in 1999 following input by 
both the management committee (MAC) and the partnership committee. The HR strategy sets out 
a broad framework within which HRM action plans are developed, in relation to recruitment, 
training, performance and mobility. It also usefully maps out the respective roles of assistant 
secretaries, line managers, staff and the HR section in relation to each action plan. 
In contrast, some departments have chosen to focus on particular HR issues. The Office of the 
Revenue Commissioners and the Department of Social, Community and Family Affairs have 
committed considerable resources to the provision of training and development. Additionally, the 
Department of Social, Community and Family Affairs put in place a performance appraisal system 
for executive grades. This is supported by training of staff, in preparation for the implementation 
of the wider system of performance management. In contrast, some departments have an 
unstructured approach to training and development, whereby training needs are identified and 
addressed in an ad-hoc, fragmented manner with little dedicated resources. 
Investment in training and development at line department level is likely to increase following 
the recent introduction at central level of increased targets in relation to such expenditure. 
Nonetheless, there is a recognition by many that increased expenditure in itself will not necessarily 
result in a more strategic approach to training or added value to the organisation. In the UK, the 
Investors in People (IIP) initiative has acted as an effective system for the encouragement and 
development of best practice in relation to training in the public sector. Interestingly, in Ireland, 
the Excellence through People Awards Scheme, which is the nearest equivalent to the (IIP) 
initiative, has a very low level of participation by public sector organisations. 
A number of interviewees stressed that it is also important to recognise that departments differ 
in structure, functions and roles, and that it would therefore be neither feasible nor desirable to 
impose a 'generic' HR strategy. At the same time, there is a recognition that in the absence of a 
centrally driven agenda, some departments may lack the impetus and ability to promote and 
progress change in relation to HRM, in particular in the case of smaller departments. It was 
suggested by some that the strategic thinking required to develop an integrated approach to HRM 
is lacking in many personnel sections. The impact of particular initiatives on other HR is not 
always clearly thought out, even in regard to policies which are within the existing remit of 
departments. For example, mobility policies introduced to rotate staff after agreed time periods, 
are often introduced 'with good intentions'. However, if they are not clearly planned and delivered 
in a phased manner, they may create other HR problems such as, loss of specialist skills required 
for an area, poor matching of staff to jobs, or negative implications for workloads at peak times. 
5.3.3 Devolution to line managers 
A number of challenges were identified in relation to the devolution of HR to line managers. Most 
interviewees stressed that devolution will only be feasible when the new performance management 
and development system (PMDS) has been fully implemented. It was suggested that unless line 
managers are accountable for identifiable objectives and outputs, they will have no incentive to 
take on responsibility for the development and management of staff. Equally, the performance 
management process will identify significant needs for training and development, which will have 
to be genuinely addressed by managers and personnel sections if staff are expected to deliver on 
objectives. Another issue identified as being crucial to the success of devolution was the 
availability of comprehensive and accessible management information in relation to HR issues. A 
project is currently underway to address, among other things, this issue. This is discussed in the 
next section.

At the same time, while performance management and good management information will 
facilitate the formal devolution of HRM issues to line managers, they will not address attitudinal 
barriers to assuming greater responsibility for HR matters. Many interviewees suggested that there 
are a significant number of managers who prefer to abdicate responsibility for 'negative' HR issues 
such as underperformance or absenteeism to the personnel section. Significant cultural change will 
be required to shift the existing mindset in this regard. Concerns were also raised at trade union 
level regarding the implications of devolving certain HR issues to line managers. It was suggested 
that much of the existing workload of personnel sections is caused by poor handling of disciplinary 
and IR issues by line managers in the first instance. Indeed the interview findings reveal some 
confusion regarding what is actually meant by devolution of HRM to line managers. There is 
clearly a need to articulate what devolution involves, and the findings of the UK Cabinet Office 
study (see Chapter 4) suggest that unless this is carried out in consultation with line managers, 
resistance may arise. 
5.3.4 Professionalising the HR function 
Many interviewees acknowledged the need for the development of a more strategic role for 
individual personnel sections. At the same time, it was recognised that at present, most personnel 
sections spend the vast majority of their time on personnel administration activities, with the result 
that they do not have the resources required to develop more strategic developmental policies, 
which in turn would lend credibility to their role. The devolution of day-to-day HR matters to line 
managers is seen as an essential lever for change in order to provide 'space' for HR staff to develop 
more strategic policies. It was suggested by some however that even if resources were freed up as 
a result of devolution, the prevailing perception of the personnel section, within some departments, 
as a 'low profile area' makes it difficult for personnel sections to convince senior management of 
the potential contribution they can make. The consequence of this is that they are marginalised 
from the real HR decision making process at senior management (MAC) level. This problem can 
be self-perpetuating, since the personnel section will not be perceived by staff as a rewarding or 
high profile area in which to work. In contrast, in some departments there is a visible commitment 
and belief in HRM at top management level. Interviewees describe this as a valuable lever for 
raising the profile and attraction of the HR area from a career point of view. Examples were 
provided in this regard, whereby the head of a department was a very visible advocate of HR, or 
where the personnel officer had a very good working relationship with the head of the department. 
The profile of HR in larger departments was also perceived by many to be generally higher than 
that which prevails in smaller departments. 
Contradictory, views were expressed concerning the need to 'upskill' staff working in personnel 
sections. There was a recognition that the civil service does not always effectively match people to 
jobs, a problem which is not limited to the personnel area. While concerns were expressed 
regarding the ability of departments to retain staff long-term in the HR area, in general this was not 
perceived to be an adequate defence for not providing specific HR training for personnel section 
staff. Overall however, there was a lack of clarity regarding the nature of specialism which was 
required in the personnel area. Interviewees by and large placed more emphasis on the need to 
ensure that people with 'the right attitude and experience' worked in this area. For example, the 
ability to negotiate and deal effectively with trade unions was highlighted as a desirable attribute in 
personnel staff. There was a sense however that these perceptions were significantly based on the 
existing personnel administration role which personnel sections undertake. 

The challenges in providing a career path for those in the personnel area were also raised. 
Within the existing system it is not possible to provide a long term career path because of other 
factors such as the mobility created by promotion. This is not helped in some departments by the 
perception of 'low profile' of the personnel section in career terms. There is better scope to create 
career paths for personnel staff within larger departments, in which it is much more common for 
staff to spend a considerable amount of their career in the personnel area. Despite these 
reservations, most believed that the role of the personnel area should be to provide advice and 
expertise to top management and line management, and it was recognised that such a role required 
the development of new skills, knowledge and attitudes. The need to provide training for HR staff 
in industrial relations procedures was raised as a priority by one trade union. On the issue of 
external expertise, most felt that this should be 'grown from within' although the potential benefits 
of focused use of short-term consultancy were recognised. The view was expressed by one trade 
union that the best way to upskill personnel staff would be to provide specialised HR training for 
central training staff (CMOD), who in turn could train internal trainers and HR staff at 
departmental level to enable them to develop a more strategic role. Some departments have made 
concerted efforts to build up the skills profile within their HR sections. For example, the 
Department of Public Enterprise, in addition to actively encouraging staff to obtain HR 
qualifications, also recently seconded a member of its staff from the HR section to a private sector 
company for one year, to assist in the ongoing process of professionalising its own HR function. 
Finally it is worth noting that a project is currently underway to implement a new computerised 
HR system which should facilitate personnel sections in moving from an administrative role to a 
more strategic proactive role. The first phase of the project, under the direction of CMOD, is 
concerned with the implementation of a new computerised personnel system for the Department of 
Social, Community and Family Affairs and The Office of the Revenue Commissioners, but it is 
anticipated that this system will be taken on by other departments. Among other things, this 
system will support the progression of the HRM reforms set out in Delivering Better Government 
including: the new performance management system, the devolution of HR to line managers and the 
development of a more strategic approach to the management of activities such as staff 
assignments, training and mobility. 
5.4 Conclusion 
Overall, the findings highlight an acknowledgement that limited progress has been made in 
achieving reform of HRM as set out in Delivering Better Government. At the same time, there is 
evidently a considerable level of continuing commitment among those interviewed for change to the 
existing system. It is recognised that existing systems and policies fail to add real strategic value to 
departments in achieving their objectives. A number of concerns were expressed in relation to the 
existing centralised system which undermines the ability of departments to achieve integration of 
HR policies. At the same time, the interviews highlight examples of progress made by some 
departments, within this system, in developing a more proactive approach to HRM. What also 
emerges from the findings is a lack of clarity and consistency of thought regarding what is actually 
involved in the process of moving to HRM. For example, there are conflicting views as to what is 
meant by 'professionalising the HR function' or devolving HRM to line managers. Added to this, 
there are contradictory views regarding the roles which should be played, not only by personnel 
sections and line managers, but also in relation to the broader respective roles of line departments 
and central departments. Work currently underway by the SMI HRM group in the civil service is 
making progress in addressing these issues, and should improve role clarity in this regard. 
6

CONCLUSIONS AND WAYS FORWARD 
6.1 Conclusions 
This study has sought to identify appropriate approaches to delivering on the proposals for HRM 
reform set out in Delivering Better Government. The need for concerted effort in this regard has 
been given renewed emphasis in the recent Programme for Prosperity and Fairness (March, 
2000). Best practice literature and international experience clearly shows that the development and 
implementation of an integrated HR strategy can act as a valuable mechanism in supporting the 
achievement of business objectives. 
Against this best practice scenario, the picture which emerges from the research undertaken for 
this study is one in which the level of progress made in the civil service has been limited. In order 
to move the process of change forward, there are a number of key issues within the existing system 
which must be addressed and these are considered in section 6.2. A framework is then set out to 
illustrate how these issues might be addressed within an integrated process, in order to facilitate the 
transition from personnel management to HRM. 
6.2. Key issues 
Before considering the detail of the issues emerging from this study, it is useful to take stock on the 
overall approach which has been adopted to HRM reform. Clearly, the approach adopted to date 
has been highly incremental and centralised. This incremental approach is in stark contrast to the 
New Public Management (NPM) approach adopted in other OECD countries such as New Zealand 
and the UK. While the absence within the Irish reform programme of a compelling imperative to 
cut costs has influenced the pace and nature of change, the changing external environment in which 
the civil service operates suggests that the pace of change needs to intensify. For example, 
recruitment and retention of staff have become critical issues of concern for the civil service in an 
increasingly competitive and tight labour market. Ultimately these issues may act as key levers for 
change in the pace of HRM reform, if the civil service is to improve its image as an 'employer of 
choice' (Humphreys, Fleming and O'Donnell, 2000). 
There are of course positive features that would facilitate an intensified effort to reform HRM. 
For example, there is significant funding available at central level to assist departments in 
implementing change. Other positive features, which were lacking in earlier reform programmes, 
include the new partnership structure and the recent introduction of a comprehensive performance 
management and development system. Notwithstanding these positive features, critical issues 
must be addressed if progress is to be achieved. These issues will now be considered in some 
detail. 
6.2.1Developing an integrated approach to HRM 
The achievement of a fully integrated approach to HRM at line department level will be 
constrained by the continued centralisation of key HR policies such as pay and recruitment. 
Nonetheless, there is clearly considerable scope for individual departments to develop better 
practice in relation to a range of HR policies within their existing remit, for example in relation to 
training and development and staff deployment. Indeed, the inability of departments to use key 
HRM levers such as monetary rewards makes it all the more imperative that better practice in 
relation to the development, deployment and management of staff is progressed at line department 
level. The research undertaken for this study suggests that, with some exceptions, departments 
have not achieved significant progress in this regard. The findings also suggest that the constraints 
caused by centralised policies are often over-emphasised, and in some cases used as a defence for 
not changing. 

Chapter 2 clearly highlights that the development of a formal HR strategy can act as an 
invaluable mechanism for integrating HRM policies and procedures with business strategy. The 
evidence however suggests that departments have achieved limited success in achieving such 
integration. While many departments are in the process of developing HR strategies, it is critical 
that this process is integrally linked with the business strategy formulation process (see Boyle and 
Fleming, 2000). It is also important that the links between different HR policies are clearly 
articulated and developed so that they complement and reinforce each other. Departments have 
scope to develop more imaginative and flexible ways of deploying, rewarding and developing staff 
within the existing system, and the evidence from the interview findings suggest that there is a level 
of support at the centre for such efforts. 
6.2.2Professionalising HR 
Best practice suggests that HR sections can play a valuable role in developing strategic HRM 
policies that add value to the organisation. The development of such policies requires that 
personnel staff are proficient in a range of HRM activities such as human resource planning and 
performance management. In the context of the existing system, two key issues can be identified. 
Firstly, the picture that emerges is one in which there continues to be an overwhelming emphasis on 
routine personnel administration matters. Secondly, the majority of departments have made little 
progress in devoting additional resources to assist the process of 'skilling up' personnel sections. 
During this research, a significant number of interviewees suggested that HR posts within the 
civil service do not require specialism. While an emphasis on generalism has merits for a wide 
range of roles in the civil service, the development of a more strategic, proactive role for HR 
requires a change in this emphasis. The lack of support for specialisation within HR is not helped 
by a range of other factors. The current system cannot provide a career path for staff in HR and 
the 'low profile' image of the personnel section, at least in some departments is unhelpful. Where 
senior management have demonstrated support and belief in the value of HRM, as is the case for 
example in a number of departments, visible progress has been achieved in developing HR strategy 
and in 'skilling-up' the personnel section. 
Professionalising HR is not however exclusively concerned with developing specialisms. It is 
also concerned with changing the focus of approach in the personnel section. It is about moving 
from an administrative role to one which acts as a source of advice and expertise for senior 
management and line managers. The development of such a role can be assisted by a range of 
mechanisms including service level agreements as a means of developing better working 
relationships with line managers, and the effective use of the new HR management information 
system which was discussed in Chapter 5. 
Ultimately support for the development of a strategic approach to HRM at personnel section 
level, and more importantly at senior management level, will be instrumental in the shifting of the 
existing focus. 
6.2.3Devolution to line managers 
In the context of moving from personnel management to HRM, there are clear merits to devolving 
day-to-day HRM matters to line managers. Firstly, it would free up of resources in the personnel 
section to develop a more strategic role. Secondly, when it is carried out effectively, it strengthens 
the management process overall. This is particularly important given that the existing system in 
many respects encourages line managers to abdicate responsibility for staff matters. The new 
performance management and development system should also assist in strengthening this process, 
since it will link line management responsibilities with the business planning process. 

For this process of devolution to be effective however, there are other issues which must be 
addressed. Firstly, there is a need for clarification regarding what is to be devolved and how. In 
this context, a distinction should be made between 'hard' HR issues such as disciplinary and IR 
matters, and ‘soft’ HR issues such as staff coaching and development. It is also important to 
involve line managers in the process of determining what should be devolved, as opposed to 
enforcing devolution. Such involvement could be facilitated through the use of project groups and 
the framework for delegation used by the UK Cabinet Office (see Chapter 4). 
Secondly, the reluctance of many line managers to be 'people managers' is an issue which will 
not be addressed by performance management alone. Within the existing system, people 
management skills are not always sufficiently valued and rewarded. This message is conveyed 
through the ways in which managers are rewarded (for example, promotion criteria) and developed 
(for example, resources allocated to developing people management skills). If the creation of a 
culture of effective management, in which there is genuine and continuous coaching, feedback and 
staff recognition, is to become a reality, the right message must be conveyed as to what skills are 
valued in managers. For this message to be credible, there must be visible support from top 
management in the allocation of resources to training and development, and to the allocation of 
financial resources to line managers to enable them to take on genuine responsibility for staff 
development. 
Finally, as a prerequisite to the successful devolvement of HRM to line managers, there is a 
need to enhance working relationships between personnel sections and line managers. The 
development of service level agreements can act as a useful mechanism in this regard, as borne out 
by research in the UK Cabinet Office (1993b). 
6.2.4Decentralisation of HRM 
The existing system of HRM, and any likely proposals for change in this system, are significantly 
influenced by the role of central departments. In relation to existing HRM policies, little 
decentralisation of policies such as pay and recruitment is likely to take place, at least in the 
medium term, although some proposals for change are set out in the Programme for Prosperity 
and Fairness (2000), for example in relation to broadbanding. In any event, it is unlikely that the 
decentralisation of pay and grading matters would act as a panacea for a range of weaknesses 
evident in the current handling of HRM activities at line department level, for example, in relation 
to human resource planning and training and development. It could be argued therefore, that it will 
only be when departments can show evidence of progress in handling HRM policies within their 
existing remit, that a realistic debate can take place in relation to the decentralisation of wider 
matters such as pay and grading. 
In the meantime, the research findings suggest that there are shorter term issues which require 
consideration. Concerns raised by some departments, which were considered in Chapter 5, 
suggest that there would be merits to evaluating the existing administrative budget system to allow 
departments greater flexibility to deploy resources. The development of mechanisms through 
which departments would have a more proactive input into the selection of candidates from the 
central recruitment process also requires active consideration. Ultimately, in the light of progress 
made by departments, the wider decentralisation debate may need to be revisited, in the context of 
achieving a fully integrated approach to HRM. 
In addition to the Department of Finance's role in relation to existing personnel policies, the 
Departments of Finance and the Taoiseach, in tandem with the HRM working group, are charged 
with responsibility for identifying and progressing proposals for reform of HRM in the civil 
service. This centralised approach is in many ways a recognition that HRM reform will be critical 
to the success of the wider process of civil service reforms set out in Delivering Better 
Government. There are also concerns that in the absence of a central change agenda, some 
departments might take a 'laissez faire' approach to change in HRM. Centrally negotiated change 
can however slow down the process of change. The findings in this paper highlight the need for a 

more focused and concerted effort at the centre, for example in providing advice and expertise, to 
assist departments in developing HR strategies and upskilling their personnel sections. In this 
context, the SMI Implementation Group, comprising secretaries general of government 
departments, has a critical role to play in overseeing change. 
6.3 A framework for change at line department level 
Notwithstanding certain constraints within the existing system, there is clearly scope for change at 
line department level. An effectively developed HR strategy links individual HRpolicies to each 
other, but also links such policies with overall business plans. The process of linking HR strategy 
and business strategy also provides a mechanism for identifying, and changing where necessary, 
the respective roles and responsibilities of the personnel section and line managers. A framework, 
set out in figure 6.1, which draws on elements of the Cabinet Office model considered in Chapter 
4, is set out in order to illustrate: 
Figure 6.1: Process for developing HR Strategy 
Formulate Business 
Strategy 
ê 
High level 
Objectives 
ê 
CSF’s required to 
achieve goals 
ê 
High level HR 
Objectives 
Identify required 
skills and needs 
through human 
resource planning 
Critically audit HR 
function 
Benchmark 
against best 
practice 
ê ê ê 
Develop HR plans to 
meet needs identified 
in HRP 
Identify 
skills/resourc 
e needs of 
HR section 
Identify issues 
to be devolved 
to line 
managers and 
skills required 
ê 
Implement plans 
ê 
Evaluate outcomes

· the central role which the development of a HR strategy can play in addressing many of the 
issues raised in section 6.2; 
· the process involved in moving from personnel management to HRM. 
The key stages involved in this framework require some elaboration. 
6.3.1 Formulating strategy 
The HR implications of business strategy should be identified in high level terms during, not after, 
business strategy formulation. Staff resourcing and skills issues both affect and are affected by 
corporate strategy. The role which the head of HR is enabled to exercise in securing the commitment of 
the top management team to the value of according HR issues high priority at this stage is critical. It is 
equally important that line managers and personnel staff are consulted in this formulation process, to 
ensure support, ownership and a greater understanding of HRM's added value and relevance to business 
strategy. Staff ownership and union support can also be enhanced through the use of other consultative 
mechanisms, such as partnership. Once the high level strategic objectives have been established during 
the strategy formulation process, corresponding critical success factors (CSFs) for their achievement 
should be set out. CSFs relating to human resource issues should in turn form the basis for the high level 
HR goals of the organisation. 
6.3.2The role of human resource planning 
Having identified high level HR objectives, it is then necessary to translate these into visible action plans 
through the development of a HR strategy. Best practice identified in Chapter 2 suggests that the human 
resource planning (HRP) process can act as a useful link between business strategy and the development 
of HR strategy. It enables the organisation to identify the level and quality of human resources required 
to meet its business objectives. 
6.3.3Implementation 
The successful implementation of a HR strategy will be dependent on the extent to which HR 
policies are cascaded through the organisation, through the identification of the specific links 
between HRM policies and activities and divisional business plans. In this regard, the personnel 
section should play a key role in facilitating and advising heads of sections or divisions in 
identifying and meeting the HR implications of business plans. The embedding of HR strategy can 
also be assisted through the development of service level agreements between the personnel section 
and other sections. 
6.3.4 Evaluation 
It is also important that a HR strategy has built-in evaluation mechanisms to ensure that the 
outcomes of HR policies are systematically measured in terms of their contribution to the 
achievement of business strategy. The Danish approach where departments are obliged to report 
formally on implementation of HR strategy as part of their annual business reporting might be 
useful in this regard (see Chapter 4.) 

6.4 Active enabling - the role of key players 
The successful implementation and overall impact of the HR strategy will not be achieved by the 
personnel section alone. The commitment of senior managers and line managers is also crucial in 
this regard. As the first of this series of HRM studies highlighted (Humphreys and Worth-Butler, 
1999), there is a need to 'actively enable' these key players, and in many respects this requires a 
change in both their roles and relationships. The changes required in this regard are now 
discussed. 
6.4.1. The role of senior management 
The findings clearly highlight the need to raise the profile, role and capability of the HR section in 
line departments. Best practice indicates that the extent to which this can be achieved will be 
influenced significantly by the belief and support of senior management in the added value that 
HRM can contribute to the organisation. More importantly, this belief must be visibly 
demonstrated, for example by committing additional resources to the development of HR strategy 
and the building up of HR skills levels. As a first step, the head of HR should be afforded a 
genuine role in the formulation of key business decisions. This contribution must be an integral 
part of the business strategy formulation process, so that HR issues are accorded a key priority as 
opposed to simply being added on to, or indeed excluded from, the core business of the 
organisation. On an ongoing basis, heads of HR should also be enabled to have a genuine input 
into decisions taken at top management (MAC) level which have implications for HR. 
Clearly, if the head of HR is to be enabled to play a genuine role in ensuring that HRM issues 
become a top management priority, it is important that the professionalisation of HR, for example 
through the development of expertise in integrating HR and business strategies, begins at this level. 
The use of networks and focused action learning consortium projects, which were considered in 
Chapter 4, might be useful as a means of sharing experiences and challenges. The selection of 
heads of HR is also a critical factor. It is important therefore that appropriate criteria are factored 
into the selection process at this level. 
6.4.2The role of the HR section 
Best practice, identified in Chapter 2, suggests that the successful transition from personnel management 
to strategic HRM is dependent on the equipping of HR staff with the appropriate knowledge, skills and 
attitudes. This is essential if HR sections are to be perceived both as a source of professionalism and 
capable of ensuring that HRM adds value to the organisation. Line departments should actively 
commence or speed up the process of obtaining and developing specialism in their HR sections. This 
would be assisted by a much more systematic approach to the selection of staff into this area. For 
example, internal promotion competitions for specific posts in HR sections would enhance the 
attractiveness of the area as well as raising its existing credibility and profile. Specific competency 
profiles, which were discussed in Chapter 2, should be used to assist in selecting staff in this regard. 
Where the appropriate competencies do not exist, alternative approaches might be used. Specific and 
focused development of existing and incoming staff, short-term secondments of staff to the private sector 
and the longer-term attainment of professional qualifications could be pursued. Additionally, the usage 
of short-term external consultancy or fixed term contracts might be considered as a means of speeding up 
the process of professionalising the HR function. 
6.4.3. The role of the line manager

A number of factors will be critical to the successful devolution of HRM to line managers. Firstly, it is 
important that devolution takes place within the overall framework set out in Figure 6.1, as opposed to being 
introduced as a separate initiative. That is, it should take place within the development of HR strategy, which 
in turn should take place during the process of developing business strategy. This is essential if line managers 
are to be convinced of the business case for taking on HRM responsibilities, and line managers should be 
involved in this process. Secondly, it is important that the identification of managerial competencies under the 
new performance management system places an emphasis on skills and behaviours required for the effective 
development and management of staff. 
Finally, it is important that adequate resources are allocated to training and education of line 
managers, since many managers may need to be facilitated in developing better people management 
and coaching skills. Specifically, there will be a need to educate line managers in understanding 
and taking responsibility for staff development (including coaching and mentoring) in its broad 
remit. There is a need for support, from both the centre and individual personnel and/or training 
sections in facilitating this process of change. This may imply the development of new ways of 
delivering on training and development needs and of working with line managers. 
6.4.4The role of the centre 
The process of developing HR strategy, as set out in Figure 6.1, is influenced by the role of the 
central departments, both in relation to existing HR policies and in progressing changes in HRM. 
In relation to existing policies, little decentralisation of pay, grading and recruitment is likely to 
take place, in the short to medium term. However, in the longer term greater flexibility in relation 
to grading and pay may need to be revisited if a fully integrated approach to HRM is to become a 
reality. Similarly, centralised recruitment processes carried out by the Civil Service Commission 
require some change if line departments are to be facilitated in better planning their human 
resource needs and deploying existing and future human resources. The approach developed in 
Northern Ireland (see Chapter 4), whereby departments have an input into the selection of 
candidates from panels, provides a useful illustration in this regard. 
In the context of the framework set out in figure 6.1, the role of the centre in progressing future 
reforms also requires evaluation. Best practice suggests that this role should be concerned with 
providing guidance and expertise to departments in developing HR strategies, implementing 
performance management and professionalising HR at the personnel section level. The slow pace 
of change in line departments highlights the need for a more focused and adequately resourced 
function to be developed at central level in order to facilitate and develop best practice. 
Notwithstanding the differences between the UK and Irish public sector, the approach adopted in 
the UK Cabinet Office presents a useful illustration of the way in which change can be encouraged 
through a focused approach. Given the scale of challenges involved, there is also a need at central 
level to ensure that resources are devoted to ongoing research, monitoring and evaluation of the 
change process as it unfolds. Again, as mentioned earlier, the SMI Implementation Group has a 
key role to play here in mentoring and overseeing actions taken. 
6.6.Concluding comments 
As the Programme for Prosperity and Fairness makes clear ‘sustaining and improving efficiency 
and effectiveness in a rapidly changing environment requires increasingly innovative and flexible 
human resource management policies and strategies’ (2000, p.23). This discussion paper has 
highlighted the scope and potential for departments to find ways within the existing system to 
become more effective in the management of human resources, assisted by a more flexible and 
focused approach at central level. In order to move from personnel management to HRM, there is 
a need for wider recognition that HRM itself is a valuable lever for change. This recognition must 
be translated into visible action if the civil service is to keep pace in the rapidly changing external 
environment in which it operates. 

NOTES AND REFERENCES 
1. In early 2000, the Institute of Personnel Development's application for chartered status was granted. As a 
consequence, with effect from May 2000, it became the Chartered Institute of Personnel Development 
(CIPD). 
2. The divisions of the Department of Finance are: public expenditure, finance, budget and economic, 
corporate services, personnel and remuneration and organisation, management and training. Following the 
recommendations of the Report of the Public Service Organisational Review Group (1969), the latter two 
divisions became part of a new department, the Department of the Public Service, until 1987 at which stage 
they were merged again with the Department of Finance. 
3. The most significant attempts to reform HRM occurred with the publication of the Report of the Public 
Service Organisational Review Group (1969), and the white paper on the civil service, Serving the Country 
Better (Department of the Public Service, 1985). Following the 1969 report, the Department of the Public 
Service was established to modernise the approach to personnel policies. In 1987 however, this department 
was subsumed into the Department of Finance. Overall, the recommendations of both reports were not 
implemented, largely, it has been argued because of a lack of political support and management commitment 
(OECD, 1999). 
4. The HRM group, to which a number of sub-groups report, reports to an SMI Implementation Group, 
comprising secretaries general from a number of government departments. The SMI Implementation Group 
has been expanded to include secretaries general of all departments. 
5. Partnership committees were established following the 1996 National Agreement, Partnership 2000, which 
stipulates that progress in relation to modernisation of the civil service, including change in HRM, should 
be progressed on a partnership basis at organisational level, and that verifiable progress in respect of 
achievement of action plans would be linked to the payment of additional pay increases at line department 
level. This emphasis on partnership and the linkage of verifiable progress regarding modernisation with pay 
is maintained in the Programme for Prosperity and Fairness, the 2000 National Agreement. 
6. Next Steps Agencies were created following the publication of a report entitled Improving Management in 
Government: Next Steps Agencies by the prime minister's efficiency adviser, Sir Robin Ibbs, in 1988. The 
report recommended that the executive functions of government, as distinct from the policy advice 
functions, should be carried out by distinctive units or executive agencies. In 1999 there were 140 agencies 
and four departments running on Next Steps lines, covering 76 per cent of the civil service or almost 
390,000 staff (see OECD, 1999 for further discussion). 
7. The concept of HRD, as distinct from HRM, refers to the development of a strategic organisational approach to 
managing employer development according to Gunnigle et al (1997). HRD advocates the strategic linking of 
training and development to corporate objectives and a key role for line managers in developing employees. 
8 .The future direction of HRM in the UK civil service is considered in detail in two White Papers, Continuity 
and Change (1994) and Taking Forward Continuity and Change (1995). 
9. The Investors in People (IIP) initiative was launched in 1991 in response to the UK's need to maintain and increase 
its competitive position by increasing its commitment to developing a more highly skilled and flexible workforce. 
Its primary objective was to establish nationally recognised criteria to underpin quality of work at every level in both 
the public and private sector. The emphasis in assessing eligibility for IIP status focuses on the extent to which the 
organisation's training plans and policies are strategically linked to its business needs. 
10. The impact on the HR structure in the NICS, particularly in the context of the Next Steps Initiative, is 
usefully illustrated through a brief examination of the changes that took place in one department. In the 
Department of the Environment, prior to the setting up of Next Steps Agencies, core activities such as roads, 
housing and water were contained within the department and there was one central personnel section in the 
department for these functions. Since the setting up of Next Steps Agencies for each of these functions, 
agency is now headed by a chief executive, whose contract is for five years. A memo of understanding is 
prepared which is given effect to with the signing of a service level agreement between the DOE and the 
chief executive concerned. The chief executive of each agency operates on the basis of this service level 
agreement which sets out, among other things, a budget and an outline of the HR functions handled at 
agency level. The central DOE personnel section is now broken down into four areas - training and 
development, personnel policy and advice, equal opportunities, and personnel management and pay. Each 
agency now has its own HR function. The central personnel section in the DOE sees its new role as one of 
providing advice and guidance, for example in relation to disciplinary matters or interpretation of official 
circulars. 

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APPENDIX I 
From Architecture to Audit 
Question Rating 
(1-10) 
Description of 
Best practice 
Gap between 
current and 
best practice 
Shared Mindset 
To what extent does our 
company have the right 
culture to reach its 
goals? 
Competence To what extent does our 
company have the 
required knowledge, 
skills and attitudes? 
Consequence To what extent does our 
company have the 
appropriate measures, 
rewards, and 
incentives? 
Governance To what extent does our 
company have the right 
organisational structure, 
communications 
systems and policies? 
Capacity for 
Change 
To what extent does our 
company have the 
ability to improve work 
processes, to change 
and to learn? 
Leadership To what extent does our 
company have the 
leadership to achieve its 
goals? 
Source: Ulrich, 1998 
Note: Ulrich's framework as set out above is based on a scenario in which a company has defined its 
architecture in terms of six key concepts - culture, competencies, rewards, governance, work processes and 
leadership. Having established this architecture, he suggests that HR staff should guide management through 
a rigorous discussion of 'fit' - i.e. do the existing culture, competencies etc., fit with the company's strategic 
goals? This evaluation can then be used to guide the discussion of how best to obtain or develop what is 
missing. 

APPENDIX II 
Personnel and Remuneration Division, Department of Finance, 
Breakdown of Key Activities 
· Recruitment Section is responsible, in conjunction with the Civil Service Commission (CSC), for 
external recruitment in the civil service, and for internal recruitment (promotion) for grades up to and 
including executive officers. These responsibilities include setting policy for recruitment procedures and 
defining the terms of promotion schemes, while the CSC handles the recruitment process from the 
advertisement stage onwards. 
· Careers and Appointments Section is responsible for monitoring and developing policy and providing 
advice to departments on a range of issues such as the promotion of staff at higher executive officer level 
and upwards, the recruitment of temporary staff, the establishment of internal promotion schemes for 
officers at executive officer level and upwards. All promotion schemes are negotiated with the unions 
concerned. 
· Equality Section is responsible for overseeing and developing policy and providing guidance to the 
minister, line departments and other public sector employers on a range of issues, including; equality, 
career breaks, job-sharing and employee assistance services. 
· Conduct, Health and Safety Section is responsible for developing and ensuring compliance by line 
departments with policies relating to the conduct of employees, e.g. discipline, dismissal, conflicts of 
interest, sick leave, probation and acting appointments, the award of annual increments and absenteeism. 
Source: Department of Finance, 1998a

APPENDIX III 
A Process for HRD Delegation 
1. Linking HR and business strategy: 
· Develop a vision of future HR strategy and the explicit links between this and the corporate strategy 
· Consult and involve line managers in strategy formulation 
· Develop HR objectives as part of the business planning process 
· Translate HR objectives into day-to-day management objectives 
· Consider the resource implications of what is proposed 
2. The role of top managers: 
· Communicate the importance of delegation and link this to business strategy 
· Demonstrate by action the knowledge, skills and attitudes required to achieve business goals 
· Recognise and reward managers who manage staff effectively 
· Hold senior managers accountable for results 
· Ensure monitoring mechanisms are in place 
3. Defining the line manager’s role: 
· Consult managers to define their HR responsibilities in the context of HR strategy 
· Consider the use of a structured framework such as IIP to help managers define and take on board 
responsibilities 
4. Getting line managers involved: 
· Ask managers to identify one or two business issues the resolution of which would improve their business 
performance 
· Set up small project groups to tackle these problems and propose and test solutions 
· Delegate real responsibility and power with authority to act and commit resources 
· Ensure the HR section offers appropriate help, support, training to group projects 
5. Helping line managers deliver: 
· Produce succinct user-friendly guidance 
· Produce checklists and tools e.g. for production of a training plan 
· Produce up-to-date material on private training providers and back up services on specialist issues 
· Organise business related activities in the workplace 
· Clarify career development and training policy so that staff have a clearer perspective 
6. Making line managers accountable: 
· Question managers about the use of training and development budgets and the business benefits 
· Develop appraisal and reward systems which give due prominence to staff development 
· Develop performance standards for management objectives 
· Link the business planning process to reinforce accountability 
7. Evaluation: 
· Establish hard and soft performance measures for HR issues e.g. motivation, skills levels 
· Link performance measures more closely to business performance

APPENDIX IV 
Key Elements of the HR Strategy 
Recruitment/Promotion Plan 
The purpose of the recruitment plan is to identify what is required to meet the resource and skills needs 
identified in the human resource plan. While a significant amount of the recruitment process is carried 
out by the Civil Service Commission (CSC), the prior development of a human resource plan should 
equip departments with the potential to play a more proactive and forward thinking role in determining 
where and when staff resourcing issues arise, which will be an important prerequisite to the future 
development of service level agreements between the CSC and line departments. Specific policies 
should also be articulated for matters within the department’s remit, including: appropriate internal 
promotion systems based on earlier identified needs; the development of phased staff mobility plans, in 
the light of future staff needs and skills levels. 
Training and Development Plan 
The overall purpose of this plan should be to set out how the organisation intends to address the skills 
and developmental needs identified in the human resource plan and performance management process. 
In the context of any changes made regarding the devolution of such matters to line managers, the 
respective roles of line managers and personnel/training sections in the training and development 
process should be clearly set out in this plan. Similarly, in the context of future needs identified in the 
human resource planning process, the inclusion of a succession plan might also be considered, setting 
out developmental plans required to coach managers for future roles. 
Performance Management System 
This involves the translation of business plans to sectional and management level, and the resulting 
setting of objectives, performance indicators and developmental plans. The articulation of this element 
of the HR strategy should also be linked with the process of identifying the line manager’s role and 
objectives with regard to HRM, and the identification of training needs for both line managers and staff. 
Equality Plan 
At a minimum, this plan should cover policies and standards to ensure compliance with law, including 
the wider remit of categories covered in the recent Employment Equality Act, 1998. From a strategic 
perspective the plan should also cover the development of proactive policies to ensure equality across 
other HR plans such as training and development, promotion. Such plans should also be developed in 
the context of developments arising from the work of the SMI Equality Committee and the concerns 
addressed in the recent report on Equality in the Civil Service (Humphreys et al, 1999). 
Rewards Policy 
While the majority of reward determination will be centrally driven, policies in relation to the more 
effective use of internally controlled schemes and processes, such as the merit award scheme and 
criteria for upgradings under restructuring agreements, should be developed and clearly articulated. 
Personnel Administration 
The plan should also clearly articulate employee entitlements and obligations in relation to terms and 
conditions of employment e.g. sick leave, career breaks, discipline, grievance procedures and the 



respective roles of the line manager and the personnel section in relation to such matter.