2

Human Resource Management

for Good Governance
Building local government capacity for effective service delivery

S. M. Khatib Alam
David Alan Watson
March 2008 Muhammad Shahid Alvi

Self-
Actualization

Esteem
(self and others)

Social Needs

Safety and Security

Basic Physiological Needs

City District Government Faisalabad, Pakistan

This document is produced as part of the Strengthening Decentralised Local Government in Faisalabad (SDLGF)
Project for the purpose of disseminating lessons learnt from the project. The views are not necessarily those of DFID
or the City District Government Faisalabad

(c) SDLGF March 2008

Parts of this case study may be reproduced for educational use, provided that such material is not printed and sold.
The authors expect that, any material which is used will be acknowledged accordingly.

Printed by: FaizBakht Printers, The Mall, Jhang (Punjab) Pakistan.

 VISION
“Pre-empting Poverty, Promoting Prosperity”

MISSION STATEMENT
“We will provide high quality services which compare with
the best in the country. We will work with everyone who wants
a better future for our District. We will establish an efficient,
effective and accountable District Local Government, which
is committed to respecting and upholding women, men and
children’s basic human rights, responsive towards people’s
needs, committed to poverty reduction and capable of
meeting the challenges of the 21st Century. Our actions will
be driven by the concerns of local people”
ACKNOWLEDGMENTS
This case study is the culmination of efforts by a number of individuals from government and
the technical assistance team. Firstly it is important to thank all those who have cooperated
with the team preparing this case study not only in the last few weeks but over the course of
the last four years. They have been critical to the work and demonstrated what is possible to
achieve in government when the right set of conditions prevail.

We would also like to thank the communities, elected representatives and representatives of
employee associations of the district that assisted the SPU team in implementing this project
and its various components.

The authors wish to thank Rana Zahid Tauseef, City District Nazim; Maj (Retd.) Azam
Suleman Khan, District Coordination Officer; and Dr. Tariq Sardar, EDO Finance & Planning
for their valuable contribution in making this project a huge success.

We are also thankful to: Mr. Ch. Zahid Nazir, ex-District Nazim Faisalabad; Mr. Tahir Hussain,
ex-DCO Faisalabad and Mr. Athar Hussain Khan Sial, ex-DCO Faisalabad for their valuable
contribution to the success of this project.

We are further thankful to all CDGF employees (past and present) and CDGF partner
departments but we would like to specifically mention by name the following: Mr. Mumtaz
Hussain Shah, EDO Education; Mr. Shabbir Ahmad Ch., EDO Community Development, Mr.
Ashiq Hussain Dogar, EDO Information Technology; and Mr. Hassan Raza Saeed, District
Officer, Human Resource Management for their efforts in successfully implementing reforms
in their departments.

We are thankful to all DFID Project Advisers and Management that have assisted in this
project since its start and we would like to specifically thank Mr. Mosharraf Zaidi, Governance
Advisor, DFID Pakistan and Mr. Wajahat Anwar, Deputy Program Manager, Accountability
and Empowerment team, DFID Pakistan, for their continuous support and professional
technical guidance since their involvement in 2005.

We are thankful to Shahid Sharif, the International HRM consultant for all his guidance
through out the 4 years, Mehreen Hosain for proof reading the document and all the SPU
team members for their dedication, hard work and the many late hours spent designing,
implementing and documenting the work of this project. These include: Mahmood Akhtar,
Imran Yousafzai, Muhammad Tariq, Kashif Abbas, Ajaz Durrani, Farhan Yousaf, Asim
Rashid, Faisal Najeeb, Muntazir Mehdi, Gul Hafeez Khokhar, Mirza Muhammad Ramzan,
Muhammad Sharif, Sumara Khan, Humaira Khan, Saima Sharif, Mubarak Ali, Adnan Akram,
Noor Muhammad Khan, Nuzhat Hanif, Syed Sheraz Akhtar, all the master trainers and
training associates of the Institute of Learning, SPU IT Team, GIS team members, all long
and short-term international and national consultants.
 FOREWORD
Years of under investment has left our departments and
professionals short of the skills and tools needed to operate
successfully in the 21st century. Since 2004, concerted
effort has been made by all my staff and officers to reform
and change. This has not been easy, however, I believe that
this effort has transformed Faisalabad into one of the most
progressive district governments in the country one that is
now being hailed as a successful model.

The City District Government has introduced Human

Resource Management (HRM) as a central theme in its
reforms. At the heart of this paradigm shift is development of
a performance oriented workforce, operating within a new
performance management culture. We have assigned
proper roles and responsibilities to all district employees and
also conducting the quarterly performance reviews of EDOs
based on their job descriptions.

HR as a functional area within government remains low

profile it is our view that it is time to raise its profile and
understand that it is potentially the most critical area in any
organization if it wishes to achieve its goal and objectives.
Keeping this in our mind the restructuring case of HRM
department has been sent to the “Change Management
Unit” Lahore for their approval. We are confident that they
will approve it and the momentum of reform will continue.
Similarly in order to make training a core element of the
administrations business we have proposed to provincial
government, the establishment of a high class training
facility the Institute of Learning (IOL).

I would like to take the opportunity to thank our City District

Nazim for his valuable support to the reforms in our district. I
would also like to congratulate my City District team
members especially all the EDOs and DO HRM for working
to achieve the success outlined in this case study. Finally, I
would like to thank our major partners in development, the
Department for International Development (DFID), UK, and
their management consultants, GHK International Ltd., for
assisting Faisalabad for the last four years.

Maj. (Rtd.) Azam Suleman Khan

District Co-ordination Officer
City District Government Faisalabad
March 2008

Clock Tower, Faisalabad

PREFACE
In this case study we highlight the importance of Human Resource Management for Local
Government. As a city government we have begun to invest in developing our human
resource management systems realizing that there are considerable long term gains to be
made. In part this is in response to re-inventing this government as more performance
conscious and output oriented rather than simply focussing on inputs.

Starting from a base where there was no strategic HR and it was just seen as for posting /
transfer, now HR is playing pivotal role in achieving districts mission through best utilization of
district's important asset its employees. The HRM dimensions of the Faisalabad local
government reform process, have been remarkable for the speed of progress, and the extent
to which basic HRM systems and tools have become functional and 'embedded' in the
institutional fabric of city district government.

One of the biggest areas of development has been establishing HR systems and process.
Our Human Resource Management Information System, allows the departments to plan and
project human resource needs, efficiently manage pension cases, and identify training and
capacity building needs. Further, job descriptions have been developed for all categories of
city government employees, clarifying functions and enabling improved performance
management. This massive exercise was fully supported by all departments and relevant
trade unions including the various number of Teachers Union.

To gauge sense of pride and belonging within employees, we have conducted the first
“Employee Motivation Survey”, targeting all its employees. Successful change and reform
hinges on strengthening our internal capacity. Realizing this, we have embarked on a series
of policy development initiatives related to improving human resource development.

This case study shares our experiences and learning on HR engagement. We hope that it will
help other districts to understand the importance of HR and its role in service delivery. We
have a duty of care to provide information about our work and endeavours to our public. We
remain committed to our efforts to improve local governance, provide quality services and
fighting poverty.

Dr. Tariq Sardar

Additional Project Director
Strengthening Decentralised Local Government in Faisalabad
March 2008

Office of the District Co-ordination Officer, Faisalabad

 Table of Contents

TABLE OF CONTENTS
ACKNOWLEDGMENTS

FOREWORD
PREFACE

ACRONYMS

EXECUTIVE SUMMARY 1

BACKGROUND 3

The Context for HRM in Local Government in Pakistan 3

The Situation faced by Faisalabad District in 2004 4

THE CASE 6

Overview: Origins of the HRM strategy, and its inter-relationship

with other development strategies of Faisalabad District Government 6
Main elements, and rationale for the chronology of, the HRM
strategic and operational plan (SOP) 7

IMPLEMENTATION 8

HRM Systems developed and the use to which they were put 8

ACHIEVEMENTS 14

What has changed since 2004? Achievements and benefits

arising to date from implementation of the HRM SOP 14

LESSONS AND REFLECTIONS 17

Challenges faced in pursuing HRM and how (or if)

they were surmounted 17
Key aspects of 'unfinished business'; principal threats to
future HRM progress and how momentum will be sustained 18
Lessons from the HRM Experience: Success factors and
Pre-requisites of pursuing HRM in Pakistan Local Government 19
Benefits 21
Cost and Limitations 22
The practical implications for local governments of
pursuing HRM reform in Pakistan 23
Replication in other Local Governments to date 23
The Role of Technical Co-operation and the Donor in
supporting the HRM function in local government 24

CONCLUSIONS 25

BIBLIOGRAPHY 38
 Table of Contents

FIGURES

Figure 1: Education retirement projection 8

Figure 2: Age profile of district government employees 9

ANNEX

Annex 1: HR core issues and strategic aims 27

Annex 2: Costs & benefits analysis 28
Annex 3: Training activities 30
Annex 4: Drivers of change 32
 Acronyms

ACRONYMS
ACR Annual Confidential Report
ADB Asian Development Bank
AEO Assistant Education Officer
AKU Aga Khan University
BHU Basic Health Unit
CDGF City District Government Faisalabad
CIDA Canadian International Development Agency
CIPD Chartered Institute of Personnel and Development
CMIPHC Chief Minister's Initiative on Primary Health Care
CSRU Civil Service Reform Unit
DFID Department for International Development
DO District Officer
DCO District Co-ordination Officer
DSP Devolution Support Programme
DTCE Devolution Trust for Community Empowerment
DDO Drawing and Disbursing Officer
EDO Executive District Officer
FMIS Financial Management Information System
F&P Finance and Planning
GIS Geographical Information System
GoP Government of Pakistan
HRM Human Resources Management
HRMIS Human Resources Management Information System
IIA Institute of Internal Auditors
IOL Institute of Learning
IT Information Technology
NCHD National Commission for Human development
NGO Non Governmental Organisation
NRB National Reconstruction Bureau
P&D Planning and Development (Department)
PC1 Planning Commission Proforma for Project Proposals
PER Performance Evaluation Report
PFC Provincial Finance Commission
PIFRA Project for Improvement in Financial Reporting and Auditing
PIM Pakistan Institute of Management
PLGO Punjab Local Government Ordinance
PMU Project Management Unit
PRMP Punjab Resource Management Programme
PRSP Punjab Rural Support Programme
RoB Rules of Business
SDLGF Strengthening Decentralized Local Government in Faisalabad
SDPI Sustainable Development Policy Institute
SDP Strategic Development Plan
SNE Statement of New Expenditure
SOP Strategic Operational Plan
SPU Strategic Policy Unit
TA Technical Assistance
UC Union Council
 Executive Summary

EXECUTIVE SUMMARY
The Human Resource Management (HRM) aspects of the evolution of the CDGF's reform
programme is central to good governance in Faisalabad. Development of the human
resources of the Faisalabad local government were seen from the outset as a crucial
condition of the programme. The Local Government Ordinance 2001 which established the
legal environment for the devolution of powers and resources which have framed the City
Government's development over the past five years, was however silent on the implications
of the devolved role-changes in terms of the needs for analytical or resource management
skills and professional competences at District and sub-District levels, nor did it propose how
these and other human resource management (HRM) implications of these changes should
be tackled. These lacunae were partly explained by the narrow conception of HRM at all
levels of the civil service at the time. In common with other components of the CDGF reform
programme embarked upon in 2004, a situation assessment in HRM aspects was conducted.
It revealed a context very typical of local governments at the time, and one which is
unfortunately reflected in many Districts currently.

The Strategy and Policy Unit was established in 2002 as a 'Think Tank' to address the
shortcomings in both the PLGO, and the governance context of the District government of the
time. With consultant support facilitated by the UK's Department of International
Development, it helped frame the Corporate Plan, and Departmental Strategic Operational
Plans, including the HRM aspects of the reforms. A small HRM team was formed; a Human
Resource Management Information System (HRMIS) was painstakingly developed over the
next few years, and has become the centrepiece of the HRM function. Other major
undertakings included job analysis for all 610 designations; subsequent consultative
preparation of job descriptions and related training needs analyses; introduction of quarterly
performance appraisal for EDOs (involving presentations to the Nazim DCO and peers on
progress against targets and identification of bottlenecks); a survey of citizen's perceptions of
CDGF services was conducted in all Unions; another major survey (Employee Motivation
Survey) recorded staff opinion on how they were managed and motivated. An ambitious and
diverse training programme was undertaken. DDOs, top management development and IT
orientation were the three most urgent foci. While a modest Institute of Learning was
established (primarily for in-service support to school teachers and head-teachers), an
innovative approach was used to develop ‘Master Trainers': Departments officers who have
undertaken one or more training programmes, who have not only applied themselves well to
the substantive training offered, but who also expressed interest in helping train colleagues.

HRM functions now fully and efficiently feasible thanks to the systematic HRM capacity
building include on-line access to up to date HRMIS statistics; its application on human
resource planning (formerly very difficult especially for large, geographically-dispersed
cadres with numerous specialities such as teachers); identifying vacancy-rates and major
capacity gaps, retirement schedules and seniority rankings (and thereby prompting timely
recruitment, succession-planning and retirement benefit payment scheduling). The HRMIS
facilitates processing of transfers and promotions, and has also identified cases where there
are more incumbents than posts (in Revenue Department), thereby illustrating the
consequences of politically-pressured employment of Revenue Clerks for reasons of local
(constituency) patronage. When combined with Financial Management Information System
data, the HRMIS has revolutionised and much-simplified payroll and annual budget
preparation.

1
 Executive Summary

Recently a pilot project has been introduced in two Unions and fifty Secondary schools
whereby attendance is monitored through biometric (finger-print) data entry. After initial
teething-troubles (technical and in terms of staff attitudes and scepticism), this is an
encouraging innovation, which in turn is raising important issues connected with the use (and
abuse) of the various types of official leaves from duty to which employees are entitled. It also
underlines the importance of accurate recording of leave taken and due, and has revealed
incidence of poorly kept leave records in the past.

The principal changes since 2004 include longer planning horizons: better-trained staff
backed up with Geographical and Municipal Service information systems have been able to
formulate a Sustainable Long-Term Development Plan for the City District. This offers the
prospect of attracting additional investment: a total of Rs 16 billion has been committed or
promised as a result. Policies, management practices, and behaviours are now evidence-
based; thousands of staff and elected representatives have been trained in practical skills for
the first time. Hundreds of staff are 'IT-literate' and are thus empowered to access and use
information systems. This in turn has promoted communication and co-operation between
departments that before the reforms tended to work independently. Departmental functions
are managed by EDOs who meet regularly. They are mutually and upwardly accountable for
their Departmental performance, and who, thanks to the publication of findings of a recent
Citizen's Perceptions Survey, are informed of the opinions of service users on perceived
deficiencies and shortfalls in their Departments' service delivery. There has been a major
change in the way the CDGF relates to the Provincial government, at the Punjab
Development Forum and in a one-day Reform Seminar in June (attended not just by key
Provincial Secretaries and Chair P&D, but by many Punjab Nazims and DCOs).

Some things have not changed. Political pressures to employ, transfer, promote or dismiss
employees continue. But the impact of unnecessary recruitment becomes apparent through
HRMIS and FMIS data. The CDGF continues to be dependent on the provincial government
for overall personnel policy, control of its most senior staff, for the eventual resolution of the
long-awaited District Cadre issue, and approval of major proposed changes and new
developments. Further development of accountability institutions (of Monitoring Committees,
of elected representatives themselves, of the internal audit capacity of the Council, and of the
recently-established Call Centre) is an important priority for Phase II of the reforms.

The lessons include: first, that little could have been achieved without the sustained
commitment and leadership of the Nazims and DCOs, nor without the remarkable support
throughout from the Provincial government; the experience shows that for it to be effective,
technical assistance teams must be 'on-site' and 'embedded' with colleagues day to day.
Investment in information systems, IT systems, and HRM must come early in any reform
process and be sustained throughout…and if full confidence in systems' sustainability, for
somewhat longer than CDGF have had so far! For its part, the donor in this case has been
constructively engaged, but without undue micro-management or interference, throughout.

There is now a sense of common purpose in the organisation; there is much good news to be
disseminated; Departments are managed, and are pulling together, not working
independently. Despite these advantages, the effects are slow to percolate to the service
delivery 'front line'.

2
 Background

BACKGROUND
The Strategic Policy Unit (SPU) was set up by the Faisalabad district government in 2002, as
a policy think-tank. Its key aim was to act as a conduit in the district from which all
development programmes could be initiated. In 2004, the United Kingdom's Department for
International Development (DFID) agreed to provide technical assistance to the district using
the SPU as the platform from which change would be driven.

The SPU over a four year period has acted as a key resource fostering social capital within the
city government and often being the focal point for local and international technical
assistance and programme development. With a cohort of key technical resources and
change management agenda it plays a key role in facilitating public sector reforms and is
replicable. It has been instrumental in assisting Faisalabad become a modern administration.

The Context for HRM in Local Government in Pakistan

The Punjab Local Government Ordinance 2001 provided for devolution of planning,
budgeting, and overall resource management functions for most major services to District
governments, together with non-lapsable, rules-based financial transfers to fund such
services. District managers of service delivery were to be accountable to locally-elected
politicians. These changes were accompanied by new administrative arrangements with
consequences and implications for the way in which human resources of local governments
were to be managed henceforth (including the staff of Tehsil Municipal Administrations and
Union Councils).

These changes included the creation of a new post: a District Co-ordination Officer (DCO)
accountable to an indirectly elected District Nazim (Mayor). The DCO position replaced the
Deputy Commissioner who (as well as possessing magisterial powers) was formerly
accountable to an un-elected Provincial Secretariat for the operations of District offices
which were essentially 'outposts' of the Provincial government. The DCO has administrative
authority over Executive District Officers, who head principal Departments of the District
Government executive. Full administrative control over Departmental establishments
(appointments, transfer and promotion) was to be vested in the local governments up to
specified grades. It also introduced a range of bodies to enhance political- and user-scrutiny
of the services delivered by the newly-empowered District executive, together with new
entities Citizen Community Boards to galvanise popular participation in bottom-up planning
and development project implementation.

The PLGO was however silent on the implications of the devolved role-changes in terms of
the needs for analytical or resource management skills and professional competences at
District and sub-District levels, nor did it propose how these and other human resource
management (HRM) implications of these changes should be tackled, other than its brief
treatment of 'managing transition'. This section (amongst other provisions) prescribed a bar
on recruitment, at least until the following year. Its treatment of 'training' referred only to
training of Nazims, Deputies and Council members in courses to be prescribed by the
Provincial government.

Although the new local governments were permitted by the LGO to establish HRM offices,
they had almost no experience or capacities in HRM issues, since Provincial governments

3
 Background

Box 1: District HRM Functions (Prescribed under Punjab RoB 2001)

Ÿ Improvement in general efficiency and economic execution of Government business of the District government
Advice regarding proper utilisation of stationery and printing resources of the Government with the District
Government
Ÿ Training in Organisation and Method
Ÿ Suggestion Scheme
Ÿ Preparation of Manuals
Ÿ Career Pattern of District government employees
Ÿ Simplification of forms and procedures within the District
Ÿ Departmental examination in respect of District government employees
Ÿ In-service/pre-service training of ministerial employees of District government

Source: Punjab Government Rules of Business 2001 SOV (LG) 59/2001

had hitherto played a dominant role in appointment, transfer, and promotion issues, and the
postings of staff (other than the most junior) at District and sub-District levels. Even at
Provincial level, the broader notion of 'human resource management' was ill-understood, and
not backed up with the information systems, managerial culture, nor analytical and co-
ordination routines needed to permit HRM to be practiced. A clue to how 'HRM' was
conceived at the time at Provincial level is the amalgam of loosely-related functions contained
in the formal definition of the scope of HRM functions in the Punjab Rules of Business (see
Box 1).

Box 2: The Comments of DCO Faisalabad on Devolution

‘The devolution decision was made abruptly and top-down. There were initially no Standard Operating Procedures.
Nazims and DCOs made suggestions through Provincial governments to the NRB. While there are political linkages
between the various assemblies of elected members from District government down, clear administrative working
relationships are still missing.’

The situation faced by Faisalabad District Government in 2004

Each of the Strategic Operational Plans (SOPs) drawn up by Faisalabad District Government
assessed the situation encountered by its Departments in the second half of 2004. These
analyses formed one element of the SOPs. The HRM analysis revealed that the
overwhelming majority (virtually 90%) of its nearly 35,000 staff worked in education and
health departments. None of the service sector Departments had any HRM offices: the only
entity with HRM responsibilities was the newly-created post of District Officer HRM and an
embryonic HRM Department.

Personnel records were contained in individual files held in separate Departments, making
difficult any attempts at corporate HRM analysis or planning. Faisalabad District government
could not add or delete posts, nor appoint officers on its own authority: only the provincial
government held that power. The District could not re-direct non-development budget
resources saved from deleted posts, hence had no incentive to economise on staffing. For
posts outside the purview of the Punjab Public Service Commission (i.e. below grade 16) it
could however transfer existing staff, and fill existing posts. Both appointments and transfers
were politicised activities, with councillors regarding them as important mechanisms for
currying favour with constituents (despite injunctions against this type of involvement in the
PLGO).

After devolution in 2001, staff from three principal cadres (federal, provincial and previous
local rural District governments) working at District level had been assigned to local
government service. However, in practice, members of the first two cadres 'still looked to the

4
 Background

province' (not to the District) in terms of career development, promotion, postings and
transfers. A circular subsequent to the LGO from the Provincial government issued in mid-
2004 asked Districts for proposals for establishing a District Cadre for local government
departmental employees. This was welcomed by the District Government, because since
2001, authority over officers serving at District level had been fragmented: this confused their
loyalties, and undermined morale. Accordingly the CDGF put forward two options in
response to the circular: one involving transfer to Districts of existing employees and all
aspects of HR authority over them (which would then became their employer). The second
option (its preference) entailed different treatment for staff graded up to Grade 16 (who would
be transferred to District service), and a phased, transitional transfer arrangement for more
senior staff, based on an assessment of requirements. There have been no subsequent
substantive developments of the District cadre notion since then, despite several meetings
between the CDGF with representatives of NRB and CSRU. Operational ambiguities
therefore remain in terms of the future authority of Districts to set pay and benefit levels for
staff assigned to them; management of the Benevolent Fund for staff in grades 1-16;
management of gratuities and pension rights, and group insurance issues, and whether
Districts would be bound to apply any periodic recruitment bans imposed by Provincial
government, or whether they would continue to be able to recruit contract employees in such
circumstances.

Any training received by District staff was on an ad-hoc bases at the behest of the provincial
government, with no needs analysis preceding it, nor any dialogue between training
providers and respective line departments. Only DMG staff (a federal cadre) attended
prescribed training courses. For most others, training was only loosely related to jobs
performed by trainees, and was therefore seen as largely irrelevant. Performance Evaluation
Reports (formerly Annual Confidential Reports) were to be completed by line managers on
their subordinates. In practice, this process was often initiated by subordinates only when
seeking transfer or promotion, and was thus an irregular event, with little bearing on the
nature of the job, incumbents' actual performance or the future development or training needs
of the officers concerned. Indeed, job descriptions did not exist. Only the main responsibilities
and functions of certain posts were summarised in general terms in the PLGO (those of the
Nazim, the DCO, and EDOs).

Pay scales for various grades of staff are set nationally, and federal rules governed
movements between grades. No award or incentive schemes were in operation in
Faisalabad, although one for teachers was proposed in the 2004 budget. No formal
mechanisms for collective representation or bargaining between management and public
sector Employee Associations existed, despite their strength amongst teachers and clerical
grades. No consultation took place between management and Employee Associations on
service delivery issues and possible improvements1. No suggestions schemes were in
operation. Basic complaints-handling mechanisms existed within departments which
responded to complaints forwarded through the Complaints Cell established in the Nazim's
office (as prescribed by a Governor's circular).

The notion of teamwork was alien to day-to-day operations in the District. Only two meetings
of the (monthly) Nazim / EDO meetings had actually taken place in the three years since the
LGO came into effect. Otherwise, meetings were arranged by issue, in an ad hoc fashion, and
run in a top-down manner, not conducive to dialogue or sharing of ideas.

1
No Trades Unions are permitted to operate in the public sector.

5
 The Case

THE CASE
Overview: Origins of the HRM strategy, and its inter-relationship with
other development strategies of Faisalabad District Government

Assessments - taking stock of the problems (and potential) emerging from the District's first
experiences in making devolution work - were to form the basis of an over-arching Corporate
Plan, and related sectoral Departmental Strategic Operational Plans (SOPs).

Design

The Corporate Plan was the framework which guided departmental Strategic Operational
Plans (SOPs). The Corporate Plan laid out the Mission, and Core Values of the District
Government. The first value 'setting high standards' gives a flavour of the challenge
Faisalabad faced: the breadth of the vision which guided future HRM development was in
stark contrast with previous notions of HRM in the Punjab public service. 'We will achieve (the
Mission2) by comparing, competing, monitoring, evaluating and reporting on achievement,
valuing and developing our workers and involving stakeholders in planning and decision-
making.' Guiding Principles were enunciated, backed up by Change Activities to be
undertaken. Virtually all the 12 principles were to be delivered via changes involving HRM
dimensions from pro-poor and pro-women policies recruitment and budgeting, to clearer
criteria for transfers and postings; from arrangements for whistle-blowing to improved internal
communication and information systems; from citizens' surveys in respect of service delivery,
to protocols, codes of conduct, and more objective performance appraisal machinery for
staff.

The HRM SOP was based on recommendations from the Situation Analysis of 2004. It was
explicitly related to driving the corporate change-management agenda being pursued, as
well as establishing the HRM function itself in an environment where none yet existed.
Recommendations included the establishment of a small HRM team under the DCO (to
comprise an EDO, a DO, DDO and Administrative Assistant). Other main recommendations
included the establishment of a Human Resource Management Information System (HRMIS)
including training needs analysis mechanisms; staff development and training (including job
analyses and skill audits linked to the strategic objectives of the District); performance
management (including a reassessment of current practices and identification of managerial
skill-gaps, and definition of job descriptions and personnel specifications); a pilot scheme for
rewards and recognition; improved employee relations through an assessment of current
consultation arrangements, and improvements in communication including links with the
communication strategy for the SDLGF project.

The essence of the change-management agenda was change in 'the very culture of the way
the District operates'.

This vision was based on a realisation that there were far-reaching (but hitherto unarticulated)
implications of devolution of resource-management and service delivery tasks to local
2
The Mission Statement of CDGF forged through painstaking discussion between SPU and the departments over a
period of 6 months - is 'We will provide high quality services which compare with the best in the country. We will work
with everyone who wants a better future for our District. We will establish an efficient, effective and accountable
District Local Government, which is committed to respecting and upholding women, men, and children's basic
human rights, responsive towards people's needs, committed to poverty reduction, and capable of meeting the
challenges of the 21st century. Our actions will be driven by the concerns of local people.’

6
 The Case

Box 3: Key Aimed-for Characteristics of the District Workforce

Skilled flexible and well-trained
Customer-focused and responsive
Competitive with the best
Productive and efficient
Committed motivated and willing to learn
Valued for its contribution
Representative of the community it serves
Accepting of the need for continuous improvement and open to change
Committed to the District's values and ethical standards
Source: HRM Department SOP December 2004

governments, especially when combined with the needs for greater responsiveness to public
demands, enhanced public accountability, participation, and corporate integrity.

Main elements, and rationale for the chronology of, the HRM strategic
and operational plan (SOP)

The HRM SOP was linked to the overarching Corporate Plan 'in order to serve the District's
business needs'. Its aim was to produce a workforce with key characteristics (see Box 2)
supportive of the District's mission, and confirmed that implementation of the HRM SOP
would in practice much depend on the 'philosophy, values and commitment of top
management'.

The elements of the SOP were expressed as Core Issues, each with a Strategic Aim, and
backed up with several actions or outputs, which would lead to the achievement of the
corresponding aim. These are paraphrased in Appendix 1, along with their planned
sequencing. Urgent attention was to be given to establishing a HRMIS which was seen as the
key to all subsequent attempts at planning and rationalising staff recruitment,
placement/distribution, transfer, payroll, training and development (based upon skill-sets
needed and prevailing shortfalls), welfare and retirement management. The highest priority
training was in re-orienting top management, IT skills, and in the field of planning and
budgeting. Motivated human resources were seen as a vital prerequisite for the new
corporate culture. Rationalisation of financial resource allocation depended on major re-
orientation of key staff - in all sectors - to the principles of strategic planning and budgeting.
These concepts had been as alien as 'human resource management' was to the Punjab civil
service hitherto.

Consultation Meeting with Stakeholders

7
 Implementation

IMPLEMENTATION
HRM systems developed and the use to which they were put.

The principal HRM systems and tools which have been developed, supportive of better
human resources management, are as follows, together with a commentary on how they
have been utilised.

Human Resource Management Information System

The 'centrepiece' of the array of tools developed over the past three years is undoubtedly the
HRMIS. It was built up during the first year into a system of 20,000 individual records in an
accessible database of the workforce of CDGF. It now covers over 32,000 staff, and provides
EDOs and DOs with on-line access to it. It records personal details, current grade and post
details; employment record with government and the District government; academic and
professional qualifications; work experience; training history; attendance, leave and
discipline record and dates of performance reviews.

The primary use of the HRMIS has been in human resource planning by linking current and
future needs for human resources with probable future demand patterns. It has permitted
specific investigations over the past three years into numbers employed, by organisational
unit, and their skills 'inventory'. This is proving extremely valuable in the Education
Department, given the complexities of managing a diverse teaching force, where
geographical distribution, gender, grade, seniority and subject specialism factors are all
important variables. The implications of predicted patterns and timing of retirements can be
assessed with the HRMIS. The retirement reports and charts the HRMIS is producing are
helping the City District Government to plan and assess;

l More accurately future staffing needs and deployment

l Financial implication (In form of gratuity and pension payment)
l Impact on service delivery (both for internal and external customers)

Figure 1: Education retirement projection

30,000
27,860
27,000 Sanctioned
strength
24,000
3
,17

21,000
4
,84

,54

5
No. of Employees

9
23

,23

,87

1
22

22

7
,45
22

,91
21

18,000
,29
21

20

4
,60

,91
20

Projected strength
6

3
19

0
,20
18

,63

,05

after retirement
4

15,000
18

,49
17

17

1
,83
16

15

12,000
Cumulative
97

9,000
34
78

Spatial Distribution of retirement

7,6
7,0
6,4
95
22

Vacant Posts Across the District

5,8
14
22

5,3

6,000
4,6
38
3,9
11
3,2
49

77
2,6
93
1,6

3,000
2,0
1,2
4
98
3
68
5
35

0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Year

As of December 2007

8
 Implementation

This has also enabled better administration of retirement benefits: avoiding many of the
payment delays, which used to be common. Within the teaching force, the HRMIS graphically
illustrated the growing shortfall of teachers in post given the Provincial government
recruitment freeze: this was lifted only in late 2006 by which time there were over 5,000
vacancies in the education department. On the other hand, it has also identified cases where
there are more incumbents than posts (in Revenue Department), thereby illustrating the
consequences of politically-pressured employment of Revenue Clerks for reasons of local
(constituency) patronage.

The District government is facing a critical challenge: managing an aging (and declining)
skilled workforce. It will encounter a wave of retirements over the next decade. The younger
workforce is developing a different set of work values and expectations than previous
generation. The main issues necessary to address are changing mindsets about new
concepts in work force management, retaining, energizing and rejuvenating knowledge for
innovation and organizational learning, changing physical work environments, new ways of
managing human resource, and new techniques to measure performance of an aging
workforce. To manage the aging workforce, management must have an accurate
understanding of its current and shifting composition of workforce and HRMIS is a key source
of all such investigations.

Figure 2: Age profile of district government employees

37%

31%
22%

7% 3%

Under 20 Between 21 - 30 Between 31 - 40 Between 41 - 50 Between 51 - 60

Box 4: Managing an Ageing Workforce

The Challenge Ahead
Ÿ How big and serious are the challenges of an aging workforce and why are the challenges critical right now?
Ÿ Can the challenges be managed? How, what and where are the solutions?
Ÿ How will service delivery be affected?
Ÿ What interventions are possible?
Ÿ What should district government be doing?
Ÿ How to increase both productivity and creativity of the aging workforce
Ÿ What are the financial implication in terms of gratuity, pension etc.

Managerial Objectives

Ÿ What overall performance of an Aging Workforce should be measured?

Ÿ Understanding the nature of knowledge threats due to the aging workforce and how to retain critical knowledge?
Ÿ The importance of appropriate work environment and physical tools for an Aging Workforce
Ÿ A new managerial mindset concerning the Aging Workforce to be embedded in the organization
Ÿ How will talent, skills and innovation be managed in an aging workforce?

9
 Implementation

More recently the implications of Provincial government policies, (for example the decision to
move all Graduate English Teachers from primary schools to elementary and high schools)
and the supply of candidates for employment have been investigated. It has identified gaps
between approved establishment and the actual functional strength in certain categories of
post or departments. It has also been helpful in identifying where (by location) DDOs are
unavailable. Their absence has created major administrative and payment delays, with
corresponding negative impact on service delivery. For example, in the first half of 2007, 118
high and higher secondary schools (mainly outside Faisalabad city) were without DDOs
according to analysis of the HRMIS.

Use of HRMIS in Day to Day Business

Previously, processing of requests for transfers and postings took a large amount of time.
Now the HRMIS facilitates decision-making on such matters because it enables managers to
see the implications of such decisions on 'origin' and 'destination' Departments or facilities.
This application has had the greatest impact in the education department, which accounts for
the bulk of the Faisalabad workforce. Various reports could be generated within couple of
minutes like District establishment details which used to take at least a week and most
importantly by involving all Drawing and Disbursing Officers (DDOs). For only this report it is
Biometric Attendance System estimated that district is able to save at least 500 man-days on quarterly basis. The spatial
distribution (across) of vacant posts gives a very good quick snap shot to the management to
identify the most adverse areas.

Seniority listings are essential for assessing suitability of staff for promotion: these too are
readily generated by the HRMIS. Similarly, the annual routine of budget preparation,
previously extremely time-consuming, has been simplified by the existence and application
of the HRMIS. The 2007/8 non-development budget preparation process was the first to have
HRMIS and the Financial Management Information System (FMIS) inter-connected via
employee personnel numbers. This has also saved much effort in compiling the budget. It
also illustrated that there were staff who existed in the HRMIS but not in the FMIS, (or had a
grade above their sanctioned grade) and set in train an exercise to reconcile personnel data
in the two databases, this is revealing 'ghost' employees, enabling CDGF to regularise its
personnel records, and payroll systems.

Recently a pilot project has been introduced in two Unions and fifty Secondary schools
whereby attendance is monitored through biometric (finger-print) data entry. After initial
teething-troubles (technical and in terms of staff attitudes and scepticism), this is an
encouraging innovation, which in turn is raising important issues connected with the use (and
abuse) of the various types of official leaves from duty to which employees are entitled. It also
underlines the importance of accurate recording of leave taken and due, and has revealed
incidence of poorly kept leave records in the past. The HRMIS has also cast light on the extent
to which the District is following policies and legislation on equal opportunities through
clarification of numbers, grades, and distribution of disabled and other minority groups in the
workforce. It also brings to light through analysis of their office location, the physical obstacles
certain groups face in entering or moving through buildings, or accessing key facilities
(including toilets).

Resource Centres

A major challenge to system efficiency and accuracy is that of regular data updating, which in
the past caused major problems for the largest departments (education in particular). After
DO HRM visiting HR Resource Centre
established at EDO Education Office

10
 Implementation

dialogue on the nature of these problems and possible solutions, a network of Resource
Centres have been established serving the three main employing Departments (Education,
Health and Municipal Services). The department have placed their own staff in these
resource centres which are responsible for updating employee information The advantage of JOB DESCRIPTION

this system is that responsibilities for reporting changes, and entering them into the HRMIS, EDUCATION DEPARTMENT

are clearly and unambiguously defined.

Job Descriptions and Person Specifications

JOB DESCRIPTION
Job Descriptions and related Person Specifications have been developed as complementary
HR tools. These were developed after a process of Job Analysis for EDOs over a period of six HUMAN RESOURCE MANAGEMENT

months within the first year of HRM strategy implementation. They incorporate (up to 20) (October 2007)

generic responsibilities (common for all similar posts) and key specific responsibilities which
were further defined in terms of Key Service Activity, corresponding Responsibility, and
priority Tasks. Person Specifications described minimum-required and preferable
educational attainments (qualifications); personal characteristics, special aptitudes,
interests, disposition, circumstances and physical make-up of the incumbent. By the second
half of 2006, Job Descriptions for all 610 designations in CDGF had been drawn up, agreed
and translated into Urdu.

Job Description workshops for main job types a form of collective Job Analysis - proved very
useful in revealing major (but unavoidable) distractions from core duties affecting some staff
(for example attendance at ceremonies, electoral duties), and in boosting morale and team-
work. The uses to which these key documents have been put include recruitment and
selection of new staff; objective performance appraisal (see below) and as a basis for
employment contracts. They have been vital in the process of identifying training needs and
making training plans for key categories of staff. They are also a means of communicating the
District's expectations, priorities and values to all members of staff. More broadly, as more
posts have Job Descriptions, it will enable Corporate and HR planners to understand how
each job 'fits' into the overall structure and purpose of the District government (and in
particular, whether there is un-necessary duplication of tasks taking place), and the traits that
are required for these jobs to be performed by incumbents.

Performance Appraisal

Performance appraisal has been another major HRM tool applied in CDGF. Its application
started in 2005 with the most senior managers EDOs. This coincided with training of the
EDOs and DOs in leadership, which helped EDOs respond to the new challenge of having
their performance appraised every three months. The use of performance appraisal has
been a crucial element of the overall strategy of developing a culture of performance-
orientation throughout the CDGF administration, but in the absence of significant flexibility
over the material rewards that can be offered to staff to encourage them to perform. As part of
the approach, every three months, EDOs are expected to give a presentation to the DCO and
Nazim on the performance of their Departments to the DCO and other EDOs against their Job
Descriptions. This includes a review of progress and achievements against target for the
quarter, reforms introduced, additional work performed, and targets for the next quarter. One
of the benefits of this process is that it encourages EDOs to communicate with and consult
their respective DOs regularly.

EDO Health Giving Quarterly

Performance Review Presentation

11
 Implementation

Training Activities

Training has been a fundamental plank in HR strategy throughout the period of SOP
implementation. Please refer to Annex 3 for a summary of the training activities which have
taken place, within CDGF, and using international study tours. Priority has been given to top
management training (including time management and communication skills) for EDOs and
DOs. IT skills have been introduced across the organisation, in order to facilitate and expedite
the extent to which information systems including the HRMIS and the Financial Information
System can be utilised, updated, and inter-related to become a routine modality of carrying
out managerial administrative and accounting functions. A major early training priority was
Budget and Planning skills for DDOs and account clerks in order that they could participate in
the strategic planning and related budgeting exercises in which the CDGF was embroiled
from late 2004 onwards, and which formed the 'philosophical' core of its approach to
development of a performance-oriented, efficient and effective District government,
responsive and accountable to those it serves. Over 960 DDOs and their account clerks were
trained within the first full year of SOP implementation. Recently, emphasis has been given to
preparation of materials for induction training of new recruits.

One major innovation has been the use of participative trainee-centred approaches to
training, which has evoked favourable comments from ex-trainees. Efforts are being made to
move beyond participants' 'reaction-sheets' as a means of monitoring and evaluating
training, towards use of surprise visits (to monitor actual attendance at courses: penalties are
imposed to late-comers by trainers), and post-training presentations by trainees. Recently,
efforts have been made to reach out through training programmes to approximately 3,500
A View of Education Management directly-elected Union Councillors and to the Nazims who are indirectly-elected members of
Training
the District Council. Brief courses in gender-based budgeting have been provided to over
3,000 councillors so far to help guide their selection of development schemes.

Strategy for Developing Capacity for Training

It was agreed that, as well as establishing an 'Institute of Learning' (initially for in-service
teacher development, thereafter a facility for the development of all staff) a cadre of 'Master
Trainers' would be developed. This feature of Faisalabad's strategy for developing its
capacities to train its staff is imaginative, and appears to have effectively complemented other
efforts at building the relationship of the SPU to Departments, and indeed to the mutual
understanding of roles and inter-relationship of Departments themselves within the reform
programme.

Master Trainers' are Departmental officers who have undertaken one or more training
programmes, who have not only applied themselves well to the substantive training offered,
but who also expressed interest in helping train colleagues. They were subsequently
selected by the SPU (in consultation with their 'home' Department) and given supplementary
coaching in training techniques. They have been used as trainers on courses organised by
SPU for their own departmental colleagues. They act as 'champions' of the reform
programme within their home Departments, and are the principal contacts of the SPU within
the Departments of the CDGF, and help with Job or Training Needs Analysis, and facilitate
the introduction and application of new management systems (e.g. the HRMIS) within them.
Given the numbers of employees in CDGF, the role of Master Trainers is crucial. They do not
receive any additional honorarium for their duties, but have been awarded certificates of
recognition by the DCO, together with a nominal cash award and group photograph.
Government Official Giving Training
to his fellow Officers

12
 Implementation

The Institute of Learning (IoL) has been a major initiative (described more fully elsewhere in
the Education Case Study). It has been hitherto education sector oriented (i.e. it has been
focused on in-service training of teachers) and has permitted the implementation of the
Whole School Development approach another innovation which Faisalabad has successfully
pioneered.

However, a PC1 / SNE has been prepared to establish the IoL in a new building, on a
permanent footing, with both education and management & technical wings. This has been
approved by the Provincial government; plans have been drawn up and approved for the new
building, and the CDGF has committed funds for construction, and the next year's operational
budget. Once fully operational, the IoL will be responsible for planning, designing and
mounting training programmes for CDGF staff in both these major professional fields.

Employee Motivation Survey

The Employee Motivation Survey: mounted in three phases in mid-2005, and reported on
inPerformance Reports as results became known over the period since, is one element in the
dialogue between management and employees in the quest for enhancing motivation, in the
absence of financial incentives. A series of meetings have taken place between management
and staff on the results, which - management frankly admitted revealed significant feelings of
alienation on the part of significant numbers of staff, and dissatisfaction with conditions of
service. These meetings have gone some way to addressing some of the issues raised, and
will provide material for discussion in future management training programmes.

Employee Motivation Survey

13
 Achievements

ACHIEVEMENTS
What has changed since 2004? Achievements to date from
implementation of the HRM SOP

'We are gradually moving towards a strategy-focused public administration. There is a

concerted effort to move away from routine ad hoc implementation of activities to
understanding how best to use our limited resources targeting key development priorities'

More strategic, focused planning: longer planning horizons

‘For the first time, we are The reform agenda now informed with more accessible data - is getting ever more focused
seeing where the gaps in and ambitious, and the corporate planning horizons longer. Scenario planning has entered
services really are.' the parlance of financial management. The combination of data from HRMIS and the GIS
A Departmental official
(and its depiction on maps) reveals under-staffed education and health facilities and gaps in
service provision. These can be correlated with other indicators (e.g. literacy rates). Future
infrastructure and other investment patterns are being adjusted to target these areas for
immediate attention. Organisational re-structuring is being proposed in some key
Departments to improve efficiency (already improved through the application of time-saving
and accuracy-enhancing information systems). Better-trained officers backed up with
Geographic information system have been able to formulate a Strategic Development Plan
(SDP) for the City District. For the first time this offers the prospect of attracting additional
investment resources for strategic economic infrastructure in a coherent, inter-related,
logical, time-phased fashion. The (then) Chief Minister of Punjab, and the President of
Pakistan were impressed by the SDP on their visits to Faisalabad that they committed
provincial and federal government funding to finance its early stages. As a direct result, Rs 11
billion of infrastructure investment has been approved by Provincial authorities, and another
Rs 5 billion is 'in the pipeline' from Federal sources.

Changes in 'Ways of Doing Business': Leadership

Student Teacher Contact Days
82%
There is considerable evidence that the CDGF has indeed 'changed the way it does business'
(compared to the Corporate and Departmental situations revealed in 2004) and has moved
rapidly towards not just adopting, but embodying and illustrating compliance with, the
principles enunciated in its Corporate Plan. The concept of 'leadership' having overarching
2% 12% significance in the Plan has been amply demonstrated, not just from the top, but within and
4% throughout Departmental management structures. For example: Policies, management
Casual leave Long leave
Absent Actual contact days
practices, and behaviours are now evidence-based: FMIS and HRMIS and recently a
Geographical Information System (GIS) are not only 'up and running' but are themselves
inter-related in operation. Hundreds of staff are 'IT-literate' and are thus empowered to
access and use these information systems.

This in turn has promoted communication and co-operation between departments that before
the reforms tended to work independently. This inter-communication has been supported
recently with the opening up of emailing possibilities between key officers, and the
‘We can see where the reinforcement of the network of Master Trainers.
under-spends are
happening, and why. We
Departmental functions are managed by EDOs - officers who meet regularly; who are trained
could not see that before'
A Departmental official in leadership and other modern management practices, several of whom have had some
international comparative exposure to municipal management and service delivery; who are

14
 Achievements

mutually and upwardly accountable for their Departmental performance, and who, thanks to
the publication of findings of a recent Citizens' Perception Survey, are informed of the
opinions of service users on perceived deficiencies and shortfalls in their Departments'
service delivery.

'A culture of group meetings with citizens on service delivery aspects of the has been part of
the reforms programme'. In the same vein, more partnerships are emerging between CDGF
and NGOs in service delivery and consultations about standards and access. The latter have
been instrumental in ensuring that women participate equally in such consultations.

Staff are being trained in subjects and materials directly related to job functions and or new
systems, and using methods which are practical and skills-oriented; steps are taken to
assess the contribution of such training not just on individuals but the organisation itself.
There are indications they are empowered by the experience: e.g. now DOs - including a
female DO from F&B - make presentations to colleagues on aspects of systems development IT training for DDOs is a continuous
and operation. feature

In the case of DDO training, attempts have been made at coordinating with, and integrating
different capacity building interventions that are being rolled out by the Devolution Trust for 'For the first time, training
Community Empowerment (DTCE), National Commission for Human Development (NCHD), was not a holiday: it was
actually related to my job.’
the Devolution Support Programme (DSP) and Project for Improvement in Financial A Departmental official
Reporting and auditing (PIFRA) in order to prevent duplication and confusion.

There is active consideration of equality of opportunity aspects of HRM, fed by better data on
the location, grading, and discussion of career development options facing minority groups.

Present Situation of HR Department

There is a functioning HRM Department, under Grade 18 DO level leadership. It is now

responsible for co-ordinating all Departments' training programmes. Staff resources need to
be bolstered in view of its workload: a SNE has been submitted to the Change Management
Unit of the Provincial Government for restructuring and reinforcement of the Department.

CDGF / Provincial Relationships

There has been a major change in the way the CDGF relates to the Provincial government. It
has at its disposal for the first time evidence to illustrate the impact on service delivery of 'We are talking about
“Confidence Building
Provincial HR policies (for example the recruitment freeze), or the precise magnitude of its Measures” here. All
needs for supplementary finance. CDGF has built up management and information systems, Districts need a SPU. We are
and accumulated experience in their usage, which are unique in Pakistan's public sector, let trying to empower our staff
alone local government. It has taken steps to communicate these coherently to the Provincial with better information, to
government (and other local governments, at the President's behest). For example, give them more confidence
in their own judgements.’
Faisalabad made presentations at the Punjab Development Forum in April 2007, and to the The DCO Faisalabad
then Chief Secretary, and high level teams from the Provincial P&D, Finance, Education, IT
departments in a series of visits. A one-day Reform Seminar was held in June 2007, which
senior Provincial officers, and Nazims, DCOs and heads of Planning Departments from all
Punjab Districts attended. There are indications that these products and insights into their
utility from Faisalabad have fuelled the efforts of other reform initiatives at Provincial level,
and have aided the ongoing externally-supported public sector management reform-
facilitation efforts such as Punjab Resource Management Programme (PRMP).

15
 Achievements

Typical Enmities Avoided

A welcome improvement from all-too-typical tensions and rancour in local government

administration since 2001 is that the discourse between incumbent Nazims and DCOs during
the period of the HR reforms appears to have been remarkably collegial, mutually respectful
and supportive. This relationship appears to have been aided by it being based on a mutual
understanding of roles; a clear, written Council-endorsed Corporate Plan and respective
SOPs; regular reporting based on firm information of what has been rapid progress; proven
demonstrable benefits to CDGF and its constituents of the reforms, and growing confidence
in each others' ability to steer and support the reforms. This unusually harmonious
relationship between key players in the new structure of post-PLGO local government has
survived the change of incumbents twice (of each position) since the reforms were started in
2004.

Resistance to Pressures for Transfers

There has been a remarkably low turnover of senior officials in CDGF. The strong reputation
of the authority in terms of reforms, has meant the Nazim and DCO could argue for retention
of key officials in post, despite pressures from the provincial government for their transfer out
of Faisalabad. There is also some anecdotal evidence that the reputation and credibility of the
CDGF's key officials have been enhanced and recognised in provincial government circles as
a result of reform achievements.

16
 Lessons and Reflections

LESSONS AND REFLECTIONS

Challenges faced in pursuing HRM and how (or if) they were
surmounted

Political Interference and Pressures

It appears that political pressures on the management of the CDGF have led at times to 'This is the beginning of the
recruitment of (essentially unnecessary) junior staff, and the posting of others. This is the end of political games and
distortions. For the first time
'norm' in local government in Pakistan. The managers of the authority are as vulnerable to
we and they - have no place
these pressures as they are elsewhere. CDGF differs from other authorities in that the to hide. The costs of un-
existence and consequences of these pressures become more apparent, because there is necessary appointments are
quantitative evidence available from the various information systems, which have been put in clear for all to see.' 'The
place. Thus there is the prospect that, over time, the evidence of the true costs of ill- facts cannot be denied. At
last there is some proof.'
considered political expediency will eventually convince politicians of the short-sightedness Senior Human Resources
of their actions, and such pressures will subside. specialist, and another Senior
CDGF Officials

Continued dependence of the CDGF on Provincial Government

Many of the most serious and intractable challenges confronting CDGF over the past three
years have related to policies, actions (or inaction) and procedures or regulations mandated
in or by higher levels of government. In particular the following:

District Cadre

There was no offer of Provincial support to the preparation of the District operational chart and
schedules for moving to a District cadre (as requested by CDGF when the original
announcement was made). The slow pace of progress with the establishment of a District
Cadre (primarily being driven by NRB but Punjab Provincial government is the key player in
the short term) has already been noted above. The Staff Motivation Survey concluded 'After 4
years of implementation of the PLGO, over 40% of employees think that the Province is their
employer'.

Financial Provisions and Instalments

Financial subsidy/grant provision (through the PFC) has been inadequate, and paid in small
equal instalments (and therefore inefficient to administer and disburse). This problem has
been addressed by the PFC, which has agreed to provide funds in three instalments in future.
It has also been mitigated by the impressive increase in revenue accruing to the CDGF in part
due to financial management reforms.

Provincial Approvals

Despite CDGF proposing an EDO post for HRM department in 2005, no endorsement was
ever received. Although protracted dialogue has taken place between CDGF and the
Provincial government, CDGF still needs to gain Provincial government approval of key
elements of its reforms programme i.e. the strengthened HR Department, and the Institute of
Learning.

17
 Lessons and Reflections

Over-stretched HRM Department

There has been persistent shortage of staff and other resources in the HRM department,
which has been faced with the task not only of spearheading HR-related reforms and systems
development (particularly the HRMIS) and its reconciliation with other major systems (FMIS
and GIS), but also with the launching, development and operation of the training function
(since January 2007, it has been responsible for all training programmes and their monitoring
in CDGF). Attracting and retaining adequate IT staff to develop and service what is a
burgeoning IT system network is proving a major challenge.

‘Women councillors rarely Perpetuation of Attitudinal Obstacles towards Women's Advancement

speak up. That explains why
so little ever gets approved There is persistence of an attitudinal / cultural 'glass ceiling' confronting the professional
for schemes benefiting advancement of women employees. CDGF has attempted to arrange in-service training
women.’
District Councilor nearer the homes of female staff who have family responsibilities.

Attitudinal Obstacles towards HR activities

There is persistence of an attitudinal resistance towards whole HR initiatives including;

Ÿ Resistance to change: - There are some employees who srongly believe that the
existing system is working perfectly and they don't need HRMIS, job description,
trainings etc.
Ÿ Strong scepticism towards the whole HR reform initiatives being undertaken by the
CDGF.
Ÿ Employee perception towards the application of different initiative like in the case of
job description, they believe government will use job description against them.
Ÿ Departmental politics lead to extra efforts and time to get ownership.
Ÿ Busy schedule:- Busy schedule of top management lead extra efforts and time for
consultation and getting ownership.
Ÿ No clear understanding with their existing roles and responsibility. More interested to
include easy functions to their job description while leaving difficult one for some one
else.
Ÿ No understanding with the concept of devolving authority, employee feel by devolving
some functions to junior staff will actually reduce their power.
Ÿ Resistance to use words which they feel will make them more accountable

Key aspects of 'unfinished business'; principal threats to future HRM

progress and how momentum will be sustained
Human Resource Development for Accountability Institutions

'We only saw the budget for The Citizens' Perceptions survey pointed to a major piece of unfinished business: the urgent
the first time on day 2 of the need for more human resource development and mobilisation of all accountability
three-day budget meeting; institutions, and of service users, in how to complain and follow-up complaints. Most
how are we expected to
master and comment Monitoring Committees have still not been set up; elected members appear to need more
meaningfully on all that guidance in the role of Councillors, and in how to interpret and analyse CDGF official
detail?' 'The system with its information (including proposed budgets). Observations have been made in Performance
Call Letters and so on, is all Reports about the dearth of human resource capacities in internal audit. Consultations with
pretty unfamiliar to us'.
CDGF District Councillors. officials and councillors during the preparation of this case study indicated a general
ambiguity in terms of responsibility for initiating training of elected representatives, and

18
 Lessons and Reflections

apparent doubts about its priority at the level of the Province. Despite the efforts made by the 'There is a bureaucratic
SPU, including the opening of a Call Centre (to handle public enquiries and complaints about stranglehold on Council
business. Elected members
service delivery), much more needs to be done to improve working relationships between are nowhere.’
officers and elected members, and them and their constituents. A CDGF Official

Box 5: Auditor’s Roll in Present Setup

‘The way they act now, auditors are part of the problem: not the solution. Their performance is measured by the
number of objections / queries they raise. They should be aware of the training we are doing to make compliance
with financial regulations better. But they are not.'
Several senior members of one Department, during an informal discussion with the authors.

Gender-Based Approaches

Another major element of unfinished business is the need for more work on promotion and
adoption of gender-based approaches in CDGF operations including employment, planning,
budgeting, career development and flexible working practices. Support has recently been
obtained from the ADB's District Support Programme to support development of a Gender
Strategy encompassing all departments. Over 3,000 Union Councillors have had orientation
in planning and budgeting: over 400 in gender-based approaches.

Strengthening SPU Functions

It is crucial that the innovative strategic roles played by SPU continue to serve Departments in 'Information is only a tool.
future. A PC1 / SNE for Phase II of the reforms programme, and the future strengthening of Its usefulness depends on
councillors and managers
the SPU has been submitted to the Provincial government for approval. It would permit
being able and willing to use
contract staff hired for data input and processing for HRMIS, FMIS, and the GIS to be it.'
retained, and for selective national consultant services to be used as required. A Senior CDGF Official

Lessons from the HRM Experience: Pre-requisites and Success Factors

in pursuing HRM in Pakistan Local Government

On reflection, the following lessons regarding factors and conditions which influenced the
outcome of the last four years experience in Faisalabad can be distilled. The extent to which
they can be replicated or adapted in other local government reform environments will be a key
consideration in the ultimate feasibility of further take-up of the challenges of reform in
Pakistan local government.

Top Level Commitment and Leadership

It is a commonplace observation, but nonetheless true, that unless there is high-level

commitment to a devolution capacity development venture such as the reform programme of
Faisalabad, it is unlikely to proceed very far. Two successive pairs of Nazims and DCOs have
unfailingly supported the reforms and the technical assistance team's collaboration with
counterparts in CDGF. Periodically, the political climate proved difficult as (for example)
budget constraints, as well as the identified incomplete projects, necessitated a temporary
freeze on new projects. Since these are the Councillors' primary means of currying favour
with constituents, firm leadership of the Nazim is crucial at such times. This was forthcoming,
providing 'space' and time for corrective measures (and better revenue performance) to
permit a return to stability and the sound promotion of more strategic developments. The
Nazim(s) and DCO(s) have collaborated closely throughout the reform experience, and
indeed they led personally the presentations to the Punjab Development Forum and the
Reforms Seminar in mid June.

19
 Lessons and Reflections

Box 6: The Comments of DCO Faisalabad on Information Systems

'The Information Systems, and indeed so many of the other major reform components (job descriptions for
example), exist, are known-about by everyone here, in the Provincial government, and in many of the other
Districts. They cannot be ignored or destroyed by future Nazims or DCOs who would prefer to over-turn what
we have done, and return to the way things were.'

Provincial Government Support / Interest

By the same token, unless the Provincial government in question favours local government
capacity development and reform, it is unlikely that reform activities in one local government
will thrive, nor will experience be valued, permissive adjustments made in Provincial
regulatory environment, nor shared easily with other local authorities. In this case, the Chief
Minister and key officials at Provincial level (such as Secretaries Local Government, P&D,
and Finance) have been supportive: they have observed how the Faisalabad experience has
become an invaluable 'laboratory' for reform and experimentation, providing invaluable
experience for possible replication not only in other Districts and municipalities but selectively
at Provincial level too.

'Embedded' TA

Another pre-requisite would appear to be a dedicated on-site technical assistance team,

'embedded' with counterparts, facilitating the introduction of reforms and innovative
practices. A flexible scheduling of volume and type of TA inputs is important (rather than
being driven by precise time-bound targets or outputs). A combination of international
consultants (bringing credibility and comparative experience to bear, helping shape the
overall direction of reforms initially) and national consultants is required. The TA model where
consultants were part of the SPU team (as opposed to being in a separate PMU) proved
highly successful in this case. The SPU is positioned within the DCO's office: sending
appropriate 'signals' as to its strategic role and importance.

'This is the first time we can Information Systems

substantiate a claim that
“we cannot afford it” to The experience in this case indicates that a key priority indeed a prerequisite to successful
Councillors proposing capacity development - is the use of information technology to permit the establishment of
ambitious new schemes.
simple, easily compiled, accessed, up-datable information systems: human resources and
Access to objective
information helps mutual financial management information systems being the most critical for supporting further
open-ness.' developments.
A Senior CDGF Official

HRM Investment sooner rather than later

'It became clear to us that Another, related, lesson is that investment in human resource development should be 'front-
the HRM function is very loaded': i.e. disproportionate effort is required early in the reform process to tackle human
dispersed in practice: DDOs resource re-orientation, core skill-development, and 'inventorisation' (simply finding out
have important HRM
where the human resources are, or are not, available). The importance of rigorous surveys
responsibilities. Therefore it
was important to get them to (for example of staff motivation and citizens' perceptions of the Council's services) should
understand their full also be noted. In this case they provided solid evidence, which helped 'change mindsets', and
responsibilities, and the fuelled productive debate between officials and councillors (and between CDGF and the
importance of looking after Provincial government), and underlined the needs for and indicated priorities of,
the people that depend on
them.' management and other skills development.
A CDGF Consultant

20
 Lessons and Reflections

Time

Finally, although it has already been repeatedly stressed in dialogue on the Faisalabad
experience, it is probably worthwhile noting the importance of allowing enough time for new
systems and 'ways of doing business' to 'bed-down' and become routine. Part of the rationale
for the Phase II reforms programme (subject to Provincial government approval of PC1s and
SNEs) is to permit this process to continue.

Benefits

The specific benefits (and financial costs) of HRM investment are summarised in Annex 3.
This section mentions some generic benefits (and then costs) of the reforms in general, and
HRM developments within it.

A Sense of Common Purpose

For the first time since the PLGO came into force, there is a shared sense of clarity of purpose
and direction amongst staff and elected councillors, as to what they are trying to achieve (the
Mission Statement is a common point of reference in documents, courses and key
gatherings). According to the staff motivation survey, over 80% of senior (Grade 1) level staff
agreed they knew how their job impacts the mission.

A Clear Positive Message to Disseminate

The Mission Statement in turn provides a clear 'story' which can be communicated with
citizens and service users via the press and other means (Faisalabad's communication
strategy is the subject of a separate case study). If the message can be disseminated
successfully, the public image of local government may improve accordingly.

Departments Learn to 'Pull Together’

The 'disaggregation' of the Corporate Plan into sectoral strategic objectives and operational
plans, provided a focus for future managerial effort and encouraged collaboration with other
related departments and systems. The quarterly collective appraisals of EDO (and
Departmental) performance 'concentrated minds', encouraged two-way communication
between EDOs and DOs, and provided regular briefings on all major developments between
departments.

From Administrators to Managers

Fully 'owned' strategic corporate and sectoral objectives, derived after assessments of
reality, and dialogue on the way forward, access to information, clear definitions of
managerial jobs, provision of management training, and regular but constructive and
interactive performance appraisal routines, enabled and empowered senior staff to behave
like managers, not just indifferent, detached, administrators. The latter is, unfortunately, the
usual image of the officials in the Pakistan public service.

Work Environment Improved

In an environment in which performance cannot be linked to remuneration, i.e. there is no

means of rewarding extraordinary effort or achievements, the only recourse available to the
Council, if it wishes to retain newly-trained more capable staff, is to provide a human resource EDO Education recognizing DEO W-EE
for her good work

21
 Lessons and Reflections

management environment conducive to sustained effort. Evidence from the recent survey of
staff motivation factors confirmed that, 60% of Grade 1 staff felt adequately (verbally)
recognized for their efforts, and nearly 70% of staff overall felt that working conditions were
conducive to high productivity.

Costs and Limitations

On the other hand, the Faisalabad experience pointed to some of the 'downside' costs,
limitations and risks emerging from such a far-reaching intensive reform process.

Lags between Reform and Service Delivery Results

One major limitation of the reform experience so far and potentially a threat to the whole
reform agenda being pursued by CDGF is that the effects of essentially internal, resource
management-process-related changes in the way the CDGF operates, percolate only slowly
through to impact on service delivery 'on the ground'. On the other hand, it is too soon to
expect meaningful results in terms of grass-roots service delivery. However, in the short-
term, improvements in the administrative and resource management machinery of CDGF are
beginning to provide evidence (and the financial reforms the budgetary 'space') on which
better service management decisions can be taken, and more investment made, in future.

Box 7: Author’s Note

Two primary schools and one large secondary school were visited during the preparation of this case study. In the
case of the primary schools (one with over 100 pupils, the other with over 200 pupils) there were no useable
buildings in the smaller one (which however is a 'Lighthouse' school as part of the Whole School Development
programme), and only two small classrooms in the other (both not being used because of the cold windows were
broken). There was no furniture in the first, and only a small amount in the second school. In the first case, two
classrooms were being constructed with support of the 90% grant provided under the WSD programme. Teachers'
materials (including kits) were however available in both cases.’

By the time of the citizens' perception survey in 2006 - i.e. after nearly two years of intensive,
far-reaching, courageous reforms, fully owned by its political leadership and staff - citizens'
views of Council services published in June 2007 were almost uniformly negative.
Paradoxically, the only area attracting some satisfaction (rural health) was the very sub-
sector of service delivery, which had been 'privatised' since 2004. BHU management has
been outsourced to Punjab Rural Support Programme (PRSP), and is therefore out of the
hands of local government here in common with 11 other Districts in the Punjab under the
Chief Minister's Initiative on Primary Health Care (CMIPHC) scheme. There are indications
that the CDGF is taking these results seriously, and they will serve to galvanise future activity,
and improve the prospects for further partnerships in service delivery.

Reaching the Field: those who interface with the public and users

Any HRM reform efforts have to 'start at the top'. In a hierarchical bureaucratic cultural
environment such as that in Pakistan's public service, any efforts at making services better
'on the ground' at facility level necessitate systematic reform higher up the delivery system in
order to be sustainable. That implies that the 'lags' observed above will be inevitable.
However, there are clear implications (already taken on board by Faisalabad's management)
in terms of renewed efforts to improve service quality at the point of delivery, to rid the
education and health services of their unfavourable image (at least compared to private
sector or NGO providers). This is a key agenda in phase II of the reforms.

22
 Lessons and Reflections

The practical implications for local governments of pursuing HRM

reform in Pakistan

A core team from any local authority contemplating HRM and other reform along the lines
pursued in Faisalabad should study the materials which will be available by the end of the
SDLGF project. They together with several senior elected representatives - should
thereafter visit Faisalabad for face-to-face briefings on lessons learned and the possible
implications of moving ahead in a similar vein.

Any 'exposes' of reform proposals and/or to the experience of Faisalabad, should include
representatives of the elected membership of Council bodies. This is because they could act
as barriers or at least brakes on reforms, if unconvinced of their likely benefits (compared to
the costs in terms of lost or diminished opportunities for patronage). The role of the Nazim is
critical in regard to communication between the executive of the Council and the council
members. Efforts have been made throughout to provide materials in Urdu to councillors
(summaries of all performance reports, copies of Union Profiles, and dialogues on the SDP
were provided to, and discussed with councillors).

The tabular summary at Annex 4, of the 'drivers' of, and obstacles to, change in local
government, presents a sobering picture of the challenges to local government reform,
particularly in HRM, posed by the current governance environment in Pakistan. Strategies
employed, or which could be employed, to surmount the formidable problems, are also noted.

Replication in other local governments to date

There is growing evidence of replication of aspects of the Faisalabad experience elsewhere:

Ÿ DTCE collaborated with CDGF (HR Department) in training programmes for elected
representatives, and has adopted some of the Planning and Budgeting training
manuals.
Ÿ Senior officials of the Provincial government (Secretary Local Government,
Secretary P&D) have already advocated replication of the CDGF reform approach in
other Districts. The Change Management Unit will mount a workshop in February in
Faisalabad bringing 11 Districts where reforms are scheduled - together to discuss
taking forward HRM issues as part of their planned local government reform efforts.
Ÿ The Urban Unit, and the second phase of the CIDA devolution support programme in
two Punjab Districts are actively applying aspects of the CDGF experience.
Ÿ The Karachi megacities programme is interested in replication of aspects of the HRM
systems applied in CDGF for the municipality's 100,000 employees.
Ÿ A Punjab SPU is being considered to be set up to work in partnership with other
Punjab Districts who wish to undertake a reforms programme on a cost sharing
basis.

All senior personnel interviewed as part of this case preparation were optimistic that
Provincial approval would be forthcoming for the proposed additional resources to permit IoL
and HR Department restructuring, and SPU reforms to be carried forward into phase II.

The role of technical co-operation (external consulting services) and donors in supporting the
establishment of a HRM function in local government

23
 Lessons and Reflections

The role of technical co-operation (external consulting services) and

donors in supporting the establishment of a HRM function in local
government
Technical Assistance

The SPU houses the interface between TA personnel and all engaged Departments. It also
processes dialogue between the Council and any external support agency, and makes
arrangements for in-bound visits by such agencies, as well as out-bound visits by CDGF
officials overseas. The case provides some important insights into technical assistance
provision especially where the HRM dimensions of reform are a key priority. The core team is
made up of international consultants and locally-hired nationals, all based in Faisalabad. The
latter are provided with technical back-up and professional development training by the
headquarters office of the parent consulting firm. All IT devices and software tools for the
HRMIS and other major systems were developed by local firms, and therefore have readily-
accessed back-up available.

Departments of the Council have counterpart specialists working alongside TA personnel in

the SPU. The SPU team has regular team meetings to exchange information and jointly plan
initiatives.

Ÿ The DCO (in whose office building the SPU is housed) is Project Director; EDO
Finance and Planning is the Additional Project Director. All key documents and
correspondence of the Unit go out from SPU under the signature of the DCO or
respective EDOs. All the outputs of the Unit are issued in the name of EDOs.

The Role of the Donor in local government HRM Support in the Faisalabad case

The donor to SDLGF, DFID, has made the following contributions during its engagement with
Faisalabad District government:

Ÿ The donor sought, and obtained, the approval of the Faisalabad District government
to the appointment of the consultant team for the devolution reform project before
appointing them.
Ÿ It demonstrated flexibility in the interpretation of the MoU with Faisalabad, when
requests for additional objectives or elements of the programme were made by
CDGF.
Ÿ The donor's regular monitoring and review processes were led by the Islamabad
office of DFID, and by the same national officials: hence there was a degree of
familiarity on their part with the antecedents and nature of the Faisalabad
intervention.
Ÿ Donor review mission reports were compiled in a transparent, consultative,
evidence-based manner, and concluded on the basis of consensus between
Faisalabad (CDGF and consultants) and DFID stakeholders.

Box 8: Comments by an Official of CDGF on donor’s role.

‘Donors should realise that support to local government cannot be just financial assistance; technical assistance
is needed too. The key to the effective management of our relationship with the donor in this case was our
knowing what we wanted to do, and presenting a coherent case. We were proposing to go beyond the
Memorandum of Understanding. The GIS and Call centre were not planned within the project. The donor
people knew this. However, they backed us.’

24
 Conclusions

CONCLUSIONS
The HRM dimensions of the Faisalabad local government reform process, have been
remarkable for the speed of progress, and the extent to which basic HRM systems and tools
have become functional and 'embedded' in the institutional fabric of city government in a
major population centre in Pakistan. Achievements have been all the more impressive, in
view of the limited familiarity of anyone (at any level of government) with HRM principles and
practice, before HRM became an integral dimension of the CDGF reform agenda in 2004.
These achievements have gone a considerable way towards meeting CDGF's adopted key
characteristics: i.e. making CDGF more strategic, efficient, effective, responsive,
accountable and transparent. It has also allowed at least some of the objectives of devolution
outlined in the major GoP/donor study on the subject to be met: holding its staff more
accountable; increasing its ability to allocate staff where they are most needed and managing
its financial resources better. Ultimately once liberated from Provincial regulatory
straightjackets, it should be able to attract and retain skilled staff.

In parallel to establishing and operationalising the HRMIS (and linking it largely successfully
to the budgeting process); conducting job analysis, formulating job descriptions;
operationalizing performance appraisal routines; initiating systematic training for key groups
and promoting equal opportunities, the CDGF has conducted a diagnostic survey of
employee motivation, and surveyed citizens in all its Unions to solicit their views on its
services. These surveys have produced important 'baseline' evidence, which has already
been fed into human resource management aspects of management training and
performance appraisal criteria and routines, and into decision-taking on future departmental
development budgets.

The donor-supported TA advice and inputs have been available on-site, and well-aligned with
Faisalabad preferences and priorities. They have been delivered, and reviewed by the donor
consultatively, in a manner conducive to HRM capacity development.

The HRM policy environment (external to Faisalabad District) has not changed as rapidly, nor
as favourably. Lines of authority, particularly for senior staff, are still confused. Their
appointment, promotion and transfer remain at the whim of the Provincial government. Little
progress has been made in establishing a District Cadre (a career service for officers
exclusively in local government service), despite a federal government target of late 2005 for
its creation. Conditions of service are set nationally, at levels which are highly restrictive and
de-motivating, especially to staff who have made as in this case - worthy additional efforts in
making difficult reforms work, and who have been newly provided with skills which may well
soon find a ready market outside government.

The working environment created by the SPU and the reforms it spearheaded, is witness the
comments above cited from those involved - more motivating and conducive to individual
effort than anything which existed before devolution. There is now evidence-based and -
directed effort in pursuit of objectives which have been mutually-agreed between elected
members (led by the Nazim) and officers; resource allocation is more closely aligned with
these objectives; inter-Departmental communication is encouraged by regular performance
reviews of departmental EDOs supported by their DOs; work is demonstrably more
professionally satisfying. In short, there are now incentives to effort, where once there were
none.

25
 Conclusions

CDGF must now build on further strengthening the HRM department and at the very least
should focus on the following two components over the next 3 years: the first is a manual on
formal written policies and procedures. If correctly implemented and publicised, well
designed policies and procedures should help everyone within CDGF to understand the: “the
organisation rules”; and the way in which the organisation operates.The second is to work
with the Provincial Government on developing a toolkit for Talent Management and
Succession Planning. Talent Management is the process by which districts can identify,
manage and develop its people currently and for the future. Whereas, Succession Planning
has, by contrast, a bias towards satisfying the district requirements- it is concerned with
:identifying posts that are critical to success and deciding how best to satisfy future
requirements; developing strategies to determine the optimum mix of internal and external
recruitment.

There appears to be enormous scope for more GoP and donor resources, and related TA, to
be devoted to District-level institutional capacity development in the current devolved
environment: which poses not only operational challenges, but huge opportunities for better
service delivery, based upon local needs and priorities.

26
 Annex

ANNEX 1: HR Core Issues and Strategic Aims

Core Issues, Strategic Aims, Examples of Actions, and Priorities in the HRM
Department SOP
Core Issues Strategic Aim Example Actions Priority / Phasing
Organisational A 'one organisation' culture Communication, training Continuous
Development embracing changes and example-setting to
needed to deliver reinforce the new culture
continuous performance & and style of working
services improvement Performance appraisal/ 2nd/3rd year
management systems
Workforce Information Mechanisms to collect and Establish a HRMIS Top priority: 1st year
and Planning analyse workforce Analysis to produce key
information to monitor indicators: workforce &
performance in relation to skills audits; turnover &
objectives, and to the retention rates; gender
corporate plan. balance; training.
Pay and benefits Facilitate a flexible Job evaluation 4th year
Management and approach to delivery of Review of pay and grading
Conditions of Service services, through Develop incentive &
motivating the workforce. reward schemes
Recruitment / Resourcing Ensuring District can Revise and monitor 3rd year
recruit retain and motivate recruitment and selection
workforce reflecting local policy and practice
community Creating employment
opportunities
Training and Development Develop workforce skills IT skills development Urgent and continuous
knowledge and motivation Annual training needs 1st year = Top
to provide best value assessment management + DDOs
services Induction programme planning and budgeting; IT
Monitor contribution of skills
training to business 2nd year = Councillors

Employee Relations and Stable and constructive Communications strategy 3rd year
Communication climate for employee Regular team meetings
relations Partnership with Trade
Unions
Employee Health and Working environment Ban smoking Final year
Welfare conducive to effective and Recording accidents
healthy job performance Monitoring sickness

27
 Annex

ANNEX 2: Costs and Benefits Analysis

The Costs and Benefits of Human Resources Management Investment in CDGF

Resources
Activities (Rs.) Beneficiaries

1. Training and Development

ii. Elected Representative 7.3 Million Nazims

Training Naib Nazims
Councillors

iii. Teachers Training 10.0 Primary School Head Teachers

Million Primary Teachers
Assistant Education Officers
School Council Members

iv. Exposure Visits 4.3 Million Executive District Officers

District Officers
Deputy District Officers
Principal/Headmaster
Assistant Education Officers
School Teachers

v. Establishment of IT Training 0.8 Million Drawing and Disbursing Officers

Centre Account clerks

vi. Training Needs Analysis 1.5 Million Executive District Officers

District Officers
Deputy District Officers
Drawing and Disbursing Officers

2. Attendance System 4 Million District Government

People of Faisalabad

3. Job description and person 0.5 Million District Government

specification District's employees

4. Employee motivation 0.4 Million District Government

Survey District's employees

28
 Annex

Impact

Ÿ Capacity building of 3,063 elected representatives (Nazims, Naib Nazims and male & female
councillors) on “Participatory Planning” enabling them to prepare union council plan in consultation with
all the stakeholders particularly women and poor
Ÿ 413 district council members trained on gender responsive budgeting , budget & planning and
governance & poverty

Ÿ Creation of Child Friendly Environment in schools.

Ÿ Development of 16 training modules and teachers' handbooks
Ÿ 470 Primary School Head teachers, 890 teachers and 300 school council members have been
intensively trained.
Ÿ Introduction of a culture to involve local community, UC members and UC Nazims in local school
decision making.

Ÿ It helped management to learn good practices which they are applying in CDGF through the;
i. Restructuring of district's HR department
ii. Establishment of Institute of Learning (IOL) and IT Training centre to cater for continuous
professional development of all district employees.
iii. Establishment of Call Centre to ensure quality of services
iv. Establishment of GIS Cell.
v. Development of district's reward management strategy
vi. Development of district's training policy etc.

Ÿ Created favourable environment for IT acceptance and enhanced employee skills to work on data bases
like HRMIS, FMIS.
Ÿ Use of email for official correspondence is increasing.

Ÿ CDGF is in better position to identify its employee's deficiencies that can be address through training.
Ÿ It is in a position to use it training budget more effectively by arranging right training for right person. It
will bring significant improve management performance and service delivery.

Ÿ The presence of government employee at service delivery point like schools, BHU etc. has been ensured
through the introduction of biometric attendance system at two pilot places (UC # 208 & 165)

Ÿ Now employees are in better position to understand their roles and responsibilities and what are the
expectations from them.
Ÿ Performance management system (ACR/PER) strengthened by giving job description to all 34,467
employees. This will pave way for ACR/PER process to be completed against their job descriptions in
future.
Ÿ Development of performance management tool kit and its translation into Urdu is in process.
Ÿ Translation of job descriptions into Urdu for clarity and better employee understanding.
Ÿ Strong ownership of employee association on job description and each job description of teaching staff is

Ÿ CDGF is now in better position to understand how motivated is its work force? What motivates its
employees and their needs within different employees groups?
Ÿ It is being used as a base line for motivation, reward management strategy etc.

29
44
 Annex

ANNEX 3: Training Activities

Summary of Training-Related HR Programme Components and Activities

Sr. Training Title Participant Details Target Group

No. Male Female Total
Management Training
Category 1: General Management
1 Time Management 11 1 11 EDOs, DOs
2 Leadership 11 1 11 EDOs, Dos
3 Corporate Plan 9 - 9 EDOs, DOs
4 Principles of Good Management 2 1 3 EDOs, DOs
5 Management by Objectives 1 - 1 EDOs, DOs
6 Development Course for Managers 1 - 1 EDOs, DOs
7 Development Course for Supervisors
8 Introduction to Project Management 1 1 2 EDOs, DOs
9 Practical Leadership Skills Training 1 - 1 EDOs, DOs
10 Improving Workplace Effectiveness through 1 - 1 EDOs, DOs
Creativity & Innovation

11 Problem Solving and Decision Making Skills 4 - 4 EDOs, DOs

12 Team Work: Getting People to Work Together 1 - 1 EDOs, DOs
13 How Do Effective Managers Organize 2 1 3 EDOs, DOs
Themselves

14 Effective Delegating Skills 1 - 1 EDOs, DOs

15 Improving Governance and Educational 16 10 26 EDOs, DOs, Deputy DOs,
Leadership Practices DDOs, AEOs
16 Office Management 12 8 20 College Principals
17 Good Governance 12 8 20 College Principals
18 Negotiation Crisis 12 8 20 College Principals
Category 2: Financial Management
19 Budget and Planning 809 151 960 DDOs, Account Clerks
20 Mid Term Budgetary Framework (MTBF) 40 1 41 EDOs, DOs
21 Financial Management Course 2 - 2 EDOs, DOs
22 Forecasting Techniques for Managers 1 2 3 EDOs, DOs
Developing Project Proposals 1 - 1 EDOs, DOs
23 Finance & Accounting for Non-Financial - 1 1 EDOs, DOs
Executives

24 Value Addition through internal Audit 5 1 6 EDOs, DOs

25 Negotiation Crisis/ Communication Skills 12 8 20 College Principals
Category 3: Human Resource Management
26 Workshop on Preparing Human Resource 2 - 2 EDOs, DOs
Policy Manual

27 Performance Review Skills 5 - 5 EDOs, DOs

30
 Annex

Category 4: Information Technology

28 Basic Computing Course 483 109 592 DDOs, Clerks
29 HRMIS Application Training 110 57 167 DDOs, Clerks
30 FMIS Application Training 70 30 100 DDOs, Clerks
31 CCBMIS Application Trainings 3 1 4 DDOs, Clerks
Category 5: Teachers Training
32 Head Teacher Training (WSD Model) 211 259 470 Primary & Elementary
Schools Head Teachers
33 Teachers Training (WSD Model) 400 590 890 Primary & Elementary
Schools Teachers
34 School Council Training (WSD Model) 74 226 300 School Council Members
Category 6: Elected Representatives Training
35 Participatory Planning, CCBs and Local 2,178 885 3,063 Councillors
Government Monitoring System

36 Poverty, Governance & Gender 317 96 413 District Council Members

37 Budget & Planning Gender Responsive 317 96 413 District Council Members
Budgeting

38 Participatory Planning & Poverty 39 2 41 EDOs, DOs

Category 7: Exposure Visits
39 International Conference: Systemic 8 4 12 City District Nazim, EDO,
Interventions In School Transformation & DOs, Deputy DEOs,
School Visits AEOs, Primary Teacher
40 Study Visit to UK Local Councils 3 3 DCO, EDOs, DOs
41 Study Visit to Hong Kong & Malaysia 2 - 2 City District Nazim, DCO
Total 5,190 2,558 7,748

31
44
 Annex

ANNEX 4: Drivers of Change

An Impression of the Factors Affecting HRM Development in Pakistani Local
Government, and Some of the Implications for Action to Address the Challenges

Driver of Change Obstacle to Change Possible Strategies

Type of Driver
to Address Obstacle

Structures Punjab Local Government Long history, but no [Explore possibilities of

Ordinance (PLGO) of 2001 consistent support for support to level of
marked the first determined devolved authority and government where services
attempt to devolve authority resource flows to local delivered directly: to see how
and resources towards local government resources can be injected

2009 will be the first year that LGO (and Provincial LGOs) Support balanced (multi-
Provincial Governments will were introduced 'top-down': stakeholder) reflection of
be able to change their with minimal consultation aspects of the LGO which
Provincial Local Government with Provincial or District need change on the basis of
Ordinances without levels. Role and authority of experience since 2001.
Presidential approval. Provincial governments left Acknowledge dangers of
ambiguous in LGO. factions at provincial level
making hasty and
opportunistic changes in
PLGO for their own ends
during and after 2008.

Hostile attitudes amongst [Inform those Provincial

Provincial executives at players who are more
least initially to devolution to favourably disposed towards
Districts. devolution of any positive
advances at District level.]

PLGO Anticipated that local District-level operational [Inform debate on how to

governments would take over roles ill-defined and/or establish the proposed

Overt, bold attempt through Local level societal structures [Inform local Councillors of
national policy to build local are still essentially feudal in roles under LGO, and
democracy, engage more nature: political power and optimal approaches to
women as Councillors, and influence are linked directly performing them.]
make civil service to wealth (land ownership; [Suggest constructive types
accountable to people. dynasties). of local schemes addressing
gender and poverty issues.]

Bureaucracy is itself a Encourage inter-Cadre

generalist elite split into communication.
competitive and antagonistic
'cadres'.

'Elite capture' frequent at [Provide suggestions for

local level : patterns of schemes benefiting local
investment do not economic or social
necessarily reflect needs of development]
poorest. [Provide timely information
about, and guidance in
interpretation of, Council
budgets]

32
 Annex

Type of Driver Driver of Change Obstacle to Change Possible Strategies

to Address Obstacle

Structures Relatively rich local [Inject resources for

politicians and LG infrastructure on 'counterpart
bureaucrats use private contribution' basis: multiples
services, hence there is a of, or matching community
history of chronic under- contributions]
investment in infrastructure in
education and other services
devolved to LGs

Entrenched corruption in Explore approaches and

management of public technologies for equipping
infrastructure building communities with basic skills
projects: affects costs, quality of simple building design and
and therefore safety and supervision.
durability of structures.

Lack of understanding of [Advocate for more attention

concept of Human to staff development in
Resources Management at context of LG reform.]
all levels of civil service [Introduce basic (information)
bureaucracy. systems, demonstrate their
utility, and gradually develop
more detailed approaches.]
[Demonstrate positive results
and examples to Provincial
government and other LGs]
[Survey staff opinions on
work and motivation;
publicise and discuss
results.]

Institutions As part of the PLGO 2001, Major difficulties experienced [Make efforts to create and
Citizen Community Boards, in establishing MCs: many strengthen key accountability
Monitoring Committees for still unformed. institutions; reflect on results;
main services, School CCB establishment slow and re-plan if necessary;
Councils, and elected Union cumbersome concentrate efforts at facility
Councils were established to CCBs vulnerable to elite e.g. school or community
facilitate popular 'voice' and capture. level where there may be
put pressure on bureaucracy better prospects of take-up of
/ executives. support for more immediate
advocacy or scrutiny of
service performance]
[Introduce streamlined
procedures for CCBs'

Some examples emerging of Civil service ambivalent [Generate objective,

people asserting rights and about accountability representative information
'voice' if provided with institutions. Generally no about community opinions of
support from NGOs 'culture' of public service: service delivery and
only of serving cadre preferences, and
interests. disseminate for discussion.]

Major programmes of Bureaucracy is itself a [Concentrate attention at

systems-development generalist elite split into local level where there are
support provided to civil competitive and antagonistic examples of mutual inter-
service. 'cadres'. service inter-cadre
dependency…thus
demonstrating need for
collaboration]

33
 Annex

Type of Driver Obstacle to Change Possible Strategies

Driver of Change
to Address Obstacle

Institutions Major challenge posed to LGO formulated rapidly: [Study nature and operation
staff at local level to without operationally-tested of mandated systems e.g.
understand and master new preparation of basic budgeting and accounting]
roles. devolution-management [Suggest amendments based
systems: finance or HRM. on local experience.]
[Introduce changes permitted
within existing routines, and
reinforce compliance with
application of IT].
[Ensure staffs' full familiarity
and compliance with financial
and other systems]

Local governments meant to No integrated strategic multi- [Conduct initial assessment

reflect local priorities and sectoral planning based on of problems, gaps, needs,
realities in planning assessments of problems, opportunities and realities.]
development programmes gaps, and opportunities has [Introduce notion of strategic
ever taken place at local long-term economic
level. development planning.]

Since approx 2004, more Few incentives for [Build upon and reinforce
attention at Provincial level in performance for departments New Public Management by
Punjab has been given to or staff in current defining jobs, roles and
public sector management: bureaucratic structures and performance standards
performance is being cultures. locally, and communicating
emphasised. positive outcomes of local
level applications to
Provincial level.]

Since approx 2004, more Few incentives for [Build upon and reinforce
attention at Provincial level in performance for departments New Public Management by
Punjab has been given to or staff in current defining jobs, roles and
public sector management: bureaucratic structures and performance standards
performance is being cultures. locally, and communicating
emphasised. positive outcomes of local
level applications to
Provincial level.]

Agents These DCOs are drawn from Relationships between [Capitalise on and support
the elite District Management Nazim and DCO have proved favourable Nazim / DCO
Group. contentious and 'chemistry']. [Utility of SPU as
dysfunctional in many places. 'Think Tank' and its Meeting
This has negatively impacted Room as 'sanctuary' for high-
upon the quality of devolved level meetings and decision-
service delivery. taking.]
Anecdotal evidence of [Build basic administrative
gradual decline in quality and and managerial systems
experience of candidate (founded on good
DCOs, from DMG, due partly information) as an 'insurance'
to past instances of negative against bad 'chemistry' in
relations with Nazims, future as personalities
(relatively) narrowly-defined change or are replaced.]
role compared to past, and [HRMIS, FMIS, GIS,
attractions of posts at Document Management
Provincial level or System]

Agents These DCOs are drawn from Outside civil service (in
the elite District Management donors offices, NGOs,
Group. private sector).

34
 Annex

Type of Driver Driver of Change Obstacle to Change Possible Strategies

to Address Obstacle
Donors have provided Donors have concentrated [Consultant team based at
capacity building support for resources and/or District level]
over a decade to Provincial consultancy teams at federal
and District level structures and provincial levels

Donors and Government are Few examples hitherto of [Gather objective quantitative
currently seeking harmonised donors and counterpart evidence of the effects of
approaches to capacity agencies conducting training programmes:
development including local evaluations of capacity measure time-taken, error
government capacity in the development support and rates or behaviours
context of the Paris sharing (and learning from) beforehand; compare to
Declaration. results. post-training experience]
There is an ongoing Asian [DDOs] [Teachers]
Development Bank / [Record and report upon
Economic Affairs Division performance improvements
initiative on positive capacity to demonstrate benefits of
development case studies practical training]. See
(SPU is one of them). Appendix 7.

'Sitting allowances' paid for [Pay government rates for

attendance at donor-financed travel/per diem allowances
courses have distorted for attendance involving out-
motivation of participants - of-duty-station travel. Do not
from content towards level of pay sitting allowances.]
allowances.

Key players at local and Capacity building equated [Encourage variety of

Provincial levels are targeted with 'training'. approaches to people-
for (especially sectorally- Training programmes tend to development. Encourage
oriented) capacity be Supply-oriented. bosses to communicate with
building. Day-to-day coaching of subordinates and take
subordinates is rare. suggestions from below;
pursue coaching.]

Training seen as a 'holiday': [Undertake Job Analysis:

often ill-suited for, and formulate Job Descriptions;
unrelated to, tasks design training around job
undertaken in jobs. realities and apparent needs
for knowledge skills and
attitude change.]

Sector agencies at Provincial Training programmes often [Introduce notion of

level make sectoral plans focused on needs and integrated strategic planning
(including for capacity implications of one particular for District encompassing all
building). sector. sectors, and stressing inter-
dependencies.]
[Run training programmes for
staff of more than one
Department] [DDO courses]

Agents These DCOs are drawn from Outside civil service (in
the elite District Management donors offices, NGOs,

A Local Government LG Academy has limited [Establish modest training

Academy exists (Lala Musa) capacities: teaches LG rules facility reflecting local needs
and regulations and helps in or priorities.]

35
 Annex

Type of Driver Driver of Change Obstacle to Change Possible Strategies

to Address Obstacle

Provincial and Local Information on location and [Build information systems

governments notionally able condition of basic based on 100% surveys of
to articulate own needs for infrastructure and human various 'populations':
capacity building and other resources available compare new databases
inputs - more especially at local level is subsequently.] [e.g. staff
effectively. typically out-of-date, inventory compared with
unreliable, dispersed and finance payroll; anomalies
difficult to access. identified and
corrected]

No detailed job descriptions [Develop Job Descriptions

exist for most civil service consultatively: using many
jobs at Provincial and incumbents differing
especially District level. experiences and
observations to formulate
generic job descriptions and
personnel specifications.]

Performance appraisal of [Introduce performance

subordinates is either not appraisal selectively]
done or done superficially to [EDOs only: quarterly reports
fulfil bureaucratic to Nazim, DCO and peers;
requirements. performance appraisal
against agreed targets.]

Few links between training [Forge links with existing

providers and agencies public and private sector
requiring training assistance. providers]

Realities at local government [Brief Provincial players

(District and below) not well- regularly on progress;
appreciated at Provincial problems; innovations]
level.

LGO forbids involvement of Tradition of Provincial and Avoid confronting abuses

political players - especially local politicians 'protecting' directly (risk of rejection and
councillors in civil service members of the bureaucracy of TA being marginalized).
staff matters and in exchange for generation of [Produce objective evidence
management political support; includes of incidence and costs of
pressuring administrators to abuses]
employ constituents
unnecessarily.

Members of National, Politicians tend to favour [Stress and demonstrate

Provincial, and District visible infrastructural value of schemes favouring
Assemblies have access to investment (roads, street under-served groups.]
development funds with lighting) over investment in [3,000 UC members trained
which to sponsor / promote people (education, basic in planning and budgeting]
priority development health services). [Over 400 trained in gender-
'schemes' locally. responsive budgeting.]
[Over 400 trained in poverty,
governance and gender.]

36
 Annex

Type of Driver Driver of Change Obstacle to Change Possible Strategies

to Address Obstacle

Councillors as Councillors have a wide [Prepare and distribute

representatives of the range of educational simplified summarised and
citizenry are notionally the backgrounds, and varying translated versions of major
key to the democratic capacities to absorb financial planning documents or
accountability of local or technical information or to budgets] in a timely fashion
before important meetings.
government (and thereby the judge development
[Stress the importance of
embodiment of what proposals.
spreading the impact of
distinguishes it from higher They may be members of development programmes
levels of public entrenched elites and not beyond single schemes in
administration). concerned about or hostile constituencies towards less
towards, development privileged groups]
benefiting under-privileged [Make efforts to engage them
groups.They may be overly- in macro-issue debates: the
parochial in their allocation of resources within
perspectives, and be the Council budget, and
apathetic about strategic changes year to year.; the
Corporate Plan; the SLTDP;
issues.
survey results.

Teachers: given their number Teachers (and other groups [Develop HRMIS to provide
and wide distribution - are of local government staff) evidence: access to
influential agents at have become target for information on teacher
community level. politicians as 'constituency' distribution; vacancy rates;
mobilisers: in return
consequences of requested
Councillors put pressure on
local governments in terms of transfers or postings.]
teachers'appointments/postin
gs/transfers/promotions.

Auditors are crucial in State Auditors (and [Negotiate exemptions from

enhancing discipline in particularly Internal Auditors ) audit for new fragile
are short in supply. The community-based structures
probity and effectiveness of
former may be relatively old- where volumes of resources
financial resource use at are relatively small.]
fashioned in approach, and
local level. [School Councils] Make
may not have been updated efforts to influence the
External (State) Auditors and
in new systems introduced. approach to auditing from
Departmental (Internal) Their performance is 'problem-spotting / objection-
Auditors have assessed by number of raising' to 'solution-oriented'.
complementary roles to play. queries / objections raised. Attempt to build constructive
Their attitude can be highly Internal Audit capacities:
intimidating and pose serious grounded in professional
threats to groups who are not audit competences, together
with an understanding of
used to being audited, and operational constraints and
who may feel insecure as a the nature and purpose of
result. ongoing changes and
reforms.

Private Sector Service Attitudes within the public Sub-contracting some

Providers are important in service in general and local services [Punjab Rural
their own right as potentially government in particular may Support Programme for
dynamic influences or be hostile towards use of or health services.]
supplementary support, partnerships with the private [Use of local expertise to
and/or as suppliers of sector. provide IT software systems
services not available in the design and maintenance -
public sector. The providers and therefore better
may go on to become future sustainability] [Development
valuable resources for of local HRM professionals
subsequent public sector previously inexperienced in
capacity interventions, based the public sector.]
on their earlier introduction
and experience in a donor-
financed project.

37
 Bibliography

BIBLIOGRAPHY
City District Government Faisalabad Reports:

Corporate Plan (2004 2009)

Employee Motivation Survey (July 2007)
Employee Reward Management Policy Framework
Human Resources Management Strategic Operational Plan 2004 2009
Performance Reports (2004-2008)
Organisational Structure June 2007
Selected Services in Faisalabad: Perceptions and Realities (June 2007)
Staff Training and Development Policy 2008 - 2011
Sustainability Strategy (May 2007)

Devolution in Pakistan (Vols 1 3) Asian Development Bank, DFID, World Bank 2004
Annual Review: SDLGF Project December 2006 (DFID Pakistan) + Aide Memoire
Drivers of Change Briefing Note (DFID)
Mid Year Review Report June 2007 (DFID Pakistan)

Books

Dienerova. K and Vavrova. L (2004), Public Relations for Local Governments: Bratislava:
Faber
Gilbert W (1975), Public Relations in Local Government, Washington DC: International City
County Management Association
Heeks R (2006) Implementing and Managing E-government: An International Text, Sage
Publications London.

38
OUR OTHER PUBLICATIONS
ABOUT THE AUTHORS

S.M. Khatib Alam - Project Manager and Overall Team Leader

Khatib Alam is an international management consultant with considerable experience of

leading large and diverse teams on multi-disciplinary, complex and challenging projects
around the world. He has a particular expertise in strategic management, organisational
change management, institutional strengthening, urban development and corporate
social investment. Since 2004, he has been the Overall International Team Leader on
the innovative DFID funded SDLGF project.

David Alan Watson - DFID-accredited Governance and HRM Consultant

David Alan Watson is a development economist and an international development

consultant with special interests in the promotion of democratic governance (especially
local government), human resource and institutional development, and capacity
building. He was a line development economist for seven years for two governments
(Fiji and Botswana), and leader of multi-ethnic training consultant teams (long and
short-term) in Indonesia, Bangladesh and Ecuador. He has undertaken over ninety
short-term assignments in Africa, Asia, the Middle East, the Former Soviet Union, and
the Caribbean.

Muhammad Shahid Alvi Municipal HR Specialist

Muhammad Shahid Alvi is a Municipal HR Specialist. He possesses 4 year professional

experience in Municipal HR. He has worked on the SDLGF project as an HRM Specialist
since 2004 and has been responsible for the establishment of CDGF’s HRM systems
and processes.
 City District Government Faisalabad
DCO Office, Near Iqbal Stadium
Faisalabad, Pakistan

Tel: +92 (0) 41 9200205

Fax: +92 (0) 41 9200206

E-mail: [email protected]
Internet: http://www.faisalabad.gov.pk

Strategic Policy Unit

2nd Floor, DCO Office
Near Iqbal Stadium, Faisalabad
Pakistan
Tel: +92 (0) 419201256
Fax: +92 (0) 419201257
E-mail: [email protected]
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Management Consultants
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