The Effects of Public Sector Employment Policy

On the Professional Labour Market: The Case of Addis Ababa

 

 

 

 

By

Asnake Talargae

kbasnt@ yahoo.com

 

 

 

A Paper Submitted to the Fifth International

Conference on Ethiopian Economy

(First Draft )

 

 

 

 

 

 

 

February 15, 2007

            Addis Ababa

 

 

 

Table of Contents

Page

  Abstract……………………………………………………………………………………3  

  Abbreviation and Acronyms…………………………………………………………….4

1.           Introduction……………………………………………………………………………….5

2.           Objectives……………………………………………………………………………..…..6

3.           Methodology……………………………………………………………………………….7

4.           Conceptual and Theoretical Framework……………………………………………….9.

4.1. Recruitment…………………………………………………………………………..13

 4.2. Remuneration and Rewards………………………………………………………..14

 4.3. Human Recourses Development and Training………………………………….15

     5.      Civil Service System in Addis Ababa…………………………………………………….17

                5.1. Previous Experience…………………………………………………………………17

         ●Pre-1974/5

         ●1974/5-1990/1

         ●Post-1991

                5.2. Recent Civil Service Employment Trends: Overview…………………………….20

               5.3. Professional Employment in Addis Ababa…………………………………………24

                  5.3.1. Professional Shortage……………………………………………………………24

                 5.3.2 High Professional Turnover………………………………………………………27

      

       6. Discussion…………………………………………………..………………………………….29

      

      7. Conclusion and Recommendation…………………………………………………………….38.

       

         References…………………………………………………………………………………………40

        

          

 

    

            

               Abbreviation and Acronyms

 

AACA         Addis Ababa City Administration

CPA            Centeral  Personnel Agency

CSC              Civil Service Commission

CSRP          Civil Service Reform Programme

CM              Custodial and manual

ECA            Economic Commission for Africa

EPRDF        Ethiopian Peoples’ R evolutionary Democratic Front

FCSC           Federal Civil Service Commission

FDRE           Federal Democratic Republic Of Ethiopia

HR               Human resources

HRM           Human resources management

IMF              International Monterey Fund

NGOs          Non-governmental organizations

OECD         Organization for Economic Cooperation Development

PS                Professional and science

PAS             Public Administration Service

SSC              State Services Commission

TGE            Transitional Government of Ethiopia

USAID         United States Agency for International Development

WB               World Bank

 

 

 

 

 

 

 

 

Abstract

 

This Paper addresses some of the effects of human resource (HR) policy and management on professional employment in the Addis Ababa public sector. It also considers how human resource management (HRM) has hindered the civil service to be competitive in the labour market by examining the existing skilled HR employment, retention and human resource development (HRD) policies and practices using the case studies in three Addis Ababa civil service institutions.

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The impact of HRM on attaining and retaining professionals is measured using some of the underlying issues related to HR. Essentially there are two sub-themes examined in this regard. Professional skill shortage, along with staff-mix, and turnover are the cases in point. Accordingly the paper argues that the absence of appropriate HRM system in the civil service makes it difficult to attract and retain skilled HR in the civil service.

 

The HRM functions such as recruitment, remuneration and rewards, training, career development and work environment are used to measure outputs i.e. securing committed and capable talent skill. Furthermore, the study underlines the need for a fit between the HRM approach and the organization strategy. Also it is recognized that bundles of linked and coordinated HRM interventions will be more likely to achieve sustained solutions to the challenge.

 

 

 

 

 

 

 

 

 

 

1.      Introduction  

 

The Addis Ababa City Administration (formerly Addis Ababa Municipal Administration) public sector or civil service within its own self-rule has been organized pursuant to a designation of chartered administration decree of the Transitional Government of Ethiopia (TGE1993). In recent years, it has structured 45 different public sector institutions and 10 sub-cities with their own functional duties.

 

In spite of this, however, reports of the City Administration (2006) shows shortage of professionals and skills mix are the greatest challenges for civil service. Shortage of talent skill is manifested in many forms including absence of sufficient talent, insufficient recruitment, high rate of turnover and low inflow of labour. It should be noted that skilled labour shortage in civil service is mainly expressed in terms of inability to attract and retain staff.

 

For the last 13 years, the public sector has been characterized by critical shortage of professional human resources (HR) in the service. The existing shortage of professional situation has been aggravated by high rate of turnover coupled with insufficient recruitment. The gap between the need and the actual labour stock is evidenced by many vacant positions unoccupied for long period of time and repeatedly vacancy announcements.

 

Therefore, the status of the existing manpower in different institutions is not sufficient to promote socio-economic development policies of the AACA. Thus, the implementation of socio-economic development plans and policies of the city calls for concrete policy measures and human resource management (HRM) practices for specific case studies concerned with systematic identification of factors constraining HRM.

 

In the same way, appropriate HRM policy and practices has become increasingly important in attracting and retaining talent skills and narrowing the ever growing gap between the need and the actual labour stock. Along with the federal line, the AACA has been launching a civil service reform program (CSRP) to fill the gap for more than 13 years. However, the role and sustainability of new employment policy has become increasingly controversial. In Addis Ababa, the city administration has recognized minimization of qualification requirements in a bid to attract and retain professionals; yet the challenges of critical skills shortage and insufficient recruitment has continued to its highest level and emerged as one of the major hindrance for effective implementation of city administration socio-economic development plans and policies.

 

The problem of HRM in the civil service would be exceedingly difficult if it involved nothing more than the traditional personnel administration functions to civil service employees to perform service delivery for which AACA has responsibility. The current debate on the effect of employment policy to market competitiveness of the civil service and alternative ways to secure talent skills at institutional levels have partly emanated from this limitation of policy reform programs which have been carried out for so long in the country as a whole and in Addis Ababa in particular.

 

This study examines some aspects of the civil service employment policies implemented together with compensation programs existing in the case studies institutions, as well as certain of their labour market effects. Employment policy, together with other civil service rules and regulations, perceived problem and as a potential solution to it, has an impact in the three public sector institutions covered by this research, been the shortage of skilled labour, staff mix and high labour turnover.

 

This paper is organized in the following order. Section 2 will briefly discusses the objectives of the paper followed by the methodology in section 3, where the process, tools and techniques applied to collect, analyzing and compile the data will be provided. Section 4 will provide conceptual and theoretical framework for studies pertaining to professional skill shortage in Ethiopia. Section 5, the main body of the paper, analyzes the results while the final section will offer some concluding remarks and recommendations.

 

2.      Objectives

The study attempts to investigate issues surrounding professionals’ employment with specific reference to public institutions in Addis Ababa. In light of this central theme, this study aims to:

 

·        Assess and  identify the level of professional shortage and the status of HR outflow the service;

·        Review the main challenges confronting the HRM policies and practices;

·        Assess the regulatory constraints affecting the attraction and retention of professional employees; and

·        Explore the HR policies and practices implications for improving the existing HRM system.

 

3.      Methodology

The intention of this study is to find out whether HRM gaps are causing the challenges in employing and securing skilled civil servants. Hence, to determine to what extent HRM polices and practices affecting Addis Ababa's institutions, we explored three case studies institutions. These organizations were selected as representative cases for most organizations in Addis Ababa in terms of a series challenges facing in recruiting highly skilled HR, shortage of professional mix, and increasing outflow. The sample includes Health Bureau, Civil Service Commission, and Trade and Industry Bureau, where necessary, we also contacted other private and non-governmental organizations (NGOs).

 

Turnover and vacancy management were measured for understanding recruitment and retention (Yumkella 2006). Professional voluntary resignations were considered here as turnover. Vacancy management is about the efficiency and effectiveness of recruitment (SSC 1999). Both are affected by changes in the wider labour market and give an indication of labour market responses to the public sector. This is an indicative how attractive employment policy is in place to enhance new blood to the service. The causes of unfilled positions and outflow employee can be linked to internal as well as external factors (Yumkella 2006).

 

Besides the available secondary data indicators employed, the interview conducted was provided how well the organization managing its HR. The questions were related to the internal and external environment, to recruitment and selection, remuneration and rewards, training and development, as well as performance evaluation.  

 

 

 

To this end, an intensive qualitative case study approach was used; employing semi-structured interviews with HR professionals, Bureau Heads, department managers and other concerned government officials. Interviews with the Bureau Heads and HR managers are consider suitable on the premise that managers are primarily responsible for the development, formulation and implementation of key HR processes and strategies and because they are in better position to furnish relevant information during the interview. Thus, intensive interview with managers are important because they have the required knowledge of HRM.

 

Furthermore, in-depth face-to-face interviews were conducted employing close-ended with ordered choices and open-ended questions. The advantage of open-ended questions is that the respondent is free to express their ideas and thus the study can get additional information. In order to get an in-depth insight in to the HRM policies and practices in Addis Ababa civil service institutions qualitative and quantitative data were collected.

 

In this regard, of the intended 12 concerned respondents for interview appointments, 10 interviews were secured. Thus asked open-ended questions were conducted with managers, but in order to focus the interviews on the most important issues that would help answer the research questions, relevant concepts from the literature were identified. This did not, however, limit the responses of the interviews.

 

The indicators of professionals or well-qualified staff employment can be broadly categorized as stock and inflow indicators. These indicators can be used to see whether appropriate staff mixes are there, whether skills shortage is found or not so as to achieve strategic objectives of these organizations under study. Measurement of these indicators uses two methods: qualitative methods and quantitative methods (SSC1999).

 

The approach in this study considers people as a key organizational asset. In fact, the organizations do own their people. The only thing to do is to create employee commitment and attachment to the organization that could enable to get quality staff and reduce turnover.

 

Using indicators of labour stock measures the value of the assets that employee bring to the organization, that is, the level of skills, competences, experience and knowledge. The indicators that used to identify the value of HR assets include qualifications, experience, labour costs, occupation and job size (SSC 1999).  

 

At another level, the flow indicators measure the extent to which public sector is adding to, and/or subtracting from, the stock. This is measured using indicators such as the efficiency and effectiveness of recruitment, the level of turnover, and training and development. At more analytical level, these indicators assist in assessing how the organization is managing its HR to strategic goals. The level of turnover, for instance, provides sign about employees’ morale and indicative of public sectors’ ways of interaction to find practical solutions. Similarly, the ineffectiveness of labour competitiveness in the market gives an indication of responses to the changes in the wider labour market. Measuring HRD and training also critical how organization develops their own staff to balance internal promotion and external recruitment in changing situations like Addis Ababa has facing in recent days.

 

 

4. Conceptual and Theoretical Framework

Several civil service institutions in Ethiopia, as it may be the wider Africa, are currently experiencing a shortage of professionals (FCSC 1999; Mekeria et al 2002; Asnake 2001; Asnake et al 2005). The relationship between professional employment and competitiveness in the labour market is characterized by shortage of skilled labour and high labour turnover in the civil service. Career-based or position-based system preferences concerning models of employment are certainly part of the reason for an increasing shortage of skilled labour.

 

Research in many countries has shown that establishing appropriate civil service employment dimensions and provision of improved reward as well as remuneration helps to attract and draw the best talent into the public sector (Yumkella 2006; OECD 2002). Capacity building training may also provide decision-makers with a tool for developing and maintaining realistic strategies for civil service pay and employment. Improvements in recruitment and selection systems can also encourage the best-suited candidate to take appropriate position. Most studies on human resources (HR) challenges  tend to suggest generally that the inappropriate HRM seems to be the major reason why civil service institutions suffer from critical skills shortage (OECD 2002; Lethbridge 2004; Buchan 2004).

 

Human resources framework for the public service has become central to develop the public service as an employer that competes in the broader labour market for its share of competent HR (SSC 2004). For many years management of HR was seen as assistance to line managers by managing leave record and payroll. However, there has been a growing consensus by academics, theoreticians and practitioners, these alone are not sufficient to align HR with organizational goals (SSC 1999; Buchan 2004; Lethbridge 2004). HR framework should also include developing and implementing effective policies and practices as well as optimizing the interaction of workplace systems to enable or persuade people to achieve the organization’s goals (SSC 1999). As a result the concept of HRM is considered as prerequisite for developing labour market competitiveness especially the public sector.

 

In this study, HRM is defined as it is the integrated use of systems, policies, and management practices to recruit, maintain, retain and develop the appropriate number, skill mix and motivation of employees who will help the organization meet its objectives (O’Neil and Johnson 1999; Mathauer and Imhoff 2006). On the basis of this definition, in order to be effective and sustainable, HRM has to include three levels of intervention: the system level, organizational level, individual level.

 

Various scholars and authors point out the causes of the present challenges facing public sector HRM system. Among them Scott A. Fritzen (2000) and Trevor Bolton (2001) categorized causes of shortage of skilled HR into two, i.e. internal and external factors. Livy (quoted in Bolton 2001) considers the external environment, which affects the availability of skilled talent in an organization, include competition from other employers, the supply of and demand for skills force outside the organization, wage trends and government policies such as decentralization and public administration reform, socio-economic development levels and patterns.

 

Linda Van Gelder (1999) reviews the challenges in the civil service from internal perspectives. Gelder argues civil service that limited HR pool may also reflect problems in the policies or management of HR within the civil administration. Gelder further goes on to state that factors that impede the ability to attract and retain skilled personnel include recruitment policies, compensation policy and poor management systems.

 

There are other arguments that consider institutional and policy failure as a major constraint on the attraction and retention of professionals in the civil service. The joint staff study of the USAID (2003) indicated the ability to attract and retain skilled personnel depends to a greater extent on HR and training policies, weak institutions and inappropriate structures. These relate to the number of skilled HRD and the structural accommodation of the number of professionals. According to the OECD (2004), markets, regulation, contracts with stakeholders and the social pressures that influence civil service competitiveness in professional labour market.

 

Stefane M. Kabene et al (2006), on the other hand, relates the HR issues in competitive market under the following main headings: the size and composition of the professional workforce, training issues, the outflow of talent skills, the level of socio-economic development, and cultural factors.

 

Recent studies, however, characterized the current HRM policy and practices as hindrance to market competition for skilled HR. Mekuria et al (2002) argues that the HRM policies and practices characterized by lack remuneration and motivation schemes, lack of planning and training, highly centralized personnel management system. FCSC (1998) uses empirical data to show that pay structure of the civil service has contributed significantly to skilled HR higher outflow of the service to the private sector. Furthermore, Asnake and his friends (2005) note that lack of competitiveness has contributed to the challenges facing the civil service in recruiting and retaining skilled HR. They further comment that the incidence of migrating talent to the private sector is potentially dangerous for the efficiency and quality of government operations at federal, regional and local levels.    

 

The arguments summarized above do highlight the mentioned factors effect on the shortage of professionals. Since attracting and retaining of HR is the main area of concern for HRM policy and practice of the country, the HRM reform document regards shortage of skilled labour in terms of inflexible recruitment and wage policies, lack of career progression, problems with regard to performance management, and limited practices of HRD (FCSC2002).

 

Many studies have examined the relationship between HR policies and securing professional employees at different levels (Evas and Manning 2001; Gilder 1999). One notable example to this pattern of research is work carried out by Linda van Gelder (1999) who investigated the links between limited HR pool and factors that impede the ability to attract and retain skilled personnel. Gelder identified problems in the policies or management of HR within the civil administration which were critical to enhance the level and quality of HR. Skill enhancing programs are important because qualified HR pool is achieved such motivational practices have adequately upgrade employees skills.

 

Several studies of progressive HRM practices in training, compensation and reward have revealed that these can lead to reduced turnover, better quality work and better service rendering (Arthur 1994; Davies 2001; Macduffie 1995). Here, the retention of professionals is a particular challenge. Recent research findings show that turnover and motives of highly skilled professionals are not necessarily linked to income differentials. Poor labour standards, an absence of career opportunities, and difficult socio-economic and political conditions are important push-factors. These are also important determinates of the retention process, and can considerably affect the attraction of talent skills, and to invest in activities that can reduce capacity shortage and foster sustainable development. A better understanding of the patterns and dynamics of attracting and securing skilled HR in the African civil service context is thus essential to minimize human capital turnover to the other sectors and ensure that the benefits are both maximized and sustained.

 

Therefore, a challenge for HR practitioners is clearly to design holistic systems that integrated HR policies with best practice and provide positive work experiences simultaneously. This is similar to the idea that it is necessary to implement "bundles” of HRM practices to achieve sustained improvements in organizational performance (Buchan 2004).

 

State Service Commission (SSC 1998) considers the key to a high performance public service lies in well-qualified staff at all levels. For this end, HR managers need to identify current levels of competencies, areas in need of further development, effective means of addressing development needs, and sets objectives. The manager also needs to set review and evaluation plan, time schedule and resource for achievement of the development objectives (SSC 1998).

 

It is well argued in the literature that HR policies and management practices and securing skilled staff have a strong linkage. If appropriate HR policy and management provided, civil service may play an important role in the process of employment and mixing the existing staff. The identified HR practices that will enhance recruitment and retention included selective staffing, competitive and equitable compensation, training and development activities (Macduffie 1995).

 

Available studies suggest that there is a set of best practices for managing employment and retention. Factors that are affected securing talent HR, according to these studies, were categorized in to two bundles. The first relates with HR factors which include person organization fit, remuneration, training and development. Organizational factors are the second bundles which include leadership behavior, team work relationship, organizational culture and policies and work environment (Chew and Entrekin 2004). This study concludes that recruitment and retention management of employees is influenced by several key factors, which should be managed by appropriate HRM system and thereby implies that both HR policies and practices may influence employment and retention of staff and thereby capacity of organization performance.

 

The conceptual and theoretical framework for this study highlights the relationship between employment policy of the public sector and securing skilled HR in competitive labour market situation public sector is concerned how to attract and retain professional staff so as to enhance service delivery. For convenience of discussion, the most important HR policies and management practices relating to professionals employment are grouped under three main headings: recruitment, remuneration and rewards, and HRD and training.

 

4.1. Recruitment

It is important to note that employment is far from homogenous and that professional employee is a small portion of the total. For the purpose of this study, professional is defined broadly to include all levels of skilled labour forces from first degree to third, i.e. BA/ BSc, MA/MSc, MD, PhD. It includes skilled labour forces working in civil service at all classified positions as well as career-structured health and education sector employees. The different terms and conditions of employment and the skills required by civil service institutions should all be taken into account in analyzing the HR challenges.

 

Recruitment is seen as both searching for and obtaining potential candidates in sufficient numbers and quality so that the organization can select the most appropriate people to fill its job needs (Bolton 2001). However, studies in this respect show that the public service has faced critical shortages of well-qualified HR. Gelder (1999) states that selective rather than comprehensive recruitment approaches may be helpful to address the challenge.

 

According to Hiderbrand and Grindle (1997), however, factors such as pay scales and conditions of employment or the size of the public sector are necessary but not sufficient for improved performance. For them, greater autonomy that allows organizations to hire and fire within general framework is needed to be set for the public sector. Recruitment procedures and norms are another tools need to be developed that confer status and identify on public servants and that allow organizations to monitor, evaluate, and enforce such standards.

 

In addition, the impact of employment policy and management practice depends on the type of recruitment system and the extent to which it is implemented and managed in a strategically planned manner. Scott A. Fritzen (2000) stated that capacities for strategic workforce planning in public sector are often critically weak. Lack of HR information system, planning that focuses only technical matters and neglecting the demanded HR by qualifications, motivation, development and performance of staff are just to mention some of the few problems.

 

Public sector organizations can play an important role in HRM, but they are often constrained by overly centralized civil service system. Sharing several countries from OECD member states experiences, PM Service (2002) stated that

 

4.2. Remuneration and Rewards

Among the causes commonly referred to in explanation of the shortage of professional employment and rising level of turnover in the civil service are government policy of remuneration and rewards. Brooks (2005) explained that pay comparisons are a useful tool for indicating potential workforce problems, and are likely to help in finding a level of pay that attracts and retains staff and which employees fell to be fair.

 

Recent change and development-technological, new systems of financial and performance management, decentralization and the introduction of market mechanisms have profoundly altered the demand for workers and in some cases the types of skills and expertise from civil servants. At the same time, the organizational strategy, structures and practice need to be changed (Gray 1999; Lethbridge 2004).

 

Lower wages and incentives are the driving forces behind the shortage of talent labour and high turnover in the civil service. In examining most of the OECD countries that encounter critical skill shortage problems in the public sector, PM Service (2000) survey shows that competition with private sector to attract and retain the best talent is intensified. Lower wages, shortage of progression, and HRD have caused many graduates and senior civil servants to choose a career in the private sector over public service. This is evident in many countries with economic reform and emergence of private sectors in economic development in most of sub-Saharan countries.

 

Furthermore, high labour turnover coupled with shortage of professionals are affecting the organizational capacity in rendering services. This is particularly the case if the employing organizations have poor pay schemes, limited reward and remuneration, unbalanced workloads, and limited career opportunities. Talented and marketable employees possessing critically needed skills are forced to outflow to other sectors in search of better pay and incentives.

 

Ian Lienert (1998) concluded that salaries need to be restructured comprehensively to enhance transparency and improve governments’ ability to recruit and retain skilled staff. Despite the fact that salary increase and promotions are based solely on seniority by policies, many competent staff members have been demotiveted and leave the service for private sectors. This is the effects of promotion procedures that look into years of experiences instead of considering performance as center of recognition.

 

4.3. Human Resources Development and Training

 

Gl Filerman (2003) comments that lack of competent professionals at all levels discourage decentralization, program integration, local participation and initiative. However, it gives to rise that higher priority for making the investment in HR competence. Inke Mathauer and Ingo Imhoff (2006), on the other hand, consider training and professional progress as an important motivational determinant. They further explain that training can have strong motivating effects through coping people with their jobs and achieving personal goals of professional advancements.  

 

 Although HRD and training has become a tool to attract and retain critical skills in the public sector the training- led model of public staff management is declined to the extent that almost non- existent. In this respect, Lethbridge (2004) stated that HRD in Africa civil service, as in most of the Ethiopian public sector, has not been practiced to fill existing competency gaps. These all show that the analysis of the internal and external factors which have implications on individual employee and organizational culture.

 

 HRD and training model may be analysed in terms of three factors both internal as well as external to the civil service organization. The first point relates with what Asnake (2001) and Mekeria et al (2002) remarked that absence of career development policy as guidance for staff development and for motivation individual performance. Second, HRD depends on sufficient financial resources to conduct career development for the purpose of filling critical skills gap in the public sector. However, studies have considered financial scarcity due to budget cut resulted from economic reform has undermined the practices of HRD (Naraslmhan 2004; Lethbridge 2004; McCourt and Awases 2007).Finally, HRD depends on the organization’s internal management style. Included here are management, planning, decision-making and control and evaluation functions; and information gathering and processing (Wills 1993).

 

From the above discussion, it is possible to conclude that absence of HRD policy, financial constraint and management incompetence are the main challenge for developing HR so as to bridge the existing skill shortage and mix. Despite the fact that most of civil service organizations in sub-Saharan Africa are performing their duties in short of talent HR, all of them have experienced inappropriate training practices. This is partly because of public sector in Africa has traditionally placed recruitment of appropriately trained workers rather than on developing the already existing staff career.

 

With the role of the public sector limiting itself to employ skilled HR, the demand for employment is dramatically increasing due to many reasons. The market competition has further weakened the availability of talent skills in the civil service. In discussing about the implementation of HRD, Vasant Naraslmhan et al (2004) stated that traditional approach to HR issues resulted in critical skills shortage. Otherwise, as Chew and friends (2005) found that allowing expressing employee training need is a tool to achieve commitment of employee that strengthen attachment to an organization.

 

Unfortunately, the HRD and training implementation in public sector is not responding quickly enough to changes, and these programs have remained rare and not carefully designed to respond to the specific needs of the organization. On the contrary, opportunities for training and education in the private sector serve as pull factor for increasing labour turnover to the sector. All these factors according to the mentioned authors produce shortage of skilled labour in the civil service.

 

             Conceptual Framework for studying shortage of Professional Employment

·   Inflexible Employment Policy

·   Poor Pay and Incentive schemes                    Bridging Knowledge gap                           Shortage of skilled HR

·   Limited Practices of HRD,                              Hampered

         Training                                 

 

 

Source: Adopted from the empirical findings discussed above.

 

5. Civil Service System in Addis Ababa.

5.1. Previous Experience

The two major causes that have received most attention in the literature on HR issues in Ethiopia public sector are external and internal factors. Since the development of operational arm of the government, the civil service institutions have undergone different forms of structure and administration following the process of change and continuity in the political economy of the country (AACA 1998; Alemayehu 2001; Kassahun 2002).

 

A study held by AACA (1998) indicates that the emergence of civil service structure has been closely attached with the appointment of nine Ministries by the Emperor Menilik II in October 1907.  Over the years, the civil service has grown in to an important government service delivery institution following the process of "modernization" and economic development which Emperor Haile Selassie I pursued in the aftermath of Italian invasion.  The structure as well as the nature of the public service administration has taken various forms in accordance with the policy of the central government. In this respect, the study has analysed three different phases of HRM policies and practices of the civil service in the city of Addis Ababa as follows.

 

Pre-1974/5

 During this period Addis Ababa was one of the few chartered cities of the Empire of Ethiopia administered by a Lord Mayor or Kantiba appointed by the Emperor.  The other two chartered cities were Asmara and Gonder (Meheret 1994 ).  It was Addis Ababa that had considerable local government authority empowered to manage its own HR. However, study in this regard suggested that the public sector had no any rules and regulations with regard to appointment, recruitment, employee salary level and promotion (AACA 1998).

 

Although the Central Personnel Agency, which has organized in a systematized and centralized way since 1962, was aimed at ensuring that HR functions were implemented in accordance with a law on the administration of civil servants, the HRM of the city was largely depended on the decision made by the Mayor.

 

As indicated in the study undertaken by AACA (1998), the decision that was made by the mayor suggested the violation of principles of merit and comptetion in public sector recruitment and promotion. The practice of HRM within the public sector of the city was made decisions based on blood ties, nepotism, and loyalty.  Such an arrangement allowed public administration to remain sensitive to personal loyalty. Thus, it undermined merit and competition, and arguably civil service performance as well, when unqualified individuals are hired or promoted into posts for which they are unsuited.

 

          1974/5-1990/1

Perhaps the most important function performed in this phase is the decisions that were made the public sector in Addis Ababa to be governed by the civil service rules and regulations. It was decree 206/75 that entitled the city public sector to abide by the central civil service regulations. However, the Derge regime significantly affected Addis Ababa as well as the country’s HRM in a number of ways. As Meheret Ayenewe (1999) pointed out, Addis Ababa lost a great measure of municipal autonomy, and its administration was very much influenced by the politics of the day. One distinctive feature of the civil service during this time was the disregarding implementation of merit system. The appointment of party functionaries to key decision- making positions, the eviction of skilled officials and civil servants, promotion and training of employees took a significant political dimension (AACA 1998; Kassahun 2002). Thus, downplaying of merit system and professionalism constituted the most formidable challenges that the civil service encountered.

 

 As professionals’ assignment had been continued centrally by Central Planning Office, the size of the civil service has not only been increased but also many of them set ideal without anything to accomplish (AACA 1998). Quite clearly, the combined effects of prohibition of resignation and transfer, limited the level of salary scale increment, and dismissal based on political causes have had some impact on civil service.

 

In one of the earliest studies on HR issues and service delivery in Addis Ababa, Public Administration Service (PAS 1984), a well-known consultancy institute, has identified so many problems with regard to HRM. Based on results from Addis Ababa Municipal Administration survey, the study has indicated that recruitment was carried out with little regard to background, education, and experience. Salaries were not comparable either internally or externally. The involvement of the then Public Service Administration Commission (former CPA) in handling the HR functions had done little to improve the situation. It is rather considered as “hindering the municipal administration to control over its own resources as well as to give it the flexibility to meet changing times” (AACA 1998).

    

Post – 1991

Transitional Government of Ethiopia (TGE 1993) acknowledged the incompatibility of the civil service rules and regulations with the progress of the country and federal structure of government. Following the coming to power of the EPRDF in 1991, the city of Addis Ababa assumed an autonomous local government authority in the Ethiopian federal system of government with an elected council and city governor answerable to the residents (TGE 1994). Later on, the Constitution Article 49/2 (FDRE 1995) has also confirmed “self-government” of the city residents. Such an arrangement has had serious implications, as Meheret Ayenew (1999) suggested, for “considerable degree of self-rule”. To this end, measures such as organizing 24 sectoral bureaus and large number of employees, provision of responsibility for the day-to-day management of HR of the city, minimizing administrative and bureaucratic procedures and promotion of decentralization were highlighted.

 

International Monetary Fund (IMF) and World Bank supported Civil Service Reform Program (CSRP), launched in October 1994, whose basic role focused on making the system efficient and effective. Since then, the City Administration has been launching similar action, along with the federal line.

 

Pursuant to the federal structure and the associated CSRP which was launched in 1994, a bunch of policy measures targeted at stimulating HRM reform has been enacted. This donors-sponsored reform stresses the need to design a similar system that is appropriate to the organization and management of the private sector, focusing on cost containment and quality improvement in which HRM reform is most likely to be concentrated. The prominent measures in this respect include:

  • Undertaking HRM reform to make the civil service efficient, neutral, effective, sustainable, transparent and development-oriented;
  • Establishment of a system that may attract and retain competent professionals dedicated to serve the public;
  • Ensuring that appointment, promotion, transfer, salary increment and training is based only on the educational qualification, ability, profession, experience and performance of the civil servants; and,
  • Establishment of base remuneration on position classification and grading and thereby ensure the principle of equal pay for equal work (FCSC 2002).

 

In addition, it is notable that as many of the reforms in Africa or elsewhere, civil service reform in Ethiopia operated with common assumptions: sustained cost-containment, efficiency improvement and competitive with the private sector. One of the most important HRM reform adheres to achieve is that attracting and retaining skilled HR so as to improve effectiveness of the service. However, there are a few studies using data from the federal civil service institutions (FCSC 1999) and the city of Addis Ababa (Makuria et al 2002; Asnake 2001; Asnake et al 2005) that have found critical shortage of skilled HR. Since attracting and retaining of HR is the main area of concern for HRM policy of the country and the city, the HRM reform document regards shortage of skilled labour in terms of institutional incapacity, poor remuneration and compensation, insufficient HRD and training (FCSC). The following part deals with the empirical review that causes to the shortage of talent skills in the Addis Ababa civil service.

 

5.2. Recent Civil Service Employment Trends: Overview

 

This section deals with the actual size and HR mix in the civil service.  Both points are important to understand some changes in the patterns of the civil service employment.  The choice of scope was dictated by data availability. The main source of the information on the structure of employment is Federal Civil Service Commission and Addis Ababa Civil Service Commission.  Table 1 shows the size of the total number of Civil Service employment as a whole.

 

Table 1

Total Number of Civil Servants in Addis Ababa City Administration

 

Fiscal Year

2001

2004

2005

2006

No. Employees

25216

28770

28944

29456

Source: FCSC. Personnel Statistics. Yearly Publication, Addis Ababa.

 

One of the most important characteristics of the civil service employment in AACA is observed in the gender composition. The general trend in the civil service has been for an increase in activity rates for women.  While it is a known fact that Women tend to hold low-skilled jobs more than men do, it must be noted that more women are attaining responsible positions than ever before.  In order to highlight these changes, we will look first at women's share in Civil Service employment and then we precede the jobs that women hold in the Civil Service.

 

Figure 1:   Share of Women in the Civil Service of Addis Ababa City Administration

%

60

 


50

 

40

 

30

 

20

 

10

 

0

            2000           2002         2004          2005          2006

year

 Source: FCSC. Personnel Statistics. Yearly Report, Addis Ababa.

 

Age composition is another important characteristic of the Civil Service employment.  Data obtained from AACA Civil Service Commission and FCSC indicate that the share of young people is relatively high, which implies the Civil Service have greater rate labour force that could be work for most of their remaining years. High proportion of young people could be an advantage for the Addis Ababa Civil Service because it leads to a possibility of large HR to work for long years; but imposes a heavy burden on the educational system, and makes capacity development one of the main HR issues.  Table 2 below presents the recent age composition.

 

 

Table 2

Addis Ababa City Administration Civil Servants by Age Group-2006

 

Age Group

Male

Female

Total

18-22

793

755

1,548

23-27

1,864

1,763

3,627

28-32

2,152

2,178

4,330

33-37

2,448

2,354

4,902

38-42

1,957

2,374

4,331

43-47

1,857

1,931

3,788

48-52

1,615

1,325

2,940

53-57

1,175

588

1,763

58-60

72

17